Best stocks under $10 to buy in November 2023
“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
BLUEPRINT
Published 10:51 a.m. UTC Nov. 21, 2023
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Identifying high-quality stocks with share prices less than $10 can be like navigating a minefield of horrible investments. That’s because a low share price could indicate that something major is wrong with a company’s underlying business.
“When you’re selecting what stocks to buy, focus on analyzing whether it’s a good business. Look at key ratios like profit margins, return on equity and revenue growth,” said Alvin Carlos, a certified financial planner and managing partner at District Capital Management.
But there are some unpolished gems in the $10 stock market bargain bin. The stocks chosen for this list demonstrate attractive business metrics, including profitability and long-term growth potential.
We identified stocks with a share price of $10 or less with strong fundamentals, Wall Street “hold” or better consensus, at least $700 million in market capitalization and a lower risk rating.
Why trust our investing experts
Experienced stock analysts select our best stock selections based on screening for several must-have metrics. These metrics often include but are not limited to forward price-to-earnings, risk, earning stability and Wall Street “buy” consensus. Among all of our 70-plus stock selections, the average return beats the S&P 500. But investors should note that before purchasing any stocks, it’s important to do plenty of research and ensure their selections align with their financial goals and risk tolerance. You can read more about our methodology below.
- 730+ companies screened.
- 3 levels of fact checking.
- 3-step editorial review.
- Altimeter stock grade of B or higher.
Best stocks under $10 to buy
Tencent Music Entertainment Group (TME)
Clarivate PLC (CLVT)
iQIYI Inc. (IQ)
PagSeguro Digital Ltd. (PAGS)
Fisker Inc. (FSR)
Compare the best stocks under $10
Methodology
The best stocks under $10 included above all trade on a major U.S. stock exchange and meet the following criteria:
- An Altimeter overall grade of B or higher. The overall grade considers profitability, earning stability, valuation and earning expectations. Grades of B or higher for both are stocks ranked in the top quarter of nearly 5,000 stocks in Altimeter’s stock database, which indicates that these companies have strong valuations and can improve returns.
- Market capitalization of at least $700 million. Small-cap stocks are among the most volatile and risky stocks listed on major exchanges, so our selection was limited to those with a capitalization of at least $700 million.
- Consensus analyst recommendation of “hold” or better. A strong number of analyst ratings indicates an expectation the stock will perform well.
- An Altimeter risk level of A or B. The Altimeter risk grade is calculated based on a company’s credit rating, management sentiment and a fundamental forensic assessment of its financial health.
Why other stocks didn’t make the cut
Just because a stock has a low share price doesn’t mean it is an attractive buying opportunity. Good stocks that are priced at $10 or less are few and far between. Companies with low share prices often have challenged business models. For example, they may not have a significant competitive advantage in their sector, or their earnings may not be growing. You often find that stocks under $10 have very high price-to-earnings ratios, indicating the stock is overpriced despite looking cheap. Many of these stocks struggle to turn a profit and therefore have a “sell” rating from analysts.
To assess business fundamentals, we screened for a stock’s earning power for profitability in relation to its asset base and whether the company is improving its earning power. Generally, the stocks on this list are moving in the right direction, even if they aren’t the most profitable companies yet. Stocks that didn’t make the list may be moving in the wrong direction.
Final verdict
Buying stocks priced under $10 is not for the faint of heart. Many of these stocks are extremely volatile and high-risk speculative investments, but some diamonds in the rough have the potential for extremely large long-term gains.
Perhaps the most attractive stock to buy on this list is PagSeguro Digital Ltd. (PAGS). The company is extremely undervalued at the moment and has posted a double-digit profit in the past four quarters. It also has a strong earnings yield and a low P/E ratio. However, investors should keep in mind that this stock can be volatile.
You can limit the risks of investing in cheap stocks by diversifying your portfolios rather than making large bets on one or two stocks. There are many ways to do so, including maintaining a diversified portfolio of stocks and buying index funds. The latter is often easier and may involve fewer fees than actively managed funds. Regardless of your approach, it’s best to diversify to reduce risk and potentially improve long-term returns.
You can buy cheap stocks or fractional shares of expensive stocks for as little as $10. The key to long-term investing success is not about how much money you start with but about compounding returns and consistent contributions.
Any brokerage that allows fractional stock trading allows its users to invest in any qualified stock for as little as $10. Remember that some brokerages may restrict fractional trading of certain stocks, such as those with lower share prices or smaller market capitalizations.
The ability to make money off $10 stocks depends on a variety of factors, such as market conditions, the company’s financial performance and the stock’s potential for growth. While investing in lower-priced stocks may provide an opportunity for higher returns, it also comes with risks, such as increased volatility and the potential for significant losses. It’s essential to carefully evaluate the potential risks and rewards before investing in any stock, regardless of its price.
Investing in cheap stocks can provide valuable lessons for investors, especially beginners. By investing in lower-priced stocks, investors can learn about market conditions, company fundamentals, and the risks and rewards associated with investing. Additionally, investing in cheap stocks can provide an opportunity to diversify their portfolio and potentially achieve higher returns. However, it’s important to approach investing in cheap stocks with caution and a solid understanding of investment principles, as they can also come with increased risks.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
