Five Stocks Under $10 to Buy Now

#3 Dynegy Inc. (NYSE:DYN)

– Number of Hedge Fund Holders (as of December 31): 42
– Total Value of Hedge Fund Holdings (as of December 31): $486.75 million
– Hedge Fund Holdings as Percent of Float (as of December 31): 49.10%

Despite 42 elite funds accounting for almost half of the float on December 31, Micahel Laides of Goldman has a $10 price target and a ‘Neutral’ rating on Dynegy Inc. (NYSE:DYN), citing potential risk in terms of the company missing price and volume expectations. Shares of the company have been under pressure due to the company’s debt load and coal portfolio. The bullish thesis that President Trump might be good for utilities with considerable coal exposure hasn’t exactly played out yet.

#2 Xerox Corp (NYSE:XRX)

– Number of Hedge Fund Holders (as of December 31): 43
– Total Value of Hedge Fund Holdings (as of December 31): $1.65 billion
– Hedge Fund Holdings as Percent of Float (as of December 31): 18.60%

43 elite funds were long Xerox Corp (NYSE:XRX) at the end of the fourth quarter, up 11 funds from the previous quarter.  The change ranks Xerox second on our list of stocks that hedge funds are interested in and that trade for under $10 per share. The writers at Barron’s are also bullish on Xerox, saying that the stock could potentially double as the new CEO, Jeff Jacobson, focuses on faster-growing segments and as the company launches new products. Shares are up 27% year-to-date.

#1 Southwestern Energy Company (NYSE:SWN)

– Number of Hedge Fund Holders (as of December 31): 44
– Total Value of Hedge Fund Holdings (as of December 31): $647 million
– Hedge Fund Holdings as Percent of Float (as of December 31): 12.10%

Like Chesapeake, Southwestern Energy Company (NYSE:SWN) has been the victim of the natural gas bear market. If OPEC doesn’t decide to extend its cuts and crude falls, natural gas might correlate with oil, and Southwestern could suffer as a result. On the other hand, weather might be more friendly in the future and eventually the supply and demand picture will be more favorable. 44 top funds had a bullish position in Southwestern Energy Company (NYSE:SWN) at the end of the fourth quarter, up 7 funds from the previous quarter.

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