On March 12, Stephanie Guild of Robinhood and Marci McGregor of Bank of America Merrill Lynch shared their perspectives on the current state of the market and strategies for navigating uncertainty. Guild explained that retail investors’ approach to buying the dip has shifted in line with changing market dynamics. While clients are still investing, they are focusing on specific names they favor. At the same time, she noted an increased tendency toward diversification, with investors allocating funds to index investments more than ever before. Additionally, many are taking advantage of Robinhood’s 4% cash yield, which reflects a balanced approach to investing during uncertain times.
McGregor emphasized the importance of focusing on long-term trends rather than reacting to short-term headlines, which often create unnecessary noise. She attributed some weak economic data from January to weather-related factors, calling it a temporary head fake. While acknowledging ongoing uncertainty around trade policy, McGregor highlighted key drivers for market recovery. She pointed out that 6 of the 11 S&P 500 sectors posted double-digit year-over-year earnings growth in Q4 and noted that market broadening is underway. Year-to-date, 63% of S&P constituents have outperformed the index compared to less than 30% over the last two years. This broadening trend signals potential strength in the market. Looking ahead, McGregor predicts a gradual easing of financial conditions later this year, potentially supported by a weaker dollar and improving corporate conditions. She suggested that if soft economic data begins to manifest more clearly, it could lead to Fed rate cuts. Factors such as deregulation, a merger cycle, and potential tax cut extensions may also contribute to recovery. Despite uncertainties, McGregor advised clients to buy on weakness and stay diversified. This includes exposure to international markets like Europe while maintaining confidence in the US as a leading market.
Both Guild and McGregor underscored the importance of diversification and staying focused on broader trends rather than being swayed by short-term volatility or political rhetoric. With that being acknowledged, we’re here with a list of the 10 best US stocks under $10 to buy right now.
Our Methodology
We used the Finviz stock screener to compile a list of the top US stocks that were trading below $10 as of March 24. We then selected the 10 US stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best US Stocks Under $10 to Buy Right Now
10. Under Armour Inc. (NYSE:UA)
Share Price as of March 24: $6.10
Number of Hedge Fund Holders: 41
Under Armour Inc. (NYSE:UA) is a global leader in performance apparel, footwear, and accessories. It caters to athletes and active individuals of all ages. Its product portfolio spans compression wear to specialized footwear. Its distribution network encompasses wholesale, retail, and e-commerce.
The company’s footwear segment experienced a 9% revenue decline in FQ3 2025. This drop occurred despite the successful launch of De’Aaron Fox’s signature shoe, called the Fox 1. The upcoming SlipSpeed Echo is set to launch for the Spring/Summer 2025 season and is anticipated to drive future sales.
To enhance operational efficiency, the company is streamlining its footwear production by reducing foam components by ~50%. This aims to standardize cushioning across key midsole technologies, which include Charged, HOVR, and Flow. As footwear revenue decreased, Under Armour Inc.’s (NYSE:UA) overall FQ3 revenue also declined by 6% year-over-year. However, the company’s gross margin saw a positive shift and increased by 2.4% to 47.5%. This was driven by factors such as reduced discounting.
9. Alight Inc. (NYSE:ALIT)
Share Price as of March 24: $6.06
Number of Hedge Fund Holders: 42
Alight Inc. (NYSE:ALIT) is a global technology-enabled services company that offers the Alight Worklife platform. This a cloud-based solution that integrates benefits administration, healthcare navigation, financial well-being, and other employee-focused services. It is enhanced by AI and comprehensive customer support.
The company’s core focus is growing its Recurring Revenue, which made up 91% of its Q4 2024 revenue. The company saw recurring revenue grow sequentially in Q4 and aims for a 4% to 6% long-term revenue increase. This growth is fueled by ARR Bookings. The company achieved $114 million in total ARR booking in 2024, which is an 18% increase from 2023. It expects $130 to $145 million in ARR bookings for 2025, with a sales pipeline up 54%.
The company saw an 8% increase in client retention rates in its last renewal cycle. This improvement is expected to boost revenue growth later in 2025. Without 2023’s lower retention, revenue could be 2% higher. For 2025, Alight Inc. (NYSE:ALIT) expects recurring revenue to grow about 1% overall. However, 2023 losses will impact H1, with Q1 down 1.5% to 2.5% and Q2 down 1% to up 0.5%. The company anticipates low to mid-single-digit growth in H2.
