10 Best Stocks Under $10 to Watch in 2024

Finding decent stocks for under $10 can be a challenge. There are often very good reasons that a stock will be trading that low and few of them are good. However, there can be some finds in the bargain bin of stocks, sometimes called “penny stocks,” though that term is usually reserved for stocks that are below $5 a share. 

It’s worth noting that less than five years ago, Nvidia (NASDAQ: NVDA) was trading below $5 a share, and six years ago, Super Micro Computer (NASDAQ: SMCI) was trading for less than $10 a share. Now, both trade in the triple digits, even after stock splits.

10 of the top affordable stocks trading on US markets right now

These 10 stocks on our list are worth looking at because of their strong financials, including strong revenue growth and profitability, or at least an obvious path to profitability.

1. Clover Health: The Franklin, Tennessee-based, next-generation Medicare Advantage insurer uses its Clover Assistant platform to give data-driven physician insights to improve clinical decision making. It also offers Health maintenance organization (HMO) and preferred provider organization (PPO) insurance options.
2. Kosmos Energy: The Dallas-based deepwater oil and gas exploration and production company is focused along the offshore Atlantic Margins. Its key production assets are in offshore Ghana, Equatorial Guinea, and in the US Gulf of Mexico. It also has offshore gas projects in Mauritania and Senegal.  
3. Valley National Bancorp: The Morristown, New Jersey-based, company is the main subsidiary of Valley National Bancorp. It’s a regional bank with over $62 billion in assets. Its branches and commercial banking offices are across New Jersey, New York, Florida, Alabama, California and Illinois.
4. Arcadium Lithium: The Shannon, Ireland-based chemicals producer makes lithium through hard-rock mining, conventional brine extraction and direct lithium extraction (DLE). It also makes lithium chemicals for high performance applications. Its operations are in  Argentina, Australia, Canada, China, Japan, the UK and the US. 
5. SoFi Technologies: The San Francisco-based digital financial services company has nearly 8.8 million members. It delivers loans, savings, investing and spending all in one app. It also delivers financial planners, events and exclusive experiences.
6. LegalZoom: The leading online platform for business formation in the US simplifies the legal and compliance process for entrepreneurs. The company, based in Mountain View, California, also offers ready-made wills, living trusts, copyright registrations, and trademark applications. 
7. BGC Group: The marketplace, data, and financial technology services company delivers a broad range of products, including fixed income, foreign exchange, energy, commodities, shipping, equities. It recently started the FMX Futures Exchange, with some big backers as a competitor to the Chicago Mercantile Exchange.
8. Kinross Gold Corp: The Toronto-based mining company has been in business more than 30 years and has a diverse portfolio of mines and projects in the US, Canada, Brazil, Chile and Mauritania. It has benefitted from the rise in gold prices this year.
9. Coursera: In a little more than a decade, the Mountain View, California-based company has become one of the largest online learning platforms in the world with more than 155 million registered learners. It partners with more than 325 universities and industry partners to provide a broad range of credentials.
10. SIGA Technologies: The New York City-based company develops and sells pharmaceutical products for the antiviral treatment of smallpox, monkeypox, cowpox, and vaccinia complications.

An in-depth look at these stocks under $10 with high potential

Let’s see a deeper analysis of why we like these 10 stocks that trade under $10. We found strong potential for all 10 companies, with all of them displaying revenue growth and improved profitability.

1. Clover Health: Breaking into profitability

Clover Health is in its 10th year as a medical insurer, focusing on technology to improve outcomes for Medicare Advantage patients. Its main goal has been growth in the past, sometimes to the detriment of profitability. Now, however, the company is coming off its first profitable quarter. If it stays profitable, it isn’t likely to stay below $10 a share for long. Its Clover Assistant technology is designed to lower the total cost of care for patients with chronic diseases. That has helped Clover Health to gain adoption of more medical plans. It features policies with $0 premiums, $0 copays for primary care providers and preferred generic drugs. Its BMO and PPO plans provide additional benefits beyond traditional Medicare, such as prescription drug coverage, dental, vision, and transportation. 

In the second quarter, it reported that revenue rose 11% year over year to $356.3 million. Net income totaled $7.2 million compared to a loss of $28.9 million in the same period a year ago. The firm also increased full-year guidance. It now expects insurance revenue to be between $1.35 billion and $1.375 billion. It sees adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) between $50 million and $65 million.

