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.
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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
Barnes & Noble Education (NYSE: BNED)
Barnes & Noble Education is the popular bookseller’s higher education division. They provide learning products and services for universities and other higher education institutions, but they also offer resources directly for students.
BNED pivoted successfully during the pandemic to offer online learning solutions for their clients. Although many colleges and universities are starting to open for in-person learning again, some will maintain a hybrid approach with digital elements. This means demand for the company’s online learning products will likely continue, at least in the near term.
However, the return of in-person learning also presents an opportunity for BNED to revitalize segments of their business that have struggled over the last year. For example, the company offers retail and merchandising solutions for college campuses.
This stock has been on a growth trend since October 2020. It appears that investors are feeling bullish on this education stock. Now could be the right time to buy, before colleges fully reopen and demand for Barnes & Noble’s education services goes back up.
Zix Corporation (NASDAQ: ZIXI)
Zix is a tech company that provides digital security services. These include email encryption services, data loss prevention, and mobile security apps for work devices.
Many of Zix’s security services address the bring your own device trend, in which employees use their own computers and smartphones for work purposes. Although there are many benefits to this approach, it can also come with some unique security risks. Zix’s programs are designed to prevent this.
The BYOD trend has become particularly common over the past year, as many people have been working from home. Even after the pandemic ends, many companies will be keeping a remote work or hybrid work approach. This means that demand for Zix’s products will likely remain.
Despite this company’s huge potential, their share price remains under $10. Some analysts even think it is undervalued. Zix is a tech company that presents plenty of opportunity for future growth.
Best Stocks Under $10: 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
Gamida Cell Ltd. (NASDAQ: GDMA)
Gamida Cell is a biotechnology company that develops treatments for rare blood disorders. Their most promising treatment is Omidubicel, which would help blood cancer patients recover from bone marrow transplants more quickly.
Right now, Omidubicel is in Phase 3 trials for this application. It is also in Phase 1 trials to treat aplastic anemia. They also have an immunotherapy treatment in early trials right now to treat non-Hodgkin lymphoma and multiple myeloma.
Gamida Cell stock popped in February after positive phase 3 trial results for Omidubicel. Should this treatment eventually be approved by the FDA, it could give this stock another significant boost.
Not only would Omidubicel make bone marrow transplants easier for patients, it would also mean that more blood cancer patients would be eligible for them. This innovative new treatment makes Gamida Cell an exciting biotech company to watch.
Accuray Inc. (NASDAQ: ARAY)
Accuray is a company working to make radiation therapy more precise, efficient, and effective for cancer patients. Their technology delivers the radiation directly to the afflicted area, while minimizing exposure to other parts of the body.
Historically, cancer treatments have been very physically and mentally challenging. Accuray’s technology aims to change that and make the process easier for both patients and medical providers.
Like many medical stocks, Accuray struggled during the pandemic. Many medical providers were limiting in-person treatments, which meant that sales stagnated. However, the stock has started to recover in recent months. They’ve been on a strong upward trajectory since November.
Vaxart Inc. (NASDAQ: VXRT)
Vaxart is a biotech company that specializes in vaccine development. Right now, they’re working on vaccines for everything from seasonal flu to HPV to the norovirus.
What makes Vaxart’s vaccine technology so different is that it uses temperature-stable tablets. This means that their vaccines will not require any refrigeration and don’t require any needles to administer.
The COVID-19 pandemic has illustrated just how important it is for us to have accessible vaccine technology for all diseases. While Vaxart’s products are still in FDA trials, they represent a promising wave of innovation in terms of vaccines.
While this stock has been trading sideways through March and April 2021, it recently started moving upward. This could be due to a webinar that Vaxart will be hosting about COVID-19 vaccine technology.
With such an exciting product in the works, this is definitely a stock to keep an eye on moving forward.
More Of The Best Stocks Under $10 To Buy Now
FAT Brands Inc. (NASDAQ:FAT)
FAT Brands is a restaurant group to watch as the world slowly starts to reopen. They own a variety of fast casual restaurants, most notably Fatburger. They also purchased Johnny Rockets in 2020, which should help them boost their revenue this year despite global pandemic restrictions.
In addition to this major purchase, FAT Brands also opened more than 45 restaurants across all of their franchises during 2020. In a time when many restaurants were closing their locations and struggling to stay afloat, this is particularly impressive.
FAT Brands stock has been steadily improving since last summer. With vaccine distribution on the rise and many cities reopening restaurants, now is a great time to buy into this growing restaurant group.
Casper Sleep Inc. (NYSE: CSPR)
Casper is a New York-based company that specializes in mattresses. While they originally sold their products entirely online, they now have retail showrooms in select cities throughout the US. They’re known for their comfy memory foam designs and for their unique advertising strategies.
Casper is great at appealing to millennials, many of whom are starting to buy homes. While everyone needs a mattress and bedding, Casper has proven that they can convince customers why they’re worth the money. Their marketing strategies have included interactive pop-ups, influencer marketing, and referral programs.
The company recently agreed to sell their products at popular home stores like Sam’s Club and Denver Mattress. Their most recent earnings report reflected this, as their yearly revenue was up in 2020.
Casper Sleep stock has been quite volatile over the past year since they went public. However, their share price shot up at the end of April. The company plans to continue expanding this year with new products, and there’s potential for this stock to break out of the $10 range.
Jushi Holdings (OTC: JUSHF)
Jushi Holdings is a marijuana company based in Florida. Like many other marijuana stocks, their share price has gone up in the past year. Many states have legalized marijuana and are loosening their regulations, which is very exciting for this burgeoning industry.
Jushi is unique in that they focus on states that have limited marijuana licenses available right now. This means their competition is low, which can help them build up brand recognition fairly easily in the years to come.
This stock has gone up significantly in price over the last few months, but still looks cheap considering analysts’ estimates for their future earnings. This is a marijuana company to keep your eye on as they expand into new markets.
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.
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