Recently looking at investment opportunities in 2026, I discovered an interesting phenomenon: many people are still chasing high-priced stocks, but there are plenty of potential targets hidden among low-priced stocks.

Why are low-priced stocks worth paying attention to? Basically, they have low costs and potentially decent returns. The key is how to select them. I’ve noticed that truly promising low-priced stocks usually meet three conditions: first, valuations are indeed low (PE below 15, PB less than 1); second, the company is still profitable or revenue is growing (preferably with consecutive positive EPS); third, the industry outlook is good or dividends are stable.

How to filter? I often use two websites: Finviz and Investing. First, set a stock price range (for example, under $5), then filter by indicators like PE and EPS growth rate. This quickly reveals which stocks are more valuable. Besides tools, it’s also important to consider the macro environment—look for countries in an economic upcycle or industries with strong momentum, and search for low-priced potential stocks within them. Emerging industry star companies and those with earnings catalysts are also worth watching.

My own stock selection logic is to look for targets with PEG less than 1. Simply put, the EPS growth rate should be higher than the PE, indicating the stock price hasn’t caught up with the company’s profit growth, meaning it’s undervalued. At the same time, keep PE below 20 times, with EPS growth ideally over 15%.

Based on this logic, I’m more optimistic about ADMA (ADMA Biologics) in the US stock market. This company makes plasma products, with revenue of $510 million in 2025, up 20% annually; its core product ASCENIV contributed $363 million, up 51% annually. The company expects revenue to exceed $635 million in 2026, with an adjusted net profit over $255 million. Currently, the trailing P/E is only 15.2, forward P/E about 9.5, and PEG only 0.20, clearly undervalued. The average analyst target price is between $23.50 and $32, with significant upside potential.

ANGI Inc (ANGI) also shows promise. It’s a leading home services platform in the US, currently transitioning. Although revenue in 2025 slightly declined, cost optimization and marketing efficiency improvements have boosted profitability. Their self-operated channels saw revenue grow 23% in Q4, with service demand up 15%. The current stock price is $6.89, with a trailing P/E of only 7.4, PEG below 0.5, and valuation at a historic low. The average target price from nine analysts is $15.33, implying over 122% upside.

Heritage Global (HGBL), involved in asset trading and auctions, has several key developments in 2026—acquisitions of DebtX, new facility operations, and a strong auction pipeline. The current stock price is $1.36, with a P/E around 13.5, and analyst target prices range from $3.85 to $4.50, representing upside of 183% to 231%.

In Taiwan stocks, Chimei (6116), a small- to medium-sized panel manufacturer, is adjusting its product mix, shifting focus to high-value markets like industrial control and automotive. Although still in loss currently, if panel prices stabilize and high-end products ramp up, there’s a chance to turn profitable by 2026-2027, with EPS growth potential worth watching. JuHeng (2022), a steel processing company, is expected to start strong in 2026, with revenue in January-February up 61.5% year-over-year. The stock is at a historic low, with PB around 0.88 times; as long as the steel industry recovers, profits can be amplified directly.

There are a few strategies for investing in low-priced stocks. First, limit orders combined with dollar-cost averaging—since low-priced stocks often fluctuate within a certain range, using limit orders can save costs, and dollar-cost averaging helps spread out transaction costs. Second, build a portfolio—don’t just buy one or two stocks; at least five to form a small group to diversify risk.

Honestly, finding the most promising low-priced stocks for 2026 isn’t easy, but as long as you master valuation, growth, and industry dimensions, and combine them with your risk tolerance, you can find many opportunities. Of course, be mindful of liquidity issues with low-priced stocks—consider staggered deployment, set stop-loss points, and guard against risks from deteriorating fundamentals.