Investors are grappling with Trump-fueled stock market volatility in 2025. On March 12, 2025, Yahoo Finance reported that Penny Pennington, CEO of Edward Jones, explained on Yahoo Finance’s Opening Bid podcast that this volatility should have been expected. She noted that after years of relatively calm markets where we didn’t see the usual pullbacks, typically ranging from 5% to 15%. She further pointed out that the current environment, marked with uncertainties from tariffs and policy changes, is bound to provoke market reactions.
READ ALSO: 8 Fastest Growing AI Stocks To Buy Right Now and 10 Cheap Technology Stocks to Buy According to Hedge Funds.
The markets have been particularly volatile this year due to concerns about tariffs and potential economic slowdowns. The market has taken a hit, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all dropping around 5% on average in March alone. Large-cap tech companies have led this downturn. For the year, the Nasdaq has declined nearly 10%, the S&P 500 by 6%, and the Dow by 3%.
Recent economic data for consumer confidence from the Dallas Fed survey highlights growing caution among consumers and businesses. This has further fueled volatility as markets adjust to a potential slowdown in growth.
Pennington’s advice to investors is to stay prepared for several more years of volatility under the Trump administration.
The mix of policy uncertainty, tariff impacts, and inflation concerns has created a volatile environment, and this is likely to continue. Despite these concerns, some penny stocks continue to attract attention for their promising prospects.
With this background in mind, let’s take a look at the 10 best stocks under $3 to buy now.
A person with a cell phone who is looking for new stocks
Methodology
To compile our list of the 10 best stocks under $3 to buy now, we used the Finviz stock screener. We sorted our results based on market capitalization and picked the top 20 companies with a share price of under $3 as of March 10, 2025. Next, we focused on the top 10 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds. Finally, the 10 best stocks under $3 to buy now were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q4 2024.
Why do we care about what hedge funds do? 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Stocks Under $3 to Buy Now
10. AMC Entertainment Holdings, Inc. (NYSE:AMC)
Share Price: $2.98
Number of Hedge Fund Holders: 20
AMC Entertainment Holdings, Inc. (NYSE:AMC) is an American movie exhibition company that ranks among the best stocks under $3 to buy. With approximately 870 theatres and 9,800 screens across the globe, it is the largest movie exhibition company in the world.
The company is committed to innovation and enhancing guest experience as it looks to strengthen its position in the global movie exhibition industry. This commitment helped AMC Entertainment Holdings, Inc. (NYSE:AMC) attract over 62 million guests to its theaters worldwide in Q4 2024, marking a post-pandemic Q4 record attendance and a 20% increase compared to 2023. Complementing this attendance milestone, food and beverage revenue per patron also reached $7.15 to mark an all-time Q4 record for AMC Entertainment Holdings, Inc. (NYSE:AMC). Looking ahead to 2025 and beyond, the company aims to capitalize on anticipated growth in the box office industry by improving theater experiences for guests. AMC Entertainment Holdings, Inc.’s (NYSE:AMC) strategic focus includes expanding its premium large format, extra-large format, and special purpose screens under its “Go Plan.”
9. iQIYI, Inc. (NASDAQ:IQ)
Share Price: $2.26
Number of Hedge Fund Holders: 20
iQIYI, Inc. (NASDAQ:IQ) provides online entertainment video services in China. The company produces, aggregates, and distributes a wide range of professionally produced content and other video content in a variety of formats. With its leading technology platform powered by AI and big data analytics, iQIYI, Inc. (NASDAQ:IQ) has built a massive user base. The company’s diversified business model includes memberships, online ads, content distribution, online gaming, and IP licensing. iQIYI, Inc. (NASDAQ:IQ) is one of the best stocks to buy under $3.
On February 19, CFRA analyst Siti Salikin raised the price target for iQIYI, Inc. (NASDAQ:IQ) to $2.50 from the previous $2.30 and maintained a “Hold” rating. Despite a decline in financial performance and earnings per ADR (EPADS) in 2024, CFRA maintains its 2025 EPADS forecast for the company at CNY 1.90 and has set a 2026 EPADS target at CNY 2.00. The firm expects iQIYI, Inc. (NASDAQ:IQ) to recover in 2025 with a 4% revenue growth driven by improved membership revenue, the introduction of new premium content aligned with user preferences, and a recovery in content slates. CFRA’s analysis points to an enhanced net margin for iQIYI, Inc. (NASDAQ:IQ) in 2025 supported by higher average revenue per membership and reduced content costs, potentially resulting from scale efficiency and the use of AI.
8. Ambev S.A. (NYSE:ABEV)
Share Price: $2.23
Number of Hedge Fund Holders: 22
Ambev S.A. (NYSE:ABEV) is a Brazilian company that is best known for its beer brands like Skol, Brahma, Antarctica, Quilmes, Labatt, and Presidente. The company also produces soft drinks and other non-alcoholic and non-carbonated (NANC) beverages through brands like Guaraná Antarctica and Fusion. Ambev S.A. (NYSE:ABEV) has operations in 18 countries in Latin America, Central America, and the Caribbean. ABEV ranks among the best stocks under $3 to buy.
