Recently, I have been looking for opportunities in low-priced U.S. stocks with potential, and I’ve found some interesting targets. I want to share my screening approach with everyone.

To be honest, many people have misconceptions about low-priced stocks, thinking that cheap means no investment value. Actually, that’s not the case. Truly worth paying attention to low-priced stocks must meet several conditions: valuations are genuinely low (PE below 15), but the company's fundamentals remain solid, and most importantly, there is sustained profit growth or revenue growth. I usually look at whether EPS has been positive for three to five consecutive years, or if the annual revenue growth rate is above 0. Besides that, the industry outlook the company operates in is also crucial. Whether it’s a sunrise industry or a traditional one, as long as there is clear growth momentum, it’s worth considering.

My screening method is to find stocks with a PEG less than 1, meaning EPS growth rate exceeds the PE ratio. This generally indicates that the stock price has not fully reflected the company's growth potential and is undervalued. Based on this logic, I further require PE to be less than 20 times and EPS growth rate to be above 15%.

According to this standard, I recently focused on several low-priced U.S. stocks with potential. ADMA Biologics (ADMA) is a biopharmaceutical company specializing in plasma products. In 2025, revenue is projected at $510 million, with a 20% annual increase. Its flagship product ASCENIV contributed $360 million, with a 51% growth rate. The company estimates that 2026 revenue will exceed $630 million, with an adjusted net profit over $250 million. Currently, trailing PE is about 15.2 times, forward PE about 9.5 times, and PEG only 0.20, clearly lower than industry peers. Analysts unanimously give a strong buy rating, with an average target price between $23.5 and $32.

Another is Angi Inc (ANGI), which is a leading local home services online platform in the U.S. Although revenue declined 13% in 2025, the company improved profitability significantly through cost optimization, marketing efficiency, and share buybacks. In 2026, they have explicitly stated that revenue will resume positive growth, with an adjusted EBITDA forecast between $145 million and $150 million. Their self-operated channels’ revenue grew 23% in Q4, indicating the transformation is starting to show results. The current stock price is about $6.89, with a trailing PE of only 7.4 times, at a historic low valuation. Nine analysts give an average target price of $15.33, with a potential upside of over 122%.

Heritage Global (HGBL) is an asset services company mainly involved in trading financial and industrial assets. In 2026, they will rely on acquisitions through DebtX, new facilities, and a strong auction pipeline, expecting more active transactions. The current stock price is about $1.36, with trailing PE around 13.5 times. The average target price from analysts is between $3.85 and $4.50, representing an upside of 183% to 231%.

On the Taiwan stock market, I also selected a few stocks. Chimei (6116) is a small- to medium-sized panel manufacturer. Over the past few years, they’ve actively adjusted their product mix, with industrial control and automotive panels now accounting for about half. Although currently still in loss, if panel prices stabilize and shipments of industrial and automotive panels increase smoothly, they could gradually turn profitable in 2026 to 2027. Juheng (2022) is a steel processing factory. Their performance in early 2026 looks promising, with a cumulative revenue increase of 61.5% in January and February. The stock is at a historic low, with a PB of about 0.88 times. If gross margin can rebound above 10%, EPS for the year could challenge 0.5 to 0.8 yuan, with potential stock price gains of 30% to 50%.

There are several ways to invest in low-priced U.S. stocks. The most direct is to buy individual stocks through a foreign broker or via a U.S. custodian account, with a minimum of one share, which has a low capital threshold. If you feel the risk is a bit high, ETFs are a good choice; these funds hold many low-priced stocks, sometimes hundreds or thousands, providing good diversification. Another flexible method is trading CFDs (contracts for difference), which require only a margin deposit and allow you to go long or short, suitable for short-term opportunities driven by sudden events.

For trading strategies, I recommend combining limit orders with dollar-cost averaging to spread out costs. Low-priced stocks tend to fluctuate within a certain range, so placing limit orders at relatively low points can automate purchases. Also, it’s best not to buy only one or two stocks; forming a small portfolio of at least five stocks increases the chance of catching potential winners and helps diversify risk.

Finally, a reminder: low-priced stocks often have liquidity issues. It’s safer to deploy orders in batches and set reasonable stop-loss points to prevent risks from deteriorating fundamentals. Opportunities in low-priced U.S. stocks do exist, but they require thorough research and risk management.