Two Fast-Growing Stocks Less Than $10

There is nothing more exciting than finding a stock that has been mispriced by the market. The vast majority of cheap companies are cheap for a reason. Occasionally, however, you will be surprised to find a discount-priced small cap that is both fast-growing and dynamic. Two companies that fit that description are…

W&T Offshore (NYSE:WTI) and Farfetch Limited (NYSE:FTCH).

An oil company that zigs when the market zags

The development of fracking technology has caused a major shift in the oil industry, with an amazing boom in some parts of the oil sector and an equally remarkable bust in others. In the wake of this tsunami of new fracking oil, many companies have abandoned or severely curtailed offshore oil exploration and drilling. But W&T Offshore has decided to forgo the frackers in the Bakken and the rest of the shale universe and continue to do what it does best: find oil in the Gulf of Mexico.

A little more than 10 years ago, W&T Offshore was trading for $59 a share. The founder and CEO, Tracy Krohn, was a billionaire and one of the richest people in the country. He was ranked No. 321 in the Forbes 400. And then the bottom fell out. The stock has taken a 90% haircut since 2008, down to a dirt cheap $5.06 a share. A few years ago it was even cheaper, hitting a low of $1.56 per share in 2016.

While the stock price languishes in the cheap seats, the company itself is doing quite well. Its profit margin is almost 32%. (Contrast this with ExxonMobil (NYSE:XOM) or BP (NYSE:BP), which have profit margins of 6% and 3%, respectively.) And its profit growth has been a thing of beauty.

Year Profit
2015 (-$1,044,718,000)
2016 (-$249,020,000)
2017 $79,682,000
2018 $248,827,000

W&T Offshore just spent $200 million buying up some highly accretive oil properties in the Gulf of Mexico’s Mobile Bay. With this purchase, the company is now the largest operator in the area. Investors should see even more revenue and profit growth in the very near future, as W&T Offshore will start recognizing its new acquisition this month.

An IPO on the discount shelf

Late last year, online clothes retailer Farfetch Limited had its IPO priced at…

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