Best cheap stocks under $10 to invest

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In this article, TU experts delve into an analysis of top stocks priced below $10, exploring their potential for investors seeking affordable opportunities in 2025. By analyzing the latest financial reports and data, these experts provide an in-depth analysis that everyday investors can understand. Whether you're a seasoned investor or just starting, this discussion aims to shed light on affordable opportunities, focusing on practical aspects like financial strength, strategic moves, and market outlook. So, if you're looking for budget-friendly stocks with growth potential, read on to explore the possibilities in the domain of stocks under $10.

Top 10 cheap stocks under $10

Globus Maritime Limited (GLBS)

Globus Maritime Limited (GLBS) presents a compelling investment opportunity, driven by its solid financial performance, strategic initiatives, and optimistic market outlook. Operating in the dry bulk shipping sector, the company has demonstrated resilience and adaptability, making it an attractive prospect for investors. Experts have discussed below key aspects to consider for investment in 2025.

Tencent Music Entertainment Group ADR (TME)

Investing in Tencent Music Entertainment Group (NYSE:TME) in 2025 could be a strategic move due to its impressive growth in online music services. The company has shown a substantial increase in paying users, surpassing market estimates. Notably, revenue from music subscriptions alone witnessed a 37% YoY surge, reaching $399 million, and the overall online music platform exhibited robust growth.

Tencent Music's commitment to enhancing user experience through AI investments and the industry-wide shift towards higher-resolution streaming positions it for continued success. The company's focus on optimizing features, recommendation engines, and sound quality demonstrates its dedication to staying competitive in the dynamic music streaming landscape.

Despite a temporary dip in total revenues in Q3 2024, attributed to a decline in social entertainment services, Tencent Music's music subscription revenue soared by 42% YoY. With a strong net profit increase of 15.6% YoY, the stock presents an appealing investment opportunity.

IQiyi (IQ)

Investing in iQiyi, the prominent Chinese streaming video platform, presents a compelling opportunity driven by its innovative monetization model and strong subscriber growth. Analysts forecast a landmark year for iQiyi in 2024, as the company is on track to report its first annual profit after five years of impressive subscriber expansion, showcasing a positive trajectory.

The platform's multi-tiered membership structure, catering to diverse customer price points, contributes to its innovative monetization approach. With an anticipated 25.5% annual growth in earnings and a 5.8% increase in revenue, iQiyi demonstrates robust financial prospects. The company's focus on cost-cutting measures and growing online advertising revenue is improving margins, providing a positive outlook for investors.

In the third quarter of 2024, iQiyi reported notable operating highlights, including an average daily subscribing member count of 107.5 million and a 12% year-over-year increase in monthly average revenue per membership. Financially, total revenues reached RMB 8.0 billion (US$1.1 billion), with membership services revenue increasing by 19% and online advertising services revenue rising by 34%.

With a forecasted return on equity of 22.5% in three years, iQiyi emerges as a dynamic player in the streaming industry, combining subscriber growth, innovative monetization, and financial strength. This makes it an attractive prospect for investors seeking exposure to the rapidly evolving Chinese streaming market.

Clarivate Plc (CLV)

Clarivate, an analytics company with a focus on scientific and academic research, biopharma intelligence, medtech intelligence, and intellectual property intelligence, has shown promising financial performance in its recent quarter. With a 1.8% increase in revenues to $647.2 million, the company's organic revenues grew by 1.7%, driven by a rise in transactional and other revenues (3.5%), subscription revenues (1.3%), and recurring revenues (0.5%).

Notably, Clarivate's net income doubled year over year to $12.3 million, showcasing its financial strength. The company's strategic partnerships, such as the one with EveryLibrary and the contract renewal with the Federal Library and Information Network, underline its commitment to supporting library services.

From an investment perspective, Clarivate presents an attractive opportunity. The company's strong earnings yield, coupled with favorable valuation metrics like low price-to-book and price-to-cash flow ratios, suggests potential undervaluation.

Aegon (AEG)

Aegon, a Dutch insurance powerhouse, presents a compelling investment opportunity. Analyst Jeff Lye lauds Aegon's stellar track record and anticipates its 2024 targets are well within grasp, particularly in deleveraging and free cash flow. The company's strategic focus on high-return Strategic Assets, and minimizing capital volatility, aligns with Lye's bullish outlook. He foresees a remarkable 20% cash yield to shareholders within a year.

