On April 21, Tom Lee, Fundstrat CIO, co-founder, and managing partner, joined ‘Squawk Box’ on CNBC to discuss the latest market trends and stated that the market may be past peak uncertainty despite the ongoing Fed uncertainties. However, Lee thinks that ‘maximum pain’ can still be anticipated, as economic risks could still cause hesitation among investors. Despite this, he believes that a structural low in fear has taken place. He acknowledged that the last low at the S&P 500 was around 4,800, which was reached a few weeks prior, and he thinks that there is a chance the market could drift dangerously close to that level in the coming weeks due to the ongoing uncertainty and investors remaining on the sidelines. Nevertheless, Lee emphasized that companies are very resilient, which should become evident during earnings season. He also mentioned the potential for a positive policy shock, such as a reduction in tariffs or de-escalation in trade tensions with countries like China, which could be seen as a win by the market, even though such developments did not seem likely overnight.

Lee also elaborated on his ‘Granny Shot’ ETF, and mentioned that the granny shots in their portfolio are stocks that, while not immune to declines, are closely linked to the most important long-term investment themes, such as cybersecurity and demographic shifts, such as the rise of millennials. The idea is to select stocks that are strongly correlated with multiple enduring themes, which increases the chances that these stocks will perform well over time, likening this to the reliability of a well-executed granny shot in basketball. Lee also noted that Bitcoin may have been held back by institutional deleveraging earlier this year, with investors selling what they could, which suppressed Bitcoin’s price, but that deleveraging process appears to be over. He now expects Bitcoin to catch up to gold and highlighted that Bitcoin’s previous high was over $110,000, which suggests that there is room for Bitcoin to appreciate as it regains momentum as a non-dollar asset. Gold recently surged to new highs, seemingly on track to reach $4,000, while Bitcoin was lagging, but it would eventually attract some of the same investment flows that were driving gold higher.

Despite potential near-term market volatility and a possible drift towards previous lows, Lee emphasizes company resilience during earnings and the potential for positive policy shocks. That being said, we’re here with a list of the 10 best cheap stocks to buy under $10.

Our Methodology

We first used the Finviz stock screener to compile a list of cheap stocks that had a forward P/E ratio under 15 and were trading under $10. We then selected the 10 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 1000 elite money managers.

Note: All data was sourced on April 22.

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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

10 Best Cheap Stocks to Buy Under $10

10. Elanco Animal Health Inc. (NYSE:ELAN)

Share Price as of April 22: $8.48

Forward P/E Ratio as of April 22: 10.07

Number of Hedge Fund Holders: 37

Elanco Animal Health Inc. (NYSE:ELAN) is an animal health company that innovates, develops, and manufactures products for pets and farm animals. It offers pet health products and therapeutics under the Seresto, K-9 Advantage, Advantix, and Advocate trademarks. It sells its products to third-party distributors and independent retailers, and directly to farm animal producers and veterinarians.

In Q4 2024, the company’s International Pet Health segment surged with an 11% increase in organic constant currency revenue. This growth primarily came from two key products: AdTab and Seresto. AdTab is a flea and tick protection product for both dogs and cats. It uses the same active ingredient as Credelio, which is growing through Elanco’s DTC strategies in Europe. This has led Elanco to revise its sales expectation for AdTab, now projecting it to exceed $100 million.

Seresto is also a flea and tick collar that provides long-lasting protection, typically around 8 months. The growth within this segment was widespread across Europe, the Middle East, Latin America, Asia Pacific, and Canada. Elanco anticipates an acceleration in its organic constant currency revenue growth to 4% to 6% for the full year 2025, driven by the strong momentum in International Pet Health.

9. Goodyear Tire & Rubber Co. (NASDAQ:GT)

Share Price as of April 22: $9.93

Forward P/E Ratio as of April 22: 7.19

Number of Hedge Fund Holders: 37

Goodyear Tire & Rubber Co. (NASDAQ:GT) develops, manufactures, distributes, and sells tires and related products and services. It offers different lines of rubber tires for applications like automobiles or earthmoving & mining equipment. It operates under different brands, such as Goodyear, Dunlop, Roadmaster, and various house brands, as well as under private-label brands.

