The all-time highs reached by the S&P 500 recently seem to suggest it is hard to find value in the markets today. All other major stock market indexes around the world also rebounded sharply from the lows of last Spring. However, there are pockets of value out there.
Long-term investors everywhere are asking themselves one question: what should I buy today’s that’s cheap but has serious upside potential? When much of the market looks very expensive, it might be time to hunt for value at the cheaper end of the stock market. Here we take you through the 5 smartest stocks to buy today for under $10.
Best stocks under $10 to buy right now
A very fast mover, so catch it cheap while you can! Atossa is a Seattle-based pharmaceuticals company whose share price climbed an eye-watering 49.69% last week (up until June, 4th).
The company has been working on treatments for breast cancer and Covid-19 amongst other things, and sentiment has turned very bullish on this stock lately.
Analysts keep raising their target prices, and it looks likely that their pipeline breast-cancer fighting drug Endoxifen will hit the market sooner than expected. The most recent test completed in Australia showed best than expected results, and this has driven more and more investors into the stock which currently trades at $4.62.
Infinera is a tech company providing services and infrastructure development to telecommunications giants around the world.
As such, Infinera is poised to win from the global roll-out of faster broadband and WIFI connectivity. The shares currently change hands for just over $9, and it’s worth noting that several large hedge funds have major positions in the stock.
For example Oaktree Capital Management, the hedge fund founded by Howard Marks, is a leading shareholder in the firm. This shows the pros have confidence in Infinera’s growth prospects, but also suggests Infinera will be under pressure to keep expanding their margins and growing their revenue over the years to come.
Annaly Capital Management
Annaly Capital Management is a very, very rare beast. The stock trades at around $9 right now, which makes it a vert attractive growth prospect, but it also yields a whooping dividend just over 9%.
This combination is so rare that the stock simply had to be included in this list. However, a little bit more detail is needed to see the fuller picture. Annaly is a real estate investment trust (REIT), and this means it's effectively a holding company for real-estate investments that receive tax breaks in return for paying out much of its taxable income back to shareholders.
This means it can be expected to gain in value whilst paying good dividends if the economy is healthy, but will struggle when the cycle turns. Right now, Annaly looks set to have a good run for the next few years as the world fully re-opens as the pandemic subsides.
Galantas Gold Corp
No list of cheap stocks to buy for less than $10 would be complete without a fast-rising gold miner! Listed on the UK FTSE AIM, Galantas owns and runs an open-pit gold mine in Ireland.
Whilst gold mining and Ireland might not be ideas investors are used to linking together, the mine has so far proved surprisingly successful, and after significant expansion in 2020 it also produces silver and lead too.
Galantas has just raised new finance to bring the mine to full production capacity, and several well-known gold investors were eager to get in on the over-subscribed funding round.
Canadian billionaire Eric Sprott, who is extremely well-respected in the gold and silver investment community, was the leading investor in the most recent financing round. Shares can currently be acquired for as little as 42p, so investors with some appetite for risk will be tempted to speculate on the success of this Irish gold miner.
Familiar to many from their TV ads, Eve Sleep are a luxury maker of mattresses, pillows, beds, and other sleep-related products.
Sales over the past 12 months have generally beat analysts expectations, partly due to the renewed sense that consumers are willing and happy to ‘invest’ in their homes due to the lockdowns.
In a more long-term sense, Eve Sleep is well situated to take advantage of the growing trend for wellness issues to drive consumer spending habits.
Shares currently cost just over £4, and the clear and comprehensive long-term strategy this niche manufacturer has in place is giving investors confidence that it can power back towards full profitability next year.
Best stocks under $10 to buy right now
When considering stocks with prices below $10, investors have to be willing to accept a higher degree of risk. These stocks aren’t, and probably never will be, blue-chip in any sense.
What they are, however, is small or medium-sized firms with some sort of innovative product or service that could allow them to expand and gain more and more market share from bigger firms.
As such, these 5 stocks for less than $10 all look like calculated risks that investors may consider worth taking, alongside a diversified portfolio of other holdings of course.
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What Are the Top Stocks to Buy Under $5?