Notably, Aegon exhibits robust performance, boasting increased capital generation and commercial momentum in its US operations. The closure of a significant transaction with a.s.r. in July, coupled with a substantial share buyback, adds to its financial strength. Strong sales growth in the US and Brazil underscores its global resilience, despite challenges in the market.

CEO Lard Friese highlights achievements, especially in the US market with Transamerica's growth and strategic assets delivering impressive results. A joint venture in Brazil, Mongeral Aegon Group, contributed significantly to Aegon's success.

Aegon's transformative strategy emphasizes core businesses, shedding non-core assets, and fortifying its global presence. The move to Bermuda enhances regulatory efficiency and positions Aegon for sustained success.

Looking forward, Aegon's strategic roadmap targets substantial capital generation and free cash flow by 2025, supporting a dividend increase and reduced financial leverage. With a solid foundation and a proactive approach to risk management, Aegon is poised for long-term value creation, making it an attractive investment opportunity.

Barings BDC, Inc. (BBDC)

Barings BDC, Inc. (BBDC) is a publicly traded business development company operating under the Investment Company Act of 1940. As an externally managed investment firm, BBDC focuses on a diverse array of investment opportunities, primarily targeting private middle-market companies across various industries. The company has strategically positioned itself to invest in a spectrum of financial instruments, including senior secured loans, first-lien debt, unitranche, second-lien debt, subordinated debt, equity co-investments, and senior secured private debt investments. The below-mentioned aspects laid down a strong foundation for investing in this stock in 2025.

Transocean (RIG)

Transocean (NYSE: RIG) presents a compelling investment opportunity poised for potential growth. Despite the recent sideways movement, the stock is positioned for an upside breakout, making it an attractive multi-bagger option under $10. Specializing in contract offshore drilling services for global oil and gas companies, Transocean boasts a modern fleet of deep-water and ultra-deep-water rigs.

As of October, the company reported a substantial order backlog of $9.4 billion, ensuring clear revenue and cash flow visibility. This robust backlog, combined with the anticipation of deleveraging in the coming years, sets the stage for RIG stock to trend higher.

The outlook for oil remains bullish, supported by potential rate cuts in 2024 and ongoing production cuts by OPEC and allies. With oil prices expected to stay in the range of $80 to $90 per barrel, industry sentiments are likely to remain positive, translating into healthy order intake for Transocean and boosting growth visibility beyond the near term.

Transocean's recent financial results indicate resilience, including increased backlog for the sixth consecutive quarter. CEO Jeremy Thigpen expressed confidence in the early stages of a multi-year upcycle, highlighting the company's leadership position in the high-specification, ultra-deepwater drilling market.

With a focus on high-specification drilling units, a strong backlog, and favorable industry dynamics, Transocean emerges as an appealing investment with the potential for substantial returns.

Lithium Americas (LAC)

Lithium Americas (NYSE: LAC) presents an enticing investment opportunity despite recent market fluctuations. The stock has faced a downturn following the company's split into two entities, notably Lithium Americas (Argentina) (NYSE: LAAC), which holds lithium assets in Argentina. The primary reason for LAC's recent weakness is the correction in lithium prices. However, positive business developments and substantial undervaluation make LAC stock an attractive proposition.

The Thacker Pass project, with an after-tax net present value of $5.7 billion and a projected 40-year lifespan, stands out as a robust cash flow machine. General Motors (NYSE: GM) adds strategic value as a project partner with an off-take agreement. The correction in LAC stock presents a favorable opportunity for accumulation, especially considering the strong financial standing and lack of financing concerns for Lithium Americas.

Once sentiments reverse for the lithium market, it's anticipated that LAC stock will rebound significantly from its current levels. With a positive outlook for lithium as a crucial resource in the growing electric vehicle market, Lithium Americas Corp. is well-positioned for future growth and expansion. Analysts project a target price of $13.44, implying a potential 52.08% increase from the current stock value. This reinforces the investment appeal of Lithium Americas for those anticipating the sustained demand for lithium in the coming years.

Clover Health Investments, Corp. (CLOV)

Clover Health Investments, Corp. ( NASDAQ CLOV) presents a compelling investment opportunity in the healthcare sector. The American healthcare plan provider, which went public in early 2021 through a $3.7 billion SPAC deal, focuses on delivering affordable and easily understandable healthcare plans for seniors in the United States. Utilizing its technology platform, Clover Edge, the company facilitates the efficient exchange of patient information among healthcare providers.

