For those taking their first steps into the world of investing, affordable stocks are often the way to go. They are very accessible to those with a limited investment budget. The best stocks under $10 dollars are a great way to build a starter portfolio.
We’ll be blunt – not all cheap stocks are great buys. However, when you find an affordable stock that offers true value, there’s huge earnings potential to be had.
Some of today’s top stocks started under $10. Apple and Netflix are industry behemoths now, but when they started, their stocks were worth just a few dollars.
We’ve rounded up some of the best under $10 stocks on the market right now. Here’s what you should keep your eye on.
What To Look For When Investing In Stocks Under $10
Stocks under $10 can have plenty of earning potential. However, they can also be quite volatile. It’s important to know what to look for before purchasing low priced stocks.
Generally, you’ll want to stick to stocks traded on major exchanges like NYSE and NASDAQ. This is because these stocks have much better liquidity. Stocks with very low liquidity are subject to extreme volatility.
Before purchasing any affordable stock, you’ll also want to look at their price history. In particular, consider their support and resistance levels. When the stock hits its support level, that means it is likely to go up and it may be time to buy.
Finally, you’ll want to spend time researching each company before making a purchase. This includes their yearly earnings and revenue, as well as their growth and their current cash flow. You should also consider whether or not they have a dividend yield.
Taking the time to research your stocks is key. While you can’t predict exactly where the market will go, familiarity with your investments is a good base for success.
Best Tech & Communications Stocks Under $10
Nokia made a name for themselves in the ’90s and early 2000s manufacturing flip phones. While their phones aren’t considered so trendy anymore, that doesn’t mean you should discount this stock.
The Finnish company has pivoted to diversify their business model. While they still make cell phones, the thing that has made them particularly interesting is their stake in 5G networks.
In 2017, Nokia became the first provider to showcase a 5G network. Much of their revenue stream comes from contracts with other companies. If major cell phone providers choose to partner with Nokia for 5G service, this could mean an uptick in Nokia’s stock prices.
Nokia’s stock dropped a bit in September 2020 when they missed out on a 5G deal with Verizon. However, there’s still potential for other 5G deals in the future. Nokia produces many other types of communication technology as well.
Nokia’s long-term earnings are set to hold steady on a slightly upward trajectory. Another excellent advantage of this stock is that they pay a 5 percent dividend yield. If you’re looking to get in on the 5G game, Nokia could be a good stock to start with.
A10 Networks (NYSE:ATEN)
A10 Networks specializes in application delivery controllers. They offer both hardware and software products that carry important audio and video signals to electronic devices.
Since their products are important to many different types of electronic devices, A10 is likely to be able to ride out this year’s ups and downs. Many of their products are designed to integrate with cloud or 5G products. Both of these technologies are expected to go mainstream in the
A10’s share price has rebounded from a dip in March. Their revenue also grew year over year in both the first and second quarters of 2020.
A10 Networks hasn’t lost much business as a result of the coronavirus pandemic. However, it’s likely that their demand will grow as the world starts to go back to work.
Best Stocks Under $10: Entertainment
You may remember Zynga as the producer of popular casual games of the early 2010s, such as Words With Friends and Farmville. In the last year, Zynga has shown that their heyday may not be over yet.
The game developer had initially marketed their products through Facebook. When that partnership ended in 2012, their stock price dropped.
In the past year, Zynga has made a stunning rebound. They’ve recently acquired other casual game developers and have focused on their mobile app. They’ve been very successful this year on both the Apple and Google Play stores.
Despite the stock market drop, Zynga’s stock value has steadily improved in 2020. They also saw their highest ever revenue report in the second quarter.
Of the lowest priced stocks on the market, Zynga is one to keep an eye on. With more people spending time at home, mobile games are becoming a very popular form of entertainment.
Sirius XM Holdings (NASDAQ:SIRI)
Sirius XM was created as a result of a merger between Sirius and XM Radio in 2008. They also recently purchased Pandora in 2018. Although they have stiff competition from music services like Spotify, Sirius XM is in the unique position of dominating the satellite radio market.
Although Sirius XM hasn’t seen explosive growth, they’ve steadily continued building their subscriber base year over year. They also acquired Stitcher, a popular podcast app, in October 2020.
Sirius XM has been surprisingly successful during the pandemic. With people working from home this year, they have more freedom to listen to music or talk shows while they work.
Their share prices could go up even more as people do start to make their morning commutes again. In the past, Sirius XM was most popular as a car accessory. Sirius XM has even partnered with car companies to pre-install satellite radio in vehicles. This means that a rebounding car market could also be good for Sirius XM’s success.
