16 Best US Stocks To Invest In Under $10
This article will discuss the 16 best US stocks to invest in under $10. To explore similar stocks, look at the 5 Best US Stocks To Invest In Under $10.
In March 2024, the S&P 500 surged with a total return of 3.2%, marking the first quarter's closure with a record high not seen since 2019. The Dow Jones Industrial Average and the Nasdaq likewise experienced significant gains, rising by 6.1% and 9.3%, respectively, throughout the quarter. As a result of positive remarks from Federal Reserve officials and continued rallies in companies associated with artificial intelligence, these advancements have continued to take place. Forbes reports that the technology, consumer cyclical, and consumer defensive sectors led the market gains, each achieving total returns of 8% or more in the first quarter. Most stocks experienced positive gains during the quarter, except for those in the real estate sector, which concluded with losses.
Deciphering Small-Cap Companies’ Challenges and Prospects
As per a March 2024 report from the Financial Times, numerous investors have shown reluctance towards US small-cap stocks due to the significant inflationary pressures and substantial spikes in borrowing expenses. The Russell 2000 index has risen 24 percent since the beginning of 2020, lagging behind the S&P 500’s more than 60 percent gain over the same period. However, despite these challenges, small-cap profits are expected to improve soon, largely because of anticipated rate cuts by the Federal Reserve.
Recently, US bond giant PIMCO adjusted its prediction of Federal Reserve interest rate cuts, now expecting only two cuts this year instead of the previously anticipated three. The US economy's resilience and stronger-than-expected jobs growth suggest that it is handling high interest rates better than expected. Despite the volatility, investing in small-cap stocks can be rewarding as they offer greater growth potential compared to larger-cap stocks, and the lower share prices make them more accessible for initial investment.
Some of the best US stocks to invest in under $10 include Southwestern Energy Company (NYSE:SWN), New York Community Bancorp, Inc. (NYSE:NYCB), Alight, Inc. (NYSE:ALIT), and others. For this, we decided to take a look at the 16 best US stocks to invest in under $10.
A close up shot of a stock ticker reflecting the performance of Indian equity markets.
Our Methodology
For this article, we identified a number of stocks with market capitalizations of over $2 billion, trading on the NYSE and NASDAQ for under $10 as of April 15. Next, we narrowed down our list to 16 stocks most widely held by institutional investors and ranked them in ascending order of the number of hedge funds that have stakes in them as of Q4 of 2023.
Best US Stocks To Invest In Under $10
16. GoodRx Holdings, Inc. (NASDAQ:GDRX)
Number of Hedge Fund Holders: 21
GoodRx Holdings, Inc. (NASDAQ:GDRX) is a US digital healthcare platform that provides consumers with access to affordable medication prices and healthcare information, including prescription price comparison, access to negotiated prices, and additional healthcare services such as subscriptions and telehealth.
In Q4 2023, the company bought back $77.8 million worth of class A common stock, leaving $44.3 million for further repurchases. Additionally, the board approved a new $450 million stock repurchase program, demonstrating its commitment to enhancing shareholder value and making it an attractive investment opportunity. GoodRx Holdings, Inc. (NASDAQ:GDRX) is one of the best American stocks to buy, with 21 hedge funds holding positions in the company, according to Insider Monkey's data. Among them, David Rosen's Rubric Capital Management holds the largest stake, with 5.9 million shares valued at approximately $39.4 million as of Q4 2023.
15. Ginkgo Bioworks Holdings, Inc. (NYSE:DNA)
Number of Hedge Fund Holders: 22
Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) is a biotechnology company that leverages biological solutions to address challenges across different industries. The company has recently acquired three molecular medicine startups, including Proof Diagnostics, Patch Biosciences, and Reverie Labs, to strengthen its offerings in genetic diagnostics, AI-generated compounds, and drug discovery. These acquisitions are part of Ginkgo's strategy to provide comprehensive solutions to its R&D customers.
14. ADT Inc. (NYSE:ADT)
Number of Hedge Fund Holders: 22
ADT Inc. (NYSE:ADT) provides security, interactive, and smart home solutions for residential and small business customers in the U.S. through its Consumer and Small Business (CSB) and Solar segments. In a news release dated March 6, 2024, ADT Inc. (NYSE:ADT) announced a secondary public offering of 55,000,000 shares of its common stock, led by entities managed by Apollo Global Management, Inc. The company's aim is not to sell any shares in this offering. Furthermore, ADT has approved the acquisition of 15,000,000 shares of common stock from the underwriters as part of its ongoing share repurchase program.
