In this article, we will be looking at the 10 best stocks under $10 to buy right now. If you want to skip our detailed analysis on these companies, you can go directly to the 5 Best Stocks Under $10 to Buy Right Now.
Investing in cheap stocks can lead to financial success given that one invests in cheap stocks with strong fundamentals and growth potential. Any cheap stock under $10 certainly won’t be like Amazon, Inc. (NASDAQ: AMZN), Alphabet Inc. (NASDAQ: GOOG), or Apple Inc. (NASDAQ: AAPL). However, they can often be good value investments to seriously consider, and current investing trends show that more investors are gravitating towards cheaper stocks with shares under the $5 or $10 mark. For instance, in the spring and summer of 2020, over 25% of the shares traded in the US stock market were from companies with share prices under $5, as per the New York Stock Exchange. This trend isn’t something new either, as the percentage of shares under $5 being traded on the US stock exchange was somewhere between 10% to 15% from 2012 to 2019 as well. As such, investing in cheap stocks can be considered a relatively prevalent and popular investing strategy with much to offer, providing you invest in the right companies with good growth potential.
With the outbreak of the coronavirus pandemic, the global economy has seen unprecedented changes. Stock markets across the globe are no stranger to the adverse impact of the pandemic, as according to BBC, the FTSE, Dow Jones Industrial Average, and the Nikkei all suffered major financial losses during the start of the pandemic and the virus gradually took hold of markets and societies alike. The FTSE suffered most, compared to the Asian and US stock markets which began recovering in light of vaccine production and distribution announcements. It dropped about 14.3% last year, a figure that marked the FTSE’s worst performance in over a decade.
With changes in the stock markets across the globe, we also witnessed a plethora of changes in all other major walks of life. Lockdowns and travel bans resulted in a variety of industries taking a hit, and many people across the world lost their sole source of income because of layoffs. The IMF reported that in the US alone, the COVID-19 pandemic resulted in about 8.9% of the population being unemployed, while workers numbering in the millions were put on government-supported job retention schemes. The economy itself suffered such huge losses that until today, many countries are in recession, with the IMF recording that in 2020, the global economy shrunk by about 4.4%. In light of all the above, investing is now not only becoming riskier than ever but is also becoming out of reach for many who do not have the financial standing to buy expensive shares in large companies. As such, we have compiled a list of the best stocks under $10 to buy right now.
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Investing is becoming difficult by the day, even for the smart money. 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.
Without further ado, let’s look at the 10 best stocks under $10 to buy right now. These stocks have been selected on the basis of hedge fund popularity, analysts’ ratings, fundamentals, and growth potential based on core business strengths.
Best Stocks Under $10 to Buy Right Now
10. Enthusiast Gaming Holdings Inc. (NASDAQ: EGLX)
Number of Hedge Fund Holders: N/A
Enthusiast Gaming Holdings Inc. (NASDAQ: EGLX) is a company operating in the media, content, entertainment, and esports businesses in the US, Canada, and internationally. The company has an online network of approximately 100 gaming websites and it also owns Enthusiast Gaming Live Expo. It ranks 10th on our list of the best stocks under $10 to buy right now.
This June, H.C. Wainwright initiated coverage of Enthusiast Gaming Holdings Inc. (NASDAQ: EGLX) with a Buy rating and a $10 price target. Additionally, in the previous month Enthusiast Gaming Holdings Inc. (NASDAQ: EGLX) revealed its plans for the development of a subscription-based social network for gamers, by the name of Project GG. The acquisition of Tabwire LLC for $11 million due to be complete by the end of this quarter is supposed to help in the development of this platform. The company also agreed to acquire Vedatis, the owner of Icy Veins, for approximately $8.3 million this March.
In the first quarter of 2021, Enthusiast Gaming Holdings Inc. (NASDAQ: EGLX) had $24.75 million in revenue, 386.9% up year over year but missing estimates by -$0.16 million, and its gross profit margin is 22.23%. The stock has gained 74.16% in the past 6 months and 72.99% year to date. Like Amazon, Inc. (NASDAQ: AMZN), Alphabet Inc. (NASDAQ: GOOG), or Apple Inc. (NASDAQ: AAPL), Enthusiast Gaming Holdings Inc. (NASDAQ: EGLX) is a good stock to invest in.
9. Mogo Inc. (NASDAQ: MOGO)
Number of Hedge Fund Holders: 8
Mogo Inc. (NASDAQ: MOGO) is a fintech company operating in Canada and providing a finance app empowering users by providing them with solutions for financial problems. The company’s Mogo app and MogoSpend are two among the many services it offers to its consumers. It ranks 9th on our list of the best stocks under $10 to buy right now.
This June, Mogo Inc. (NASDAQ: MOGO) acquired an additional 2% of common shares in Coinsquare, Canada’s leading cryptocurrency platform. The company now has an approximately 39% stake in Coinsquare. BTIG analyst Mark Palmer began covering the stock on June 15th, giving it a Buy rating and a $13 price target. Palmer called Mogo Inc. (NASDAQ: MOGO) an attractive option for investors looking for companies indulged in both cryptocurrency and the digital disruption of the financial services sector in Canada. Mogo Inc. (NASDAQ: MOGO) has also bought Ethereum this May, further solidifying its cryptocurrency and blockchain presence. In the first quarter of 2021, Mogo Inc. (NASDAQ: MOGO) had an EPS of -$0.11, beating estimates by $0.02. The company’s revenue was $9.39 million, beating estimates by $0.45 million, and it has a gross profit margin of 73.93%. The stock has gained 69.35% in the past 6 months and 82.84% year to date.
