10 Best Stocks To Buy Under $10 According To Hedge Funds

Published November 14, 2021 at 8:50 am EST Updated September 7, 2026 at 1:44 pm EDT

In this article, we will discuss the 10 best stocks to buy under $10 according to hedge funds.

Hedge funds are always considered ahead of the investment game as compared to retail investors because of their resources, experience and access to advanced tools. Some hedge funds are highly diversified, while others are concentrated in certain sectors.

Cheap stocks with strong growth catalysts provide investors with an opportunity to generate attractive returns in a short period of time in an era of rising market valuations. According to Jamie Harmon, Fidelity Low-Priced Stock’s co-manager, it’s still possible to find some fantastic bargains in the market.

“The opportunity with low-priced stocks is that you’re looking where no one else is looking.”

Cheap stocks are obviously not fancy and famous like Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT) or Twitter, Inc. (NYSE:TWTR). Nonetheless, they can be beneficial investments considering the financial impact of Covid-19 on the US economy and the effect on the income levels of the population. As per IMF, the global economy shrunk by 4.4% in 2020 and around 8.9% of the population in the United States became unemployed. This has been considered as one of the factors attracting investors towards cheap stocks. According to Bloomberg, in the first quarter of 2021, Russell 3000 stocks that were priced lower than $2 had risen about 13% on average. While stocks with a price of less than $5 were up about 10%. This was over three times the increase seen in stocks with a stock price of more than $100.

10 Best Stocks To Buy Under $10 According To Hedge Funds

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Our Methodology

Let’s begin our list of the 10 best stocks to buy under $10 according to hedge funds

We picked these cheap stocks by evaluating their popularity among the 873 hedge funds tracked by Insider Monkey as of the second quarter.

Why pay attention to hedge fund holdings? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

Best Stocks To Buy Under $10 According To Hedge Funds

10. Southwestern Energy Company (NYSE:SWN)

Number of Hedge Fund Holders: 27

Southwestern Energy Company (NYSE:SWN) is one of the biggest natural gas liquids producers in the United States. The company secures the tenth position on our list of 10 best stocks to buy under $10 according to hedge funds.

Amongst the hedge funds, Kopernik Global Investors has the largest stake of $92 million in Southwestern Energy Company. Overall, 27 hedge funds hold a combined position of $257.7 million in Southwestern Energy Company, which is equivalent to 5% of the company’s market capitalization.

On October 18, Vincent Lovaglio reiterated a Buy rating on Southwestern Energy Company but raised the price target by $1 to $8 on the back of the higher natural gas price forecasted during winters. Meanwhile, Neal Dingmann at Truist maintained a Hold rating but increased the target price to $6 due to better demand and supply situation in the market.

9. Kinross Gold Corporation (NYSE:KGC)

Number of Hedge Fund Holders: 28

Kinross Gold Corporation (NYSE:KGC) is one of the top 10 gold mining companies in the world based out of Canada. The company is anticipating a 38% increase in production between 2021 and 2023 to 2.9 million gold equivalent ounces. In the last decade, the company has had a consistent trend of meeting its guidance.

According to Insider Monkey’s database, 28 hedge funds held stakes worth $360.2 million in Kinross Gold Corporation, up from 27 in the preceding quarter, worth $444.9 million.

Since the start of 2021, the stock price of Kinross Gold Corporation has experienced a decline of over 13% and it provides an attractive entry position based on positive catalysts developing for the company in the next couple of years. Fahad Tariq at Credit Suisse sees ‘re-rating potential’ on the back of the company’s strong free cash flow for 2022. On October 12, the analyst issued an Outperform rating on the stock.

Apart from large-cap stocks like Amazon.com, Inc., Apple Inc., Microsoft Corporation, and Twitter, Inc., hedge funds are also investing in Kinross Gold Corporation.

8. Sirius XM Holdings Inc. (NASDAQ:SIRI)

Number of Hedge Fund Holders: 26

Sirius XM Holdings Inc. (NASDAQ:SIRI) is a New York-based satellite and online radio services organization. 26 hedge funds have taken a cumulative position of $577.5 million in the company as of Q2 2021, which is equivalent to 2.4% of the company’s market value.

