In this article, we will look at the 10 Worst Affordable Stocks to Buy Under $10.
Will There Be a Small Cap Resurgence in 2025?
On February 18, Chris Clark, Chief Executive Officer, Co-Chief Investment Officer, and Francis Gannon Co-Chief Investment Officer, Managing Director at Royce Investment released their research on Small Cap stocks. The report explored the potential resurgence of small-cap stocks, emphasizing their relatively attractive valuations, promising earnings outlook, and the role of heightened market volatility. The experts highlighted that historically, small-cap stocks have outperformed large-cap stocks over the long term but with higher volatility. However, this advantage has eroded recently, with large-cap stocks dominating performance since 2011. Small-cap growth fared better than value during this period, but 2024 marked the eighth consecutive year of underperformance for small-caps relative to large-caps.
Royce Investment remains optimistic about a small-cap resurgence in the current year. They highlighted that one key factor supporting small-cap leadership is valuation. Small-cap stocks are currently trading at their largest discount to large-caps in over 25 years based on metrics such as enterprise value over earnings before interest and taxes. This valuation disparity is across the board including sectors like Information Technology, Industrials, Financials, and Consumer Discretionary. The report noted that while mega-cap companies may be overpriced, numerous bargains exist within the small-cap universe across diverse industries. These attractive valuations provide a compelling case for small-cap stocks to regain market leadership.
READ ALSO: 10 Best Small-Cap Stocks to Buy Before They Explode and 11 Best Extremely Profitable Stocks to Buy According to Analysts.
Moreover, earnings growth prospects further enhance the case for small caps. Consensus estimates for 2025 project an 89.3% earnings-per-share growth for the Russell 2000 index compared to 30.9% for the Russell 1000 index. The CEO and CIO of Royce Investment highlighted that while this rebound partly reflects recovery from a two-year earnings recession in small-caps, it underscores their potential for significant growth. Investors should focus on an investment approach that focuses on companies with established earnings histories or clear catalysts for future earnings growth.
The report acknowledged that external factors like tariffs and de-globalization trends may create short-term disruptions. However, the fund sees these developments as opportunities for the US-focused small-cap companies to benefit from reshoring and improved supply chain management. The firm welcomes volatility as it often distracts investors from fundamentals, creating opportunities for active managers to identify undervalued companies with strong long-term prospects.
With that, let’s take a look at the 10 worst affordable stocks to buy under $10.
A Wall Street trading desk monitoring the performance of large-cap growth stocks.
Our Methodology
To compile the list of the 10 worst affordable stocks to buy under $10 we used the Finviz stock screener, Seeking Alpha, and Yahoo Finance. Using the screener we aggregated a list of stocks trading under $10 with a Fwd P/E under 15 and earnings growth expectations this year. Next, we cross-checked the Fwd P/E and earnings growth for each stock from Seeking Alpha and Yahoo Finance. Lastly, we selected the least popular stocks among hedge funds and listed them in descending order of the number of hedge funds that hold stakes in them, as of Q4 2024. Please note that the data was recorded on March 26, 2025.
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 Worst Affordable Stocks to Buy Under $10
10. ADT Inc. (NYSE:ADT)
Price: $8.21
Forward P/E Ratio: 9.84
Earnings Growth This Year: 9.46%
Number of Hedge Fund Holders: 31
ADT Inc. (NYSE:ADT) is a leading provider of security, interactive, and smart home solutions in the United States. The company operates through two segments including the Consumer and Small Business and Solar segments. It serves customers through direct sales channels, authorized dealers, and partnerships with companies like Alphabet.
On February 28, Morgan Stanley analyst Toni Kaplan maintained a Hold rating on the stock with a price target of $9. The rating depicts a combination of opportunities and challenges. Kaplan noted that during the fiscal fourth quarter of 2024, ADT Inc. (NYSE:ADT) reported revenue growth exceeding expectations, driven by record recurring monthly revenue and strong customer retention. However, despite the revenue growth of 8%, the adjusted EBITDA fell short of estimates, due to investments in innovation and long-term strategies, which impacted profitability margins. Moreover, the company also faces risks from tariffs and increased tax obligations in 2025, which could weigh on financial performance. It is one of the worst affordable stocks to buy under $10.