While facing headwinds in the consumer replacement market, the US Consumer Original Equipment (OE) sector drove volume growth for Goodyear. In Q4 2024, US Consumer OE volume surged by ~20%. Despite a unit volume decrease of ~1 million units in the Americas due to challenges in the US consumer replacement market (where low-end imports saw an 11% growth), the performance of the US Consumer OE business provides a counterbalance.

Goodyear Tire & Rubber Co. (NASDAQ:GT) is now focusing on the premium tiers and blank space opportunities within the US market. It plans to introduce 5 new product lines in the US in 2025. Furthermore, Goodyear is investing in its US manufacturing capabilities. A modernization project at its Oklahoma facility is underway, which will add ~10 million units of new capacity for premium tires in 2025 and 2026.

8. Hudbay Minerals Inc. (NYSE:HBM)

Share Price as of April 22: $6.93

Forward P/E Ratio as of April 22: 9.6

Number of Hedge Fund Holders: 39

Hudbay Minerals Inc. (NYSE:HBM) is a mining company that explores, develops, operates, and optimizes properties in North and South America. It produces and sells copper concentrates that contain copper, gold, and silver; silver/gold doré; zinc concentrates that contain zinc and gold; and molybdenum concentrates. Its flagship project is the Constancia mine located in Cusco in Peru.

In 2024, the company’s Manitoba operations achieved a record annual gold production of 214,000 ounces, which was a 14% increase from 2023. This was attributed to higher metallurgical recoveries at the New Britannia and Stall mills, along with the allocation of more gold ore feed to the New Britannia mill. The Lalor mine within the Manitoba operations also averaged 4,600 tons of ore production per day in Q4, which was its highest quarterly output in 2024. In December, Lalor produced a total of one million ounces of gold.

In 2025, Hudbay anticipates a gold production guidance midpoint of 200,000 ounces in Manitoba, which is an 8% improvement from the previous guidance. Hudbay Minerals Inc. (NYSE:HBM) plans to invest $15 million in growth capital for exploration and haulage drifts at the 1901 deposit. It expects capital expenditures to increase to $60 million for underground capitalized development costs.

L1 Long Short Fund stated the following regarding Hudbay Minerals Inc. (NYSE:HBM) in its Q2 2024 investor letter:

“Hudbay Minerals Inc. (NYSE:HBM) (Long +31%) shares rallied over the quarter driven by rising copper and gold prices, as well as strong production results. The company’s first quarter results showed higher gold production and robust operating performance at both its major assets, which exceeded consensus expectations. In addition, the company announced a ~US$400m equity raise to support balance sheet de-leveraging and fund its key growth projects. Hudbay is a mid-tier mining company primarily producing copper, alongside gold and zinc, with its key assets located in Canada and Peru. We are attracted to Hudbay due to our positive medium-term outlook for copper and the company’s strong near-term free cash flow generation. This cash generation potential will allow the company to de-lever and recycle capital back into its highly prospective exploration program and major growth projects, most notably its Copper World project in Arizona.”

7. Alight Inc. (NYSE:ALIT)

Share Price as of April 22: $4.81

Forward P/E Ratio as of April 22: 8.05

Number of Hedge Fund Holders: 42

Alight Inc. (NYSE:ALIT) is a technology-enabled services company that provides Alight Worklife. This is an intuitive, cloud-based employee engagement platform. Its services include integrated benefits administration, healthcare navigation, financial wellbeing, leave of absence management, and retiree healthcare, and it also operates AI-led capabilities software.