One reason for the growth is the Centers for Medicare & Medicaid Services (CMS) raised the company’s star rating to 3.5 stars from 3. It also gets a lift because artificial intelligence (AI) enables it to aggregate patient data to support clinical decision-making.

2. Kosmos Energy: Improved production, solid financial footing

Stocks that are trading at less than $10 are often more volatile than others, because they tend to be companies that aren’t as well established. The fact that Kosmos is an oil and gas exploration company adds another layer of uncertainty and volatility. However, the company’s strong balance sheet puts it in a good position to do well if the current global instability (with the war in the Ukraine, and the unrest in the Middle East) continues to drive up oil prices.

Kosmos’s primary assets include production projects in offshore Ghana, Equatorial Guinea, and the US Gulf of Mexico. There’s a lot to like with Kosmos’ projects ramping up while its capital expenditures are expected to decline. In the second quarter, revenue was $451 million, rising 64.9% from the same period a year ago. Earnings per share of $0.12 increased from $0.05 in the second quarter of 2023. Kosmos saw production rise 7% year over year, to 62,100 barrels of oil equivalent per day.

Despite some setbacks, particularly slowdowns in projects and lower output from its Jubilee, Kosmos said it was on track to reach its goal of producing 90,000 barrels of oil daily by the end of the year. Operations have recently begun at the Winterfell project it shares with Beacon Offshore Energy in the US Gulf of Mexico. Considering the potential for improved earnings, the stock’s price-to-earnings ratio of 7.72 makes it an undiscovered gem, for now.

3. Valley National Bancorp: Poised for a rate-driven bounceback

Regional banks have struggled over the past few years because the Federal Reserve’s higher interest rates curbed profit margins and loan growth while raising deposit costs. The high interest rates have also hurt investment in commercial real estate. Valley isn’t alone in being affected by those concerns. However, at this point, trading at around $9 a share and with the potential for improved margins around the corner, the stock appears attractive. Its price to earnings ratio (P/E) is less than 13 times earnings, which also underscores the potential upside. Its shares are down 19% so far this year, but up more than 3% over the past month.

Valley’s second-quarter financials were down from the same period a year ago, but are up sequentially. This may point to a turnaround in advance of lower interest rates. In the second quarter report, it said that net interest income and margin increased sequentially. Net interest income rose 2.6% to $403 million, and net interest margin climbed 5 basis points to 2.84%. Valley also saw deposits through six months rise by 0.05% year over year, to $49.9 billion, led by higher average balances across several deposit categories, including non-interest bearing deposits.

On top of that, Valley’s quarterly dividend of $0.11 equals a yield of around 5%, a great reason to hold onto a struggling stock that isn’t likely to struggle much longer. The company also is in the midst of a stock repurchase program that it launched in February. It plans to buy back as many as 25 million of its shares.

4. Arcadium Lithium: Profitable, showing increased cost savings

Lithium mining stocks have taken a beating this year as lithium prices slumped. The long-term growth potential for electric vehicles (EVs) remains high and Arcadium is in a good position to benefit from the rise of lithium demand. The company is perhaps overlooked because it’s the product of a merger earlier this year between Allkem and Livent, but now it’s seeing cost benefits from the combination.

In the second quarter, Arcadium said it had revenue of $254.5 million, up 7.9% year over year, and net income of $94.5 million, up 4.7% from the same period last year. Production is growing and Arcadium forecasts that to continue. It projects a 25% increase in lithium hydroxide and lithium carbonate sales volumes this year compared to 2023, with another 25% jump next year, thanks to already completed expansions.

The merger is expected to help save the company between $60 million and $80 million this year. As part of a restructuring, it’s saving on operating and logistics costs and eliminating third-party services used by the companies. The stock is trading at less than five times earnings and its shares are down more than 64% this year, leaving plenty of room for share growth.

5. SoFi Technologies: Priced to buy, plenty of growth ahead

SoFi offers lending, financial services and products to its members that include personal loans, student loans, home loans and other services. The digital financial services company is really still in the first chapter of its growth phase. That is a good reason to buy a stock that is trading at a little more than $8 a share. Next year, SoFi is predicting 100% revenue growth and earnings per share (EPS) growth of 42%. The company operates in three areas: Lending, Technology Platform, and Financial Services.

It had second-quarter revenue of $598.6 million, rising 20% year over year, and EPS of $0.01, compared to a loss per share of $0.06 in the same period a year ago. It was its third consecutive quarter of profitability. Net income was $17.4 million, compared to a loss of $47.5 million in the second quarter of 2023. The company increased membership by 41% year over year. The areas where it saw the greatest growth were its Financial Services and Tech Platform Segments.

