Stocks Under $10: A Look at the Construction Sector

Richard Suttmeier  |

The Construction Sector is 13.8% overvalued according to in an overall environment where there’s a near even split between the number of undervalued stocks versus the number of overvalued stocks. Today I will screen through 38 construction stocks that are trading below $10 but above one buck to come up with a group of stocks to profile.

My first screen was a technical one. By looking at the daily charts for all 38 stocks I found that 12 had either spotty graphs or column gaps so I reduced the group to 26.

My second screen was to enter the symbols into the VE Institutional Software and one stock was not covered by ValuEngine.

Finally I built a spreadsheet with the fundamental data that I thought was necessary and ten stocks did not have enough data to calculate fair value levels, so I reduced the search to fifteen names that I present in today’s table.

(Click to Enlarge)

Reading the Table

OV / UN Valued: The stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by that percentage according to ValuEngine. BZH is the most undervalued by 59.1%. GFA is the most overvalued by 65.7%.

Subscribe to get our Daily Fix delivered to your inbox 5 days a week

VE Rating: A “1-Engine” rating is a Strong Sell, a “2-Engine” rating is a Sell, a “3-Engine” rating is a Hold, a “4-Engine” rating is a Buy and a “5-Engine” rating is a Strong Buy. <P/> 3 stocks are rated Strong Sell, 5 are rated Sell, six are rated Hold, and only one, CX, is rated Buy.

Last 12-Month Return (%): Stocks with a Red number declined by that percentage over the last twelve months. Stocks with a Black number increased by that percentage. The best performer over the past twelve months is HOV with a gain of 262.1%. The worst performer over the past twelve months is SKY with a loss of 43.2%.

Forecast 1-Year Return: Stocks with a Red number are projected to decline by that percentage over the next twelve months. Stocks with a Black number in the Table are projected to move higher by that percentage over the next twelve months. The best projected gain is 6.8% CX. The worst projected loss is SKY 19.6%.

P/E Ratios: Only ICA has a reasonable P/E ratio, while the others don’t have one, or the P/E ratio is extremely elevated.

Value Level: is the price at which to enter a GTC Limit Order to buy on weakness. The letters mean; W-Weekly, M-Monthly, Q-Quarterly, S-Semiannual and A- Annual.

Pivot: A level between a value level and risky level that should be a magnet during the time frame noted.

Risky Level: is the price at which to enter a GTC Limit Order to sell on strength.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not necessarily represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:

Market Movers