5 Best U.S. Stocks to Buy Now Under $10

In this article, we will discuss the 5 best U.S. stocks to buy now under $10. If you want to explore similar stocks, you can also take a look at 15 Best U.S. Stocks to Buy Now Under $10.

5. Gray Television, Inc. (NYSE:GTN) 

Share Price as of September 22: $7.26
Number of Hedge Fund Holders: 28

Gray Television, Inc. (NYSE:GTN) is a company that operates television stations and digital platforms in the U.S. It owns or has affiliations with over 200 stations across 94 markets. It also produces original content and provides advertising services.

As of June 2023, 28 of the 910 hedge funds profiled by Insider Monkey had invested in the company. Gray Television, Inc. (NYSE:GTN)’s largest hedge fund investor in our database is Ken Griffin’s Citadel Investment Group with $11.42 million investment.

Here is what Miller Value Partners said about Gray Television, Inc. (NYSE:GTN) in its second quarter 2023 investor letter:

“During the quarter, we initiated positions in Western Alliance (WAL) and Gray Television, Inc. (NYSE:GTN). Gray Television is the second largest broadcast company in the U.S., located across the country in 113 markets, reaching 36% of U.S. households. The company appears attractively positioned, with 70% of its markets with the #1-ranked local T.V. stations and another 20% with the second-ranked station. Gray has a good distribution profile, growing its retransmission revenue in the mid-single digits over the past five years. Given their strong local stations, the company leads the industry in political revenue during election cycles. The stock price is down more than 60% from its 52-week high as the marketplace has been concerned about limited political revenue this year along with ongoing fears of a pullback in advertising spending from economic weakness. However, we see the potential for earnings and free cash flow to dramatically improve next year as political advertising reaccelerates and retransmission contracts are expected to renew at favorable rates. In addition, Gray recently spent $200M to develop Assembly, a state-of-the-art Film & T.V. studio, with 20 sound stages on 43 owned acres in Atlanta. NBC Universal signed a 15-year lease to manage the studio for Gray and will begin filming new T.V. series and movies in the back half of this year. There are low expectations in Gray’s stock price from the Assembly asset, as no analysts are currently including any future economics in their business projections. We agree with management’s outlook of meaningful free cash flow generation from the Assembly asset upon maturity.

In addition to lifting the long-term free cash flow power of the company, it should also materially reduce the cyclicality in non-election years. While the company has a higher debt load from prior station acquisitions, there are limited maturities over the next couple of years. We see strong free cash flow generation over the next five years (potentially >$2.5B) that could allow the company to rapidly delever over time. With greater than 50% forward earnings and free cash flow yield, Gray’s long-term upside potential is multiples of the current share price.”

4. Chegg, Inc. (NYSE:CHGG) 

Share Price as of September 22: $8.97
Number of Hedge Fund Holders: 28

Chegg, Inc. (NYSE:CHGG) is a learning platform that helps students with academic and career needs

Chegg, Inc. (NYSE:CHGG) was a part of 28 investors’ portfolios at the end of Q2 2023 compared to 27 in the previous quarter. As of June 30, Sylebra Capital Management is the largest investor in Chegg, Inc. (NYSE:CHGG) and has a position worth $79.63 million.

Here is what Artisan Partners said about Chegg, Inc. (NYSE:CHGG) in its second quarter 2023 investor letter:

“Along with Catalent, we ended our investment campaigns in Chegg, Inc. (NYSE:CHGG) and Option Health Care. Chegg is a digital education platform. Shares have been under pressure as the company has reported disappointing fundamental results. Our thesis centered on the belief that there were several tailwinds behind the company’s profit cycle—international expansion, opportunities to cross-sell existing users and longer term changes in higher education (e.g., more remote learning, more focus on student outcomes and pressure on tuition). However, we have been disappointed with the company’s execution and decided to exit the position.”

3. Pacific Biosciences of California, Inc. (NASDAQ:PACB) 

Share Price as of September 22: $9.00
Number of Hedge Fund Holders: 28

Pacific Biosciences of California, Inc. (NASDAQ:PACB) is a biotech company that makes systems for gene sequencing and real-time biology observation. It offers two main sequencing platforms: single-molecule real-time sequencing (SMRT) and sequencing by binding (SBB). It also provides software, consumables, and services for various applications in genomics.

Jackson Square Partners mentioned Pacific Biosciences of California, Inc. (NASDAQ:PACB) in its Q3 2022 investor letter. Here is what the fund said:

“Pacific Biosciences of California, Inc. (NASDAQ:PACB): emerging player in genomic sequencing with its highly differentiated long-read technology; poised to unlock a multi-year share shift towards long-read sequencing as new products dramatically improve throughput and cost to competitively advantaged levels.”

2. Kura Oncology, Inc. (NASDAQ:KURA) 

Share Price as of September 22: $9.03
Number of Hedge Fund Holders: 29

Kura Oncology, Inc. (NASDAQ:KURA) is a biotech company that focuses on developing new cancer therapies. It has several drug candidates in clinical trials, targeting various types of tumors and genetic mutations.

29 of the 910 hedge funds profiled by Insider Monkey for their second quarter of 2023 shareholdings had invested in Kura Oncology, Inc. (NASDAQ:KURA). Out of these, the biggest shareholder is Aaron Cowen’s Suvretta Capital Management with a $74.36 million investment.

1. Equitrans Midstream Corporation (NYSE:ETRN) 

Share Price as of September 22: $9.33
Number of Hedge Fund Holders: 29

Equitrans Midstream Corporation (NYSE:ETRN) is a company that provides services for the transportation, storage, and distribution of natural gas in the Appalachian Basin. As of September 22, 2023, the company’s stock price was $9.33.

At the end of Q2 2023, Equitrans Midstream Corporation (NYSE:ETRN) was held by 29 investors. As of June 30, Zimmer Partners is the top investor in Equitrans Midstream Corporation (NYSE:ETRN) and has disclosed a stake worth $107.07 million in the company.

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily newsletter to get  the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out our articles on 11 Best Airline Stocks to Invest In Right Now and 16 Best Places to Live in Upstate New York for Families.