We recently compiled a list of the 12 Stocks Under $10 With High Upside Potential. In this article, we are going to take a look at where Uranium Energy Corp. (NYSEAMERICAN:UEC) stands against the other stocks under $10 with high upside potential.
Small-cap stocks in the U.S. have suffered as the broader market is under pressure due to the ongoing tariff policy transition. The Russell 2000 small cap index fell over 15% from its November 2024 highs as of March 7. It has dropped by almost 9% year-to-date. In comparison, the S&P 500 index, which tracks large-cap stocks, has plunged over 3.50% so far in 2025.
However, things could change for small-cap stocks. President Trump’s focus on domestic economic growth could make them more attractive. The prospect of higher interest rates remains a major hurdle, as rising borrowing costs tend to impact smaller companies more than larger ones. Keith Lerner, co-chief investment officer at Truist Advisory Services, addressed this situation as a “tug of war”—where strong economic growth could benefit small caps, but higher rates pose a challenge to them.
Experts’ Take on Small-Cap Prospects in 2025
Experts have a mixed view of small caps. Some see potential growth opportunities due to better economic activity in the domestic market, while others have doubts due to fewer interest rate cuts expected in 2025. Those bullish on small-cap stocks expect reduced regulations and support for domestic industries from Trump’s policies.
Sameer Samana, senior global market strategist at Wells Fargo Investment Institute, noted that small companies are more US-focused than multinational corporations. However, a tariff increase can create disruption in supply chains, which may hurt smaller businesses too.
MJP Wealth Advisors chief investment officer Brian Vendig appeared on Yahoo! Finance’s Catalysts and addressed the potential outlook of small-cap stocks in 2025. Vendig sees a stable economy and policy that will positively impact the small-caps, creating business expansion and merger opportunities. He added that the market will remain choppy in the first few months of 2025, but things will improve as the policies become clearer.
According to RBC Wealth Management, small caps finally seem ready for a comeback after years of trailing behind large-cap stocks.
Our Methodology
We used the Finviz stock screener to compile a list of stocks under $10 with an upside of over 50%. Once we had an aggregated list, we ranked these stocks based on the analyst upside potential sourced from CNN. Please note that the share price is accurate as of March 7. We also mentioned hedge fund sentiment around each stock, as of Q4 2024. Finally, the 12 best stocks under $10 with high upside are ranked in ascending order of the upside potential.
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 mining worker in a hard hat and coveralls hammering away at the uranium rich walls of the mine.
Uranium Energy Corp. (NYSEAMERICAN:UEC)
Share Price: $5.25
No. of Hedge Fund Holders: 34
Analyst Upside Potential: 95.24%
Uranium Energy Corp. (NYSEAMERICAN:UEC) is a uranium mining and exploration company with operations focused on in-situ recovery (ISR) technology. The company operations include exploration, pre-extraction, extraction, and processing at projects in the United States, Canada, and the Republic of Paraguay. Uranium Energy is expanding its extraction activities and aims to become a leading low-cost uranium supplier in North America.
Uranium Energy Corp. (NYSEAMERICAN:UEC) faces a potential threat from the U.S. tariffs on Canada. The company holds various uranium projects in both the U.S. and Canada. This makes the company vulnerable to lower demand as a result of the growing trade war between the two economies. Canada currently accounts for 27% of the total uranium supply to the U.S., as per the US Energy Information Administration.
However, the company is swiftly expanding its operations amid the growing demand for electricity generation, a global push towards decarbonizing electrical grids, and various geopolitical factors. Moreover, the acquisition of Rio Tinto’s Wyoming assets has strengthened the company, boosting its production capabilities in Wyoming’s Great Divide Basin. It has also made UEC the largest licensed production capacity in the U.S., with the assets collectively holding over 175 million pounds of historic resources.
Overall UEC ranks 7th on our list of the stocks under $10 with high upside potential. While we acknowledge the potential of UEC as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than UEC 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 Invest In According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
