The recent market sell-off has hit a lot of share prices hard. As a result, there are more stocks trading below the $10 mark that are attracting investors' attention.
Just because a stock trades in single digits doesn't make it an automatic bargain, but some stocks that have shares trading at less than $10 do offer an attractive combination of value and potential growth. Below, we'll look at Transocean (NYSE: RIG) , Sirius XM Holdings (NASDAQ: SIRI) , and Cameco (NYSE: CCJ) to see why their share prices are so inexpensive and what's ahead for their businesses.
RIG data by YCharts .
Transocean looks for a rebound
The energy industry has been underwater for a long time now, and as an oilfield services company that has a lot of exposure to offshore drilling, the plunge in crude oil prices was particularly difficult to endure. Offshore projects cost more than their land-based counterparts, and at less than $50 per barrel, oil prices make it hard to justify those higher expenses during the downward part of the energy cycle. That pushed shares of Transocean down into single-digit territory in recent years.
Now, crude has headed into the $60s , and that's been enough to get producers to take some of their offshore ambitions off the shelf. Transocean has taken dramatic steps to improve the health of its business, cutting costs and becoming more efficient. If the rebound leads to a new energy boom, it could make past recoveries look mild and show just how much progress Transocean has made toward becoming the leader in its industry.
Image source: Transocean.
A strong signal from Sirius XM
Satellite radio isn't new, but it's still relevant at a time when ubiquitous entertainment options are in high demand. Sirius XM delivers a wide range of programming via satellite transmission, making it accessible even in areas in which it's difficult to get the cell reception that most wireless in-vehicle service requires. With 32.7 million subscribers to finish 2017 , Sirius XM has a popular product.
Sirius recently announced a new platform, the 360L, that offers on-demand programming and high-profile sports coverage. Although the new service is expected later this year on just a single vehicle, there's every reason to believe that Sirius will build up the new platform as a way to get a broader entertainment experience. That's what people want these days, and even though its stock has already gained ground lately, Sirius XM should be able to capitalize on favorable conditions.
Looking to shine
Like oil, the uranium market has seen huge amounts of pressure, and that's been negative for uranium producer Cameco. With spot prices for uranium at extremely low levels, Cameco has been working to hang on to its longer-term contracts as long as possible before having to renegotiate terms at lower prices.
Some positive signs in the uranium market could give Cameco some relief in the near future, but a lot depends on what the company does with its respite. In light of low prices, producers in Kazakhstan chose to cut their production targets over the next few years, and Cameco has already said that at current prices, available supplies of uranium are most valuable left unmined. That's no guarantee of better times ahead, especially as many countries around the world have gotten less comfortable with the safety issues surrounding nuclear power. Yet with Cameco surviving even these tough conditions, anything less than the worst-case scenario could send shares higher.
Just because a stock has a low share price doesn't mean it's cheap. These three stocks have plenty of risks, but they also have the potential to leave single-digit share prices behind for good if the prospects for their respective industries improve in the near future.
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Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .