In this piece, we will take a look at these stocks under $10 are poised to explode. If you want to skip our introduction to these tricky stocks, jump to These 5 Stocks Under $10 Are Poised To Explode.
The US equity markets remain on track for a strong finish in 2023 as major indices hover near all-time highs. Easing inflation and a resilient economy that has avoided recession are factors that have catapulted the markets higher for the better part of the year. Will the rally continue into 2024? That’s the big question amid a wave of monetary and deteriorating macroeconomic uncertainties.
With the Federal Reserve indicating rate cuts in 2024, investors’ risk appetite is going to increase in the next year and small companies trading for low prices will come on investors’ radar. In this backdrop it would be interesting to see which under-$10 stocks have strong upside potential.
A close up shot of a stock ticker reflecting the performance of Indian equity markets.
Our Methodology
For this article we picked 10 stocks under $10 which have bullish ratings from analysts and price targets that show strong upside potential from their current levels. For each stock we have also mentioned hedge fund sentiment. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.
These Stocks under $10 Are Poised To Explode
10. Annovis Bio, Inc. (NYSE:ANVS)
Share Price as of December 14: $9.70
Share Price Upside Potential: 230.39%
Number of Hedge Funds: 2
Annovis Bio, Inc. (NYSE:ANVS) is a cheap stock under $10 for anyone eyeing exposure in the healthcare sector. It operates as a clinical-stage drug platform that develops drugs for treating neurodegeneration conditions. Buntanetap, the lead product of Annovis Bio, Inc. (NYSE:ANVS), is in phase 3 trials for chronic neurodegenerative diseases like Alzheimer’s and Parkinson’s.
While Annovis Bio, Inc. (NYSE:ANVS) is down by 30% for the year, it has started showing signs of edging higher after bottoming out of all-time lows. The stock has exploded in recent weeks as its lead drug, Buntanetap, undergoes late-stage study in patients with Parkinson’s disease. Consensus estimates on Wall Street indicate Annovis Bio, Inc. (NYSE:ANVS) is a Strong Buy with a $30.33 price target, implying 230.39% upside potential.
Insider Monkey’s Q3 2023 survey of 910 hedge funds revealed that two had invested in Annovis Bio, Inc. (NYSE:ANVS).
9. ESSA Pharma Inc. (NASDAQ:EPIX)
Share Price as of December 14: $5.68
Share Price Upside Potential: 233.27%
Number of Hedge Funds: 12
ESSA Pharma Inc. (NASDAQ:EPIX) is a clinical-stage pharmaceutical company that focuses on the development of small-molecule drugs for the treatment of prostate cancer. ESSA Pharma Inc. (NASDAQ: EPIX)’s lead product is EPI-7386, an androgen receptor-based resistance mechanism that develops in patients with castration-resistant prostate cancer and metastatic castration-resistant prostate cancer.
After being consolidated for the better part of the year, ESSA Pharma Inc. (NASDAQ: EPIX) exploded in the second half and is up by about 114%. Analysts expect the rally to persist into 2024, going by the Buy rating and $18.33 price target, implying 233.27% upside potential.
ESSA Pharma Inc. (NASDAQ:EPIX) is getting the attention of smart money, as 12 elite hedge funds held stakes in the company in the third quarter of 2023.
8. electroCore, Inc. (NASDAQ:ECOR)
Share Price as of December 14: $5.50
Share Price Upside Potential: 236.54%
Number of Hedge Funds: 1
electroCore, Inc. (NASDAQ:ECOR) is another stock under $10 poised to explode, which is ideal for gaining exposure in the healthcare sector. electroCore, Inc. (NASDAQ:ECOR) operates as a commercial-stage bioelectronics medicine and wellness company.
electroCore, Inc. (NASDAQ:ECOR) has gained about 35% year to date, outperforming the S&P 500, which is up by about 21%. Likewise, analysts on Wall Street are overly optimistic about electroCore, Inc. (NASDAQ:ECOR), with a Buy rating and a $17.50 price target, implying a 236.54% upside potential. One hedge fund was long electroCore, Inc. (NASDAQ:ECOR) in the third quarter of 2023.
7. Reneo Pharmaceuticals, Inc. (NASDAQ:RPHM)
Share Price as of December 14: $1.31
Share Price Upside Potential: 237.41%
Number of Hedge Funds: 10
Reneo Pharmaceuticals, Inc. (NASDAQ:RPHM) is another cheap stock under $10 poised to explode, operating as a clinical-stage pharmaceutical company that develops and commercializes therapies for people with rare genetic mitochondrial diseases. REN001, the lead product of Reneo Pharmaceuticals, Inc. (NASDAQ:RPHM), is a strong and specific drug that activates a protein involved in energy metabolism. It is being tested for inherited diseases that affect the mitochondria.
Reneo Pharmaceuticals, Inc. (NASDAQ:RPHM)’s been one of the best-performing cheap stocks in 2023, rallying by about 204%. Similarly, analysts on Wall Street expect the rally to persist into 2024, going by a $24.26 price target, implying a 237.41% upside potential.
By the end of this year’s September quarter, 10 out of the 910 hedge funds provided by Insider Monkey had acquired and held shares of Reneo Pharmaceuticals, Inc. (NASDAQ:RPHM).
6. Zepp Health Corporation (NYSE:ZEPP)
Share Price as of December 14: $1.51
Share Price Upside Potential: 238.67%
Number of Hedge Funds: 3
Zepp Health Corporation (NYSE:ZEPP) is an innovative wearable and health technology company. The company empowers people to live lives by optimizing health, fitness, and wellness journeys through its consumer brands Amazfit, Zepp Clarity, and Zepp Aura. Zepp Health Corporation (NYSE:ZEPP) offers AI chips, biometric sensors, and data algorithms for its cloud-based actionable insights.
Zepp Health Corporation (NYSE:ZEPP) is up by about 3.4% for the year as analysts on Wall Street rate it as a buy with a $5.08 price target, implying a 238.67% upside potential. Zepp Health Corporation (NYSE:ZEPP) trades at highly discounted levels, going by the 5.13 price-to-earnings ratio.
According to Insider Monkey’s third-quarter database, three hedge funds were bullish on Zepp Health Corporation (NYSE:ZEPP), the same as the previous quarter.
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Disclosure: None. These Stocks under $10 Are Poised To Explode is originally published on Insider Monkey.