8. Applied Digital Corp. (NASDAQ:APLD)
Share Price as of March 24: $7.07
Number of Hedge Fund Holders: 42
Applied Digital Corp. (NASDAQ:APLD) provides digital infrastructure and cloud services. It specializes in high-performance computing (HPC) and artificial intelligence (AI) solutions across North America. It offers data center hosting, GPU computing, and related infrastructure development.
The company’s Cloud Services segment provides HPC for AI applications. In FQ2 2025, this segment generated $27.7 million in revenue out of the company’s total revenue of $63.9 million. This contributed to the company’s overall 51% year-over-year revenue increase. Applied Digital Corp. (NASDAQ:APLD) had six GPU clusters online at the end of the quarter and is exploring further opportunities as new GPUs become available, as they become increasingly significant for HPC.
The company’s new partnership with Macquarie Asset Management, which includes a $5 billion financing facility, will further fuel the development of HPC data centers which is crucial for expanding Cloud Services. On February 4, Northland Capital Markets analysts increased their price target for the company to $20 from its previous target of $12, while reiterating an Outperform rating.
7. Compass Inc. (NYSE:COMP)
Share Price as of March 24: $9.39
Number of Hedge Fund Holders: 42
Compass Inc. (NYSE:COMP) offers technology-driven real estate brokerage services in the US. It provides an integrated platform for agents, which includes CRM, marketing, and client service tools, alongside title, escrow, and home improvement financing services. It aims to streamline the real estate transaction process through its innovative technology and service offerings.
The company is strategically expanding its Title and Escrow (T&E) business, which is a key driver of its profitability. This business facilitates real estate transactions by ensuring clear property ownership and managing the secure transfer of funds. In Q4 2024, the T&E segment achieved a record quarter, with an attach rate increase of over 8% in the past four quarters. This growth has nearly quadrupled the segment’s year-over-year profitability.
For 2025, Compass Inc. (NYSE:COMP) aims to replicate this growth and projects a doubling of the T&E segment’s adjusted EBITDA. The company’s Q4 results reflect this positive trend, as adjusted EBITDA was $16.7 million. Revenue reached $1.38 billion and marked a 25.9% year-over-year increase in Q4. For 2025, the company’s goal is to ensure that its revenue less commissions and other related expenses as a percentage of revenue represents more than 18.2% of its total revenue.
6. Snap Inc. (NYSE:SNAP)
Share Price as of March 24: $9.33
Number of Hedge Fund Holders: 44
Snap Inc. (NYSE:SNAP) is a technology company that is best known for its visual messaging app called Snapchat. It allows users to communicate through short videos and images. It also offers subscription services, eyewear products, and a range of advertising solutions, which include AR ads and various video and image ad formats.
The company’s Direct Response (DR) Advertising saw a 14% year-over-year increase in Q4 2024, which contributed to a total of $1.41 billion in advertising revenue. For the full year 2024, DR ad revenue grew 16% year-over-year, which fueled the total $5.36 billion revenue. The company is enhancing DR capabilities through optimizations like Pixel Purchase and App Purchase, with app-based purchase revenue up over 70% year-over-year. Lead generation products also saw a 6x increase in leads generated for advertisers in Q4, with a 40% average reduction in cost per lead.
Small and medium-sized businesses (SMBs) contributed the most to ad revenue growth in 2024. Tools like Snap Promote simplify ad buying for SMBs. Snap Inc. (NYSE:SNAP) is also implementing automation to improve campaign performance. The company is also testing new ad placements like Sponsored Snaps and Promoted Places, which show promising early results, with a 30% average increase in reach in the US.
5. Rocket Pharmaceuticals Inc. (NASDAQ:RCKT)
Share Price as of March 24: $8.43
Number of Hedge Fund Holders: 45
Rocket Pharmaceuticals Inc. (NASDAQ:RCKT) is a late-stage biotechnology company that develops gene therapies for rare and devastating diseases. It focuses on both AAV and LV programs. Its pipeline targets conditions like Danon disease, Fanconi Anemia, and Leukocyte Adhesion Deficiency-I. It aims to provide life-changing treatments.