Recurring Revenue at Alight represents 91% of the company’s total revenue in Q4 2024. Notably, the company made $114 million in total ARR Bookings for the full year 2024, which was up by 18% from 2023. This double-digit growth in H2 2024 underscores the strong demand for Alight’s mission-critical employee benefit solutions. The sales pipeline for future ARR Bookings is also strong, with a 54% increase from the prior year.

For the full year 2025, Alight projects recurring revenue to be up ~1%, with higher growth rates expected in every quarter compared to the prior year. Needham analyst Kyle Peterson recently reaffirmed a Buy rating on the company’s stock with a $9 price target. He remains optimistic as Alight unveiled updated medium-term financial targets that met market expectations while maintaining an ambitious outlook to appeal to investors.

6. IREN Ltd. (NASDAQ:IREN)

Share Price as of April 22: $5.51

Forward P/E Ratio as of April 22: 4.88

Number of Hedge Fund Holders: 44

IREN Ltd. (NASDAQ:IREN) owns and operates bitcoin mining data centers. It also provides high-performance computing solutions, which include AI cloud services. The company was formerly known as Iris Energy Limited and changed its name to IREN Limited in November 2024. On February 14, B. Riley analyst Nick Giles raised the stock’s price target to $21 from $19 while keeping a Buy rating.

In the company’s February 2025 update, IREN reported that its AI Cloud Service was near full utilization by the end of the month. This high demand is being driven by the need for advanced processing power, specifically NVIDIA H100/H200 chips. To support the rapid scaling of its AI and cloud computing infrastructure, IREN is implementing direct-to-chip liquid cooling systems in its existing data centers.

This cooling technology will allow for more efficient operation and the deployment of high-density computing hardware required for AI workloads. IREN Ltd. (NASDAQ:IREN) is also expanding its data center infrastructure. On March 17, the company announced the signing of a 600MW grid connection agreement with AEP Texas Inc. for its West Texas Sweetwater 2 project. This agreement will help advance IREN’s 2GW Sweetwater data center hub.

5. Ford Motor Co. (NYSE:F)

Share Price as of April 22: $9.47

Forward P/E Ratio as of April 22: 7.7

Number of Hedge Fund Holders: 45

Ford Motor Co. (NYSE:F) develops, delivers, and services Ford trucks, sport utility vehicles, commercial vans & cars, and Lincoln luxury vehicles worldwide. It operates through Ford Blue, Ford Model e, Ford Pro, and Ford Credit segments. It also engages in vehicle-related financing and leasing activities through automotive dealers.

In 2024, the company achieved a record-breaking revenue of $185 billion, which marked its fourth consecutive year of revenue growth. In the US, Ford Motor Co. (NYSE:F) had the largest share of revenue according to the company’s management. Ford is improving cost efficiency and product quality by upgrading talent and bringing in third-party experts. These efforts helped the company deliver about $500 million of net cost reductions in H2 2024.

It has already identified over $1 billion in product design cost savings for 2025. In 2024, the company’s Ford Pro vehicle division experienced a 15% surge in revenue and reached $67 billion. This growth was accompanied by a 9% increase in wholesale units. It was partly fueled by the North American market demand for profitable vehicles, like the Super Duty chassis cabs and Transit wagons.

4. Viatris Inc. (NASDAQ:VTRS)

Share Price as of April 22: $7.57

Forward P/E Ratio as of April 22: 3.52

Number of Hedge Fund Holders: 48

Viatris Inc. (NASDAQ:VTRS) is a healthcare company that operates in four segments: Developed Markets, Greater China, JANZ, and Emerging Markets. It offers prescription brand drugs, generic drugs, complex generic drugs, and biosimilars. It also provides drugs in various therapeutic areas and covers various noncommunicable and infectious diseases.

In 2024, Viatris’ base business, which includes core generics, complex generics, and novel products, made $582 million in new product revenues. The base business pipeline annually sees more than 100 submissions. The company has delivered over $450 million in new product revenues for each of the past 5 years. For 2025, Viatris set a target range of $450 million to $550 million in new product revenues.

