In this article, we will discuss the 10 Best Low Priced Stocks to Invest in For the Long Term.
As per AllianceBernstein, tariffs and trade wars have impacted investors of late. While some asset classes were spared, the US small-cap stocks have been hard hit. Over the past 6 months, the Russell 2000 Index has witnessed a decline of over ~10%. That being said, the investment firm opines that equity markets continue to show signs of broadening, which can work in favor of small-caps over time. The small-caps have underperformed in part since they are perceived as being more economically sensitive as compared to their larger-company counterparts.
What Lies Ahead?
The current circumstances are unique, says AllianceBernstein. Trade tensions can have a more significant impact on the broader US economy, but robust companies can still see earnings growth. The small-cap investors can also take a sigh of relief from the broadening market. The investment firm highlighted that, over the previous 30 years, small-cap performance remained particularly robust over the last 2 cycles of unwinding large-cap growth concentration, i.e., when markets start to broaden.
The 10 largest stocks accounted for over half the market capitalization of the Russell 1000 Growth Index by 2024 end, exhibiting a record high in the market concentration. Despite the trend reflecting the signs of unwinding, the concentration remains much higher as compared to the previous peaks. As per AllianceBernstein, small-caps are well-placed to benefit from the declining market concentration.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
Amidst Uncertainties, Focus on Quality Companies
AllianceBernstein opines that, while broadening markets have resulted in improved small-cap returns, timing the turn can be a difficult task. Typically, economic recoveries have fueled such transitions. In a bid to capitalize on the broadening market with an uncertain beginning, the firm believes that the best approach is to emphasize higher-quality companies. High-quality stocks tend to see reduced drawdowns when there is a contraction in the economy, and more upside when it sees expansion.
The firm also opines that small-cap stocks trade at extremely depressed valuations as compared to the larger companies, based on P/E ratios. Notably, the geopolitical tensions and macroeconomic worries have impacted the small companies. Without considering the company fundamentals, the investors have discounted potential hazards for such companies. Investing in firms exhibiting resilient business models can benefit along the road to recovery.
With such trends in mind, let us now have a look at the 10 Best Low Priced Stocks to Invest in For the Long Term.
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Our Methodology
To list the 10 Best Low Priced Stocks to Invest in For the Long Term, we sifted through financial media reports to make a list of 40 potential long term stocks. We focused on companies with a market cap of at least $2 billion with a share price below $10. We further refined our list to include stocks that had bullish analyst sentiment. We also mentioned the hedge fund sentiment around each stock, as of Q4 2024. Finally, the stocks were arranged in ascending order of their hedge fund sentiment.
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 Low Priced Stocks to Invest in For the Long Term
10. Rumble Inc. (NASDAQ:RUM)
Stock Price as of May 6: $7.62
Market cap as of May 6: $3.34 billion
Number of Hedge Fund Holders: 13
Rumble Inc. (NASDAQ:RUM) is engaged in operating video sharing platforms and cloud services. Tom Forte from Maxim Group is optimistic about the company’s growth prospects, thanks to a combination of factors demonstrating its healthy financial performance and strategic positioning. As per the analyst, Rumble Inc. (NASDAQ:RUM)’s unique position in the broader market, with an improving user base and a strategic partnership with Tether, bolsters its ability to monetize its audience and create an independent cloud and video ecosystem. The company remains optimistic about the growth potential of its North America platform.
Rumble Inc. (NASDAQ:RUM)’s management has highlighted the Q3 2024 to Q4 2024 growth in the US and Canada MAUs of 21% to 52 million. Furthermore, the management remains optimistic about Tether’s $775 million strategic investment. Over the past few years, Tether has risen to become one of the most recognized symbols for financial inclusion. Rumble Inc. (NASDAQ:RUM) plans to use $250 million of the proceeds to aid its growth initiatives and the remaining proceeds to finance a self-tender offer for up to 70 million of its Class A Common Stock, at the similar price (i.e., $7.50 per share) as Tether’s investment. This investment stemmed from strong commonalities seen between cryptocurrency and free speech communities.
9. DLocal Limited (NASDAQ:DLO)
Stock Price as of May 6: $8.79
Market cap as of May 6: $2.5 billion
Number of Hedge Fund Holders: 19
DLocal Limited (NASDAQ:DLO) operates a payment processing platform. JPMorgan analyst Guilherme Grespan remains optimistic about the company’s growth prospects. As per the analyst, Egypt, Africa, and smaller Latin American countries are expected to continue fueling TPV growth, and large foreign exchange spreads can improve gross profit contributions. The company’s FY 2024 results bolster the investment thesis, thanks to a record TPV of $26 billion, a healthy growth of 45% YoY. This was aided by a transition towards newer, more attractive markets. Furthermore, core markets rebounded from the softness seen in Q3. Because of DLocal Limited (NASDAQ:DLO)’s expansion into more frontier markets, the company continues to see strong growth in its cross-border volumes.