The company is invested in its cardiovascular gene therapy programs, with RP-A501 for Danon disease and RP-A601 for PKP2-ACM leading the charge. The Phase 2 pivotal study of RP-A501 is ongoing, with a program update expected in H1 2025. Data published in the New England Journal of Medicine and presented at the American Heart Association (AHA) demonstrated RP-A501’s safety and meaningful efficacy.
The Phase 1 study of RP-A601 for PKP2 arrhythmogenic cardiomyopathy (ACM) has completed enrollment in the low-dose cohort, with initial data expected in H1 2025. Internal estimates indicate that PKP2-ACM affects ~50,000 people in the US and Europe. The company’s strategy is to maintain resources on these AAV cardiovascular programs while managing its other pipeline assets to maximize value for patients and shareholders. Its cash runway, with $372.3 million in cash, cash equivalents, and investments, is expected to fund operations into Q3 2026.
Baron Health Care Fund remains confident in the company’s long-term potential due to its promising gene therapies for rare diseases and anticipated revenue generation. The fund stated the following regarding Rocket Pharmaceuticals Inc. (NASDAQ:RCKT) in its Q2 2024 investor letter:
“Rocket Pharmaceuticals, Inc. (NASDAQ:RCKT) specializes in the development of gene therapies for rare genetic diseases outside of oncology. Currently these include Danon disease, Fanconi anemia, lysosomal acid lipase deficiency, and pyruvate kinase deficiency. The first three drug treatments are slated for commercial launch by 2025, which should generate substantial revenue. Shares detracted from performance after the FDA extended the priority review period by three months for the Kresladi gene therapy for leukocyte adhesion deficiency, potentially influenced by sluggish competitive gene therapy launches from bluebird bio in sickle cell disease and BioMarin in hemophilia B. Given the lifesaving nature of Rocket’s therapies and the high unmet need for each of these life ending diseases, we retain conviction in our investment.”
4. Patterson-UTI Energy Inc. (NASDAQ:PTEN)
Share Price as of March 24: $8.38
Number of Hedge Fund Holders: 47
Patterson-UTI Energy Inc. (NASDAQ:PTEN) provides drilling and completion services to the oil and natural gas industry. It operates across onshore basins in the US and internationally. It has three segments that offer contract drilling, completion services including hydraulic fracturing & cementing, and drilling products like drill bits & specialized tools.
The company’s Drilling Services delivered steady adjusted gross profit per day in Q4 2024, despite industry-wide slowdowns. The company is integrating its high-quality Apex rigs with services like directional drilling, downhole tools, and CoreTex automation systems. It currently operates 107 rigs in the US, with $426 million secured in future day-rate drilling revenue. For Q1 2025, it projects 106 active rigs, with an adjusted gross profit per operating day of ~$15,250.
The company is transitioning towards more integrated commercial and operating models. It’s focusing on capturing a larger share of the drilling spend and adopting performance-based agreements to enhance margins. Patterson-UTI Energy Inc.’s (NASDAQ:PTEN) advanced Apex rigs, technical teams, and upcoming P10 data center drive cost-effective drilling. The company is capitalizing on the growing natural gas market and anticipates increased drilling activity.
Bernzott Capital Advisors US Small Cap Value Fund stated the following regarding Patterson-UTI Energy, Inc. (NASDAQ:PTEN) in its Q4 2023 investor letter:
“Patterson-UTI Energy, Inc. (NASDAQ:PTEN): Lower energy prices and depressed rig counts caused the underperformance during the quarter. Recently completed merger with NextTier Oilfield Solutions and the acquisition of Ulterra should drive improved cash flow and cost synergy opportunities.”
3. Cleveland-Cliffs Inc. (NYSE:CLF)
Share Price as of March 24: $9.42
Number of Hedge Fund Holders: 49
Cleveland-Cliffs Inc. (NYSE:CLF) is a flat-rolled steel producer that supplies steel products across North America and internationally. These include hot-rolled, cold-rolled, and advanced high-strength steel. It also produces stainless steel, steel plates, and electrical steel, alongside raw materials like iron ore and coal.
In Q4 2024, the company’s Automotive Steel segment saw the lowest automotive shipments since the pandemic, which contributed to an $81 million adjusted EBITDA loss. However, early 2025 shows recovery with improved order books and pull rates. Automotive volumes are increasing from existing and new programs. The company believes quality and delivery outperform aggressive pricing long-term.