The company is focused on digital transformation as a key strategy to grow its business and improve customer engagement. Ambev S.A. (NYSE:ABEV) has expanded its B2B platform, BEES, which was live in 8 of its top 10 markets by the end of 2024. The company reported that BEES now handles over 88% of its gross revenue and serves 1.3 million monthly active buyers. On the direct-to-consumer (DTC) front, Ambev S.A. (NYSE:ABEV) reported that its Zé Delivery platform reached 9 million buyers and processed over 66 million orders in 2024. This represents a 10% increase compared to 2023. These digital initiatives have helped Ambev S.A. (NYSE:ABEV) to better understand customer needs and preferences. This has generated valuable insights for the company to proactively meet demands and improve customer satisfaction.
7. OPKO Health, Inc. (NASDAQ:OPK)
Share Price: $1.84
Number of Hedge Fund Holders: 22
OPKO Health, Inc. (NASDAQ:OPK) is a multinational company that is focused on diagnostics and biopharmaceuticals. The company has operations in the US, Mexico, Chile, Spain, Ireland, and Israel. OPKO Health, Inc.’s (NASDAQ:OPK) marketed therapies are sold throughout the world thanks to the company’s commercial partnerships with global pharmaceutical companies. OPK is one of the best stocks under $3 to invest in.
The company is currently focused on streamlining operations and enhancing financial flexibility through a series of transactions to support its long-term growth plans. In 2024, OPKO Health, Inc. (NASDAQ:OPK) successfully reduced its common share count by 81 million shares or 10% of shares outstanding. The company also generated $166.6 million from selling GeneDx shares, with an additional $51.7 million received after December 31, 2024. In September 2024, OPKO Health, Inc. (NASDAQ:OPK) sold a portion of BioReference Health’s laboratory testing businesses focused on clinical diagnostics and women’s health for a purchase price of $237.5 million. More recently, on March 11, 2025, OPKO Health, Inc. (NASDAQ:OPK) announced an agreement for Labcorp to acquire select assets of BioReference Health for up to $225 million, including $192.5 million at closing and $32.5 million in an earnout based on performance. These moves aim to help the company simplify its operations and improve its financial position.
6. Lucid Group, Inc. (NASDAQ:LCID)
Share Price: $2.08
Number of Hedge Fund Holders: 24
Lucid Group Inc. (NASDAQ:LCID) is an American company that designs, develops, and manufactures electric vehicles and also supplies advanced EV powertrain systems. The company currently offers its flagship model, the Lucid Air sedan, and the new Lucid Gravity SUV. Lucid Group Inc. (NASDAQ:LCID) ranks among the best stocks under $3 to buy now.
The company is making strategic moves to improve production capacity and expand its vehicle lineup. Lucid Group Inc. (NASDAQ:LCID) began taking orders for its new Lucid Gravity SUV in November 2024. The company also made the Lucid Gravity Grand Touring available to customers in Canada in February 2025. Lucid Group Inc. (NASDAQ:LCID) is focused on expanding its production capabilities through its purpose-built EV factory in Casa Grande, Arizona. Outfitted with advanced production line equipment, the factory will have the initial capacity to produce 10,000 cars annually and more than 300,000 a year after planned expansion.
5. Plug Power Inc. (NASDAQ:PLUG)
Share Price: $1.71
Number of Hedge Fund Holders: 24
Plug Power Inc. (NASDAQ:PLUG) is an American company that develops electrolyzers and hydrogen fuel-supply solutions for material handling, power generation, and e-mobility. The company’s hydrogen fuel cell systems replace conventional batteries in electrical equipment and EVs to enhance charging efficiency and runtime. Plug Power Inc. (NASDAQ:PLUG) ranks among the best stocks under $3 to buy now.
On March 5, TD Cowen analyst Jeff Osborne maintained a “Buy” rating on Plug Power Inc. (NASDAQ:PLUG) with a price target of $4.00. The analyst pointed to Plug Power Inc.’s (NASDAQ:PLUG) Project Quantum Leap, a strategic initiative that aims to cut annual costs by $150 to $200 million. This move is part of the company’s plan to improve operational and financial performance. Additionally, the analyst pointed out that Plug Power Inc. (NASDAQ:PLUG) is looking to increase production at its facilities. A new plant in Louisiana is expected to come online in Q2 2025 and another in Texas is slated to start operations towards the end of 2026. However, the analyst expressed that the company must create enough demand to match the increased supply capabilities.
4. New Gold Inc. (NYSEAMERICAN:NGD)
Share Price: $2.79
Number of Hedge Fund Holders: 26
New Gold Inc. (NYSEAMERICAN:NGD) is a Canadian mining company that owns a portfolio of two core producing assets in Canada, the New Afton copper-gold mine in British Columbia and the Rainy River gold mine in Ontario. The company produces gold, silver, and copper. New Gold Inc. (NYSEAMERICAN:NGD) ranks among the best stocks under $3.