9. Amcor plc (NYSE:AMCR)
Price: $9.44
Forward P/E Ratio: 12.95
Earnings Growth This Year: 5.04%
Number of Hedge Fund Holders: 29
Amcor plc (NYSE:AMCR) is a global packaging company specializing in developing and producing packaging solutions across various materials. It operates through two segments including Flexibles Segment and Rigid Packaging Segment.
The company had a strong fiscal second quarter of 2025. Management noted that they were focused on three main priorities including delivering on its base business, preparing for the announced merger with Berry Global, and ensuring a seamless integration process. As a result, the net sales came in at $3.2 billion, reflecting a slight increase year-over-year, whereas the overall volumes grew by 2.3%, offsetting unfavorable price mix impacts.
Amcor plc (NYSE:AMCR) is advancing its merger with Berry Global, which aligns with its vision to become the global packaging partner of choice. The combined company is expected to offer an expanded primary packaging portfolio across consumer goods and healthcare markets, enabling Amcor plc (NYSE:AMCR) to focus on higher-value, faster-growing segments. It is one of the worst affordable stocks to buy under $10.
8. Coty Inc. (NYSE:COTY)
Price: $5.48
Forward P/E Ratio: 12.89
Earnings Growth This Year: 17.37%
Number of Hedge Fund Holders: 28
Coty Inc. (NYSE:COTY) is a global beauty company specializing in fragrances, color cosmetics, and skin and body care products. It operates through two main segments including Consumer Beauty and Prestige segments.
On February 20, Analyst Susan Anderson from Canaccord Genuity maintained a Buy rating on the stock with a price target of $8. Moreover, Meridian Hedged Equity Fund highlighted Coty Inc.’s (NYSE:COTY) transformation potential in its Q4 2024 investor letter, emphasizing the company’s strategic investments and resilience despite recent challenges. The fund noted that the company is recognized for its efforts in brand development and expansion into high-growth beauty markets, particularly within its prestige and consumer segments. However, the performance was affected by broader retail headwinds, including cautious inventory management by distributors in the US, Australia, and Asia, as well as weak sales in China.
To mitigate these pressures, Coty Inc. (NYSE:COTY) has implemented cost-saving initiatives aimed at protecting profit margins while continuing to invest in strategic growth areas. Meridian Hedged Equity Fund anticipates a reacceleration of sales momentum, driven by holiday season performance and the ongoing expansion of the company’s prestige portfolio. It is one of the worst affordable stocks to buy under $10.
Meridian Hedged Equity Fund stated the following regarding Coty Inc. (NYSE:COTY) in its Q4 2024 investor letter:
“Coty Inc. (NYSE:COTY) is a global beauty company with a growing portfolio of prestige and consumer brands. We hold Coty for its transformation potential through strategic investments in brand development and expansion within high-growth beauty markets. Performance this quarter was impacted by broader retail headwinds, as distributors in the U.S., Australia, and Asian retail channels maintained cautious inventory positions. Weak sales in China further pressured results. Despite these challenges, management implemented cost-saving measures to protect margins while maintaining strategic growth initiatives. We anticipate sales momentum to reaccelerate, supported by holiday season performance and continued expansion of the prestige portfolio.”
7. Valley National Bancorp (NASDAQ:VLY)
Price: $9.11
Forward P/E Ratio: 9.66
Earnings Growth This Year: 53.01%
Number of Hedge Fund Holders: 27
Valley National Bancorp (NASDAQ:VLY) is a regional bank holding and financial holding company headquartered in Morristown, New Jersey. Its primary subsidiary, Valley National Bank, operates over 230 branches and commercial banking offices across several US states.
On March 24, Piper Sandler analyst Frank Schiraldi upgraded Valley National Bancorp (NASDAQ:VLY) from Neutral to Overweight, maintaining a price target of $11. Schiraldi expects significant profitability improvements over the next 12 months, projecting the bank to achieve a 1% return on assets by year-end, up from the 74 basis points reported in Q4 2024. He views the stock as undervalued, trading below tangible book value and at approximately 7.5 times expected 2026 earnings. Moreover, the bank’s credit profile remains strong, with credit costs anticipated to decline significantly year-over-year in line with guidance.