The company is also positioned to capitalize on the rising hot-rolled coil (HRC) steel prices. With the integration of Stelco, a $100 annual increase in HRC prices is projected to add ~$1 billion to the company’s yearly revenue. The Stelco integration refers to Cleveland-Cliffs Inc.’s (NYSE:CLF) acquisition and incorporation of Stelco’s operations into its existing business, which is a Canadian steel company. This aims to achieve cost synergies and optimize production.
2. Peloton Interactive Inc. (NASDAQ:PTON)
Share Price as of March 24: $6.96
Number of Hedge Fund Holders: 49
Peloton Interactive Inc. (NASDAQ:PTON) provides an integrated fitness platform that offers connected fitness products like the Peloton Bike, Tread, and Row. These are marketed through e-commerce, showrooms, and retail partnerships. It focuses on delivering interactive and immersive fitness experiences to its customers.
The company’s Subscription segment drives its recurring revenue and member retention. It generated $421 million in FQ2 2025, which was 62% of total revenue. The company ended FQ2 with 2.88 million paid Connected Fitness subscriptions. This exceeded guidance by 19,000 subscriptions. The company’s monthly subscription churn was 1.4%, which was down 0.5% sequentially, due to fewer cancellations, pauses, and more reactivations. Members using multiple workout types had 60% lower churn.
Peloton Interactive Inc. (NASDAQ:PTON) added 220,000 users to its Strength+ app and over 300,000 to its 10K training program, which helped it expand its subscription offerings. The company prioritizes subscription growth and projects 2.75 to 2.79 million subscribers in 2025. It’s aiming for a 2x to 3x customer lifetime value (LTV) to acquisition cost (CAC) ratio. With a 50% gross margin forecast and 4.3/5 member satisfaction, subscriptions are a key strength for the company.
Greenlight Capital sees Peloton Interactive Inc. (NASDAQ:PTON) as a successful turnaround story with significant upside potential due to its cost-cutting measures and loyal customer base. It stated the following regarding the company in its Q4 2024 investor letter:
“We had some good successes, as well. Peloton Interactive, Inc. (NASDAQ:PTON) and Tenet Healthcare (THC), discussed below, were also large winners during 2024.
We presented our PTON thesis at the Robin Hood Investors Conference in October and previously sent you copies of the presentation. Yes, David rode for 20 minutes while presenting the thesis.5 PTON was a popular stock during the COVID era as demand for at-home fitness products and services skyrocketed. During this time, the company invested heavily for growth without any regard for profitability or expense management. After multiple missteps and subsequent management changes, the stock fell 98% from its peak price in early 2021. Throughout this time, PTON has maintained a loyal and engaged customer base through its subscription-based business model.
Recently, the company has committed itself to dramatically cutting costs. Should PTON be successful in right-sizing its cost structure, we expect significant EBITDA generation, and when applying a peer multiple to those profits, we believe the stock has significant upside. We established our position at an average price of $4.07 per share. PTON ended the year at $8.70.”
1. Core Scientific Inc. (NASDAQ:CORZ)
Share Price as of March 24: $8.51
Number of Hedge Fund Holders: 66
Core Scientific Inc. (NASDAQ:CORZ) specializes in digital asset mining services and offers infrastructure, software, and hosting solutions across the US. It operates through self-mining, hosted mining, and HPC hosting segments. It provides data center facilities, miner deployment & management, and essential infrastructure services to support blockchain transactions and digital asset operations.
The company recently secured an $8.7 billion, 12-year contract with CoreWeave for 500 megawatts. This translated to $725 million in annual revenue, which surpassed its 2024 total revenue of $500 million. This came primarily from Bitcoin mining. The company has expanded its CoreWeave agreement by 70 megawatts in Denton, which added $1.2 billion in contracted revenue. This brought the total contracted value to over $10 billion. The company expects 250 megawatts to be online by the end of 2025, and the full 590 megawatts by early 2027.
The company is diversifying its HPC customer base and is aiming for CoreWeave to represent less than 50% of its critical IT load by 2028. Additionally, Core Scientific Inc. (NASDAQ:CORZ) is pursuing organic expansion and is targeting an additional 300 megawatts at existing sites by 2027. It’s exploring strategic M&A opportunities to further expand capacity and diversify revenue streams. The current strategy involves funding $1.5 million in capital expenditures per megawatt for new deals.
While we acknowledge the growth potential of Core Scientific Inc. (NASDAQ:CORZ), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CORZ 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.