DLocal Limited (NASDAQ:DLO)’s focus on expanding beyond Latin America with the help of acquisitions provides a significant opportunity for diversification. Through entering new markets, the company can potentially tap into larger customer bases and improve its total addressable market. For the 3 months ended December 31, 2024, Argentina accounted for 12% of DLocal Limited (NASDAQ:DLO)’s revenue, a significant increase from 6% in the same period of the prior year. The expansion into more developed markets can offer the company access to advanced technologies and sophisticated financial infrastructures. This can ramp up its innovation capabilities and improve service offerings.
8. NIO Inc. (NYSE:NIO)
Stock Price as of May 6: $3.92
Market cap as of May 6: $8.64 billion
Number of Hedge Fund Holders: 20
NIO Inc. (NYSE:NIO) is engaged in designing, developing, manufacturing, and selling smart EVs. Citi analyst Jeff Chung has maintained the bullish stance on the company’s stock. The analyst’s rating is backed by a combination of factors demonstrating a favourable outlook for NIO Inc. (NYSE:NIO)’s future performance. As per the analyst, the launch of new vehicle models and improved cost control measures are expected to support its earnings. The analyst believes that increased brand awareness and an efficient sales network can support its volumes.
NIO Inc. (NYSE:NIO)’s expanded product lineup positions it well to capture a broad range of market segments. The company delivered 23,900 vehicles in April 2025, reflecting an increase of 53.0% YoY. The deliveries consisted of 19,269 vehicles from its premium smart EV brand NIO, 4,400 vehicles from its family-oriented smart EV brand ONVO, and initial deliveries of the small smart high-end electric car brand firefly, which was started in late April 2025. The diversification strategy enables NIO Inc. (NYSE:NIO) to leverage technology and brand reputation throughout different price points and consumer preferences. After the product launch, firefly began deliveries in China in late April 2025 and has plans to gradually reach global markets.
7. Lucid Group, Inc. (NASDAQ:LCID)
Stock Price as of May 6: $2.33
Market cap as of May 6: $6.7 billion
Number of Hedge Fund Holders: 24
Lucid Group, Inc. (NASDAQ:LCID) is a technology company that is engaged in designing, engineering, manufacturing, and selling EVs, EV powertrains, and battery systems. Cantor Fitzgerald analysts maintained a “Neutral” rating on the company’s stock with a steady price objective of $3.00. The firm’s analysts demonstrated Lucid Group, Inc. (NASDAQ:LCID)’s confirmation of its FY 2025 vehicle production guidance of 20,000 units, which aligns with their projections. Furthermore, the analysts acknowledged the company’s strong partnership with Public Investment Fund (PIF) and its advanced technology, which they opine enables its vehicles to provide increased battery efficiency, longer range, better performance, and faster charging versus other EVs.
One of Lucid Group, Inc. (NASDAQ:LCID)’s critical strengths is its advanced EV powertrain technology. Its vehicles are known for increased battery efficiency, long range, and fast charging capabilities. Furthermore, the introduction of the Gravity SUV provides a major opportunity for the company to capture a share of the profitable SUV market. The company highlighted that Lucid Gravity is produced at AMP-1 with an AV capable sensor suite, redundant electrical and control architectures, as well as the latest SoC. Lucid Group, Inc. (NASDAQ:LCID) remains focused on cost effectiveness and supply chain efficiency. Through vertical integration, it has increased control over certain components going into its vehicles. At the same time, it continues to explore numerous strategic adjustments to better align with the changing landscape, which include vehicle price changes, tariff risk mitigation, and bifurcating the supply chain.
6. Stellantis N.V. (NYSE:STLA)
Stock Price as of May 6: $9.38
Market cap as of May 6: $27.1 billion
Number of Hedge Fund Holders: 32
Stellantis N.V. (NYSE:STLA) is engaged in designing, engineering, manufacturing, distributing, and selling automobiles and light commercial vehicles, engines, transmission systems, metallurgical products, mobility services, and production systems. Notably, the commercial recovery actions included launching 3 all-new products and several updated nameplates in Q1 2025. These resulted in the increased EU30 market share as compared to Q4 2024, and an improvement in US retail order volumes. Stellantis N.V. (NYSE:STLA) highlighted that its market share in EU30 of 17.3% in Q1 2025 increased 1.9 percentage points versus Q4 2024. This was because of the continued ramp-up and expanding availability of the Citroën C3/ëC3, Peugeot 5008, and Opel/Vauxhall Grandland, which were rolled out in late 2024.
