For those taking their first steps into the world of investing, affordable stocks are often the way to go.
We’re giving our picks for the best stocks under $10 to help you economically enter the market.
Stocks priced at less than 10 dollars are a great way to build a starter portfolio, and even these cheap stocks can have massive potential.
While Apple and Netflix are industry behemoths now, these high-priced stocks were worth just a few dollars when they started.
Keep reading for our picks for the best under $10 stocks on the market.
What to Look for When Investing In Stocks Under $10
Stocks under $10 can have plenty of earning potential, but they can also be quite volatile — especially if they have low liquidity.
So it’s important to know what to look for when you’re doing your research for these types of stock trades.
Generally, you’ll want to stick to stocks traded on major exchanges, like NYSE and NASDAQ, as these stocks have much better liquidity.
Companies that trade in the $10 range typically have a mid or large market cap.
Before purchasing any affordable stock, you’ll want to look at their price history and consider their support and resistance levels.
When the stock hits its support level, that means it is likely to go up, so this could be a good indication that it may be time to buy.
More on Finding the Best Cheap Stocks for Less Than $10
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.
While you can’t predict precisely where the market will go, familiarity with your investments is a good base for success.
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Best Tech & Communications Stocks Under $10
Tech and communications have many hidden gems tucked away in the market that could help diversify and strengthen your portfolio — if you know where to look.
Follow along for our picks for the best stocks under $10 in these industries.
Nokia Corp. (NYSE: NOK)
he Nokia Corporation, formerly a mish-mash of several Finnish companies, now focuses solely on mobile and network services.
Nokia was very successful in the early 2000s when access to cell phones and the internet first became widespread.
However, the company struggled with massive competition in the industry, and its stock price eventually dropped.
Fortunately, earlier this year, Nokia caught the attention of retail investors on Reddit, causing the share price to spike dramatically at the end of January.
This encouraged many people to take a closer look at Nokia, and they discovered that the company has plenty of potential.
Although the spike didn’t last, Nokia’s share price has increased consistently since April of this year and is nearly 40% higher than last year at this time.
Currently, Nokia provides support to mobile infrastructure companies.
Its products are going to be essential as the world’s largest mobile networks transition to 5G.
This mobile company could be poised to make a comeback.
Investors are excited to see what Nokia’s third-quarter statement looks like in a week’s time.
Telefonica SA (NYSE: TEF)
Telefonica is the most popular telecommunications operator in Spain, with headquarters in Madrid.
With nearly 100 years of experience in telecommunication operations, it’s now one of the largest mobile network providers in the world.
In addition to a mobile platform, the company also provides digital television, broadband, and fixed-line service.
Telefonica has a presence in 20 countries throughout Europe and Latin America.
It was the only telephone carrier available in Spain until 1997.
The company is currently working hard to streamline its business model by removing unnecessary assets.
The result is a 23% increase in stock price from last year at this time.
Telefonica also has a very high dividend yield at 9.87%.
Best Stocks Under $10: Entertainment
Entertainment is a multi-faceted sector with a wide range of customer bases.
If you want to cash in on services that captivate audiences from all over, check out these picks for the best cheap stocks in entertainment.
Sirius XM Holdings (NASDAQ: SIRI)
Sirius XM was created as a result of a merger between Sirius and XM Radio in 2008, and it grew further by purchasing Pandora back in 2018.
Although the company has stiff competition from music services like Spotify, Sirius XM is in the unique position of dominating the satellite radio market.
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Although Sirius XM hasn’t seen explosive growth, it’s steadily continued building its subscriber base year over year.
The company also acquired Stitcher, a popular podcast app, in June of 2020.
Sirius XM was surprisingly successful during the pandemic when people were working from home.
A return to the office could also be good, as commuters can listen to the radio in their cars.
In the past, Sirius XM was most popular as a car accessory by partnering with car companies to pre-install satellite radio in vehicles.
A rebounding car market could also be good for Sirius XM’s success.
Zynga Inc. (NASDAQ: ZNGA)
Zynga Inc. is the creator of many popular free-to-play mobile games on both Android and iOS platforms.