Valley National Bancorp (NASDAQ:VLY) demonstrated strong financial performance in the fourth quarter of 2024, reporting a net income of $116 million, an improvement from the previous quarter’s $98 million. It is one of the worst affordable stocks to buy under $10.
6. Itaú Unibanco Holding S.A. (NYSE:ITUB)
Price: $5.68
Forward P/E Ratio: 7.67
Earnings Growth This Year: 10.71%
Number of Hedge Fund Holders: 23
Itaú Unibanco Holding S.A. (NYSE:ITUB) is a Brazil-based financial institution that provides a wide range of banking and nonbanking services. It operates through three main business segments including Retail Banking, Wholesale Banking, and Activities with the Market and Corporations.
Itaú Unibanco Holding SA (NYSE:ITUB) is making significant strides in modernizing its operations and embracing new technologies to enhance its long-term performance and competitiveness. The company has made substantial progress in its modernization and cloud migration initiatives. These efforts have yielded impressive results, with a 99% reduction in high-impact incidents reported in the Q4 2024 earnings call. In addition, the company is heavily investing in data science and AI capabilities such as employing more than 470 data scientists and implementing more than 390 generative AI initiatives.
As part of its strategic initiatives, Itaú Unibanco Holding S.A. (NYSE:ITUB) is implementing the “One Itaú” project, which aims to consolidate its digital presence. The company aims to migrate 15 million single-product users to the company’s primary app. It plans to complete the migration of the remaining clients throughout 2025. The stock was held by 23 hedge funds in Q4 2024 and ranks as one of the worst affordable stocks to buy under $10.
5. Ambev S.A. (NYSE:ABEV)
Price: $2.33
Forward P/E Ratio: 12.82
Earnings Growth This Year: 13.72%
Number of Hedge Fund Holders: 22
Ambev S.A. (NYSE:ABEV) is an international beverage company engaged in the production, distribution, and sale of beer, carbonated soft drinks, and other non-alcoholic and non-carbonated beverages across the Americas.
The company faced significant challenges in 2024, including tax headwinds in Brazil and economic difficulties in Argentina. However, it managed to deliver better-than-expected financial results through disciplined cost management, strategic pricing, and operational efficiency. Ambev S.A. (NYSE:ABEV) grew its organic EBITDA by 11.4% (12.1% excluding Argentina), reflecting strong operational performance despite tax pressures. However, the normalized profits declined by 2.3%, primarily due to a nearly R$3.5 billion impact from reduced tax deductibility in Brazil, which increased the effective tax rate.
On the other hand, if we look at the 5-year performance of the company. It has grown its consolidated EBITDA by 37%, with double-digit growth and margin expansion across all business units for two consecutive years. Ambev S.A. (NYSE:ABEV) ranks as one of the worst affordable stocks to buy under $10 and was held by 22 hedge funds in Q4 2024.
4. Veren Inc. (NYSE:VRN)
Price: $6.77
Forward P/E Ratio: 6.83
Earnings Growth This Year: 2.92%
Number of Hedge Fund Holders: 22
Veren Inc. (NYSE:VRN) is a Canadian oil and gas producer with operations primarily in central Alberta and southeast and southwest Saskatchewan. It focuses on acquiring, developing, and managing petroleum and natural gas properties through its general partnership and wholly owned subsidiaries.
During the fiscal fourth quarter of 2024, Veren Inc. (NYSE:VRN) increased its production level to 189,000 BOE per day. This was boosted by the Montney and Duvernay assets in Alberta which contributed more than 80% to the quarterly production. Moreover, on February 28, Jeremy Mccrea, an analyst from BMO Capital, maintained the Buy rating on Veren with a price target of C$11. Mccrea noted that the company has implemented an innovative SPE (Single Point Entry) completion design in the Karr area, leading to significantly higher-than-expected well production rates. This success highlights the potential for increased production efficiency and financial performance in the region.
In addition, activities in the Kaybob Duvernay region have also exceeded expectations. Multi-well pads in this area have delivered production rates above the typical performance benchmarks, further contributing to Veren Inc.’s (NYSE:VRN) strong cash flow and production growth. However, the stock ranks as one of the worst affordable stocks to buy under $10 and was held by 22 hedge funds in Q4 2024.