With Stellantis N.V. (NYSE:STLA) optimizing its production processes and aligning output more closely with demand, it can see a reduction in working capital requirements and improvement in cash conversion cycles. The potential restructuring and reshoring efforts, while costly, can result in long-term improvements in FCF. Moving forward, through optimizing global production footprint and decreasing dependency on imported vehicles for the broader US market, Stellantis N.V. (NYSE:STLA) can mitigate tariffs’ impact and improve its cost structure.
Ariel Investments, an investment management company, released its Q3 2024 investor letter. Here is what the fund said:
“Lastly, shares of multinational automotive manufacturing company, Stellantis N.V. (NYSE:STLA) declined following a significant earnings miss. The company attributed the performance to lower sales, production disruptions from a product overhaul and weak performance in North America. Muted demand for electric vehicles in Europe also weighed on performance. In response, STLA is implementing operational improvement initiatives to bring down U.S. inventory levels through production cuts, consumer incentives and gradual price adjustments. Despite these results, management maintained its previous buyback and dividend commitments. Although we expect discounting to increase as U.S. inventory ages, we maintain a constructive view on the company. We believe STLA’s strong global footprint and commitment to industry leading profitability, operational excellence, and strategic foresight will continue to enhance long-term shareholder value.”
5. Marqeta, Inc. (NASDAQ:MQ)
Stock Price as of May 6: $3.90
Market cap as of May 6: $2.2 billion
Number of Hedge Fund Holders: 37
Marqeta, Inc. (NASDAQ:MQ) is engaged in developing and publishing a commerce payments platform. It saw total processing volume (TPV) of $84 billion, demonstrating a YoY growth of 27%. The company continues to expand its customer portfolio throughout a diverse set of use cases and geographies, demonstrating payments industry leadership. In Q1 2025, Marqeta, Inc. (NASDAQ:MQ)’s gross profit improved by 17% YoY primarily because of its TPV growth. The company continues to see strong growth in Europe, with TPV growth remaining more than 100% in Q1 2025.
Adding program management remains a critical lever for enhancing its offerings to offer a more holistic solution for customers operating in Europe. Furthermore, the acquisition of TransactPay remains on track to close by the end of Q3 2025, and Marqeta, Inc. (NASDAQ:MQ) expects it to be a significant step in delivering its program management offering, which remains comparable to other geographies such as the US and Canada. The transaction continues to drive strong customer interest since it exhibits more control of the entire card offering and seamless geographic expansion. Furthermore, the second migration was Bitpanda, a European crypto platform. Marqeta, Inc. (NASDAQ:MQ) has been powering cards that enable consumers to spend cryptocurrency through a card for several years.
4. Riot Platforms, Inc. (NASDAQ:RIOT)
Stock Price as of May 6: $7.86
Market cap as of May 6: $2.96 billion
Number of Hedge Fund Holders: 38
Riot Platforms, Inc. (NASDAQ:RIOT) operates as a Bitcoin mining company. John Todaro, an analyst from Needham, maintained a “Buy” rating on the company’s stock. The analyst remains optimistic about the potential of the company’s Corsicana site, which is focused on a full-stack build rather than just a powered shell. The approach can result in better economic returns, as full-stack builds are projected to be significantly more profitable, says the analyst. Elsewhere, Gregory Lewis, an analyst from BTIG, is also optimistic about the company’s stock. This analyst’s optimism is backed by a combination of factors reflecting Riot Platforms, Inc. (NASDAQ:RIOT)’s promising financial outlook.
The anticipated increases in Bitcoin prices and strategic growth initiatives, which include the expansion at Corsicana and the integration of a newly acquired engineering business, are some of the positive factors. Such factors are likely to improve Riot Platforms, Inc. (NASDAQ:RIOT)’s operational efficiency and capacity, leading to a stronger financial performance. During Q1 2025, the company made significant progress on the development of its AI/HPC data center business. In March, Altman Solon wrapped up a feasibility study, demonstrating numerous factors that made the Corsicana site an attractive asset to data center tenants. Riot Platforms, Inc. (NASDAQ:RIOT) remains focused on increasing the attractiveness of the site through the acquisition of additional development land near the Corsicana Facility.
3. Snap Inc. (NYSE:SNAP)
Stock Price as of May 6: $8.36
Market cap as of May 6: $13.7 billion
Number of Hedge Fund Holders: 44
Snap Inc. (NYSE:SNAP) operates as a technology company. Analyst John Blackledge from TD Cowen maintained a “Hold” rating on the company’s stock and gave a price objective of $9.00. The analyst’s rating is backed by a combination of factors, which include the company’s recent financial performance and future outlook. While Snap Inc. (NYSE:SNAP)’s management is optimistic regarding the long-term growth with the help of improvements in the ad platform and diversification of revenue sources, they have highlighted a cautious approach regarding investment over the near term, added Blackledge.
