In this article, we discuss 15 best single digit stocks to buy now. If you want to read about some more single digit stocks, go directly to 5 Best Single Digit Stocks to Buy Now.
The United States job market has been one of the few bright spots in an otherwise bleak economy over the past few months, but the macro uncertainty has now even started to affect the jobs market outlook. According to an analysis by investment advisory Bank of America, nonfarm payroll gains are expected to be cut in half in the fourth quarter of 2022, slightly before they turn negative in early 2023. The bank also claims that during the first quarter of 2023, the US will be losing around 175,000 jobs a month.
Per Michael Gapen, the head of US economics at BofA, the US economy will sink into a recession in the first half of 2023. Investors who have loaded their portfolios with growth stocks are actively seeking for cover against the looming recession. In this scenario, it might be more prudent to invest in big value-friendly names and smaller growth stocks to balance the growth and value ratio in portfolios. Some of the best single digit stocks to buy in this context include ADT Inc. (NYSE:ADT), Archer Aviation Inc. (NYSE:ACHR), and Ambev S.A. (NYSE:ABEV).
Our Methodology
The companies that were priced under $10 per share as of October 21 were selected for the list. The analyst ratings of these firms and the latest updates related to them are also discussed to provide some additional context. Data from around 900 elite hedge funds tracked by Insider Monkey in the second quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.
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Best Single Digit Stocks to Buy Now
15. Vicinity Motor Corp. (NASDAQ:VEV)
Number of Hedge Fund Holders: 1
Share Price as of October 21: $1.15
Vicinity Motor Corp. (NASDAQ:VEV) is a Canada-based automobile manufacturer that is ramping up investment in electric vehicles. It is one of the best single digit stocks to invest in. The shares of the firm have surged in the past few days after it announced that it had secured a purchase order that exceeds $100 million for 1,000 VMC 1200 Class 3 Electric Trucks from Pioneer Auto Group. The company is to deliver electric trucks by the end of 2023. The deliveries are expected to commence this month.
At the end of the second quarter of 2022, 1 hedge fund in the database of Insider Monkey held a position worth $16,000 in Vicinity Motor Corp. (NASDAQ:VEV).
Just like ADT Inc. (NYSE:ADT), Archer Aviation Inc. (NYSE:ACHR), and Ambev S.A. (NYSE:ABEV), Vicinity Motor Corp. (NASDAQ:VEV) is one of the best single digit stocks to buy now.
14. Lion Group Holding Ltd. (NASDAQ:LGHL)
Number of Hedge Fund Holders: 2
Share Price as of October 21: $1.02
Lion Group Holding Ltd. (NASDAQ:LGHL) owns and runs a trading platform in Hong Kong. Some of the products and services offered by the firm include difference trading, insurance brokerage, futures and securities brokerage, total return swap trading, and asset management services.
At the end of the second quarter of 2022, 2 hedge funds in the database of Insider Monkey held stakes worth $208,000 in Lion Group Holding Ltd. (NASDAQ:LGHL), compared to 3 in the preceding quarter worth $470,000.
13. ACRES Commercial Realty Corp. (NYSE:ACR)
Number of Hedge Fund Holders: 5
Share Price as of October 21: $8.25
ACRES Commercial Realty Corp. (NYSE:ACR) is a real estate investment trust (REIT) that focuses on the origination, holding, and management of commercial real estate mortgage loans and other commercial real estate-related debt investments. It is one of the top single digit stocks to invest in. On September 22, the Board of Directors of the firm declared cash dividends on its preferred stock. The company also said that it will pay a cash dividend on the Series D Cumulative Redeemable Preferred Stock in the amount of $0.49 per share.
At the end of the second quarter of 2022, 5 hedge funds in the database of Insider Monkey held stakes worth $1.3 million in ACRES Commercial Realty Corp. (NYSE:ACR), compared to 5 in the previous quarter worth $2.4 million.
12. Aegon N.V. (NYSE:AEG)
Number of Hedge Fund Holders: 7
Share Price as of October 21: $4.09
Aegon N.V. (NYSE:AEG) provides insurance, pensions, and asset management services in the Americas, the Netherlands, and the United Kingdom. The shares of the firm have risen recently after the company announced that it would buy back $413 million of debt and $300 million of shares after it completed the sale of its Hungarian business for gross proceeds of EUR 620 million.
At the end of the second quarter of 2022, 7 hedge funds in the database of Insider Monkey held stakes worth $16.9 million in Aegon N.V. (NYSE:AEG), compared to 7 the preceding quarter worth $34.4 million.
11. Ashford Hospitality Trust, Inc. (NYSE:AHT)
Number of Hedge Fund Holders: 8
Share Price as of October 21: $7.55
Ashford Hospitality Trust, Inc. (NYSE:AHT) is a real estate investment trust (REIT) focused on investing predominantly in upper upscale, full-service hotels. It is one of the premier single digit stocks to invest in. On October 11, Ashford Hospitality Trust declared that it expected to report 71% occupancy for Quarter 3 and RevPAR of $127, up 29% year-on-year. The average daily rate is projected to be $179.
On August 22, Deutsche Bank analyst Chris Woronka maintained a Buy rating on Ashford Hospitality (NYSE:AHT) stock and lowered the price target to $32 from $34, noting that consensus estimates for the second half of 2022 remain too low across the board.
