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.
7) Joby Aviation, Inc. (NYSE:JOBY)
Stock Price as of February 22: $6.98
Number of Hedge Fund Holders: 25
Joby Aviation, Inc. (NYSE:JOBY) is a vertically integrated air mobility company, that is engaged in building an EV take-off and landing aircraft optimized to deliver air transportation as a service. Analyst Chris Pierce from Needham reiterated a “Buy” rating on the company’s stock, increasing the price target to $10.00 from $8.00. The increase in price target stems from Joby Aviation, Inc. (NYSE:JOBY)’s strengthened financial position. It has bolstered its cash reserves, which provides a significant margin of safety and improves its prospects for achieving projected financial targets. The company’s position in the eVTOL market revolves around its advanced technology and strategic partnerships.
Toyota Motor Corporation and Joby Aviation, Inc. (NYSE:JOBY) announced that Toyota will be investing an additional $500 million to support certification and commercial production of the latter’s electric air taxi to realize the two companies’ shared vision of air mobility. Furthermore, Joby Aviation, Inc. (NYSE:JOBY) has been making progress toward commercialization as it rolled its third aircraft off its pilot production line in Marina, California. The company’s potential for capturing a strong market share in the evolving eVTOL industry remains substantial, considering its technological progress. Furthermore, Joby Aviation, Inc. (NYSE:JOBY)’s integrated approach, including plans for high-margin aftermarket service and support, can help create a strong ecosystem around its aircraft.
6) Aurora Innovation, Inc. (NASDAQ:AUR)
Stock Price as of February 22: $7.425
Number of Hedge Fund Holders: 27
Aurora Innovation, Inc. (NASDAQ:AUR) operates as a self-driving technology company in the US. George Gianarikas from Canaccord Genuity maintained a “Buy” rating on the company’s stock with a price target of $10.00. The analyst’s rating stemmed from a combination of factors highlighting Aurora Innovation, Inc. (NASDAQ:AUR)’s strong position in the autonomous vehicle industry. The company’s competitive edge is strengthened by its healthy technology lead, significant total addressable market, and a clear value proposition for customers and partners. Furthermore, the company’s proposed SaaS, asset-light business model, and high-quality management team cement its investment appeal.
Elsewhere, Cantor Fitzgerald maintained a bullish stance on the company’s stock, maintaining a steady price target of $10.00. The firm lauded Aurora Innovation, Inc. (NASDAQ:AUR)’s path towards commercialization, an asset-light business model, and favorable regulatory conditions, which continue to support a positive outlook. Aurora Innovation, Inc. (NASDAQ:AUR), in its Q4 2024 shareholder letter, highlighted the growing demand for autonomous trucking, which supports the critical role the Aurora Driver will play in addressing industry challenges. With freight volumes increasing and shipping distances extending, the Aurora Driver remains well-positioned to help solve staffing shortages and allow productive and efficient transport.
5) Coty Inc. (NYSE:COTY)
Stock Price as of February 22: $5.71
Number of Hedge Fund Holders: 28
Coty Inc. (NYSE:COTY) is engaged in manufacturing, marketing, distributing, and selling beauty products. The company has been leveraging its global leadership position in both prestige and mass fragrances and its strong brand portfolio to drive healthy sell-out growth for its fragrance business. The fragrance leadership supports Coty Inc. (NYSE:COTY)’s strategy to capture growth in existing and new geographic markets and scenting adjacencies, which together showcase a multi-billion dollar opportunity. Furthermore, the company’s established position in cosmetics and body care, and strong capabilities in skincare, can reinforce its multi-category beauty portfolio.
Coty Inc. (NYSE:COTY) remains focused on product premiumization and innovation, brand repositioning, and deployments toward marketing and brand support. Furthermore, the company has made strong progress in strengthening its balance sheet and reducing financial leverage. Coty Inc. (NYSE:COTY) reached a critical milestone exiting CY24, reporting leverage below 3x for the first time in more than 8 years.
The company has been targeting steady gross and EBITDA margin expansion, together with double-digit adjusted EPS growth in the coming years, with leverage declining towards 2x by CY26 end. Coty Inc. (NYSE:COTY)’s Chief continues to experience strong growth opportunities for its core brands over the coming years, mainly in the fragrance category, where structural tailwinds have been supporting category growth.
4) BGC Group, Inc. (NASDAQ:BGC)
Stock Price as of February 22: $9.23
Number of Hedge Fund Holders: 33
BGC Group, Inc. (NASDAQ:BGC) operates as a financial brokerage and technology company. The company saw strong Q4 2024 and FY 2024 revenues, increasing by 11% and 12%, respectively. Its robust revenue growth was fueled by its ECS, Rates, and Foreign Exchange businesses, which have been outperforming the market. BGC Group, Inc. (NASDAQ:BGC) highlighted that this momentum continued into 2025, with trading volumes currently exceeding last year’s first-quarter records.
The company has a healthy track record of successful M&A integration and growth. Sage and OTC can add $450 million of annual ECS revenue. Notably, ECS brokerage diversifies the macroeconomic drivers that fuel trading volumes across BGC Group, Inc. (NASDAQ:BGC)’s global platform. For Q1 2025, the company expects revenues in the range of $610 million – $660 million and pre-tax adjusted earnings of between $145 million – $161 million. BGC Group, Inc. (NASDAQ:BGC) announced that it has agreed to acquire OTC Global Holdings, LP. With the help of this acquisition, the company plans to further expand and diversify its global ECS business.