The company has been putting out games since 2007 and frequently appears on top mobile developer lists.
It is known for scooping up developers to continue improving the quality of its games, including the recent acquisition of the team at Echtra Games.
As Zynga continues to think ahead, it is releasing its first cross-platform with Star Wars: Hunters.
This is the first time Zynga will release a game that can be played on consoles.
Although its stock has been trending downward since July, the company continues to see revenue growth.
With Zynga’s target price quite a bit higher, all signs point to this stock moving up in the near future.
Best Stocks Under $10: Health & Wellness
Health and wellness provide valuable services to the public that help support our daily lives, which is one of the reasons these tend to be reasonably stable stocks.
Check out these picks for the best stocks under 10 dollars in the health and wealth sector.
Amneal Pharmaceuticals (NYSE: AMRX)
Amneal Pharmaceuticals is an American pharmaceutical company that makes a wide variety of generic medications.
The company has developed generic versions of some of the most sought-after medications on the market, including pills, creams, inhalers, and more.
Amneal stands out from other affordable biotech and pharmaceutical stocks because it has been consistently profitable for the past 20 years.
Its financial growth has been slow and steady, which indicates that it could be a good long-term investment.
Many other stocks in the same industry and around the same price point are startups that struggle with debt and may not have the cash flow to stay stable in the long run.
Although seeing slow stock growth, new products have helped the company reach its financial targets.
It’s likely the share price will benefit as well.
Accuray Incorporated (NASDAQ: ARAY)
Accuray Incorporated is rooted in the health space as a manufacturer of medical devices.
Specifically, the company builds instruments for radiation therapy for treating tumors on several parts of the body.
Its product catalog covers both full-body machines, robot technology, and software to interpret the data.
Always looking forward, Accuray will soon be unveiling the VOLO™ Ultra, its latest offering in radiation therapy, in the near future.
While its share price saw a nice increase through most of 2020, 2021 has brought a bit of a drop.
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More of the Best Stocks Under $10 to Buy Now
These picks for the best stocks to buy under $10 have the flexibility to fit within a variety of investment portfolios.
Follow along to find out why these selections ended up on our shortlist for the best stocks under 10 dollars to buy now.
Wipro Limited (NYSE: WIT)
Wipro Limited is one of the largest organizations in India.
Dealing in information technology, the company has clients all over the globe.
As our world gets more and more digital, companies like Wipro continue to rise to the top.
It sees continued gains in revenue, net income, and earnings per share.
To put things in perspective, Wipro has a market cap of nearly $50 billion.
Wipro’s stock has seen a steady increase since the downturn in March of 2020, with over 90% growth in the last year.
At this rate, it may not be an under $10 stock for much longer.
Kinross Gold (NYSE: KGC)
Kinross Gold is a gold and other metals mining enterprise based out of Canada.
The company is the result of a 1993 merger of three different Canadian companies.
Its presence extends from the Americas to Russia and West Africa, with mines in each region.
Gold is often considered a good long-term investment, being a safe haven for growth in turbulent markets.
Kinross Gold offers an option to get in on the commodity at a lower price point.
The company continues to look to the future, increasing its gold production year after year.
It also has a nearly $8 billion market cap and pays out a dividend of 1.91%.
These factors could make Kinross Gold a worthwhile investment for the foreseeable future.
Aegon N.V. (NYSE: AEG)
Rounding out our list is Aegon N.V., providing pensions, life insurance, and asset management.
Headquartered in the Netherlands, the company also has a significant presence in the U.K.
Through joint ventures, Aegon can also work in India, Japan, and China.
Its largest market is in the U.S. under the banner of Transamerica.
While continuing to expand its business, Aegon is also focusing on initiatives to strengthen its balance sheet and more frequency in financial reporting.
This plan seems to be pushing Aegon in the right direction, as the company has seen a nearly 80% share growth in the last year.
It also pays out a healthy 3.23% dividend yield.
Best Stocks Under $10: Final Thoughts
Buying stocks under $10 isn’t for everyone.
However, there could be plenty of financial advantages for investors who are willing to do their homework and find the best stock under $10.
Because these low-priced 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 under $10, so you never know what might happen.
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