At the end of the second quarter of 2022, 8 hedge funds in the database of Insider Monkey held stakes worth $5.3 million in Ashford Hospitality Trust, Inc. (NYSE:AHT), compared to 7 in the preceding quarter worth $11.1 million.
10. a.k.a. Brands Holding Corp. (NYSE:AKA)
Number of Hedge Fund Holders: 6
Share Price as of October 21: $1.69
a.k.a. Brands Holding Corp. (NYSE:AKA) operates a portfolio of online fashion brands in the United States, Australia, and internationally. On August 11, Truist analyst Youssef Squali maintained a Buy rating on a.k.a. Brands (NYSE:AKA) stock and lowered the price target to $5 from $10, noting that the company’s weaker results reflect a tough macro environment, while the post-pandemic reopening is creating compelling value for the company over time.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Schonfeld Strategic Advisors is a leading shareholder in a.k.a. Brands Holding Corp. (NYSE:AKA), with 616,575 shares worth more than $1.7 million.
9. Aeva Technologies, Inc. (NYSE:AEVA)
Number of Hedge Fund Holders: 13
Share Price as of October 21: $1.94
Aeva Technologies, Inc. (NYSE:AEVA), through its frequency modulated continuous wave (FMCW) sensing technology, designs a 4D LiDAR-on-chip that enables the adoption of LiDAR across various applications, including automated driving to consumer electronics, consumer health, industrial automation, and security application. It is one of the major single digit stocks to invest in. On August 1, Aeva Tech and global sensor manufacturer and sensor solution provider, SICK AG, announced a multi-year collaboration to bring Aeva Tech’s Frequency Modulated Continuous Wave 4D LiDAR to a variety of industrial sensing applications, including long range sensing.
At the end of the second quarter of 2022, 13 hedge funds in the database of Insider Monkey held stakes worth $106 million in Aeva Technologies, Inc. (NYSE:AEVA), compared to 12 in the previous quarter worth $147.6 million.
8. Accel Entertainment, Inc. (NYSE:ACEL)
Number of Hedge Fund Holders: 13
Share Price as of October 21: $8.69
Accel Entertainment, Inc. (NYSE:ACEL) operates as a distributed gaming operator in the United States. On June 1, Accel Entertainment announced that it has completed the acquisition of a previously announced transaction to acquire Century Gaming, a leading distributed gaming operator in Western United States, for $164.2 million in cash and stock. The acquisition also includes Century’s working capital.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm Darlington Partners Capital is a leading shareholder in Accel Entertainment, Inc. (NYSE:ACEL), with 7.4 million shares worth more than $78 million.
In its Q4 2021 investor letter, Clark Street Value, an asset management firm, highlighted a few stocks and Accel Entertainment, Inc. (NYSE:ACEL) was one of them. Here is what the fund said:
“Accel Entertainment, Inc. (NYSE:ACEL) is the best part of regional casinos, the slot machines without the worst part, all the capex and lease payments. Their acquisition of Century Gaming unfortunately didn’t close this year, to me it sounded like a management misstep or unfamiliarity with cross state border acquisitions. But ACEL announced a big buyback ($200MM on a $1.2B market cap), it trades at roughly 8x EBITDA proforma for the acquisition, wage inflation should put more discretionary dollars in their client’s pockets, a few more states are talking about legalizing VGTs, the shares seem pretty cheap to me.”
7. Amplify Energy Corp. (NYSE:AMPY)
Number of Hedge Fund Holders: 13
Share Price as of October 21: $9.39
Amplify Energy Corp. (NYSE:AMPY) engages in the acquisition, development, exploitation, and production of oil and natural gas properties in the United States. It is one of the elite single digit stocks to invest in. On October 3, Amplify Energy’s stock rose after the firm announced that it received a key permit from the US Army Corp of Engineers to continue with repair plans for San Pedro pipeline in California which was reviewed and approved by federal pipeline safety regulators.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Avenue Capital is a leading shareholder in Amplify Energy Corp. (NYSE:AMPY), with 2.6 million shares worth more than $16.8 million.
6. PlayAGS, Inc. (NYSE:AGS)
Number of Hedge Fund Holders: 14
Share Price as of October 21: $6.16
PlayAGS, Inc. (NYSE:AGS) designs and supplies gaming products and services for the gaming industry in the United States and internationally. On September 8, PlayAGS revealed that it had turned down an acquisition bid from Inspired Entertainment, a large gaming provider, as Inspired Entertainment said that preliminary discussions with a third party had been concluded without a deal.
On August 9, B Riley analyst David Bain kept a Buy rating on PlayAGS (NYSE:AGS) stock and raised the price target to $14 from $12, noting that the consensus estimates on the firm are conservative, setting the stage for additional quarterly outperformance post the Q2 results.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm HG Vora Capital Management is a leading shareholder in PlayAGS, Inc. (NYSE:AGS), with 3.5 million shares worth more than $18 million.
In addition to ADT Inc. (NYSE:ADT), Archer Aviation Inc. (NYSE:ACHR), and Ambev S.A. (NYSE:ABEV), PlayAGS, Inc. (NYSE:AGS) is one of the best single digit stocks to buy now.
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Disclosure. None. 15 Best Single Digit Stocks to Buy Now is originally published on Insider Monkey.