A company’s stock price doesn’t necessarily reflect its value. That is better determined by looking at its market cap, which is the share price multiplied by the number of shares outstanding. But even then, lower-priced stocks often have smaller market caps and more room to grow. This can be because they faced challenges in the past or simply issued additional shares to fund their expansions.
Let’s explore the reasons why two stocks trading in single digits — Sirius XM (NASDAQ: SIRI) and Limelight Networks (NASDAQ: LLNW) — could make welcome additions to your portfolio right now.
Sirius XM is proof that a small stock price doesn’t always mean a small company. Despite trading at around $5.88, Sirius boasts a market cap of $25 billion, which puts it in large-cap territory. The satellite radio giant can deliver value to investors by maintaining its competitive moat and pivoting to new opportunities like podcasting.