In this article, we will discuss the 15 best U.S. stocks to buy now under $10. If you want to explore similar stocks, you can also take a look at 5 Best U.S. Stocks to Buy Now Under $10.
The U.S. has always been a financial and economic hub, home to some of the biggest companies in various sectors. In the list of the 100 most valuable companies in the world, 61 companies are from the U.S. The dominance is further affirmed by the fact that the country accounts for nine of the top ten most valuable companies.
U.S. companies have always dominated technological innovations, going by the billions of dollars spent on research and development over the years. Spending on R&D increased by $51 billion in 2021 to $791 billion, affirming America's leading status on spending on innovation and groundbreaking solutions.
The culture of innovation and entrepreneurship is also robust and has given rise to startups that have gone on to become multi-billion empires. OpenAI is one such startup that is spearheading the artificial intelligence race, attracting billions of dollars in investments.
The pause was much needed as it averts the risk of the U.S. economy plunging into recession. With the prospect of the Fed cutting interest rates next year, sentiments in the equity markets are on an upward trajectory. Stocks trading below $10 a share remain well positioned to benefit from the Fed going slow on interest rate hikes. Interest rate cuts should lower borrowing costs, making it easy for these companies to access cheap capital through loans and other investments to finance their growth plans. For long-term investors, now could be the best time to take a closer look at stocks trading at highly discounted levels, especially those trading below $10 a share, as underlying fundamentals improve.
Our Methodology
We looked at the stock holdings of 910 hedge funds in our database and selected 15 US stocks trading under $10 with the highest number of hedge fund investors. That way, these are the best US stocks to buy now under $10 according to smart money investors.
Share Price as of September 22: $3.37
Number of Hedge Fund Holders: 26
Compass, Inc. (NYSE:COMP) is a company from the U.S. that offers software and technology solutions for the travel industry worldwide. It operates the largest global distribution system for air bookings in North America. As of September 22, 2023, the stock price of Compass, Inc. (NYSE:COMP) was $3.37 per share, which was a 1.26% increase from the previous close of $3.18 per share. The stock had a 52-week range of $1.84 to $5.16 per share.
By the end of this year's second quarter, 26 hedge funds out of the 910 tracked by Insider Monkey had bought the firm's shares. Compass, Inc. (NYSE:COMP)'s largest hedge fund investor among these is Richard Mashaal's Rima Senvest Management through its $52.44 million stake.
Compass, Inc. (NYSE:COMP) has a ‘Moderate Buy’ rating from 4 buys, 4 holds and 0 sells. The average target price is $4.53, ranging from $3.50 to $6.00.
Share Price as of September 21: $3.38
Number of Hedge Fund Holders: 26
Altice USA, Inc. (NYSE:ATUS), a company that provides broadband communications and video services, has a ‘Hold’ rating from nine analysts who follow the stock.
During Q2 2023, 26 out of the 910 hedge funds part of Insider Monkey's database had held a stake in Altice USA, Inc. (NYSE:ATUS). Out of these, the firm's biggest investor is Cliff Asness’ AQR Capital Management since it owns 17.14 million shares that are worth $50.40 million.
Share Price as of September 22: $5.20
Number of Hedge Fund Holders: 26
Applied Digital Corporation (NASDAQ:APLD) is a digital infrastructure provider with a ‘Strong Buy’ rating from 6 buys and 0 holds or sells.
According to Insider Monkey's second-quarter database, 26 hedge funds were bullish on Applied Digital Corporation (NASDAQ:APLD), compared to 11 funds in the preceding quarter.
Share Price as of September 22: $9.25
Number of Hedge Fund Holders: 26
T.G. Therapeutics, Inc. (NASDAQ:TGTX) is a company that creates and sells new therapies for diseases of B-cells, such as cancers and autoimmune conditions. It has two approved products: BRIUMVI, a monoclonal antibody for relapsing forms of multiple sclerosis, and UKONIQ, a kinase inhibitor for certain types of lymphoma and leukemia. It also has several other drug candidates in clinical trials or preclinical development.
Insider Monkey surveyed 910 hedge funds to look at their Q2 2023 portfolios and found out that 26 had held T.G. Therapeutics, Inc. (NASDAQ:TGTX)’s shares. T.G. Therapeutics, Inc. (NASDAQ:TGTX)’s largest hedge fund investor in our database is Abhishek Trehan’s Darwin Global Management with a $230.48 million stake.