Viatris Inc. (NASDAQ:VTRS) is also progressing its novel and life cycle management programs within the base business. The company anticipates several Phase 3 readouts in 2025, including Effexor for Generalized Anxiety Disorder in Japan, Xulane Low Dose for low-dose estrogen combination birth control, and Meloxicam for acute pain.

3. ZoomInfo Technologies Inc. (NASDAQ:ZI)

Share Price as of April 22: $7.67

Forward P/E Ratio as of April 22: 7.99

Number of Hedge Fund Holders: 51

ZoomInfo Technologies Inc. (NASDAQ:ZI) provides a go-to-market intelligence and engagement platform for sales, marketing, operations, and recruiting professionals. Its cloud-based platform provides workflow tools and information on organizations and professionals. It serves enterprises, mid-market companies, and even small businesses.

In Q4 2024, ZoomInfo Operations experienced a 27% year-over-year increase, which is a growth rate that accelerated by 5 percentage points sequentially. ZoomInfo Technologies Inc. (NASDAQ:ZI) views its market in two distinct ways: upmarket (companies with more than 100 employees) and downmarket (companies with fewer than 100 employees).

ZoomInfo Operations is particularly strong within the upmarket segment, which constitutes more than two-thirds of the overall business and grew by 2% in 2024, with a trajectory towards mid-single-digit growth. The company’s overall performance underscores the increasing demand for ZoomInfo’s data foundation. It strengthens customers’ internal systems and powers their record systems, data warehouses, and AI initiatives.

2. AES Corp. (NYSE:AES)

Share Price as of April 22: $9.80

Forward P/E Ratio as of April 22: 4.45

Number of Hedge Fund Holders: 53

AES Corp. (NYSE:AES) is a power generation and utility company that owns and operates power plants to generate and sell power to customers, such as utilities, industrial users, and other intermediaries. It also owns and operates a generation portfolio of approximately 32,109 megawatts and distributes power to about 2.7 million customers.

In 2025, the company anticipates over 60% year-over-year growth in the Renewables Strategic Business Unit’s adjusted EBITDA. This increase is attributed to the financial benefits realized from the maturing of the company’s renewable portfolio, which includes the addition of 6.6 gigawatts of new capacity that was inaugurated in 2023 and 2024. These projects are now online and operating and will contribute to a full year of EBITDA in 2025.

This growth reflects increasing economies of scale as AES has expanded its online renewable capacity, from 5.9 gigawatts in 2018 to 16.2 gigawatts currently (excluding Brazil). Furthermore, the development business is becoming more efficient. The profitability per megawatt of new Power Purchase Agreements (PPAs) signed has also increased. For the long term, AES Corp. (NYSE:AES) expects an average annual CAGR of 19% to 21% for the Renewables SBU’s adjusted EBITDA.

1. American Airlines Group Inc. (NASDAQ:AAL)

Share Price as of April 22: $9.07

Forward P/E Ratio as of April 22: 8.89

Number of Hedge Fund Holders: 59

American Airlines Group Inc. (NASDAQ:AAL) is a network air carrier in the US, Latin America, the Atlantic, and the Pacific. It provides scheduled air transportation services for passengers and cargo through its hubs in different US cities, as well as through partner gateways in London, Doha, Madrid, Seattle/Tacoma, Sydney, and Tokyo. It operates a mainline fleet of 977 aircraft.

The company’s AAdvantage loyalty program is its primary revenue driver. In 2024, the cash generated from the co-branded credit cards and other loyalty partners reached $6.1 billion, which was a 17% increase compared to 2023. This figure includes a one-time cash payment received in Q4 related to a new 10-year agreement with Citi, which became the exclusive issuer of the AAdvantage co-branded credit card portfolio in the US.

AAdvantage program members were responsible for 75% of premium cabin revenue in Q4 2024. The program also saw a record number of new enrollments throughout the year, with members earning and burning more miles than in any previous year. Spending on the co-branded credit cards alone was up 9.5% year-over-year in Q4.

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