As per the Q4 2023 earnings call transcript, ADT Inc. (NYSE:ADT) reported a notable 6% revenue rise in its Consumer and Small Business (CSB) segment, reaching $4.7 million. Moreover, the company revealed a substantial 57% boost in its dividend payout and introduced a $350 million share repurchase initiative. ADT anticipates a robust 40% surge in adjusted free cash flow for 2024, forecasting figures between $700 million and $800 million.
Insider Monkey's database of 933 top-tier hedge funds shows that ADT Inc. (NYSE:ADT) is held by 22 of them. The largest shareholder is Ariel Investments, managed by John W. Rogers, which owns 22.5 million shares valued at $153.1 million.
13. Joby Aviation, Inc. (NYSE:JOBY)
Number of Hedge Fund Holders: 23
Joby Aviation, Inc. (NYSE:JOBY) is a U.S.-based aviation company specializing in electric vertical takeoff and landing (eVTOL) aircraft for air taxi services. In a move to revolutionize urban air mobility, the company acquired a state-of-the-art facility at Dayton International Airport on March 5, 2024, investing up to $500 million and creating numerous manufacturing jobs. Additionally, the company announced on March 19, 2024, that it will deliver two aircraft to MacDill Air Force Base in 2025 under its AFWERX Agility Prime Contract, marking a significant milestone in the use of electric air taxis for military purposes.
From Insider Monkey’s database of 933 hedge funds, Joby Aviation, Inc. (NYSE:JOBY) has a share of 23 funds with
12. Dun & Bradstreet Holdings, Inc. (NYSE:DNB)
Number of Hedge Fund Holders: 25
Dun & Bradstreet Holdings, Inc. (NYSE:DNB) is a globally renowned company that provides essential data and analytics for decision-making. It operates through two segments: North America and International.
According to the Q4 2023 earnings call transcript, to have better terms for borrowing, the company refinanced term loans and credit facilities on January 9, 2024. As of December 2023, Dun & Bradstreet Holdings, Inc. (NYSE:DNB) had access to $825 million in credit, with an average interest rate of 6.3%. This demonstrates the company's prudent financial management and its ability to maintain liquidity for strategic initiatives and operational needs. Thus, making it as one of the best American stocks to buy now for investors especially for beginners.
From Insider Monkey's extensive database of 933 hedge funds, Dun & Bradstreet Holdings, Inc. (NYSE:DNB) stands out as a significant investment option, being held by a total of 25 funds. Among these, Stepstone Group, under the management of Jose Fernandez, holds a prominent position as the largest shareholder. As of Q4 2023, Stepstone Group's holdings in the company amount to approximately 21.2 million shares, with an estimated value of around $248.5 million.
11. Genworth Financial, Inc. (NYSE:GNW)
Number of Hedge Fund Holders: 26
Genworth Financial, Inc. (NYSE:GNW) is an international insurance holding company that engages in the provision of insurance, wealth management, investment, and financial solutions. The company operates through five segments: U.S. Mortgage Insurance, Canada Mortgage Insurance, Australia Mortgage Insurance, U.S. Life Insurance, and Runoff.
The Q4 2023 earnings call transcript reveals that the company maintained its commitment to returning capital to shareholders by executing the repurchase of around $35 million. Furthermore, as the year concluded, the company demonstrated its financial robustness by holding a substantial $350 million in cash and liquid assets.
Insider Monkey's hedge fund holdings database reveals that Himanshu H. Shah's Shah Capital Management holds the largest stake, with 4.7 million shares valued at $31.6 million. Additionally, out of 933 hedge funds in total, the company has invested in 26 funds.
Along with Southwestern Energy Company (NYSE:SWN), New York Community Bancorp, Inc. (NYSE:NYCB) and Alight, Inc. (NYSE:ALIT), Genworth Financial, Inc. (NYSE:GNW) is one of the best American stocks to buy.
10. SoFi Technologies, Inc. (NASDAQ:SOFI)
Number of Hedge Fund Holders: 29
SoFi Technologies, Inc. (NASDAQ:SOFI) is a provider of financial services. Through its lending and financial services offerings, the company empowers members to borrow, save, spend, invest, and safeguard their funds. It operates through three main segments: Lending, Technology platforms, and Financial Services.
The Q4 2023 earnings call transcript reveals impressive growth metrics: adjusted net revenue surged by 34% year-over-year, hitting $594 million, while adjusted EBITDA soared to $181 million, marking an extraordinary increase of over 80% from the previous record of $98 million.