O’keefe Stevens Advisory, an investment advisory firm, released its Q3 2024 investor letter. Here is what the fund said:
“BGC Group, Inc. (NASDAQ:BGC) – After a long-awaited arrival, the FMX Futures Exchange launched on September 24th. Years of expenses flowing through BGC’s financials without offsetting revenue are reversing. While we are keenly aware of the ramp-up period from 0 volume to market share gains provided by the CME, FMX’s compelling offerings are anticipated to gain market share slowly. In addition, per BGC’s standard practice, announced revenue and pre-tax income will come in at the high end of management’s guidance.
Uncertainty is BGC’s best friend. Entering 2024, rate cut expectations of 150bps reflected optimism around the aggressive and dramatic decline of rates. In September, a 50bps cut marked the first rate cut since 2020 and the reversal after 2.5 years of interest rate hikes. Officials target a range of 4.25-4.50% by the end of this year, which signals two quarter-point rate cuts or one half-point cut. For 2025, they expect to cut four more times, bringing their Fed Funds rate to 3.25-3.5%. We are unconvinced the higher inflation experienced in recent years is over, putting these rate-cut expectations at risk. For BGC, whether we experience 50 bps cuts or 150 bps, conflicting economic data points will continue driving record volumes. With one sell-side analyst covering the name, this stock continues to trade under the radar and remains a core holding.”
3) Compass, Inc. (NYSE:COMP)
Stock Price as of February 22: $8.98
Number of Hedge Fund Holders: 42
Compass, Inc. (NYSE:COMP) offers real estate brokerage services in the US. The company’s business model integrates technology with traditional real estate brokerage services, targeting to streamline and improve the home buying and selling process. UBS upped the company’s price target to $12 from $11, keeping a “Buy” rating. The growth in price target implies stronger-than-expected guidance for Q1, and the potential for attach rates to expand by another 800 bps in fiscal 2025. Furthermore, UBS continues to expect an upside to the company’s shares from the benefits of Christie’s acquisition.
For Q1 2025, Compass, Inc. (NYSE:COMP) expects revenues in the range of $1.350 billion – $1.475 billion, and adjusted EBITDA of between $11 million – $25 million. Notably, Title & Escrow attach rates saw an improvement of over 800 bps over the past 4 quarters as the contribution from Compass, Inc. (NYSE:COMP)’s One-click Title integration has been fueling its attach rates higher for agents who utilize the integration as compared to the agents who do not. By leveraging its structural advantages and affiliation with Christie’s International Real Estate brand, the company continues to place itself to accelerate its market share gains.
2) Lumen Technologies, Inc. (NYSE:LUMN)
Stock Price as of February 22: $4.66
Number of Hedge Fund Holders: 44
Lumen Technologies, Inc. (NYSE:LUMN) is a facilities-based technology and communications company, that provides integrated products and services to business and residential customers. Wells Fargo analyst Eric Luebchow upped the company’s stock to “Equal-weight” from “Underweight” with an unchanged price objective of $5. As per the firm, the potential for FCF accretive and deleveraging sale of Quantum Fiber bolsters the near-term outlook for Lumen Technologies, Inc. (NYSE:LUMN). Furthermore, the future private connectivity fabric might boost its FCF while the Quantum Fiber sale can act as an upside catalyst.
Moving forward, the company remains focused on driving operational excellence, disrupting the industry through cloudifying telecom, and providing connectivity to hyperscalers and enterprises as demand for data grows amidst the AI wave. For FY 2025, Lumen Technologies, Inc. (NYSE:LUMN) expects adjusted EBITDA to come in the range of $3.2 billion – $3.4 billion and FCF between $700 million – $900 million. The company remains focused on continuing its transformation efforts, emphasizing operational excellence and industry disruption via telecom cloudification.
ClearBridge Investments, an investment management company, released its Q3 2024 investor letter. Here is what the fund said:
“Stock selection in the communication services sector was a significant detractor during the period, largely due to not owning Lumen Technologies, Inc. (NYSE:LUMN), which provides products and services including dark fiber, edge cloud services and internet protocol, among others. The company, which began the quarter with a $1.1 billion market cap, skyrocketed after it signed agreements with Microsoft and Corning to use its network and technologies to support their AI data center buildouts, resulting in a nearly 350% return and ending the quarter with a $7.2 billion market cap. However, despite this meteoric rise, we believe that the company remains a highly risky asset with a significantly leveraged balance sheet, and one not suitable for our focus on high-quality, long-term compounders.”
1) Ford Motor Company (NYSE:F)
Stock Price as Of February 22: $9.28
Number of Hedge Fund Holders: 45
Ford Motor Company (NYSE:F) is engaged in developing, delivering, and servicing Ford trucks, sport utility vehicles, commercial vans and cars, and Lincoln luxury vehicles. The company continues to become a fundamentally stronger company. It finished 2024 with a solid Q4, the highest revenue year in its history. Ford Motor Company (NYSE:F)’s product portfolio provides the broadest powertrain choice. Ford Pro, given its mid-teen margins, strong market position, and higher service and repair revenue, offers unique advantages for continued growth.
The company’s commercial business segment, known as Ford Pro, continues to show strength, mainly because of effective pricing strategies. This division, which emphasizes commercial vehicles and services, has been acting as a bright spot in Ford Motor Company (NYSE:F)’s portfolio, showcasing the company’s ability to leverage expertise in certain market segments. Ford Pro generated $9.0 billion in EBIT and a margin of 13.5%, in accordance with the target of mid-teens. Notably, paid software subscriptions went up by 27% in 2024 to ~650,000 subscribers utilizing new solutions to fuel the productivity of their fleets. In 2025, Ford Motor Company (NYSE:F) expects EBIT of $7.5 billion – $8.0 billion from Ford Pro.
While we acknowledge the potential of F as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than F but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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