The company is making strategic moves to increase production, reduce costs, expand margins, and generate significant cash flow. On February 12, New Gold Inc. (NYSEAMERICAN:NGD) announced its three-year operational outlook and life-of-mine plans that outline the company’s strong production profile with reducing costs, strong free cash flow generation and increasing net asset value. At New Afton, the company reported that copper and gold reserves grew by 15% and 13% respectively compared to year-end 2023. Mine life was also extended through the East Expansion, adding high-grade material, and C-Zone’s increased draw height without any extra capital. New Gold Inc. (NYSEAMERICAN:NGD) reported that Rainy River’s Phase 5 expansion extended the open pit to push low-grade stockpile processing into the future and keep the mill full until the end of 2029. These moves are expected to help the company boost free cash flow through 2027 by leveraging higher margins from cost reductions.
On February 13, Scotiabank raised the firm’s price target on New Gold Inc. (NYSEAMERICAN:NGD) from $3.5 to $4 and maintained an “Outperform” rating. This decision came after the company released an updated 3-year operational outlook, which Scotiabank views as positive for the stock.
3. Ardagh Metal Packaging SA (NYSE:AMBP)
Share Price: $2.86
Number of Hedge Fund Holders: 30
Ardagh Metal Packaging SA (NYSE:AMBP) is a Luxembourg-based global supplier of sustainable, infinitely recyclable, metal and glass packaging for businesses around the world. The company operates 23 production facilities in 9 countries and serves a wide range of leading beverage producers serving categories including beer, carbonated soft drinks, energy drinks, hard seltzers, juices, pre-mixed cocktails, teas, sparkling waters, and wine. Ardagh Metal Packaging SA (NYSE:AMBP) ranks among the best stocks under $3 to buy now.
In 2020, the company announced a multi-year $1.5 billion business growth investment program that involved growth projects in each of its regions. In February 2021, Ardagh Metal Packaging SA (NYSE:AMBP) increased it to $1.8 billion to grow its business in the period from 2021 to 2024. Additionally, the company optimized its network in 2024 and this led to an increase in global utilization rates, network efficiency, and improved flexibility. Ardagh Metal Packaging SA (NYSE:AMBP) reported that across its global footprint, the beverage can is gaining share in its customers’ packaging mix. This trend supports the company’s expectation for industry shipments growth into 2025. Following the completion of its multi-year growth investment program, Ardagh Metal Packaging SA (NYSE:AMBP) expects global volume growth to drive stronger fixed cost absorption in 2025.
2. Denison Mines Corp. (NYSEAMERICAN:DNN)
Share Price: $1.30
Number of Hedge Fund Holders: 31
Denison Mines Corp. (NYSEAMERICAN:DNN) is a Canadian uranium mining, exploration, development, and production company with interests focused in the Athabasca Basin region of northern Saskatchewan. DNN is one of the top stocks under $3 to invest in. The company is currently working to advance its development and exploration projects. Denison Mines Corp. (NYSEAMERICAN:DNN) reported that the SABRE program at the McClean North deposit is progressing well and is on track for production in 2025. The company is also working on its portfolio of other development and exploration projects. In its Q3 2024 report, Denison Mines Corp. (NYSEAMERICAN:DNN) reported positive progress in engineering and regulatory approvals for the Phoenix In-Situ Recovery (ISR) uranium mining operation. By the end of Q3 2024, the company had completed 45% of the total engineering work.
Additionally, for the Wheeler River Uranium Project, Denison Mines Corp. (NYSEAMERICAN:DNN) announced that a public hearing has been scheduled with the Canadian Nuclear Safety Commission (CNSC). This hearing is the final step in the federal approval process for the project’s environmental assessment and license to construct a uranium mine and mill. If the project is approved following the hearing, Denison Mines Corp. (NYSEAMERICAN:DNN) expects to start site preparation and construction for the Phoenix ISR project in early 2026.
1. Transocean Ltd. (NYSE:RIG)
Share Price: $2.98
Number of Hedge Fund Holders: 38
Transocean Ltd. (NYSE:RIG) is an international drilling company that ranks among the best stocks under $3. The company is one of the world’s largest providers of offshore contract drilling services for oil and gas wells. Transocean Ltd. (NYSE:RIG) specializes in technically demanding sectors of the global offshore drilling business and is focused on deepwater and harsh environment drilling services.
The company is strategically focused on maintaining strong operational execution and leveraging advanced technologies to grow its business. In 2024, Transocean Ltd. (NYSE:RIG) strengthened its position as the technological leader in offshore drilling by achieving the industry’s first two 20K subsea completions and introducing technologies that improved operational efficiency and differentiated its fleet. This focus on innovation and reliable operations helped the company secure $2.4 billion in backlog during the year. Transocean Ltd. (NYSE:RIG) currently has industry-leading contract coverage extending into 2026.
Overall, RIG ranks first among the 10 best stocks under $3 to buy now. While we acknowledge the potential of these stocks under $3, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RIG 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 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
