In this article, we discuss the 10 best growth stocks under $10. If you want to skip our detailed analysis of these stocks, go directly to the 5 Best Growth Stocks Under $10.
In an era of soaring market valuations, cheap growth stocks offer investors of all types a chance to make handsome returns in a short space of time. Growth companies usually boast of a competitive advantage over peers and hence have a strong chance of increasing their earnings and sales faster compared to other firms in the same sector. Unlike value plays, there is also a certain risk associated with investing in growth stocks, but this risk has been what has set success and failure apart at the market in the past few years.
Some of the most popular growth stocks on the market today include Amazon.com, Inc. (NASDAQ: AMZN), Tesla, Inc. (NASDAQ: TSLA), Palantir Technologies Inc. (NYSE: PLTR), Shopify Inc. (NYSE: SHOP), Twitter, Inc. (NYSE: TWTR), and Sea Limited (NYSE: SE), among others. These stocks have registered record rallies over the past year and offered investors handsome returns, in part due to the coronavirus lockdowns and an increased focus on digital offerings, but also because of strong business fundamentals.
Market experts have been advising investors to monitor growth stocks closely as inflation fears reduce prices and offer a buying opportunity. Since more than 20% of the S&P 500 comprises just four large-cap technology firms, it is not often that this opportunity comes along. However, smart investors can also look towards cheaper growth stocks that are trading under $10. Retail investors, who usually bet on cheap plays, could stand to gain a lot from the investments in these firms, some of which have been discussed in detail below.
The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Photo by Austin Distel on Unsplash
With this context in mind, here is our list of the 10 best growth stocks under $10. These were ranked after careful consideration of analyst ratings and basic business fundamentals of each firm. Special importance was assigned to the number of hedge funds having stake in each firm, with data from the Insider Monkey database, comprising 866 hedge funds, serving as a key guide in the rankings.
Best Growth Stocks Under $10
10. Support.com, Inc. (NASDAQ: SPRT)
Number of Hedge Fund Holders: 4
Price as of July 21, 2021: $6.65 per share
Support.com, Inc. (NASDAQ: SPRT) is ranked tenth on our list of 10 best growth stocks under $10. The company’s shares have returned 222% to investors over the past twelve months. The firm is based in Delaware and operates support to home-based employees in the United States. It has a market cap of over $96 million and posted more than $43 million in annual revenue last year. In earnings results for the first quarter, posted on May 13, the firm reported a revenue of $9.6 million, down 19% year-on-year.
On March 22, the share price of Support.com, Inc. (NASDAQ: SPRT) surged more than 270% after the company merged with Greenidge Generation Holdings to help the latter go public. Greenidge Generation Holdings is a crypto mining firm.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Support.com, Inc. (NASDAQ: SPRT) with 831,549 shares worth more than $3.8 million.
Just like Amazon.com, Inc. (NASDAQ: AMZN), Tesla, Inc. (NASDAQ: TSLA), Palantir Technologies Inc. (NYSE: PLTR), Shopify Inc. (NYSE: SHOP), Twitter, Inc. (NYSE: TWTR), and Sea Limited (NYSE: SE), Support.com, Inc. (NASDAQ: SPRT) is one of the best growth stocks to buy.
9. Atossa Therapeutics, Inc. (NASDAQ: ATOS)
Number of Hedge Fund Holders: 6
Price as of July 21, 2021: $3.98 per share
Atossa Therapeutics, Inc. (NASDAQ: ATOS) is placed ninth on our list of 10 best growth stocks under $10. The stock has returned 317%% to investors over the past six months. The firm is a biopharma company that operates from Washington. On June 11, the share price of the firm jumped by close to 12% as it continued an eight-day winning streak and announced that it would soon be joining the Russell 3000 and Russell 2000 indexes, improving the visibility of the firm to investors from around the world.
On July 7, the share price of Atossa Therapeutics, Inc. (NASDAQ: ATOS) soared by close to 4% after the firm announced that it had received regulatory approval for a clinical study of AT-H201, a therapy being developed by the firm for hospitalized COVID-19 patients.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Atossa Therapeutics, Inc. (NASDAQ: ATOS) with 3.3 million shares worth more than $6.9 million.
Alongside Amazon.com, Inc. (NASDAQ: AMZN), Tesla, Inc. (NASDAQ: TSLA), Palantir Technologies Inc. (NYSE: PLTR), Shopify Inc. (NYSE: SHOP), Twitter, Inc. (NYSE: TWTR), and Sea Limited (NYSE: SE), Atossa Therapeutics, Inc. (NASDAQ: ATOS) is one of the best growth stocks to buy.
