On August 1, Abigail Yoder, JPMorgan’s chief US equity strategist, joined ‘Closing Bell’ on CNBC to suggest that investors are looking past an economic slowdown and focusing on secular growers. The then-current month was ending on a strong note, following a four-month-long rebound rally.. Yoder believes that while there has been some valuation expansion, bringing the market back to 22.5x earnings, the rally is built on solid fundamentals. She cited better-than-expected Q1 earnings and even stronger Q2 earnings, which had seen growth expectations jump from 5% to 8.5% after recent reports.
Yoder also believes that the market is looking past a projected economic slowdown in H2 2025 and is focusing on a re-acceleration in 2026. She stated that the market has clarity on policy, with more trade deals being completed and the Reconciliation bill passed, which benefits large-cap companies by allowing them to immediately expense certain costs. She believes the market is focusing on secular growers and that these are the areas to put fresh money into. The market’s return attribution has narrowed again, with the largest growth stocks driving most of the returns. Yoder acknowledged this as a concern regarding concentration risk but argued that when these stocks are backed by strong fundamentals, it is not necessarily a bad thing.
That being said, we’re here with a list of the 10 best large cap penny stocks to buy under $10.
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Our Methodology
We sifted through the Finviz stock screener to compile a list of the top large-cap penny stocks under $10 that were trading between $10 billion and $200 billion, as of August 5. 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 Q1 2025.
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 Large Cap Penny Stocks to Buy Under $10
10. Aegon Ltd. (NYSE:AEG)
Market Capitalization as of August 5: $11.28 billion
Share Price as of August 5: $7.12
Number of Hedge Fund Holders: 10
Aegon Ltd. (NYSE:AEG) is one of the best large cap penny stocks to buy under $10. On July 23, Morgan Stanley analyst Hadley Cohen lowered the firm’s price target on Aegon to €6.90 from €7.00, while keeping an Overweight rating on the shares. Prior to this announcement, the company had already announced its Q1 2025 financial results.
In this quarter, Aegon’s operating capital generation/OC before holding funding and operating expenses increased by 4% to €267 million. This growth was attributed to business expansion, though it was partially offset by unfavorable mortality experience in the US. As of March 31, Aegon’s cash capital at Holding was €1.6 billion.
Despite an uncertain macroeconomic environment, Aegon expects to meet its financial targets for 2025. Aegon experienced strong commercial momentum in several areas, including its US Strategic Assets Individual Life and World Financial Group/WFG, as well as its UK Workplace platform and International segments. Asset management third-party net flows also remained positive.
Aegon Ltd. (NYSE:AEG) provides insurance, pensions, retirement, and asset management services in the Americas, the Netherlands, the UK, and internationally.
9. Lloyds Banking Group (NYSE:LYG)
Market Capitalization as of August 5: $64.66 billion
Share Price as of August 5: $4.33
Number of Hedge Fund Holders: 13
Lloyds Banking Group (NYSE:LYG) is one of the best large cap penny stocks to buy under $10. On August 4, Morgan Stanley raised the firm’s price target on Lloyds Banking to 100 GBp from 95 GBp, while keeping an Overweight rating on the shares. Preceding this announcement, the company reported its Q2 2025 earnings, with a revenue of £3.36 billion, which was a 6.7% increase from the previous year.
This performance contributed to a GAAP earnings per share of 2.10 pence. For H1 2025, net income rose 6% to £8.9 billion, and statutory pre-tax profit increased 5% to £3.5 billion. The bank reaffirmed its guidance for the full year 2025. It projects an underlying net interest income of around £13.5 billion.
In the overall first half of 2025, Lloyds Banking Group saw a 6% increase in net income, which rose to £8.914 billion from £8.393 billion. Earnings per share also saw a rise to 3.8 pence, compared to 3.4 pence in the prior year. The company’s underlying profit before impairment grew by 11% to £4 billion, up from £3.6 billion a year ago. This was fueled by a 5% year-over-year increase in underlying net interest income, which totaled £6.66 billion.
Lloyds Banking Group (NYSE:LYG) provides a range of banking and financial products and services in the UK and internationally.
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