10 Best Affordable Stocks Under $10 to Buy

6. ADT Inc. (NYSE:ADT)

Number of Hedge Fund Holders: 23

Share Price as of October 18, 2024: $7.02

Forward P/E as of October 18, 2024: 10.49

ADT Inc. (NYSE:ADT) is a security company that ranks sixth on our list of the most affordable stocks under $10 to buy now. The company provides security products to residential customers and small businesses. Some of its products include fire protection, alarm security, video cameras, life safety detectors, and smart home products.

The company has been operational for 150 years and has consistently worked to improve the safety of 6 million customers in over 150 locations in the United States. ADT Inc. (NYSE:ADT) has also been working to drive innovation. In September, the company partnered with Z-Wave Alliance, a wireless communication protocol that allows smart home devices to function together smoothly. The partnership promises integrated and reliable user-friendly products for customers.

In the second quarter of 2024, the company generated $1.2 billion in revenue, up by 3%. The company had strong financial results in the first half 2024, with continued revenue growth and cash flow improvement. ADT Inc. (NYSE:ADT) also expects to increase investment in innovation and provide premium smart home solutions.

Overall, ADT Inc. (NYSE:ADT) is a cheap stock. The company is trading at a discount of 40% from its sector median. Analysts polled by Yahoo Finance expect its earnings to grow by 33.3% this year. ADT is a buy and we attribute that to its unique product portfolio with an extensive focus on innovation.

Ariel Investments stated the following regarding ADT Inc. (NYSE:ADT) in its Q2 2024 investor letter:

“Leading provider of automated security solutions ADT Inc. (NYSE:ADT) also traded up in the quarter. A top- and bottom-line earnings beat, highlighted by strong growth within the consumer and small business segment, low attrition, an improving payback period and margin expansion aided shares. Meanwhile, ADT sold its commercial business and is winding down its solar business to focus on profitability in the residential sector and pay down debt. We continue to believe ADT’s industry-leading brand and national presence, coupled with its Google and State Farm strategic partnerships, position it to be a prime beneficiary of growing demand for smart home technologies, including fully monitored residential security.”