In this article, we discuss the 10 best growth stocks under $10.
In an era of soaring market valuations, cheap growth stocks offer investors of all types a chance to make handsome returns in a short space of time. Growth companies usually boast of a competitive advantage over peers and hence have a strong chance of increasing their earnings and sales faster compared to other firms in the same sector. Unlike value plays, there is also a certain risk associated with investing in growth stocks, but this risk has been what has set success and failure apart at the market in the past few years.
Some of the most popular growth stocks on the market today include Amazon.com, Inc. (NASDAQ: AMZN), Tesla, Inc. (NASDAQ: TSLA), Palantir Technologies Inc. (NYSE: PLTR), Shopify Inc. (NYSE: SHOP), Twitter, Inc. (NYSE: TWTR), and Sea Limited (NYSE: SE), among others. These stocks have registered record rallies over the past year and offered investors handsome returns, in part due to the coronavirus lockdowns and an increased focus on digital offerings, but also because of strong business fundamentals.
Market experts have been advising investors to monitor growth stocks closely as inflation fears reduce prices and offer a buying opportunity. Since more than 20% of the S&P 500 comprises just four large-cap technology firms, it is not often that this opportunity comes along. However, smart investors can also look towards cheaper growth stocks that are trading under $10. Retail investors, who usually bet on cheap plays, could stand to gain a lot from the investments in these firms, some of which have been discussed in detail below.
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With this context in mind, here is our list of the 10 best growth stocks under $10. These were ranked after careful consideration of analyst ratings and basic business fundamentals of each firm. Special importance was assigned to the number of hedge funds having stake in each firm, with data from the Insider Monkey database, comprising 866 hedge funds, serving as a key guide in the rankings.
Best Growth Stocks Under $10
10. Support.com, Inc. (NASDAQ: SPRT)
Number of Hedge Fund Holders: 4
Price as of July 21, 2021: $6.65 per share
Support.com, Inc. (NASDAQ: SPRT) is ranked tenth on our list of 10 best growth stocks under $10. The company’s shares have returned 222% to investors over the past twelve months. The firm is based in Delaware and operates support to home-based employees in the United States. It has a market cap of over $96 million and posted more than $43 million in annual revenue last year. In earnings results for the first quarter, posted on May 13, the firm reported a revenue of $9.6 million, down 19% year-on-year.
On March 22, the share price of Support.com, Inc. surged more than 270% after the company merged with Greenidge Generation Holdings to help the latter go public. Greenidge Generation Holdings is a crypto mining firm.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Support.com, Inc. with 831,549 shares worth more than $3.8 million.
Just like Amazon.com, Inc., Tesla, Inc., Palantir Technologies Inc., Shopify Inc., Twitter, Inc., and Sea Limited, Support.com, Inc. is one of the best growth stocks to buy.
9. Atossa Therapeutics, Inc. (NASDAQ: ATOS)
Number of Hedge Fund Holders: 6
Price as of July 21, 2021: $3.98 per share
Atossa Therapeutics, Inc. (NASDAQ: ATOS) is placed ninth on our list of 10 best growth stocks under $10. The stock has returned 317%% to investors over the past six months. The firm is a biopharma company that operates from Washington. On June 11, the share price of the firm jumped by close to 12% as it continued an eight-day winning streak and announced that it would soon be joining the Russell 3000 and Russell 2000 indexes, improving the visibility of the firm to investors from around the world.
On July 7, the share price of Atossa Therapeutics, Inc. soared by close to 4% after the firm announced that it had received regulatory approval for a clinical study of AT-H201, a therapy being developed by the firm for hospitalized COVID-19 patients.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Atossa Therapeutics, Inc. with 3.3 million shares worth more than $6.9 million.
Alongside Amazon.com, Inc., Tesla, Inc., Palantir Technologies Inc., Shopify Inc., Twitter, Inc., and Sea Limited, Atossa Therapeutics, Inc. is one of the best growth stocks to buy.