On October 19, Jeffrey Wlodarczak at Pivotal Research reiterated his Buy rating on the stock. Car sales are expected to bounce back after the chip shortage erodes away, providing Sirius XM Holdings Inc. an opportunity to gain self-paying customers opting for the Sirius XM radio service.

On October 25, Sirius XM Holdings Inc. announced its quarterly cash dividend of 2.19 cents per common stock share, reflecting an increase of 50% over the previous quarter’s dividend. Moreover, the company beat the analysts’ revenue estimate by $30.98 million and the EPS estimate by $0.01 for the third quarter of 2021.

Just like Amazon.com, Inc., Apple Inc., Microsoft Corporation, and Twitter, Inc., Sirius XM Holdings Inc. is one of the stocks attracting hedge fund investment.

7. CEMEX, S.A.B. de C.V. (NYSE:CX)

Number of Hedge Fund Holders: 23

CEMEX, S.A.B. de C.V. (NYSE:CX) is a vertically integrated multinational heavy buildings materials company headquartered in Mexico. The company has strong trade relationships with more than 100 countries across the globe and provides aggregates, cement, ready-mix concrete, and urbanization solutions.

According to Insider Monkey’s database, 23 hedge funds hold a combined position of $601.78 million in CEMEX, S.A.B. de C.V.. This is equivalent to 5.5% of the company’s market capitalization.

The company has a strong outlook on the back of economies reopening following several lockdowns globally amidst the COVID-19 pandemic. The outlook of the US construction industry is strong as major infrastructure projects are undertaken by the government to boost the economy.

On October 11, Andres Cardona at Citi upgraded Cemex SAB de CV (ADR) (NYSE:CX) from Neutral to Buy with a price target of $9.30, noting that the stock’s 27% pullback provides investors a chance to “become buyers once again.”

6. DiDi Global Inc. (NYSE:DIDI)

Number of Hedge Fund Holders: 46

DiDi Global Inc. (NYSE:DIDI) is a popular ride-hailing company, holding a major chunk of market share of the industry in China.

As of the second quarter of 2021, 46 hedge funds tracked by Insider Monkey reported owning stakes in DiDi Global Inc.. The total value of the holding is nearly $925 million.

DiDi Global Inc.’s (NYSE:DIDI) revenue increased by 106% YoY to 42.2 billion yuan ($6.6 billion) in the first quarter of 2021. DiDi Global Inc. reported having 493 million annual active users at the conclusion of the first quarter.

5. iQIYI, Inc. (NASDAQ:IQ)

Number of Hedge Fund Holders: 27

iQIYI, Inc. (NASDAQ:IQ) is an online content portal platform similar to Netflix Inc (NASDAQ: NFLX). The company has 500 million monthly active daily users (MAU) as opposed to 209 million subscribers globally for Netflix.

Of the 873 elite funds tracked by Insider Monkey, 27 were long on iQIYI, Inc. at the end of the second quarter of 2021. The estimated market value of this holding is $1.1 billion.

iQIYI, Inc. beat the EPS estimate by $0.05 and the revenue estimate by $24.30 million for the second quarter of 2021. The company expects its net revenue to be between $1.18 billion and $1.25 billion for the third quarter of 2021 as opposed to the analysts’ forecast of $1.23 billion, reflecting an increase of 6% to 13% YoY.

The company should not be considered as a Chinese pure-play as it has been able to garner over 106 million subscribers due to exclusive rights to Korean content, which is famous globally. The recent success of Squid Games on Netflix further shows the potential of Korean content, and this is where iQIYI, Inc. comes into play. Furthermore, the company also launched “iBarca Membership” in partnership with Barcelona Football Club. Iqiyi subscribers would have access to exclusive content from Barca TV in Mandarin and other benefits as well.

4. Paysafe Limited (NYSE:PSFE)

Number of Hedge Fund Holders: 50

Paysafe Limited (NYSE:PSFE) is a London-based provider of specialized payment solutions globally. The company has an annual transactional volume of $100 billion and employs 3,400 people across more than a dozen locations globally. The company went public at the end of 2020 following a merger with SPAC that was supported by the Blackstone Group Inc (NYSE: BX) and CVC Capital Partners. Both these entities bought Paysafe back in 2017 for $4 billion.

Of the 873 hedge funds being tracked by Insider Monkey, 50 hedge funds hold a position in Paysafe Limited as of Q2 2021. The total worth of their position is $1.12 billion, which is equivalent to 19.1% of the company’s market capitalization.