Despite facing challenges related to increased hospitalization claims during the pandemic, resulting in a YTD stock drop of over 50%, Clover Health has undertaken positive initiatives to position itself for future growth. In September, the Centers for Medicare and Medicaid Services approved an expansion plan covering 101 new counties. Additionally, a strategic partnership with ValueH has expanded Clover's operations to Florida, enhancing its customer reach.

In recent developments, Clover Health has announced its exit from the CMS ACO REACH Program at the end of the 2024 performance year. This decision, focused on enhancing profitability, will not impact ACO REACH beneficiaries, and the company remains committed to fulfilling its obligations for the current performance year. The strategic move reflects a sharper focus on the Medicare Advantage insurance business, where significant strides toward profitability have been observed.

With vaccine rollouts and declining COVID cases, the future looks optimistic for Clover Health, especially considering its current discounted stock price. Analysts predict a potential upside of 64.29% based on 12-month forecasts. Additionally, recent business transformation initiatives, including moving core plan operations to UST HealthProof's platform and corporate restructuring, are expected to generate net annual cost savings of approximately $30 million, further strengthening Clover Health's path to profitability.

Polestar Automotive Holding UK PLC ADR (PSNY)

Polestar Automotive, a prominent player in the electric vehicle (EV) market, presents an intriguing investment opportunity for 2024. The company's recent performance and strategic initiatives provide a solid foundation for growth.

Polestar's financials demonstrate robust growth, with a notable 41% increase in total revenue and a remarkable 51% surge in car deliveries. The substantial cash reserve of USD 951 million as of September 30, 2024, highlights the company's financial strength.

Polestar's commitment to EV innovation is evident in the upcoming launch of the Polestar 3 and Polestar 4 models. The Polestar 3, launched in late 2022, is set to begin production in early 2024, while the Polestar 4 production is commencing shortly. These additions to the product lineup position Polestar for sustained growth and market relevance.

Analyst Garrett Nelson emphasizes Polestar's attractive growth outlook, citing the company's achievement of gross profitability and a fivefold increase in EV deliveries over two years. Despite a recent stock decline, Polestar's strategic positioning in the EV market and positive growth indicators make it a compelling investment choice for 2024.

Best stock brokers

1

9.4/10

Go to broker

Your capital is at risk.
Via eOption's secure website.

Minimum deposit:

$1

Review

The eOption broker (eoption.com) is an American stockbroker headquartered in Glenview, Illinois. It has been operating since 2007 and is a member of FINRA (CRD#: 7297/SEC#: 8-21765) and SIPC. It specializes in options trading and also acts as an intermediary in trades involving the popular securities classes. The company offers low trading commissions, super-fast execution of orders, and modern platforms with an advanced set of analytical tools. In 2020-2021, eOption was recognized as the best options broker by several resources such as Investopedia, The Tokenist, Benzinga, Investormint, and NerdWallet.

Pros/Cons

•Low commissions for options trading — $0.10 per contract plus $1.99 per trade.

•No minimum deposit requirements for cash trading accounts opened by US residents.

•FINRA membership and the protection of clients’ funds are available through Securities Investor Protection Corporation (SIPC).

•Access to professional trading platforms such as DAS and Sterling Trader Pro are developed by third-party software developers for the proprietary eOption terminal.

•An affiliate program with high rewards.

•Compensation for commissions for funds or assets from other brokerage firms and institutions transfer.

•Prompt support by phone and online chat in the trading platform during company business hours.

•The narrow range of choice of investment solutions to generate passive income.

•You cannot trade Pink Sheet and Bulletin Board stocks.

•There is no online chat on the company's website.

Study Review

2

9.2/10

Go to broker

Your capital is at risk.
Via Wealthsimple's secure website.

Minimum deposit:

$1

Review

Wealthsimple is a robo-advisor (algorithmic trading robot) that was founded in 2014 in Canada and also provides services in the UK. It is regulated by the UK and Canadian Securities Commissions, including the FCA (747883) and IIROC, and participates in the Financial Services Compensation Scheme (FSCS) as well as the Canadian Investor Protection Fund (CIPF). Wealthsimple serves over 1 million investors and manages £3 billion of investments.

