Our list today highlights stocks that are priced under $10 and can offer opportunities for growth. These stocks offer diversification away from the typical large and mid-cap names with the use of lower capital. These stocks often belong to companies that are trying to create niche businesses or are in various stages of product evolution, including emerging growth firms and established businesses, giving tough competition to larger rivals. In our view, this space has the potential for high returns, particularly if these companies can successfully execute their business strategies and capitalize on market trends.
In the technology sector, many undervalued stocks are well-positioned to benefit from the ongoing trends of digital transformation, and transition to cloud and AI. Companies offering innovative software solutions, cybersecurity, and cloud services are anticipated to thrive as businesses continue to invest in technology to enhance their competitive position and security. By identifying promising companies in these areas, investors can potentially achieve good returns although with a little higher risk. That said, we believe that stock selection remains crucial in the small-cap space due to the volatility of these names. For comparison, the S&P SmallCap600 Index has underperformed the broader S&P500 Index over the last 3, 5, and 10 years which indicates that you might not get enough returns if you take a broader approach.
The technology sector continues to be driven by rapid innovation and the adoption of cutting-edge technologies. Advances in technology are significantly impacting lives, industries, and economies worldwide. The integration of AI and ML is revolutionizing workflows, enhancing productivity, and creating new revenue opportunities. Organizations globally are undergoing digital transformations to stay competitive, streamline operations, improve customer engagement, and drive innovation in their products and services.
On that note, let’s explore our list of the 12 best tech stocks to buy right now under $10.
Highlighting the company’s sector and industry, a technician working on a complex SaaS in a technology lab.
Our Methodology
To shortlist the 12 Best Tech Stocks to Buy Right Now Under $10, we screened technology stocks with current share price below $10. We overlaid this criterion with additional criteria of market capitalization of at least $300 million and a potential upside of greater than 10%. The stocks were then arranged in ascending order of the number of hedge fund holders for each company, based on hedge fund data from Insider Monkey’s database.
Note: all pricing data is as of market close on February 6.
At Insider Monkey we are obsessed with 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
12 Best Tech Stocks to Buy Right Now Under $10
12. BigCommerce Holdings Inc. (NASDAQ:BIGC)
Current Market Price: $6.63; Upside Potential: 28%
Number of hedge funds: 20
On the bottom of our list is BigCommerce Holdings Inc. (NASDAQ:BIGC), a cloud-based e-commerce platform that empowers businesses to establish and manage online stores. The company provides a comprehensive suite of tools and services designed to support the development, customization, and optimization of e-commerce websites. The platform not only assists customers in creating and managing their own branded online stores but also facilitates seamless integration with various sales channels, including popular online marketplaces, social networks, and offline point-of-sale (POS) systems used in physical stores. BigCommerce Holdings Inc. (NASDAQ:BIGC) caters to a wide range of clients, from small businesses and mid-market enterprises to large corporations.
In Q3 2024, BigCommerce Holdings Inc. (NASDAQ:BIGC) reported a 7.3% year-over-year growth in sales, reaching $83.7 million, which met street expectations. The company’s EPS of USD 0.06 significantly surpassed consensus estimates. Serving both business-to-consumer (B2C) and business-to-business (B2B) merchants on a single platform, BigCommerce Holdings Inc. (NASDAQ:BIGC) expects to benefit from the increasing investment in e-commerce platforms which is projected to grow to $16.5 billion by 2027. With rising demand from larger B2C and B2B merchants, the company focuses on high-value enterprise accounts to support revenue growth.
11. Conduent Inc. (NASDAQ:CNDT)
Current Market Price: $3.94; Upside Potential: 78%
Number of hedge funds: 20
Conduent Inc. (NASDAQ:CNDT) offers business process services (BPS) and technology solutions, focusing on managing critical interactions and transactions for clients across commercial, transportation, and government sectors. The company provides a comprehensive suite of services, including customer experience management, digital payments, government healthcare claims, road usage charging, and transit. Conduent’s technology-driven solutions leverage automation, cloud computing, and AI to deliver mission-critical business process solutions.
Conduent Inc. (NASDAQ:CNDT) announced its mid-term outlook with its Q3 2024 results in November. The company expects adjusted revenue between $3.19 billion and $3.22 billion and an adjusted EBITDA margin between 3.75% and 4.0% for the full year 2024. Additionally, it has forecasted a 2%-4% revenue growth and a 2.0%-2.5% adjusted EBITDA margin expansion for 2025. Under its 2024 divestiture program, Conduent Inc. (NASDAQ:CNDT) has been rationalizing its offerings portfolio under its 2024 divestiture program, and by November, had already allocated 75% of the $1.0 billion of proceeds to debt prepayment and share repurchases, strengthening its financial position.