By the end of the first quarter of 2021, 8 hedge funds out of the 866 tracked by Insider Monkey held stakes in Mogo Inc. (NASDAQ: MOGO). The total value of their stakes was roughly $29.6 million. This is compared to 4 hedge fund holders in the previous quarter with a total stake value of about $3.8 million. Like Amazon, Inc. (NASDAQ: AMZN), Alphabet Inc. (NASDAQ: GOOG), or Apple Inc. (NASDAQ: AAPL), Mogo Inc. (NASDAQ: MOGO) is a good stock to invest in.
8. Harvard Bioscience, Inc. (NASDAQ: HBIO)
Number of Hedge Fund Holders: 10
Harvard Bioscience, Inc. (NASDAQ: HBIO) is a developer of technology, products, and services to enable fundamental research, discovery and pre-clinical testing for drug development. The company ranks 8th on our list of the best stocks under $10 to buy right now.
This May, the company also offered guidance for the financial year of 2021, saying that Harvard Bioscience, Inc.’s (NASDAQ: HBIO) outlook is improving and the company now expects a 10-14% revenue growth for fiscal 2021. Additionally, in March KeyBanc raised its price target on Harvard Bioscience, Inc. (NASDAQ: HBIO) from $6 to $9, keeping an Overweight rating on the shares. Analyst Paul Knight justified the price target raise by referring to the company’s positive Q4 revenue report and foreseeable potential.
In the first quarter of 2021, Harvard Bioscience, Inc. (NASDAQ: HBIO) had an EPS of -$0.02, beating estimates by $0.02. The company’s revenue was $26.99 million, up 13.54% year over year and beating estimates by $1.56 million. The stock has gained 92.74% in the past 6 months and 95.02% year to date. Harvard Bioscience, Inc. (NASDAQ: HBIO) has a gross profit margin of 57.44%.
By the end of the first quarter of 2021, 10 hedge funds out of the 866 tracked by Insider Monkey held stakes in Harvard Bioscience, Inc. (NASDAQ: HBIO). The total value of their stakes was roughly $40.4 million. This is compared to 11 hedge fund holders in the previous quarter with a total stake value of about $28.09 million. Like Amazon, Inc. (NASDAQ: AMZN), Alphabet Inc. (NASDAQ: GOOG), or Apple Inc. (NASDAQ: AAPL), Harvard Bioscience, Inc. (NASDAQ: HBIO) is a good stock to invest in.
7. AVROBIO, Inc. (NASDAQ: AVRO)
Number of Hedge Fund Holders: 10
AVROBIO, Inc. (NASDAQ: AVRO) is a clinical-stage gene therapy company, developing ex vivo lentiviral-based gene therapies for rare diseases following one dose across the globe. The company ranks 7th on our list of the best stocks under $10 to buy right now.
This June, BTIG analysts Yun Zhong and Xu Zou commented that the gene therapy sector was becoming an attractive opportunity for investors, and thus the firm began covering a range of stocks in the industry with bullish ratings. AVROBIO, Inc. (NASDAQ: AVRO) is among these stocks and has received a Buy rating from the firm. This May, the stock also received a Buy rating with a $28 price target indicating a 247.8% upside, from Needham. Analyst Gil Blum commented that AVROBIO, Inc. (NASDAQ: AVRO) led clinical programs may bring in over $2 billion in sales. In the first quarter of 2021, AVROBIO, Inc. (NASDAQ: AVRO) had an EPS of -$0.65, beating estimates by $0.10.
By the end of the first quarter of 2021, 10 hedge funds out of the 866 tracked by Insider Monkey held stakes in AVROBIO, Inc. (NASDAQ: AVRO). The total value of their stakes was roughly $105 million. This is compared to 16 hedge fund holders in the previous quarter with a total stake value of about $154 million. Like Amazon, Inc. (NASDAQ: AMZN), Alphabet Inc. (NASDAQ: GOOG), or Apple Inc. (NASDAQ: AAPL), AVROBIO, Inc. (NASDAQ: AVRO) is a good stock to invest in.
6. Atossa Therapeutics, Inc. (NASDAQ: ATOS)
Number of Hedge Fund Holders: 14
Atossa Therapeutics, Inc. (NASDAQ: ATOS) is a clinical-stage biopharmaceutical company that works to develop medicines in the areas of oncology and infectious diseases. The stock ranks 6th on our list of the best stocks under $10 to buy now.
This June, Atossa Therapeutics, Inc. (NASDAQ: ATOS) announced that it would be added to the Russell 2000 and 3000 Indexes. Ascendiant has a Buy rating on the stock as well. In the first quarter of 2021, Atossa Therapeutics, Inc. (NASDAQ: ATOS) had an EPS of -$0.04, beating estimates by $0.01. The stock has gained 406.67% in the past 6 months and 460% year to date.
By the end of the first quarter of 2021, 6 hedge funds out of the 866 tracked by Insider Monkey held stakes in Atossa Therapeutics, Inc. (NASDAQ: ATOS). The total value of their stakes was roughly $7.81 million. This is compared to 3 hedge fund holders in the previous quarter with a total stake value of about $520,000. Like Amazon, Inc. (NASDAQ: AMZN), Alphabet Inc. (NASDAQ: GOOG), or Apple Inc. (NASDAQ: AAPL), Atossa Therapeutics, Inc. (NASDAQ: ATOS) is a good stock to invest in.
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Disclosure: None. 10 Best Stocks Under $10 to Buy Right Now is originally published on Insider Monkey.