3. Banco Bradesco SA (NASDAQ:BBD)
Price: $2.30
Forward P/E Ratio: 6.51
Earnings Growth This Year: 7.43%
Number of Hedge Fund Holders: 18
Banco Bradesco SA (NASDAQ:BBD) is one of Brazil’s largest and most diversified financial institutions, offering a wide range of banking and financial services both domestically and internationally. It is one of the worst affordable stocks to buy under $10.
In February, analysts from Goldman Sachs downgraded the stock from Buy to Sell, reducing the price target from $2.40 to $2. The firm noted that Banco Bradesco SA’s (NASDAQ:BBD) return on equity is expected to remain below its cost of equity until at least 2027. This indicates that Banco Bradesco is not generating sufficient profits relative to its equity costs, which is a critical metric for evaluating a company’s financial health. Moreover, the bank also lags behind its competitors, in terms of financial performance.
The analyst noted that Banco Bradesco SA’s (NASDAQ:BBD) profitability is “muted,” meaning it is not strong enough to support robust organic capital generation. This is particularly concerning after a year in which shareholders’ equity remained stable, indicating limited growth in shareholder value.
2. ASE Technology Holding Co., Ltd. (NYSE:ASX)
Price: $9.76
Forward P/E Ratio: 13.66
Earnings Growth This Year: 60.03%
Number of Hedge Fund Holders: 17
ASE Technology Holding Co., Ltd. (NYSE:ASX) is a Taiwan-based company specializing in semiconductor assembly, testing, and packaging services. It operates through three main business areas including Packaging and Testing Services, Electronic Manufacturing Services, and Investment Business.
During the fiscal fourth quarter of 2024, ASE Technology Holding Co., Ltd. (NYSE:ASX) delivered NT$162,264 million in revenue indicating a slight increase of 1% year-over-year. In addition, the net income decreased during the same time to NT$9,312 million. While the ATM segment of the company grew 7.8% as compared to the last year, however, the EMS segment led the overall progress down by declining 5.4%. It ranks as one of the worst affordable stocks to buy under $10.
Regardless of the short-term challenges management provided its guidance for Q1 2025 and the full year, reflecting strategic expectations. It expects ATM Revenue to grow next year by mid-single digits, driven by increasing demand for advanced packaging and testing services, particularly in leading-edge technologies. Moreover, the gross profit margin for the segment is also expected to recover to the structural target range of 24% to 30%, supported by ramping up leading-edge capacity in the latter half of the year.
1. Telefônica Brasil S.A. (NYSE:VIV)
Price: $8.60
Forward P/E Ratio: 12.64
Earnings Growth This Year: 15.95%
Number of Hedge Fund Holders: 13
Telefônica Brasil S.A. (NYSE:VIV), which operates under the Vivo brand, is a leading telecommunications company in Brazil. The company offers a range of services including fixed-line and mobile telephony, broadband services, pay TV, and other digital solutions.
On March 3, Barclays analyst Mathieu Robilliard upgraded from an Equal Weight to an Overweight rating, however, decreased the price target from $11.80 to $11.50. The upgrade is based on strong revenue and commercial dynamics observed in Telefônica Brasil S.A.’s (NYSE:VIV) results, which are expected to continue into 2025. The analyst noted that the Brazilian market remains very healthy, as evidenced by the company’s Q4 results. He thinks that the company is well-positioned for growth, driven by robust market conditions and solid operational performance.
Moreover, during the fiscal fourth quarter of 2024, Telefônica Brasil S.A. (NYSE:VIV) reached a record 116.1 million accesses, marking a 2.7% year-over-year increase. The mobile segment also grew and ended with 102.3 million accesses, up 3.3% year-over-year. Notably, 5G coverage expanded to 504 cities, nearly tripling from the previous year. However, it still ranks as one of the worst affordable stocks to buy under $10 as it was only held by 13 hedge funds in Q4 2024.
While we acknowledge the potential of VIV to grow, our conviction lies in the belief that 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 VIV 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.
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