Share Price as of September 22: $4.30
Number of Hedge Fund Holders: 27
Brookdale Senior Living Inc. (NYSE:BKD) is a company that provides senior living services in the U.S. It has three segments: Independent Living, Assisted Living and Memory Care, and Continuing Care Retirement Communities (CCRCs).
The company has a ‘Hold’ rating from three analysts, with one buy, one hold, and one sell. The average price target is $5.98, which means a 38.11% increase from the current price of $4.30 as of September 22, 2023. The price target range is $3.95 to $7.
According to Insider Monkey's second-quarter database, 27 hedge funds were bullish on Brookdale Senior Living Inc. (NYSE:BKD), compared to 30 funds in the prior quarter.
Share Price as of September 22: $6.17
Number of Hedge Fund Holders: 27
Yext, Inc. (NYSE:YEXT) is a company that helps businesses provide accurate and consistent answers to consumers' queries across various platforms and devices. It operates in North America and other countries around the world.
Yext Inc. is rated ‘Hold’ by analysts, with no buys or sells and 3 holds. Its stock price could go up from $6.17 to $11, a 78.28% increase.
According to Insider Monkey's second-quarter database, 27 hedge funds were long Yext, Inc. (NYSE:YEXT), compared to 28 funds in the prior quarter. Mitchell Green’s Lead Edge Capital is the largest stakeholder of the company, with 11.47 million shares worth $129.77 million.
Share Price as of September 22: $9.57
Number of Hedge Fund Holders: 27
Harmonic Inc. (NASDAQ:HLIT) is a company that specializes in video delivery solutions for various applications, such as broadcast, cable, satellite, internet, and mobile. On August 10, Raymond James analyst Simon Leopold upgraded Harmonic Inc. (NASDAQ:HLIT) from ‘Outperform’ to ‘Strong Buy’ and boosted the price target from $15 to $16.
At the end of Q2 2023, 27 hedge funds were long Harmonic Inc. (NASDAQ:HLIT). This is compared to 25 hedge funds in the previous quarter. As of June 30, Trigran Investments is the top stockholder in the company and has a position worth $112.53 million.
Share Price as of September 22: $9.95
Number of Hedge Fund Holders: 27
Acelyrin, Inc. (NASDAQ:SLRN) is a biopharmaceutical company from the U.S. that creates and sells innovative medicines for various diseases. Its lead drug candidate is izokibep, a monoclonal antibody for the treatment of hidradenitis suppurativa, a chronic inflammatory skin condition. As of June 2023, 27 out of the 910 hedge funds surveyed by Insider Monkey were the firm's investors.
Morgan Stanley's Vikram Purohit lowered Acelyrin, Inc. (NASDAQ:SLRN) from ‘Overweight’ to ‘Equalweight’ and cut its price target from $39 to $19 on September 13. He said the company failed to meet the main goal of its trial due to high dropout rate and strong placebo effect. He said he was uncertain about the company's prospects and would re-evaluate later in 2023.
Share Price as of September 22: $4.48
Number of Hedge Fund Holders: 28
Sabre Corporation (NASDAQ:SABR) is a travel software and technology company. It has a ‘Hold’ rating from four analysts, with no buy and one sell. The average price target is $4.63, which is a 3.35% increase from the current price of $4.48 as of September 22, 2023. The price target range is $4 to $5.50.
It is one of the best U.S. stocks under $10 to invest in now. It makes the cut at seventh on our list of 15 top stocks.
28 out of the 910 hedge funds part of Insider Monkey's Q2 2023 database had bought Sabre Corporation (NASDAQ:SABR)'s shares. Terry Smith's Fundsmith LLP is the biggest investor among these due to its $72.44 million stake.
Share Price as of September 21: $3.55
Number of Hedge Fund Holders: 28
Sutro Biopharma, Inc. (NASDAQ:STRO), a company that develops novel therapies for cancer and autoimmune diseases, has a ‘Strong Buy’ rating from five analysts who cover the stock. None of the analysts have a hold or sell rating on the stock. The average price target for Sutro Biopharma Inc. is $17.60.
According to Insider Monkey's second-quarter database, 28 hedge funds were bullish on Sutro Biopharma, Inc. (NASDAQ:STRO), up from 22 in the prior quarter. Aaron Cowen’s Suvretta Capital Management is the leading stakeholder of the company, with 5.88 million shares worth $27.36 million.
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Disclosure: None. 15 Best U.S. Stocks to Buy Now Under $10 is originally published on Insider Monkey.