Best Health & Wellness Stocks Under $10
Ironwood Pharmaceuticals (NASDAQ:IRWD)
Ironwood Pharmaceuticals is a company that specializes in treatments for gastrointestinal problems. Their revenue is currently driven by the drug Linzess. This drug is designed to treat IBS and relieve constipation.
In the past, Ironwood Pharmaceuticals has relied entirely on this one drug. This has made it difficult for them to break out of this lower price range. However, they currently have another drug in trials to treat GERD.
If this new drug makes it to the market, it could push Ironwood’s share price up in the long run. Ironwood’s stock is currently priced very reasonably given the company’s earnings.
While total revenue is down from last year, Ironwood still made a profit in 2020. They were able to keep sales up despite the pandemic. Demand for Linzess has remained steady, and we’re likely to see continued growth next year.
Ocular Therapeutix (NASDAQ:OCUL)
Ocular Therapeutix is a company that makes treatments for eye injuries and illnesses. They already have two products on the market, and have several more in the pipeline.
Their first product is the ReSure Sealant, which is the first of its kind to reach the market. This sealant helps patients heal from cataract surgery by closing corneal incisions. They’ve also recently released Dextenza, an insert that helps keep patients comfortable when recovering from ophthalmic surgery.
They currently have three new products in trials as well. These include implants to treat glaucoma and other ocular issues. Should these innovative treatments be successful, they could boost Ocular Therapeutix’s stock in the long term.
Ocular Therapeutix stands out because their products are innovative and are unlike anything else on the market. Their earnings for the third quarter are expected to be strong. They also recently announced a distribution deal in Asia. By moving beyond the U.S., they have huge potential to expand their operations.
SmileDirectClub is a company that provides a unique alternative to braces. They offer clear aligner trays that customers can buy entirely through the mail.
SDC uses 3D printing and other modern technology to provide orthodontic services with only one in-person visit. These products are very appealing because they’re much more affordable than traditional braces, and they claim to work much faster as well.
The company originally went public in 2019, but their shares were overpriced and quickly tanked as a result. Their cost per share has since adjusted. This year, they landed a deal with Walmart to sell a range of new toothbrushes and whitening sets.
SmileDirectClub’s products are unique and could fill a need for affordable orthodontic treatment. Prices have dropped slightly after a peak in early fall. This could be the right time to buy – while third quarter earnings haven’t been released yet, they are expected to keep pace.
More Of The Best Stocks Under $10 To Buy Now
Turquoise Hill Resources (NYSE:TRQ)
Turquoise Hill Resources is a Canadian mining company. Although they are based in Canada, their principal mining interest is in Mongolia. They currently have a 66 percent stake in the Oyu Tolgoi Copper-Gold mine there. They also have a stake in other copper and gold mining projects in Asia and Oceania.
The Oyu Tolgoi is one of the largest copper and gold mines in the world. Since Turquoise Hill has such a large stake there, it sets them up well for the future. However, they’ll need to maintain their involvement in other projects to keep their portfolio diverse.
One of the things that makes Turquoise Hill appealing is that they are a very liquid stock. Share prices have been steady through September and October after recovering from a dip in the spring.
United Microelectronics Corporation (NYSE:UMC)
United Microelectronics Corporation, or UMC, is a Taiwanese company that manufactures circuits for semiconductors. Semiconductors are an important component of many of the electronics we use every day, such as computers and smartphones.
People are currently relying on their electronics for business, personal communication, entertainment, and so much more. With this high demand, companies like UMC are unlikely to slow down anytime soon. UMC stands out because they are able to customize their products to suit each individual client.
They’re also committed to offering new products and expanding their technology. UMC’s share value has been on an upward trajectory since July. It’s helped that one of their competitors was hit with restrictions by the U.S government just a few months ago.
UMC has reported that demand for their products is increasing. As a result, they’re planning on upping their production capacity next year. If UMC continues on this upward trajectory, it could be one of the best lowest price stocks to buy right now.
Best Stocks Under $10: Final Thoughts
Buying stocks under $10 isn’t for everyone. However, for investors who are willing to do their homework and find the best stock under $10, there could be plenty of financial advantages.
Because these low prices stocks come with some added risk, investors should carefully consider market data and share prices before making a purchase.
Buying stocks with low prices can be a good way for new investors to test the waters without paying too much per share. Some of the highest performing companies on the stock market today started off under $10, so you never know what might happen.