SoFi’s profits should receive a boost from a Fed rate cut because much of its money comes from loans and that area has underperformed this year, with just 3% year-over-year growth. That’s because many individuals and businesses either couldn’t qualify for, or weren’t willing to borrow money at, higher rates. Now, with the interest rate likely to come down, SoFi’s lending should pick back up again. Perhaps anticipating the interest rate cut, SoFi management raised its guidance. Now it expects adjusted net revenue of between $2.425 and $2.465 billion, up 17% to 19%. The earlier estimate was 15% to 17% growth. The company also said it expects net income in 2024 of $175 to $185 million, above earlier guidance of $165 to $175 million.

6. LegalZoom: Growing revenue, trimming costs

It’s easy to see why LegalZoom’s stock has stagnated this year, falling more than 38%, year-to-date. The company’s CEO, Dan Wernikoff, left after so-so first-quarter earnings and lackluster guidance and investors voted with their pocketbooks. It’s harder to comprehend, though, why the stock has not bounced back since its second-quarter earnings, and that leaves an opportunity for investors.

In July, LegalZoom announced that Jeff Stibel, the chair of the board, would take over as CEO. In the second quarter, LegalZoom posted revenue of $177.4 million, up 5 % year over year, while EPS was $0.01, unchanged from the same period a year ago. The company announced it was laying off 15% of its workforce in an attempt to save $25 million annually.

The company is focusing on subscription revenue, which involves higher margins than its transaction revenue, to get back to better profitability. In the second quarter, subscription revenue rose 6% year over year, to $108.8 million. If the economy picks up thanks to lower interest rates, that means that the number of small businesses and entrepreneurs will increase. They are likely to need LegalZoom’s line of legal, tax, accounting and compliance products.

7. BGC Group: Making a splashy move with challenger exchange

The company is on the verge of a huge gamble that could pay off big. In September, it started trading secured overnight financing rate (SOFR) futures on its new FMX Futures Exchange. The move puts it head-to-head with the Chicago Mercantile Exchange’s own futures exchange, which had a monopoly in the US until now. BGC Group is getting backing from 10 of the world’s largest investment banks on the project. If the move succeeds, BGC will benefit from its disruptive role.

Even before the move, BGC Group showed double-digit revenue growth. In the second quarter, it reported revenue of $550.8 million, up 11.7% from the second quarter of 2023. EPS was $0.08, up 260% year over year. The company doubled its quarterly dividend this year to $0.02, giving it a yield of around 0.80%. If BGC Group can take a slice of the Chicago Mercantile Exchange’s futures high-margin business, that will lead to additional growth for years. It’s worth noting that BGC Group Chairman and CEO Howard Lutnick has experience as a disruptor, as he created eSpeed, an electronic trading platform for bonds in 1999 before selling it to Nasdaq in 2013 for $1.2 billion.

The FMX Futures Exchange could succeed because the market sees the need for competition and its backers: Bank of America Corp.; Barclays; Citadel Securities; Citigroup Inc.; The Goldman Sachs Group Inc.; J.P.Morgan Chase & Co.; Morgan Stanley; Jump Trading Group; and Tower Research, have an incentive to make the exchange succeed. 

8. Kinross Gold Corp.: Higher gold prices, explorations are promising

The price of gold has surged past $2,551 per Troy ounce, an all-time high, driven by expectations of an interest rate cut by the Fed. Gold tends to do better when interest rates drop. That rise in the price of gold has helped companies such as Kinross thrive. Kinross is enthusiastic about its future, considering that several of its projects are showing strong results.

In the second quarter, Kinross paid off $200 million in debt, thanks to strong financials. Revenue rose 11.6% year over year, to $1.22 billion, while net earnings were $210.9 million, or $0.17 in EPS, compared to $151 million, or $0.12 in EPS a year earlier. The driving force for the growth is greater production, plus higher margins that rose 21% compared to the first quarter, to $1,313 per gold ounce sold, outpacing even the rise in gold prices.

The company’s confidence was reflected in its reaffirmed guidance for 2.1 million gold equivalent ounces of production in 2024 at an all-in sustaining cost of $1,360 per ounce. It kept its quarterly dividend at $0.03 per share, a yield of 1.21%. Most of Kinross’ mines are located in stable locations in North America and South America and its potential for long-term growth makes it a strong pick.

