Capstone Turbine Corporation (NASDAQ:CPST) — $1.04
Capstone is another low-priced stock where deficits are narrowing. The maker of co-generation turbines posted a loss of $0.01 a share in last week’s quarterly report, and analysts see Capstone breaking even later this year.
The popularity of Capstone’s turbines that run on many different fuel types is strong. Revenue is growing, gross margins are improving, and there’s a healthy backlog of $136.5 million in orders.
InterMune, Inc. (NASDAQ:ITMN) — $9.16
Young biotechs can be lottery tickets, but InterMune — a company keying in on treatments in pulmonology and orphan fibrotic diseases — is already generating revenue with a unique product.
InterMune’s pirfenidone is the only medicine approved for idiopathic pulmonary fibrosis in the world, clearing regulatory hurdles in Europe and Canada. It’s currently in the third and final phase of clinical trials domestically.
Yes, InterMune is losing money and shareholders were diluted as it raised more money last month. However, revenue should more than double this year, and the outlook for stateside approval is encouraging.
InterMune will report its latest quarterly results on Thursday afternoon.
Jamba, Inc. (NASDAQ:JMBA) — $2.66
The 788-unit Jamba Juice smoothie chain is positioned to post its first annual profit this year, and it’s already becoming a market darling. The stock soared 71% higher last year, and it’s already trading 19% higher so far in 2013.
Store and product expansion, new online promotional partners, and consumers craving healthy beverages flocking to Jamba and its army of blenders are driving the stock’s success.
Cynics probably stayed away when coffee shops and burger joints began adding smoothies to their menus, but that was a mistake. The beverage’s mainstream push has actually educated consumers, who are now heading out to Jamba, where more than two or three varieties are available. As the company is evolving into a true wellness brand, it’s not just the blenders turning quickly at Jamba.
Five for the road
These five stocks aren’t trading in the single digits by accident. If I’m right about the catalysts, though, they may not be trading in the single digits for too much longer.
Finding promising stocks while they’re still cutting their baby teeth is at the heart of the Rule Breakers newsletter that I write for. You can check it out for free this month with a 30-day trial subscription. There are roughly a half-dozen active stock recommendations in the growth stock research service trading for less than $10 at the moment. Check those out, and I’ll be back with more on the third Monday of next month.
The article 5 Stocks Under $10 Worth Buying originally appeared on Fool.com and is written by Rick Aristotle Munarriz.
Longtime Fool contributor Rick Aristotle Munarriz owns shares of Ford and Jamba. The Motley Fool recommends Ford, The Active Network, and WisdomTree Investments. The Motley Fool owns shares of Ford.
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