We recently published a list of the 10 Best US Stocks Under $10 to Buy Right Now. In this article, we are going to take a look at where Compass Inc. (NYSE:COMP) stands against other US stocks under $10 to buy right now.
On March 12, Stephanie Guild of Robinhood and Marci McGregor of Bank of America Merrill Lynch shared their perspectives on the current state of the market and strategies for navigating uncertainty. Guild explained that retail investors’ approach to buying the dip has shifted in line with changing market dynamics. While clients are still investing, they are focusing on specific names they favor. At the same time, she noted an increased tendency toward diversification, with investors allocating funds to index investments more than ever before. Additionally, many are taking advantage of Robinhood’s 4% cash yield, which reflects a balanced approach to investing during uncertain times.
McGregor emphasized the importance of focusing on long-term trends rather than reacting to short-term headlines, which often create unnecessary noise. She attributed some weak economic data from January to weather-related factors, calling it a temporary head fake. While acknowledging ongoing uncertainty around trade policy, McGregor highlighted key drivers for market recovery. She pointed out that 6 of the 11 S&P 500 sectors posted double-digit year-over-year earnings growth in Q4 and noted that market broadening is underway. Year-to-date, 63% of S&P constituents have outperformed the index compared to less than 30% over the last two years. This broadening trend signals potential strength in the market. Looking ahead, McGregor predicts a gradual easing of financial conditions later this year, potentially supported by a weaker dollar and improving corporate conditions. She suggested that if soft economic data begins to manifest more clearly, it could lead to Fed rate cuts. Factors such as deregulation, a merger cycle, and potential tax cut extensions may also contribute to recovery. Despite uncertainties, McGregor advised clients to buy on weakness and stay diversified. This includes exposure to international markets like Europe while maintaining confidence in the US as a leading market.
Our Methodology
We used the Finviz stock screener to compile a list of the top US stocks that were trading below $10 as of March 24. We then selected the 10 US stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.
Why are we interested in 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
An excited real estate broker discussing with a couple interested in buying a home.
Compass Inc. (NYSE:COMP)
Share Price as of March 24: $9.39
Number of Hedge Fund Holders: 42
Compass Inc. (NYSE:COMP) offers technology-driven real estate brokerage services in the US. It provides an integrated platform for agents, which includes CRM, marketing, and client service tools, alongside title, escrow, and home improvement financing services. It aims to streamline the real estate transaction process through its innovative technology and service offerings.
The company is strategically expanding its Title and Escrow (T&E) business, which is a key driver of its profitability. This business facilitates real estate transactions by ensuring clear property ownership and managing the secure transfer of funds. In Q4 2024, the T&E segment achieved a record quarter, with an attach rate increase of over 8% in the past four quarters. This growth has nearly quadrupled the segment’s year-over-year profitability.
For 2025, Compass Inc. (NYSE:COMP) aims to replicate this growth and projects a doubling of the T&E segment’s adjusted EBITDA. The company’s Q4 results reflect this positive trend, as adjusted EBITDA was $16.7 million. Revenue reached $1.38 billion and marked a 25.9% year-over-year increase in Q4. For 2025, the company’s goal is to ensure that its revenue less commissions and other related expenses as a percentage of revenue represents more than 18.2% of its total revenue.
Overall, COMP ranks 7th on our list of the best US stocks under $10 to buy right now. While we acknowledge the growth potential of COMP, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than COMP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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