We recently published a list of the 10 Best Cheap Stocks to Buy Under $10. In this article, we are going to take a look at where Viatris Inc. (NASDAQ:VTRS) stands against other cheap stocks to buy under $10.
On April 21, Tom Lee, Fundstrat CIO, co-founder, and managing partner, joined ‘Squawk Box’ on CNBC to discuss the latest market trends and stated that the market may be past peak uncertainty despite the ongoing Fed uncertainties. However, Lee thinks that ‘maximum pain’ can still be anticipated, as economic risks could still cause hesitation among investors. Despite this, he believes that a structural low in fear has taken place. He acknowledged that the last low at the S&P 500 was around 4,800, which was reached a few weeks prior, and he thinks that there is a chance the market could drift dangerously close to that level in the coming weeks due to the ongoing uncertainty and investors remaining on the sidelines. Nevertheless, Lee emphasized that companies are very resilient, which should become evident during earnings season. He also mentioned the potential for a positive policy shock, such as a reduction in tariffs or de-escalation in trade tensions with countries like China, which could be seen as a win by the market, even though such developments did not seem likely overnight.
Lee also elaborated on his ‘Granny Shot’ ETF, and mentioned that the granny shots in their portfolio are stocks that, while not immune to declines, are closely linked to the most important long-term investment themes, such as cybersecurity and demographic shifts, such as the rise of millennials. The idea is to select stocks that are strongly correlated with multiple enduring themes, which increases the chances that these stocks will perform well over time, likening this to the reliability of a well-executed granny shot in basketball. Lee also noted that Bitcoin may have been held back by institutional deleveraging earlier this year, with investors selling what they could, which suppressed Bitcoin’s price, but that deleveraging process appears to be over. He now expects Bitcoin to catch up to gold and highlighted that Bitcoin’s previous high was over $110,000, which suggests that there is room for Bitcoin to appreciate as it regains momentum as a non-dollar asset. Gold recently surged to new highs, seemingly on track to reach $4,000, while Bitcoin was lagging, but it would eventually attract some of the same investment flows that were driving gold higher.
Our Methodology
We first used the Finviz stock screener to compile a list of cheap stocks that had a forward P/E ratio under 15 and were trading under $10. We then selected the 10 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 1000 elite money managers.
Note: All data was sourced on April 22.
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).
A healthcare worker in a lab coat, holding a microscope and reflecting on the diagnosis of a patient.
Viatris Inc. (NASDAQ:VTRS)
Share Price as of April 22: $7.57
Forward P/E Ratio as of April 22: 3.52
Number of Hedge Fund Holders: 48
Viatris Inc. (NASDAQ:VTRS) is a healthcare company that operates in four segments: Developed Markets, Greater China, JANZ, and Emerging Markets. It offers prescription brand drugs, generic drugs, complex generic drugs, and biosimilars. It also provides drugs in various therapeutic areas and covers various noncommunicable and infectious diseases.
In 2024, Viatris’ base business, which includes core generics, complex generics, and novel products, made $582 million in new product revenues. The base business pipeline annually sees more than 100 submissions. The company has delivered over $450 million in new product revenues for each of the past 5 years. For 2025, Viatris set a target range of $450 million to $550 million in new product revenues.
Viatris Inc. (NASDAQ:VTRS) is also progressing its novel and life cycle management programs within the base business. The company anticipates several Phase 3 readouts in 2025, including Effexor for Generalized Anxiety Disorder in Japan, Xulane Low Dose for low-dose estrogen combination birth control, and Meloxicam for acute pain.
Overall, VTRS ranks 4th on our list of the best cheap stocks to buy under $10. While we acknowledge the growth potential of VTRS, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than VTRS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
