Best Cheap Stocks Under $10 with High Upside (2024)

Low-priced stocks under $10 present a unique opportunity for those seeking high returns with a modest investment. By carefully screening, investors can pinpoint stocks with significant growth potential.

Utilizing the InvestingPro Fair Value metric, we’ve identified low-priced stocks poised for potential price increases of over 25%. This fair value upside underscores the expected growth trajectory of these stocks.

What is InvestingPro Fair Value?

InvestingPro Fair Value is a metric designed to estimate the true worth of a stock. Using this value, users can assess whether a stock is currently undervalued or overvalued by comparing its current market price to its intrinsic worth.

Methodology: Why We Picked These Stocks

Pricing Criteria: Our focus is on identifying cheap stocks trading under $10

Fair Value Assessment: We considered only stocks presenting a Fair Value upside potential of at least 25%, based on InvestingPro’s fair value assessment. We place considerable weight on InvestingPro’s fair value assessment to steer clear of overpriced stocks and pinpoint stocks with substantial upside potential.

Stock Market: We prioritized US-listed stocks for this screener.

With this methodology, we’re pursuing investments that combine value and growth potential.

Company NameStock SymbolSectorFair Value Upside
TAL Education GroupTALDiversified Consumer Services29.6%
Coursera, Inc.COURConsumer Discretionary40.3%
Integral Ad Science Holding Corp.IASCommunication Services25.9%
Yext, Inc.YEXTInformation Technology42.2%
LegalZoom.com, Inc.LZIndustrials43.0%
NIO Inc (Class A)NIOAutomobiles27.4%
Arcadium Lithium PLCALTMChemicals39.5%
iQIYI IncIQEntertainment57.4%

1. TAL Education Group (TAL)

  • Market Cap: $4.78 B
  • Fair Value: $10.24
  • Fair Value Upside: 29.6%

TAL Education Group provides K-12 after-school tutoring services in the People’s Republic of China. It provides learning services primarily through small-classes services; personalized premium services; and learning content solutions, such as print books, smart books, mobile apps, and AI-driven learning devices.

2. Coursera, Inc. (COUR)

  • Market Cap: $1.123B
  • Fair Value: $11.08
  • Fair Value Upside: 40.3%

Coursera, Inc. is a prominent online learning platform that collaborates with universities and organizations worldwide to offer a wide range of courses, specializations, and degrees. Established in 2012 by Stanford professors Andrew Ng and Daphne Koller, Coursera aims to provide accessible, flexible, and affordable education to learners globally.

3. Integral Ad Science Holding Corp.(IAS)

  • Market Cap: $1.81B
  • Fair Value: $14.19
  • Fair Value Upside: 25.9%

Integral Ad Science Holding Corp. (IAS) is a global technology company specializing in digital media quality. Founded in 2009, IAS provides solutions that ensure ads are viewable by real people, in safe and suitable environments, and within the right geographic regions.

4. Yext, Inc. (YEXT)

  • Market Cap: $620.6M
  • Fair Value: $7.00
  • Fair Value Upside: 42.2%

Yext, Inc. is a technology company that offers a platform for managing digital knowledge about businesses, including location data, online reputation, and customer experiences. Founded in 2006, Yext helps organizations ensure that their business information is accurate and consistent across various online platforms, such as search engines, maps, and social media.

5. LegalZoom.com, Inc. (LZ)

  • Market Cap: $1.14B
  • Fair Value: $9.31
  • Fair Value Upside: 43.0%

LegalZoom.com, Inc. is an online legal technology company that provides legal solutions and documents to individuals, families, and small businesses. Founded in 2001, LegalZoom aims to make legal services more accessible and affordable by offering a range of services, including business formation, estate planning, and intellectual property protection.

6. NIO Inc (Class A) (NIO)

  • Market Cap: $8.77B
  • Fair Value: $5.40
  • Fair Value Upside: 27.4%

NIO Inc. designs, develops, manufactures, and sells smart electric vehicles in China. It offers five and six-seater electric SUVs, as well as smart electric sedans. The company was formerly known as NextEV Inc. and changed its name to NIO Inc. in July 2017. NIO Inc. was incorporated in 2014 and is headquartered in Shanghai, China.

7. iQIYI Inc (IQ)

  • Market Cap: $1.98B
  • Fair Value: $3.26
  • Fair Value Upside: 57.4%

iQIYI, Inc., together with its subsidiaries, provides online entertainment video services in the People’s Republic of China. It offers various products and services, including online video, online games, online literature, animations, and other products.

8. Arcadium Lithium PLC (ALTM)

  • Market Cap: $2.62B
  • Fair Value: $3.42
  • Fair Value Upside: 39.5%

Arcadium Lithium plc engages in the production of lithium chemicals products. It offers battery-grade lithium hydroxide, lithium carbonate, butyllithium and high purity lithium metal for myriad applications. The company also owns interest in various properties located in Argentina, Canada, and Western Australia. Arcadium Lithium plc was founded in 1944 and is based in Shannon, Ireland

How to Find Cheap Stocks Under $10

You can find stocks under $10 with a high upside easily using Investing Pro. Here are the steps:

  • Visit the Screener tool.
  • Select ‘Price, Current’ as a filter parameter on the Screener page, and set the threshold value to less than $10.
  • Add a filter for ‘Fair Value Upside (InvestingPro)’ above 25%
  • For U.S.-centric stocks, select ‘United States’ under the ‘Trading Region’ tab drop-down, and make sure to check (select) the ‘Primary Trading Item’ option.
  • You can then see the list of all the companies falling in the desired screener filters’ range arranged in a descending order.

Cheap Stocks FAQ (Frequently Asked Questions)

What Are Cheap Stocks?

Cheap stocks are stocks with a low market value. Stocks priced under $5 are often referred to as penny stocks.

Why Invest in Cheap Stocks?

Investors buy cheap stocks for several reasons:

Potential for High Returns: If the company grows, the stock price can increase significantly, offering high returns.

Affordability: They allow investors to buy more shares with a smaller amount of money.

Speculative Trading: Some traders are attracted to the high volatility and potential for quick gains.

Are there any regulations I should be aware of when trading cheap stocks?

Yes, there are several regulatory considerations:

SEC Rules: The Securities and Exchange Commission (SEC) regulates the trading of penny stocks.

Brokerage Requirements: Some brokers may have specific requirements or higher fees for trading cheap stocks.

Disclosure Requirements: Companies trading at low prices must comply with specific disclosure requirements.

Is it possible to trade cheap stocks on major exchanges like the NYSE or NASDAQ?

Yes, some cheap stocks are listed on major exchanges like the NYSE or NASDAQ. However, many trade over-the-counter (OTC) or on smaller exchanges due to their lower market capitalization and less stringent listing requirements.

Best Cheap Stocks Under $10 with High Upside (2024)

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