Best Stocks Under 10 Dollars: Top Picks for May

Chris Dios - May 1, 2020

Stocks under 10 dollars appeal to many retail investing budgets. These low-priced stocks are within the means of most investors. A round, hundred-share lot of a 10-dollar stock costs $1,000. One hundred shares of Amazon (AMZN) costs over 200 grand, which is a big allocation for all but the largest portfolios.

If you’re looking for even cheaper options than stocks under 10 dollars, check out our top picks for stocks under 5 dollars; stocks under 1 dollar; and the top penny stocks. Make sure to check our lithium battery & mining stocks page.

To help introduce you to the world of ten-dollar stocks, we’ve laid out our top 5 picks for the best stocks under ten dollars. These stocks are all based in the United States (Aurora Cannabis is based in Canada) and trade on either the NYSE or NASDAQ exchange.

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ADT Security Services (ADT)

Formerly known as ADT Corporation, ADT Security Services is a leading provider of security services. The firm offers security services for residential customers, as well as small and large businesses. Its products include electronic security and fire protection systems, and it also offers alarm monitoring services for customers throughout the country.

ADT debuted at an IPO price of $14 in 2018, but it now trades at just above $4. Despite the startling decline in the share prices, ADT could be a promising long-term investment.

The company acquired Defenders, a small firm that specializes in selling and installing ADT systems, in January this year. The acquisition could yield a variety of benefits for ADT, including streamlined marketing efficiencies, customer segmentation, and improved customer experience. ADT is also refinancing debt to take advantage of historically low interest rates, which could positively impact the company’s financials moving forward. ADT has also recorded positive growth in areas such as home automation and mobile security offering.

Sirius XM Holdings Inc. (SIRI)

Sirius XM Holdings has been a leading player in the satellite radio market for over a decade now. While satellite radio has largely been displaced by streaming music providers, the company has taken steps to remain relevant.

The company acquired the streaming music platform Pandora last year, and the transaction added 1.1 million customers to its customer base. Today, Sirius boasts a total of about 30 million paying subscribers. In response to widespread quarantine restrictions, Sirius is offering free access to its online streaming services through May 15. This special offer could attract more customers to the platform and, at the very least, its an excellent publicity move. Sirius’s strategy of partnering with carmakers to pre-install SiriusXM in new model automobiles could also help them record steady business growth.

Century Casinos, Inc. (CNTY)

The coronavirus outbreak punished the gaming sector, and Century Casinos is among the hardest-hit casino stocks. However, the dip could be a buying opportunity for investors who are willing to hold on. Century Casinos is a Colorado gaming company that owns and operates racetracks and casinos in the United States, Poland, and Canada.

The company closed down most of its locations in the US, Canada, and Poland as a result of the pandemic. However, Century Casinos could bounce back quickly once the outbreak subsides.

In December, Century Casinos announced the acquisitions of Isle Casino Cape Girardeau, Lady Luck Caruthersville, and Mountaineer Casino. They also bought The Mountaineer racetrack and resort from Eldorado Resorts, Inc. for a combined $107 million. These acquisitions could stimulate revenue growth for Century Casino if the company survives the effects of the Coronavirus outbreak.

Zynga Inc. (ZNGA)

This is a California-based social game developer focuses on developing apps for mobile devices and social networking platforms. Zynga is one of a relatively small segment of stocks that are trading in the green this year. The stock continues to perform well, despite the drastic impact of COVID-19.

In its most recent quarterly report, Zynga’s revenues grew by roughly 48%. The figures set a new company record for quarterly revenue growth, and Zynga’s quarterly bookings also increased by 59%. Many analysts expect Zynga will continue to record double-digit revenue growth this year.

Zynga’s best-known franchises include Zynga Poker, CSR Racing, Words With Friends, and FarmVille. These games could benefit from increased user traffic this quarter because estimates predict that more people will play mobile games while they’re stuck in the house.

Nokia (NOK)

Nokia is one of the most affordable 5G stocks on the market. The Finnish company is a multinational telecommunications, information technology, and consumer electronics entity that has been around for more than 150 years. Nokia is also one of the leading manufacturers of 5G infrastructure gear. Its position in the 5G market could become a significant advantage once the technology sees mass adoption.

The shares of Nokia are underperforming this year as the global market takes a hit from the pandemic. At the moment, NOK is trading just above the $3 mark, making it an interesting option for investors.

Analysts believe that Nokia will record impressive growth in the future. This year, consensus estimates predict revenues will only grow by 8%. However, that figure is expected to spike to 30% by next year. The analysts offering 1-year price forecasts for Nokia have a consensus price target of $4.83 per share by the end of the year. The most bullish analysts predict share prices could reach $6.59 by year-end, while more conservative projections anticipate $2.98 per share. The median price represents a 57% increase from its current trading price.

Due to the expected growth, most analysts rate NOK as a Buy at the moment. Although it is a cheap stock, Nokia is by no means a small company. Nokia is worth $15 billion, and it has been experiencing an average of 14% annual increase in sales for the last five years. Also, Nokia pays up to an 8% dividend to its investors.

Best Stocks Under 10 – Value Vs. Price

Thanks to low prices, these stocks are accessible to most investors. Don’t confuse low prices with low value, many stocks under 10 dollars have significant long-term potential. Oftentimes, it’s easy to find overlooked companies in stocks under 10 dollars.

In this context, value isn’t limited to traditional value-gauging metrics. For example, rapid revenue growth and price momentum can both be valuable traits for stocks under 5 dollars. Our list of the best 5-dollar stocks includes both value and growth stocks that could be worth watching.

How To Find Stocks Under 10 Dollars

There are hundreds of stocks that trade for under 10 dollars, and it’s easy to find additional opportunities by using a stock screener. Stock screeners help traders find stocks that meet certain criteria. It’s like a search engine for stocks.

Most brokers have stock screeners built into their platforms. However, Finviz offers a free stock screener that is good enough for most investors, and more advanced features are available with Finviz Elite. You can find the Finviz stock screener here.

More Cheap Stocks

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Chris Dios is an American writer and entrepreneur based in the Greater NYC area.

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