9. Coursera: Education provider books a strong quarter

Coursera, launched in 2012 by Stanford computer science professors Andrew Ng and Daphne Koller, is one of the leaders in the increasingly competitive area of edtech. It offers certifications for skills and online courses and degree programs in conjunction with universities and corporations. It focuses on three areas. Its consumer segment is for individuals seeking to learn new skills, earn certifications, or advance their careers. The enterprise segment is aimed at businesses, governments, and institutions seeking online training solutions for their employees, citizens, and students. The degrees segment includes partnerships with universities to deliver bachelor’s and master’s degree programs online.

The stock has dropped more than 59% this year, but the company has shown consistent double-digit growth. It’s also beginning to rein in its costs, so margins should improve. It is also seeing a strong uptick in enrollment for its AI-related courses.

In the second quarter, the company reached the two million enrollment milestone and saw revenue rise 11%, year over year to $170.3 million. The company is still operating at a loss, but appears to be on the road to profitability. It lost $23 million in net income, or 13.5% of revenue compared to a $31.7 million loss in the same period a year ago, about 20.7% of revenue.  

10. SIGA Technologies: Looking to expand its therapies

The pharmaceutical company, which specializes in treating and preventing biothreats, has seen its shares rise more than 42% this year, but the stock is still trading for less than seven times earnings.  Most of the company’s business stems from US government contracts to stockpile TPOXX as a smallpox vaccine. However, the company is trying to branch out its lead therapy to treat Mpox, formerly known as monkeypox.

In August, the company announced that the US Department of Defense had signed a new contract with Siga for the procurement of approximately $9 million of TPOXX, the third such contract with the DOD over the past three years. That’s not to say that everything has gone SIGA’s way. TPOXX, recently had disappointing results in a study as a treatment for Mpox, which has surged in the Republic of Congo and other countries, though it did provide clinical benefit vs. placebo in two key patient populations: those treated early and those with severe disease. 

In the second quarter, the company reported revenue of $21 million, up 269%, year over year and EPS of $0.03, compared with an EPS loss of $0.04 in the same quarter a year ago. The biggest concern with SIGA is with only one approved therapy, its business isn’t diversified and is highly cyclical. However, it’s profitable and that will help it develop other therapies.

Year-to-date performance of the top stocks under $10 in 2024

Ticker	Company	Performance (YTD)
NASDAQ: CLOV	Clover Health	+224.48%
NYSE: KOS	Kosmos Energy	-35.51%
NASDAQ: VLY	Valley National Bancorp	-16.77%
NYSE: ALTM	Arcadium Lithium	-63.29%
NASDAQ: SOFI	SoFi Technologies	-15.23%
NASDAQ: LZ	LegalZoom	-38.05%
NASDAQ: BGC	BGC Group	+42.62%
NYSE: KGC	Kinross Gold	+57.01%
NYSE: COUR	Coursera	-58.09%
NASDAQ: SIGA	Siga Technologies	+38.49%

What sectors offer stocks with a price tag under $10 most often?

There’s no single sector where stocks are under $10, as low-priced stocks are in nearly every sector. However, exploratory mining stocks, cutting-edge technical stocks and regional banks are the most likely sectors to have stocks with shares under $10. That’s because those companies tend to have lower market capitalizations, and those sectors have more companies without a proven track record to warrant a higher share price. 

Regional banks, such as Valley National Bancorp often have lower share prices because they have a hard time competing against national or international banks. Mining stocks, such as Kinross Gold, often have lower-priced shares because mining as a sector has higher risks than other sectors and start-up technology stocks, such as Clover Health or LegalZoom, are often priced below $10 because they haven’t shown consistent profitability.

How t​​o add cheap US stocks to your portfolio

It isn’t hard to invest in US stocks, whether you live in the US or elsewhere. The basic steps start with choosing a brokerage that offers access to US markets, considering factors like fees, selection of stocks and funds, educational resources, and ease of use. It’s also worth noting that not all brokerage firms allow investors to buy so-called penny stocks, those that trade under $5 a share. Once you find a broker, open an account, providing the necessary personal and financial information and choose an account type. From there, all you have to do is fund the account and convert the funds to US dollars if necessary. Then pick the right US stocks after doing your research.