8. Ideanomics, Inc. (NASDAQ: IDEX)
Number of Hedge Fund Holders: 7
Price as of July 21, 2021: $2.47 per share
Ideanomics, Inc. (NASDAQ: IDEX) is a company that markets EV adoption services. It is placed eighth on our list of 10 best growth stocks under $10. The stock has returned 76% to investors over the course of the past twelve months. On May 17, the company posted earnings for the first quarter, reporting earnings per share of $0.00, beating market estimates by $0.03. The revenue over the period was more than $32 million, beating market estimates by more than $7.7 million. The firm also revealed that it had $356 million in cash at the end of the quarter.
On June 3, investment advisory Roth Capital maintained a Buy rating on Ideanomics, Inc. stock with a price target of $7, appreciating the progress the firm was making to bring wireless charging infrastructure to the market.
At the end of the first quarter of 2021, 7 hedge funds in the database of Insider Monkey held stakes worth $20 million in Ideanomics, Inc., up from 5 in the preceding quarter worth $3.4 million.
In line with Amazon.com, Inc., Tesla, Inc., Palantir Technologies Inc., Shopify Inc., Twitter, Inc., and Sea Limited, Ideanomics, Inc. is one of the best growth stocks to buy.
7. Mobile TeleSystems Public Joint Stock Company (NYSE: MBT)
Number of Hedge Fund Holders: 11
Price as of July 21, 2021: $8.44 per share
Mobile TeleSystems Public Joint Stock Company (NYSE: MBT) is ranked seventh on our list of 10 best growth stocks under $10. The company’s shares have offered investors returns exceeding 1.5% over the course of the past three months. The firm is based in Russia and markets telecommunication services. On Mach 4, the firm posted earnings for the fourth quarter of 2020, reporting a revenue of over RUB133 billion, up more than 7% compared to the revenue over the same period in 2019 and beating market estimates by RUB4.5 billion.
In early March, the share price of Mobile TeleSystems Public Joint Stock Company jumped close to 4% after the firm posted strong quarterly earnings, beating market expectations after solid Russian mobile service growth.
Out of the hedge funds being tracked by Insider Monkey, New York-based firm Renaissance Technologies is a leading shareholder in Mobile TeleSystems Public Joint Stock Company with 21.5 million shares worth more than $180 million.
Mobile TeleSystems Public Joint Stock Company is one of the best growth stocks to buy, just like Amazon.com, Inc., Tesla, Inc., Palantir Technologies Inc., Shopify Inc., Twitter, Inc., and Sea Limited.
6. United Microelectronics Corporation (NYSE: UMC)
Number of Hedge Fund Holders: 11
Price as of July 21, 2021: $9.45 per share
United Microelectronics Corporation (NYSE: UMC) operates as a semiconductor wafer foundry and is based in Taiwan. It has a market cap of over $23 billion and posted close to $6.3 billion in annual revenue in 2020. The company recently announced that net sales for the month of May had grown 16.5% year-on-year and now stood at NT$17.1 billion.
On April 29, investment advisory Macquarie upgraded United Microelectronics Corporation stock to Outperform from Neutral. The price target was also increased to NT$67.3 from NT$45.3 on the back of strong first quarter earnings.
At the end of the first quarter of 2021, 11 hedge funds in the database of Insider Monkey held stakes worth $173 million in United Microelectronics Corporation, down from 12 in the preceding quarter worth $190 million.
5. Aurora Cannabis Inc. (NASDAQ: ACB)
Number of Hedge Fund Holders: 12
Price as of July 21, 2021: $7.32 per share
Aurora Cannabis Inc. (NASDAQ: ACB) is a Canadian company that makes and sells cannabis products. It is ranked fifth on our list of 10 best growth stocks under $10. On July 15, the firm delivered one of the largest shipments of cannabis to Israel, marking an important milestone for cannabis firms in the US that are keen to expand their business to markets outside the country. The firm delivered cannabis products worth C$8 million to Israel. In June, investment advisory Cantor Fitzgerald had backed the stock to benefit from reopening of stores after lockdowns.
On May 14, investment advisory Alliance Global told investors that the selloff of cannabis stocks was a buying opportunity. Aurora Cannabis Inc., one of the leading cannabis stocks, could gain from the growth catalysts for the industry identified by Alliance Global that include federal cannabis reform and adult-use sales.