Paysafe Limited has an opportunity to reap the benefit of the growth potential in the online gambling industry in the US through its specialized products. The industry is expected to grow by 50% as more states are opening to online betting. Most recently, online sports betting started in Connecticut. Meanwhile, the proposal to start online sports betting is in the final stage in New York, and neighboring New Jersey became the first state to report $1 billion worth of sports bets in a month. Furthermore, the company also has digital wallets that can make it a play in the cryptocurrency universe as well.

3. eMagin Corporation (NYSE: EMAN)

Number of Hedge Fund Holders: 9

eMagin Corporation (NYSE: EMAN) engages in the development and selling of organic light-emitting diode displays and other virtual imaging products. It was founded in 1996 and has a market cap of close to $200 million.

In March, investment advisory HC Wainwright reiterated a Buy rating on eMagin Corporation stock and raised the price target to $5 from $2, noting that the firm was well positioned for growth this year on the back of improving virtual reality prospects.

At the end of the first quarter of 2021, 9 hedge funds in the database of Insider Monkey held stakes worth $5.9 million in eMagin Corporation, up from 5 in the preceding quarter worth $786,000.

2. Zynga Inc. (NASDAQ:ZNGA)

Number of Hedge Fund Holders: 49

Zynga Inc. (NASDAQ:ZNGA) is a renowned developer of social games globally and is home to popular games like Farmville and Zynga Poker. The videogame industry has gained a lot of traction since the start of the COVID-19 pandemic as people adopted staying indoors and playing video games.

As of the second quarter of 2021, 49 hedge funds held stakes worth $1.27 billion in Zynga Inc., up from 47 in the preceding quarter.

On October 26, Clark Lampen, an analyst at investment advisory BTIG, started coverage of Zynga Inc. with a Buy rating and stated the price target as $10. In a research note to investors, Lampen analyzed the company from a sales perspective and shared that Zynga’s setup for 2022 “looks strong.”

Artisan Partners Limited Partnership mentioned Zynga Inc. in its Q4 2020 investor letter. Here’s what the firm said:

“We also added to our position in Zynga. Our multiyear investment campaign in Zynga has been based on a new management team’s ability to drive steady growth in the company’s base portfolio of games, expand margins, reinvigorate the new game development pipeline and use its strong balance sheet to acquire complementary games and studios. Shares have been pressured in recent quarters, presumably because of investor concerns about the company’s moderating growth rate and Apple’s pending new privacy policy which will make it more difficult for Zynga to both efficiently acquire new players and sell advertising in its games. We believe the company has multiple growth levers it can pull in the periods ahead, including the rollout of new games, acquisitions, further penetration into international markets and entry into new gaming categories, to name a few. Furthermore, our research suggests the Apple privacy policy change is manageable for larger mobile game developers such as Zynga. Given our strong conviction in the profit cycle, we used recent weakness to add to our position.”

1. Clover Health Investments, Corp. (NASDAQ:CLOV)

Number of Hedge Fund Holders: 23

Clover Health Investments, Corp. (NASDAQ:CLOV) is a Tennessee-based company that provides Medicare Advantage (MA) insurance plans to senior citizens. The company leverages its proprietary software known as the Clover Assistant to provide a complete picture of individuals under their plan. The company was taken public in June 2021 by Sri Lankan-born Canadian venture capitalist Chamath Palihapitiya and also had Alphabet Inc (NASDAQ: GOOGL) and Sequoia Capital amongst its investors.

Back in September, the US Department of Health’s Center for Medicare and Medicaid Services (CMS) approved Clover Health Investments Corp. to increase its coverage to 101 new counties across the US in September 2021. Furthermore, the CMS also upgraded Clover Health’s PPO plan to 3.5 stars rating early in October.

Out of the 873 hedge funds being tracked by Insider Monkey, 23 held positions in Clover Health Investments, Corp. (NASDAQ:CLOV) at the end of the second quarter of 2021. The total value of the position is more than $1.4 billion and is equivalent to nearly 70% of the market capitalization of the company. This reflects the heavy involvement of hedge funds in Clover Health Investments Corp..

You can also take a peek at the 11 Best Dividend Aristocrats with over 3% Yield and 12 Best Software Stocks To Buy According To Hedge Funds.

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