How to spot inexpensive stocks that have high potential 

Identifying inexpensive stocks with high potential requires a combination of research, analysis, and risk assessment. Some steps you can take:

Use a stock screener to find low-priced stocks: A stock screener can help investors find stocks below $10 and then can be used to compare those stocks to others in their industries. There are also stock predictor services that can help you find quality stocks under $10.

Focus on Growth: Stocks trading under $10 typically represent smaller, newer companies with higher volatility and risk compared to larger, more established stocks. However, they can offer significant growth potential if you’re willing to do your due diligence.

Prioritize Sustainable Growth: When evaluating stocks under $10, focus on companies with a clear path to profitability and sustainable growth. Even if they’re not currently profitable, their business model should demonstrate potential for future earnings.

Identify a Competitive Advantage: Look for companies with a unique business model or competitive advantage that sets them apart from competitors. This could be a proprietary technology, a strong market position, or a unique customer base.

Consider Undervalued Companies: Many promising stocks under $10 may be overlooked by investors due to their smaller size or lack of consumer recognition. These companies can offer significant value if they have solid financials and a strong business model.

Do your financial homework: Examine a company’s earnings reports to assess its financial health, profitability and debt levels. Understand its valuation ratios, such as price-to-earnings (P/E) that might show if it is undervalued compared to its peers.

Understand trends: The growing need for lithium for EVs, for example, bodes well for Arcadium Lithium. The rising price of gold is a trend that helps Kinross Gold. The growing use of internet technology helps Clover Health, LegalZoom, Coursera and SoFi Technologies.

Know the risks: Is the company carrying a lot of debt? Is whatever moat the company has sustainable? How much capital does the company have to withstand an economic downturn? It also makes sense to understand your own level of risk. If you are looking at lesser-priced stocks that may have a higher level of volatility, is the rest of your portfolio set up with more established stocks for diversification?

Pros and cons of buying stocks costing less than $10 

Investing in any stock requires some level of risk tolerance by an investor and stocks that trade below $10 carry more risk than larger companies with higher share prices. Here are a few pros and cons of buying stocks that cost less than $10.

Some of the pros of stocks below $10

Potential for High Returns: Due to their lower valuations, stocks under $10 can offer significant upside potential if the company experiences growth or increased investor interest. It’s worth remembering that many of today’s largest companies once started out trading at less than $10 a share.

Accessibility: Investing in stocks under $10 can be more accessible to those with limited capital, as smaller investments can still yield meaningful returns. Obviously, it is a lot easier to buy 100 shares of a stock that trades under $10 a share than in a stock whose shares cost more than $100 a share.

Undervalued Opportunities: Some stocks may be trading below their intrinsic value, offering potential buying opportunities for patient investors. 

Some of the cons of investing in stocks below $10

Increased Risk: Stocks under $10 often have higher volatility and are more susceptible to market fluctuations. That’s not necessarily a bad thing, but it can cause stress for investors.

Limited Liquidity: Trading volume for these stocks may be lower, making it difficult to buy or sell shares quickly. If you buy a stock for under $10 and later have buyer’s remorse, you may have to sell the stock at a loss.

Higher Risk of Fraud: Penny stocks, a subset of stocks under $10, are often associated with higher risks of fraud and manipulation. When a stock’s shares are below $10, it is easier to have  a larger percentage move.

Lack of Information: Smaller companies, with smaller marketing departments, may have less public information available, making it more challenging to assess their financial health and prospects.

Summary of the benefits and drawbacks of US stocks available for under $10

Methodology: How we chose the stocks under $10 on our list

We spent a lot of time figuring out the best stocks under $10. Investing in lower-priced stocks often means a greater risk, so we vetted these stocks with care, knowing that buying them would still entail a certain level of risk. The factors we looked at:

• Downtrodden stocks: We looked for companies whose shares have fallen this year, looking for companies who may be oversold at this point. Most of the stocks on our list have seen their shares drop by double-digit levels so far this year, led by a 63% fall by Arcadium Lithium.
• Stocks on the rise: On the other hand, we also looked for companies that are still below $10 despite significant momentum, such as Clover Health, Kinross Gold and SoFi Technologies.
• Profitability: We looked for companies that were either turning a profit or at least appeared to be closer to profitability.
• Revenue growth: One of the biggest factors we focused on were companies whose revenue growth, year over year, in their most recent quarter.
• Competitive advantages: We looked for companies that serve a somewhat unique niche, such as Coursera, Clover Health or LegalZoom, which gives them certain first-to-market advantages.

FAQs on inexpensive stocks