In this article, we will discuss the 10 Best Low Priced Stocks to Invest in Now.
As per American Century Investments, global small-cap stocks might be well-placed to benefit from changes in the macroeconomic factors in 2025. Inflation, elevated interest rates, and fears of recession impacted smaller companies in recent years, resulting in the significant underperformance of small-caps as compared to the large-caps. This trend was seen in 2024, with large caps dominating through the first half. However, sentiments shifted at mid-year when some momentum was seen in small caps.
What Lies Ahead?
The small caps picked up an additional tailwind post the US elections, says American Century Investments. The investors expected stocks, mainly small-caps, to benefit from Trump’s approach to taxes, tariffs, and regulations. The expectations for continued cuts by the US Fed and several other central banks have resulted in favorable conditions for small-caps. Trump’s approach towards tariffs can result in large companies bringing their supply chains closer. The small-caps can benefit from higher capital spending associated with reshoring and nearshoring.
The growth of AI is anticipated to continue to increase demand for data centers and energy. Even though the Mag 7 companies have managed to get more attention, American Century Investments believes that this trend can also support small-caps in multiple categories. The beneficiaries might include data center operators and providers of energy-efficient cooling solutions. While M&A and IPO activity witnessed a fall in 2022 and 2023, reduced rates and a favorable US regulatory environment can result in more deals in 2025. The investment firm expects that deregulation might fuel capital markets activity, supporting banks and boutique investment firms.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
Tailwinds for Small Caps
BNP Paribas Asset Management expects that earnings will fuel the next leg higher for small-cap stocks. The analysts are expecting strong earnings growth i.e., by 42% in 2025 and by 36% in 2026 in comparison to just 6% in 2024. This is ahead of the historical earnings growth rate of 15%. For decades after China was admitted to the World Trade Organisation (WTO) in 2001, US companies were focused on outsourcing production to lower-cost nations (like China) to drive profits.
The asset management firm now expects this trend to reverse over the coming years. During COVID-19, having supply chains and manufacturing far from home resulted in significant difficulties for US firms. Therefore, they are now looking to ‘re-shore’ production. Also, elevated geopolitical tensions and protectionism remain other catalysts, supported by financial support from the US federal government’s CHIPS Act as well as the Infrastructure Investment and Jobs Act.
With this in mind, we will now have a look at the 10 Best Low Priced Stocks to Invest in Now
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Our Methodology
To list the 10 Best Low Priced Stocks to Invest in Now, we used a screener and shortlisted the stocks trading at less than $10. Next, we chose the ones that were popular among hedge funds. Finally, the stocks were ranked in ascending order of their hedge fund sentiments, as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
10 Best Low Priced Stocks to Invest in Now
10) VinFast Auto Ltd. (NASDAQ:VFS)
Stock Price as of February 22: $3.79
Number of Hedge Fund Holders: 5
VinFast Auto Ltd. (NASDAQ:VFS) is engaged in designing and manufacturing EVs, e-scooters, and e-buses. The company continues to place itself as a competitive player in the broader EV market, with a strong focus on affordably priced vehicles. VinFast Auto Ltd. (NASDAQ:VFS)’s vertical integration strategy is expected to act as a significant potential advantage, enabling greater control over the supply chain and potentially resulting in cost efficiencies. This approach can enable the company to reduce costs, improve its quality control, and respond to market demands as compared to competitors with more fragmented supply chains.
As VinFast Auto Ltd. (NASDAQ:VFS) scales production and witnesses economies of scale, the benefits of vertical integration are expected to become more pronounced, resulting in an improvement in profit margins. Notably, increasing scale, production cost optimization, and improvement in operating efficiencies have started to have a positive impact on gross margin and will continue to be critical drivers for VinFast Auto Ltd. (NASDAQ:VFS)’s path to profitability. Notably, in Q3 2024, its gross margin came in at negative 24.0%, representing a strong improvement as compared to a negative 27.0% margin in the same quarter of the previous year and a negative 62.7% margin in Q2 2024.
9) Wipro Limited (NYSE:WIT)
Stock Price as of February 22: $3.48
Number of Hedge Fund Holders: 18
Wipro Limited (NYSE:WIT) operates as an IT, consulting, and business process services company worldwide. UBS analyst Shaleen Kumar upgraded the company’s stock from “Neutral” to “Buy.” The management’s positive outlook about a resurgence in discretionary spending and heightened demand for its Capco services, mainly within the BFSI sector, strengthens the conviction. Furthermore, Wipro Limited (NYSE:WIT)’s EBIT margin for Q3 reached a 12-quarter peak at 17.5%, even though the company witnessed wage increases and seasonal furloughs.
The company continues to advance steadily and has been investing decisively to lead its clients in an AI-driven future. Notably, Veuu (a cutting-edge healthcare FinTech) has unveiled a strategic partnership with Wipro Limited (NYSE:WIT). Both companies are strategically positioned to disrupt the market. Veuu’s AI-powered offering offers a targeted solution for instant payments in healthcare, which customers, who are dependent on Wipro Limited (NYSE:WIT)’s diverse healthcare data management and revenue cycle solutions, can use.
The company managed to close 17 large deals with a total value of $1 billion. For the quarter ending March 31, 2025, Wipro Limited (NYSE:WIT) expects revenue from its IT Services business segment to be between $2,602 million – $2,655 million. This is based on certain exchange rates i.e., GBP/USD at 1.27, Euro/USD at 1.06, AUD/USD at 0.65, USD/INR at 84.29 and CAD/USD at 0.71.
8) Ambev S.A. (NYSE:ABEV)
Stock Price as of February 22: $1.92
Number of Hedge Fund Holders: 22
Ambev S.A. (NYSE:ABEV) is engaged in the production, distribution, and sale of beer, draft beer, carbonated soft drinks, malt and food, other alcoholic beverages, and non-alcoholic and non-carbonated products. The company’s demonstrated ability to implement effective pricing strategies offers a strong case for future revenue growth. Therefore, the pricing power can be leveraged to drive revenue growth even in challenging market conditions. Furthermore, with continuous improvement in economic conditions and increases in consumer spending, Ambev S.A. (NYSE:ABEV) might be well-placed to capitalize on its premium brands.
The company can potentially roll out higher-margin products or implement tiered pricing strategies in a bid to capture different market segments. Through continuous refinement of its pricing approach according to market dynamics and consumer behavior, Ambev S.A. (NYSE:ABEV) can optimize its revenue mix and fuel sustainable growth. The company continues to focus on delivering another year of top-line and bottom-line growth and gross and EBITDA margin expansion (because of costs and expenses discipline). The continued focus on product innovation, market expansion, and operational efficiencies can help Ambev S.A. (NYSE:ABEV) fuel sustainable growth.