8. Ideanomics, Inc. (NASDAQ: IDEX)
Number of Hedge Fund Holders: 7
Price as of July 21, 2021: $2.47 per share
Ideanomics, Inc. (NASDAQ: IDEX) is a company that markets EV adoption services. It is placed eighth on our list of 10 best growth stocks under $10. The stock has returned 76% to investors over the course of the past twelve months. On May 17, the company posted earnings for the first quarter, reporting earnings per share of $0.00, beating market estimates by $0.03. The revenue over the period was more than $32 million, beating market estimates by more than $7.7 million. The firm also revealed that it had $356 million in cash at the end of the quarter.
On June 3, investment advisory Roth Capital maintained a Buy rating on Ideanomics, Inc. (NASDAQ: IDEX) stock with a price target of $7, appreciating the progress the firm was making to bring wireless charging infrastructure to the market.
At the end of the first quarter of 2021, 7 hedge funds in the database of Insider Monkey held stakes worth $20 million in Ideanomics, Inc. (NASDAQ: IDEX), up from 5 in the preceding quarter worth $3.4 million.
In line with Amazon.com, Inc. (NASDAQ: AMZN), Tesla, Inc. (NASDAQ: TSLA), Palantir Technologies Inc. (NYSE: PLTR), Shopify Inc. (NYSE: SHOP), Twitter, Inc. (NYSE: TWTR), and Sea Limited (NYSE: SE), Ideanomics, Inc. (NASDAQ: IDEX) is one of the best growth stocks to buy.
7. Mobile TeleSystems Public Joint Stock Company (NYSE: MBT)
Number of Hedge Fund Holders: 11
Price as of July 21, 2021: $8.44 per share
Mobile TeleSystems Public Joint Stock Company (NYSE: MBT) is ranked seventh on our list of 10 best growth stocks under $10. The company’s shares have offered investors returns exceeding 1.5% over the course of the past three months. The firm is based in Russia and markets telecommunication services. On Mach 4, the firm posted earnings for the fourth quarter of 2020, reporting a revenue of over RUB133 billion, up more than 7% compared to the revenue over the same period in 2019 and beating market estimates by RUB4.5 billion.
In early March, the share price of Mobile TeleSystems Public Joint Stock Company (NYSE: MBT) jumped close to 4% after the firm posted strong quarterly earnings, beating market expectations after solid Russian mobile service growth.
Out of the hedge funds being tracked by Insider Monkey, New York-based firm Renaissance Technologies is a leading shareholder in Mobile TeleSystems Public Joint Stock Company (NYSE: MBT) with 21.5 million shares worth more than $180 million.
Mobile TeleSystems Public Joint Stock Company (NYSE: MBT) is one of the best growth stocks to buy, just like Amazon.com, Inc. (NASDAQ: AMZN), Tesla, Inc. (NASDAQ: TSLA), Palantir Technologies Inc. (NYSE: PLTR), Shopify Inc. (NYSE: SHOP), Twitter, Inc. (NYSE: TWTR), and Sea Limited (NYSE: SE).
6. United Microelectronics Corporation (NYSE: UMC)
Number of Hedge Fund Holders: 11
Price as of July 21, 2021: $9.45 per share
United Microelectronics Corporation (NYSE: UMC) operates as a semiconductor wafer foundry and is based in Taiwan. It has a market cap of over $23 billion and posted close to $6.3 billion in annual revenue in 2020. The company recently announced that net sales for the month of May had grown 16.5% year-on-year and now stood at NT$17.1 billion.
On April 29, investment advisory Macquarie upgraded United Microelectronics Corporation (NYSE: UMC) stock to Outperform from Neutral. The price target was also increased to NT$67.3 from NT$45.3 on the back of strong first quarter earnings.
At the end of the first quarter of 2021, 11 hedge funds in the database of Insider Monkey held stakes worth $173 million in United Microelectronics Corporation (NYSE: UMC), down from 12 in the preceding quarter worth $190 million.
Click to continue reading and see 5 Best Growth Stocks Under $10.
Suggested Articles:
- 15 Best Jim Cramer Stocks to Buy Now
- 10 Best REIT Stocks with High Dividend Yields
- 15 Best Gold Mining Stocks to Invest In
Disclose. None. 10 Best Growth Stocks Under $10 is originally published on Insider Monkey.
