Best Stocks Under $10

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Contributor, Benzinga
May 19, 2022

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Compass Pathways (XNAS:CMPS)

Compass Pathways PLC is a mental health care company dedicated to accelerating patient access to evidence-based innovation in mental health. The company is motivated by the need to find better ways to help and empower people suffering with mental health challenges who are not helped by existing therapies and are pioneering the development of a new model of psilocybin therapy, in which psilocybin is administered in conjunction with psychological support. Its focus is on treatment-resistant depression, or TRD, a subset of depressive disorder, or MDD, comprising patients who are inadequately served by the treatment paradigm. It has developed a proprietary, high-purity polymorphic crystalline formulation of psilocybin, COMP360.

Compass Pathways
(XNAS:CMPS)
$10.74
Last update: 4:00PM
Day Range- - -52 Wk Range6.54 - 23.22Open / Close- / -Float / Outstanding- / 42.5M
Vol / Avg.0K / 381.3KMkt Cap456.7MP/E-50d Avg. Price15.58
Div / Yield-Payout Ratio-Total Float-EPS-

Weber (XNYS:WEBR)

Weber Inc is an outdoor cooking company and maintains a diverse product portfolio across fuel types, pricing tiers, and a wide range of accessories, consumables and services. It generates revenues from the sale of grills and related accessories.

Weber
(XNYS:WEBR)
$6.85
0.01[0.15%]
Last update: 3:59PM
Day Range- - -52 Wk Range5.72 - 13.09Open / Close- / -Float / Outstanding- / 53.1M
Vol / Avg.- / 2.1MMkt Cap363.6MP/E-50d Avg. Price7.14
Div / Yield-Payout Ratio-Total Float-EPS-

Array Technologies (XNAS:ARRY)

Array Technologies Inc manufacturer of ground-mounting systems used in solar energy projects. The company’s product is an integrated system of steel supports, electric motors, gearboxes and electronic controllers referred to as a single-axis tracker that move solar panels throughout the day to maintain an optimal orientation to the sun, which increases their energy production. Its operations are in the United States, Australia, and Rest of the World with the United States deriving the majority of the revenue.

Array Technologies
(XNAS:ARRY)
$17.72
Last update: 4:00PM
Day Range- - -52 Wk Range5.45 - 24Open / Close- / -Float / Outstanding- / 150.3M
Vol / Avg.4.2K / 4.3MMkt Cap2.7BP/E-50d Avg. Price19.05
Div / Yield-Payout Ratio-Total Float-EPS-

SIGA Technologies (XNAS:SIGA)

SIGA Technologies Inc is a commercial-stage pharmaceutical company focused on the health security market. The company’s lead product is TPOXX, an orally administered antiviral drug for the treatment of human smallpox disease caused by the variola virus. Its products target orthopoxvirus infections including smallpox.

SIGA Technologies
(XNAS:SIGA)
$10.12
Last update: 4:00PM
Day Range- - -52 Wk Range5.84 - 26.99Open / Close- / -Float / Outstanding- / 73M
Vol / Avg.5.6K / 9.4MMkt Cap739MP/E10.6550d Avg. Price16.73
Div / Yield-Payout Ratio-Total Float-EPS-

Hydrofarm Holdings Group (XNAS:HYFM)

Hydrofarm Holdings Group Inc is a distributor and manufacturer of agriculture equipment and supplies. Some of its products include lighting solutions, growing media (i.e., premium soils and soil alternatives), nutrients, equipment, and supplies sold under leading proprietary, exclusive/preferred brands or non-exclusive/distributed brands. The business is organized into two operating segments, the U.S. and Canada.

Hydrofarm Holdings Group
(XNAS:HYFM)
$1.97
Last update: 4:00PM
Day Range- - -52 Wk Range1.88 - 29.14Open / Close- / -Float / Outstanding- / 45.1M
Vol / Avg.0.5K / 899.7KMkt Cap88.8MP/E-50d Avg. Price3.11
Div / Yield-Payout Ratio-Total Float-EPS-

Investing in stocks under $10 could significantly increase the returns on your portfolio, especially if you pick the right stock. Also, if you choose stocks in promising industrial sectors or those that have a unique and popular product or service, you stand a much better chance of selling your stock for a tidy profit after the shares have had a chance to appreciate.  

Stocks Under $10: The Advantage

An advantage of stocks under $10 is that some of these stocks can make a good choice for short and medium-term trading strategies. Buying shares of a lower dollar amount also limits your exposure to risk, since the stock already sells for a low price. The lowest that price can go is zero. Investing in high-priced stocks means you generally have a lot more to lose in the event of a sharp stock market downturn as traders have seen in the recent past. 

Investing in any stock carries the inherent risk of the insolvency of the company and other adverse events that can lead to a decline in the stock’s value. This can cause you to lose your entire investment. Some stocks under $10 can suffer from liquidity issues, which can adversely affect your ability to transact large amounts.

However, these stocks are spread across several industries. You might review or search for:

  • Top 100 stocks under $10
  • Biotech stocks under $10
  • Gold stocks under $10
  • Cyber security stocks under $10

Best Online Brokers for Best Stocks Under $10

If you want to start buying stocks under $10, as well as stocks under $20 and stocks under $5, any reputable broker that can facilitate stock transactions on U.S. exchanges can buy stock for you. Some of them will even let you trade commission-free, such as Robinhood, for example. 

Other commission-free online brokers you can buy stocks under $10 with include TD Ameritrade and E*TRADE. More experienced, well-funded and active traders can use Interactive Brokers, although that broker does charge inactivity fees and has a high minimum deposit requirement.  

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Features to Look for in Best Stocks Under $10

  1. Desirable product or service: When selecting a lower-priced stock, one of the first considerations for an investor is whether the company makes a product or service currently in demand and that holds promise for future earnings.
  2. Good financials: The financials of a lower-priced stock show the company’s assets and liabilities, so you want to look for a company with a solid financial situation. Reviewing financial statements might also indicate any challenges the company is facing that have caused the stock to sell off or if the company’s earnings per share (EPS) have yet to reflect future business possibilities.
  3. Liquidity: Since liquidity can be an issue with low-priced stocks, you should typically look for those with a minimum daily volume of at least 1 million shares. Liquidity in the stock allows you to transact shares quickly and it gives you the opportunity to trade short-term strategies that work well for inexpensive stocks. 
  4. Potential: When you’re searching for undervalued penny stocks, some of them might be hiding amongst the best stock under $10. Why? Some companies should be trading far higher than $10 per share, and your research might indicate that certain companies are prepared to grow exponentially in the near future.

Are Stocks Under $10 Worth Buying?

The answer to this question is a resounding “Yes!” Cheap undervalued stocks can be a gold mine for investors. Trading under 10 dollars per share helps you save money on your initial investment, the best growth stocks under $10 could profit you quite quickly.

A low-priced stock with a viable product or service, decent financials and a liquid market can provide you with a good store of wealth, an appreciating asset and/or an adequate vehicle for short-term trading. 

You do have to choose carefully since some stocks under $10 are definitely headed for insolvency and you could lose your entire investment. Still, depending on your risk profile and your financial goals, buying stocks under $10 as an investment could make a lot of sense and could provide you with a handsome return if you pick the right stock.