We recently published a list of 10 Low Price High Volume Stocks to Buy Now. In this article, we are going to take a look at where GoPro, Inc. (NASDAQ:GPRO) stands against other low price high volume stocks to buy now.
Cheap stocks or stocks typically priced under $10, can be attractive for investors looking to make quick gains in shares. With a limited amount of investment, a larger number of shares can be acquired which provides greater potential for gains in case the stock prices rise. Investing in low-price stocks can be tempting but might not always be the best approach with more of these stocks being high risk with greater quality concerns. While investors can enjoy greater liquidity of their funds, these low-priced stocks can be glaring signs of underlying threats in the company’s outlook.
In the fluctuating world of stock trading, especially with the volatile markets in the current scenario, low-priced high volume stocks can present unique opportunities for investors. While the cheap price offers growth potential and scope for appreciation, high trading volumes indicate market interest. These stocks are typically associated with small-cap or micro-cap companies and have garnered attention within the investing community, especially among retail investors seeking high-growth opportunities. They are known for their high volatility and liquidity. Low-priced stocks that trade at high volume, can mitigate some of the risks since they enable investors to enter and exit with ease and capitalize on short-term opportunities. The affordability of these stocks allows investors to diversify their portfolios making them accessible to a broader range of market participants. The less efficient market for low-priced stocks provides opportunities to identify undervalued companies before they gain broader recognition. Additionally, high trading volume indicates strong investor interest, driving price momentum and leading to substantial returns.
A lot of these stocks typically operate in sectors with high interest such as renewable energy, clean-tech, and biotechnology that allows investors to tap into the market momentum of these sectors. In 2023, 60% of the stocks under $5 were operating in these sectors. Some of these sectors have seen unexpected developments in recent times due to changing investor preferences, regulations, and market innovations. Sectors like clean energy and biotechnology have seen some interesting developments driven by technological advancements and regulatory push. While the clean-tech companies have benefited from market incentives, biotech firms have experienced breakthroughs in healthcare innovation and drug developments. These developments have been beneficial for small players in the industry, but the market is still fraught with risks for low-priced stocks.
The recent market scenario has shown that volatile stocks have been posed with a number of macroeconomic challenges and shifting investor sentiment. A market marked by rising interest rates, inflation concerns, and geopolitical tensions poses a challenging environment for high-risk stocks. For instance, the collapse of several ‘meme-stocks’ in 2023 that previously soared due to social-media push, is a clear sign of the high risks involved in such darling stocks. With many low-priced stocks experiencing high price fluctuations, a lot of these stocks lose as much as 50% of their value within weeks. The recent stock plunges across the market due to the DeepSeek news, especially for AI startup stocks, is another cautionary example.
Therefore, investing in low-priced, high-volume U.S. can sometimes deter even experienced investors. Extreme volatility is one of the primary concerns. Low-priced stocks (under $5) often experience daily price swings of 5% or more, compared to less than 1% for large-cap stocks. These stocks can experience dramatic price swings within short periods, often driven by market sentiment or speculative trading rather than fundamental value. Especially during market downturns or when unfavorable news emerges, the stocks can prove to be extremely volatile and increase the risk of losses. They can be susceptible to market manipulation, such as “pump and dump” schemes, where prices are artificially inflated before being sold off, leaving investors with unexpected losses. Another challenge is the lack of avenues to perform thorough due diligence due to less transparency and limited information available for many small-cap or micro-cap companies.
While these stocks come with higher risks and their own set of challenges, their potential for outsized gains makes them a compelling option for risk-tolerant investors. Investors can leverage the unique advantages of low-priced, high-volume stocks to achieve significant portfolio growth by conducting thorough research and maintaining a disciplined approach. We have identified some low-price, high volume stocks that could be great buying opportunities for investors right now.
Our Methodology:
To arrive at our list of low-price, high volume stocks to buy now, we have screened the most active current stocks on the basis of price criteria and volume criteria (focusing on stocks under $10). We have then assigned scores for other market criteria such as market sentiments and growth. Our list is sorted on the basis of stock price and we have also considered the number of hedge fund holders for each stock.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
Is GoPro, Inc. (GPRO) the Low Price High Volume Stock to Buy Now?
A skateboarder capturing 360-degree footage of their ride with a GoPro camera on a mountable accessory.
A market leader in action cameras, GoPro, Inc. (NASDAQ:GPRO), is a tech company that enables users to capture high-quality and immersive content. Founded in 2002, the company revolutionized the action camera market with its HERO series. Their products have a strong consumer following, widely used by adventure enthusiasts, athletes, and content creators. The loyal consumer base vouches for its high-speed functionality catering to their specific needs. Directly competing with brands like DJI and Insta360, the GoPro brand has built a strong market presence through its direct-to-consumer sales model and international expansion.
GoPro, Inc. (NASDAQ:GPRO) reported a revenue of $200.9 million in Q4 of 2024, a 32% decline compared to the same period in the previous year. Despite the downturn, the earnings and revenue were above market expectations by 18.18% and 0.87%, respectively, indicating a strong stand against challenges. To combat the financial pressures, the company announced a restructuring plan in mid-2024, including a 15% reduction in its workforce. This move was aimed at streamlining operations and reducing operating expenses by 30% for 2025. The company is also focusing on refining its product roadmap to create diversification and profitability.
The recent addition to its product lineup, the HERO13 Black, is aimed at tapping into a broader audience. The company also confirmed plans to release the Max 2 360 camera in 2025, as it continues to innovate in the immersive tech space.
The action camera segment is dynamic and undergoing rapid changes, and GoPro, Inc. (NASDAQ:GPRO)’s stock has experienced a 65% decline over the past year. This was despite the sub-industry’s 12.9% increase. This can be indicative of the company’s underperformance against the broader market. However, the company has demonstrated operational stability with diversified supply chains that have effectively mitigated potential impacts from U.S. tariffs. The company’s international presence has also proved to be strong.
In summary, GoPro, Inc. (NASDAQ:GPRO) offers a distinctive opportunity in the tech sector that the investors are taking note of, reflected in the high trading volumes. The company plans to return to unit and revenue growth with improved profitability. Its agile approach and strategic vision position it to tackle current challenges and tap into emerging opportunities.
Overall, GPRO ranks 2nd on our list of low price high volume stocks to buy now. While we acknowledge the potential for GPRO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GPRO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
