Recently researching investment opportunities in 2026, I discovered that the low-priced stock sector actually hides many hidden gems. Many people have misconceptions about low-priced stocks, thinking that cheap equals no potential, but that's not the case. I found that as long as you choose the right targets, the most promising low-priced stocks can often bring unexpected returns.

My stock selection logic is very simple; the core is to find targets with a PEG less than 1. In simple terms, it's looking for stocks where EPS growth outpaces PE, which are usually not fully priced by the market yet. I set three screening criteria: PE less than 20 times, EPS growth rate over 15%, and PEG below 1. Stocks filtered through these criteria are neither too expensive nor lacking in growth momentum.

Recently, I came across a few particularly interesting targets. On the US stock side, ADMA Biologics has performed well. This company makes plasma products, with full-year revenue in 2025 of $510 million, up 20% annually, and its flagship product ASCENIV surged 51%. The company expects revenue in 2026 to exceed $635 million, with a long-term goal of surpassing $1.1 billion by 2029. Currently, its PE is just over 15, and the forward PE is even lower at 9.5, with a PEG of only 0.2, clearly undervalued. Analysts are generally optimistic, with target prices ranging from $23 to $32, making it one of the most promising low-priced stocks in my view.

Another one is Angi Inc, a home services platform based in the US. The company is undergoing a transformation; although revenue in 2025 declined 13%, operating income grew significantly, and adjusted EBITDA remains solid. The key is that their self-operated channels saw revenue growth of 23% in Q4, with service demand increasing by 15%, indicating the transformation is starting to show results. The stock is now only $6.89, with a PE of just 7.4, at a historical low valuation. The average target price from nine analysts is $15.33, implying a potential upside of over 122%.

Over in the Taiwan stock market, I also found two promising stocks. AU Optronics (AUO) is a small- to medium-sized panel manufacturer. Although it still incurs losses in 2025, its product restructuring is going well; the proportion of industrial control and automotive panels has increased to 50%, which are high-value markets. If panel prices stabilize and shipments of industrial control panels increase smoothly, the company is expected to turn profitable gradually from 2026 to 2027, with significant EPS growth potential. Currently, the stock price is at a historical low, and its PB ratio is also low, leaving room for valuation recovery.

Another is Juheng, a traditional steel processing factory, which has recently shown strong revenue performance. From January to February, cumulative revenue increased 61.5% year-over-year, with February alone up 47.66%. Although there will still be slight losses in 2025, recent order visibility has significantly improved. If gross profit margin can rebound to over 10%, annual EPS could challenge between 0.5 and 0.8 yuan, with a potential stock price increase of 30% to 50%.

After identifying the most promising low-priced stocks, how should I invest? My advice is not to buy just one or two stocks; at least build a portfolio of five or more. This increases the probability of hitting potential stocks. When buying, use limit orders to save costs. For example, if a stock fluctuates between $5 and $7, I might place a limit order at $5.5 or $6, so it automatically executes if the price drops below that. You can also consider dollar-cost averaging, dividing your funds into several parts to buy at regular intervals, spreading out the cost and avoiding buying at the high points.

The most important thing in low-priced stock investing is patience and discipline. Set stop-loss points, deploy gradually, and don’t be scared by short-term volatility. The most promising low-priced stocks often need time to prove their value, but as long as the fundamentals remain unchanged, they are worth holding long-term.