SoFi Technologies, Inc. (Nasdaq:SOFI) holds positions in 29 hedge funds out of a total of 933 in the Q4 2023 Insider Monkey database. Silver Lake Partners, led by Jim Davidson, Dave Roux, and Glenn Hutchins, boasts the largest stake in the company, with 31.2 million shares valued at approximately $310 million.
9. Kosmos Energy Ltd. (NYSE:KOS)
Number of Hedge Fund Holders: 29
Kosmos Energy Ltd. (NYSE:KOS) is an upstream oil company established in 2003 and headquartered in Dallas, Texas. The company specializes in providing oil and gas exploration and production services.
According to the Q4 2023 press release, Kosmos Energy Ltd. (NYSE:KOS) exhibited financial resilience with $2.3 billion in net debt and $0.7 billion in available liquidity. With 29 hedge funds holding its stocks out of 933 in Insider Monkey’s database, it is considered as one of the best American stocks to buy now. Maple Rock Capital, spearheaded by Len Kipp and Xavier Majic, holds the largest stake in the company, possessing 9 million shares valued at approximately $60.2 million.
8. Under Armour, Inc. (NYSE:UA)
Number of Hedge Fund Holders: 31
Under Armour, Inc. (NYSE:UA) is a prominent American sportswear company headquartered in Baltimore, Maryland, USA. Renowned for its development, marketing, and distribution of apparel, footwear, and related accessories, the brand's products are widely available through retail stores, direct-to-consumer sales channels, and e-commerce platforms worldwide.
Under Armour, Inc. (NYSE:UA) announced a leadership transition in a press release dated March 13, 2024, appointing Kevin Plank as the new President & Chief Executive Officer, effective April 1, 2024. Anand Parekh’s Alyeska Investment Group holds the largest stake in the company, with 8.2 million shares valued at around $71.8 million. Additionally, the company is featured in 31 out of 933 hedge funds in Insider Monkey’s Q4 2023 database.
Along with Southwestern Energy Company (NYSE:SWN), New York Community Bancorp, Inc. (NYSE:NYCB) and Alight, Inc. (NYSE:ALIT), Under Armour, Inc. (NYSE:UA) is one of the best American stocks to buy for beginners.
7. Marqeta, Inc. (NASDAQ:MQ)
Number of Hedge Fund Holders: 32
Marqeta, Inc. (NASDAQ:MQ) is at the forefront of the payment industry with its advanced card issuing and transaction processing solutions. Its cloud-based platform, powered by open APIs, empowers businesses to excel in the digital landscape and deliver incomparable customer value.
According to the Q4 2023 earnings call transcript, both Internet Travel Solutions (ITS) and Affinipay have opted to utilize Marqeta’s revamped credit card platform, which was launched in October 2023, to drive their credit solutions. Marqeta, Inc. (NASDAQ:MQ) is included in the portfolios of 32 out of 933 funds in Insider Monkey’s database. Additionally, Insider Monkey’s Q4 2023 data reveals that Israel Englander’s Millennium Management holds the largest stake, with ownership of 9.5 million shares valued at $66.1 million.
6. Newell Brands Inc. (NASDAQ:NWL)
Number of Hedge Fund Holders: 33
Newell Brands Inc. (NASDAQ:NWL) is a global consumer goods company headquartered in Atlanta. It was formed in 2016 through the merger of Newell Rubbermaid and Jarden Corporation, bringing together a rich and diverse portfolio of renowned brands under one roof.
On March 12, 2024, Sharpie and Paper Mate, as part of the Newell Brands Inc. (NASDAQ:NWL) family, collaborated to promote creativity nationwide with the launch of the “Let’s Get Creative” campaign, aimed at overcoming time barriers that hinder Americans' creative expression. At the South by Southwest launch, attendees experienced the unveiling of new products like Sharpie Creative Markers and Paper Mate InkJoy Gel Bright! Pens, accompanied by insights from Mindy Kaling.
Insider Monkey's Q4 2023 database revealed that Newell Brands Inc. (NASDAQ:NWL) was held by 33 out of 933 hedge funds. Notably, Richard S. Pzena's Pzena Investment Management emerged as the largest shareholder, with ownership of approximately 54.1 million shares valued at around $469.6 million.
Click to continue reading and see 5 Best US Stocks To Invest In Under $10.
Suggested articles:
Disclosure: None. The 16 best US stocks to invest in under $10 was originally published on Insider Monkey.