Pros/Cons

•No minimum deposit requirements for the basic account.

•Top-notch security and regulation by reputable securities commissions and participation in compensation schemes.

•Ability to earn income passively, i.e., without having to actively trade yourself.

•No additional charges for account maintenance, deposit, withdrawal, and use of a mobile application.

•A simple principle for charging commissions for portfolio management is a fixed percentage of the deposited amount.

•Possibility to open accounts not only in pounds sterling but also in Canadian dollars.

•Detailed statistics on commissions and rebalancing of the formed portfolios, which are available in the personal cabinet on the website and in the mobile application.

•Registration is only available to UK and Canadian residents.

•The site does not have an online chat for prompt communication with the support team.

•The formation of an individual portfolio by an investment specialist is available when depositing £100,000 or more.

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Is it good to invest in cheap stocks

Investing in affordable or penny stocks under $10 can offer an opportunity for potential high returns at a low entry cost. These stocks often belong to smaller companies with growth potential, allowing investors to capitalize on emerging opportunities. The lower prices can also provide a chance for diversification, enabling investors to spread their risk across various assets. Investors with a high-risk tolerance may find these stocks appealing, especially if they believe in the company's growth trajectory.

While the potential for high returns exists, these investments are highly speculative and can be volatile. Cheap stocks may also lack the scrutiny and regulatory oversight that larger stocks undergo. Investors should approach such investments cautiously, conducting thorough research and understanding the company's fundamentals. Discover the best cheap stocks with high dividends offering steady income and long-term growth potential.

Factors to consider before investing in cheap stocks

Experts have discussed in the below table the factors to be considered before investing in cheap stocks:

Expert Opinion of Best Cheap Stocks Under $10 to Invest

Richard Best Forex and Crypto Expert

It’s essential to remember that, in the realm of stock investing, cheap doesn’t always mean good. While penny stocks can be tempting, offering the potential for high returns for a small outlay, they also carry significant risks. Navigating this territory requires understanding both the potential rewards and significant risks involved.

On the plus side, some undervalued companies can experience explosive growth, multiplying your investment many times over. Also, struggling companies with improving fundamentals could bounce back, offering significant gains.

On the downside, cheap stocks can be highly volatile, exposing you to significant potential losses. You should also know that selling cheap stocks can be difficult due to lower trading volume, which can potentially lock up your capital. There’s also the issue of transparency with less-covered companies and being able to obtain the financial data you need to perform due diligence.

Cheap stocks are not for everyone. You should only invest if you have a high-risk tolerance and realistic expectations of what could happen to your money.

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Team that worked on the article

Parshwa Turakhiya

Author at Traders Union

Parshwa is a content expert and finance professional possessing deep knowledge of stock and options trading, technical and fundamental analysis, and equity research. As a Chartered Accountant Finalist, Parshwa also has expertise in Forex, crypto trading, and personal taxation. His experience is showcased by a prolific body of over 100 articles on Forex, crypto, equity, and personal finance, alongside personalized advisory roles in tax consultation.

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Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.

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Cryptocurrency and stock expert

Tobi Opeyemi Amure is an editor and expert writer with over 7 years of experience. In 2023, Tobi joined the Traders Union team as an editor and fact checker, making sure to deliver trustworthy and reliable content. The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options.

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Glossary for novice traders

Fundamental Analysis

Fundamental analysis is a method or tool that investors use that seeks to determine the intrinsic value of a security by examining economic and financial factors. It considers macroeconomic factors such as the state of the economy and industry conditions.

Cryptocurrency

Cryptocurrency is a type of digital or virtual currency that relies on cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies operate on decentralized networks, typically based on blockchain technology.

Options trading

Options trading is a financial derivative strategy that involves the buying and selling of options contracts, which give traders the right (but not the obligation) to buy or sell an underlying asset at a specified price, known as the strike price, before or on a predetermined expiration date. There are two main types of options: call options, which allow the holder to buy the underlying asset, and put options, which allow the holder to sell the underlying asset.

Algorithmic trading

Algorithmic trading is an advanced method that relies on advanced coding and formulas based on a mathematical model. However, compared to traditional trading methods, the process differs by being automated.

Leverage

Forex leverage is a tool enabling traders to control larger positions with a relatively small amount of capital, amplifying potential profits and losses based on the chosen leverage ratio.