At the end of the first quarter of 2021, 12 hedge funds in the database of Insider Monkey held stakes worth $488 million in Aurora Cannabis Inc., up from 10 the preceding quarter worth $146 million.
4. Viking Therapeutics, Inc. (NASDAQ: VKTX)
Number of Hedge Fund Holders: 13
Price as of July 21, 2021: $8.59 per share
Viking Therapeutics, Inc. (NASDAQ: VKTX) is placed fourth on our list of 10 best growth stocks under $10. The stock has returned 4.2% to investors over the past six months. The firm is based in California and makes and sells drugs. On June 17, the share of the company soared by close to 11% after it announced the results of a trial of VK0214, a potential treatment the firm is working on for a rare and often fatal metabolic disorder. The company has a market cap of more than $450 million.
On June 24, the share price of Viking Therapeutics, Inc. jumped more than 7% after the firm announced that it had initiated a clinical trial for a treatment of X-linked adrenoleukodystrophy, a genetic disease that affects the nervous system.
Out of the hedge funds being tracked by Insider Monkey, California-based investment firm Park West Asset Management is a leading shareholder in Viking Therapeutics, Inc. with 1.5 million shares worth more than $10 million.
3. Infinera Corporation (NASDAQ: INFN)
Number of Hedge Fund Holders: 20
Price as of July 21, 2021: $9.37 per share
Infinera Corporation (NASDAQ: INFN) is a firm that markets optical transport networking equipment. It is ranked third on our list of 10 best growth stocks under $10. The company’s shares have returned 32% to investors over the past year. On May 4, the firm posted earnings for the first three months of 2021, reporting earnings per share of -$0.03, beating market estimates by $0.03. The revenue over the period was more than $331 million, up 0.2% year-on-year and beating market estimates by $0.42 million.
On May 13, investment advisory Wolfe Research upgraded Infinera Corporation stock to Peer Perform from Underperform with a price target of $10. Jeff Kvaal, an analyst at the firm, identified the firm as a leader in the optical transmission industry.
Out of the hedge funds being tracked by Insider Monkey, California-based investment firm Oaktree Capital Management is a leading shareholder in the firm with 25.1 million shares worth more than $242 million.
2. Nokia Corporation (NYSE: NOK)
Number of Hedge Fund Holders: 21
Price as of July 21, 2021: $5.85 per share
Nokia Corporation (NYSE: NOK) stock has offered investors returns exceeding 31% over the course of the past year. It is placed second on our list of 10 best growth stocks under $10. The firm operates from Finland and markets mobile and fixed network solutions. On July 19, the company announced that it had won a 10% share in one of the three new 5G contracts that China had awarded. Chinese companies like Huawei and ZTE were awarded the majority of the new 5G contracts by Beijing.
On July 14, investment advisory JP Morgan upgraded Nokia Corporation stock to Overweight from Neutral. The price target on the stock was also increased to $7.8 from $4.3, underlining that the recent fiscal guidance increase by Nokia was the start of an upgrade cycle.
At the end of the first quarter of 2021, 21 hedge funds in the database of Insider Monkey held stakes worth $352 million in Nokia Corporation, up from 19 in the previous quarter worth $186 million.
1. Sirius XM Holdings Inc. (NASDAQ: SIRI)
Number of Hedge Fund Holders: 24
Price as of July 21, 2021: $6.57 per share
Sirius XM Holdings Inc. (NASDAQ: SIRI) is ranked first on our list of 10 best growth stocks under $10. The company’s shares have offered investors returns exceeding 11% over the course of the past twelve months. The company provides online radio services and is based in New York. On April 28, the company posted earnings for the first quarter, reporting earnings per share of $0.07, beating market predictions by $0.01. The revenue over the period was more than $2 billion, up 5% year-on-year.
On May 27, investment advisory Morgan Stanley maintained an Equal Weight rating on Sirius XM Holdings Inc. stock with a price target of $7.5, noting that the shares were cheap based on earnings results for the first quarter that easily beat market expectations.
Out of the hedge funds being tracked by Insider Monkey, Nebraska-based investment firm Berkshire Hathaway is a leading shareholder in Sirius XM Holdings Inc. with 43 million shares worth more than $265 million.
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This article is originally published at Insider Monkey.