In Q1 2025, Snap Inc. (NYSE:SNAP)’s quarterly revenue rose 14% YoY due to the progress it made with its direct-response advertising solutions, continued momentum in driving performance for small and medium-sized businesses, and the growth of its Snapchat+ subscription business. Snap Inc. (NYSE:SNAP)’s continued investment in AR technology places it as a leader in the emerging field. With AR becoming more mainstream, the company’s early-mover advantage can result in strong growth opportunities. Easy Lens, an AI-powered tool simplifying Lens creation, went into early testing in mid-December and has been utilised to create more than 10,000 Lenses, garnering more than 2 billion impressions.
RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its Q3 2024 investor letter. Here is what the fund said:
“Snap Inc. (NYSE:SNAP): SNAP was a top detractor in the third quarter following a second quarter earnings report that fell short of high expectations. While the company reported strong Daily Active User (DAU) growth (432 million +10% year-over-year) and time spent watching content on the app (+25% year-over-year), revenue of $1.24 billion was below the midpoint of the company’s guidance and slightly below investor expectations. Management pointed to weakness in their Brand Advertising vertical, specifically highlighting demand for retail, technology, and entertainment advertising for slowing through the quarter. SNAP did exceed EBITDA expectations by $15 million due to better operating leverage, but guided third quarter EBITDA below expectations as the company plans to make some targeted investments around AI infrastructure.
We believe that improvements in SNAP’s ad platform and continued growth in DAU should lead to continued acceleration in revenue growth over the next several quarters and years. With 2023 revenue of $4.6 billion (as compared with Meta’s $134 billion), we believe SNAP has a long runway for both revenue growth and expanded profitability.”
2. ZoomInfo Technologies Inc. (NASDAQ:ZI)
Stock Price as of May 6: $8.89
Market cap as of May 6: $3.18 billion
Number of Hedge Fund Holders: 51
ZoomInfo Technologies Inc. (NASDAQ:ZI) is engaged in providing go-to-market intelligence and an engagement platform for sales, marketing, operations, and recruiting professionals. Surinder Thind from Jefferies reiterated a “Buy” rating on the company’s stock, with the price objective of $15.00. The rating is backed by a combination of factors demonstrating its growth potential and value. As per the analyst, the roll-out of the CoPilot product happens to be a significant growth driver. The CoPilot product remains critical in bringing new customers and improving revenue from existing ones, added Thind. Elsewhere, analyst Mark Murphy of J.P. Morgan remains optimistic about ZoomInfo Technologies Inc. (NASDAQ:ZI)’s stock.
This analyst’s rating is backed by a combination of factors demonstrating the company’s potential for long-term growth. As per the analyst, ZoomInfo Technologies Inc. (NASDAQ:ZI) has demonstrated progress in stabilizing its business. The analyst highlighted the company’s strategic transition to higher-value customers and implementation of a new business risk model targeted at reducing write-offs.
Additionally, ZoomInfo Technologies Inc. (NASDAQ:ZI)’s emphasis on upmarket growth and operational improvements can result in sustainable growth, added Murphy. The company’s pivot to targeting larger enterprise clients exhibits a significant opportunity for growth. Enterprise clients tend to have larger budgets and more complex needs, which can lead to increased average contract values.
1. Grab Holdings Limited (NASDAQ:GRAB)
Stock Price as of May 6: $4.84
Market cap as of May 6: $19.8 billion
Number of Hedge Fund Holders: 57
Grab Holdings Limited (NASDAQ:GRAB) operates a superapp in Southeast Asia that offers ride sharing, food delivery, and financial services. Analyst Fawne Jiang of Benchmark Co. maintained a “Buy” rating on the company’s stock, retaining the price objective of $6.00. The analyst’s rating is backed by a combination of factors demonstrating Grab Holdings Limited (NASDAQ:GRAB)’s healthy performance and future potential. The company released impressive Q1 2025 results, exceeding projections amidst typical seasonal challenges. The growth was aided by strong demand and ongoing investments in product and technology innovations, says the analyst.
Notably, Grab Holdings Limited (NASDAQ:GRAB)’s revenue went up by 18% YoY and on a constant currency basis to $773 million, while on-demand GMV increased 16% YoY, or 17% on a constant currency basis, to touch $4.9 billion. The analyst also believes that Grab Holdings Limited (NASDAQ:GRAB)’s market leadership and counter-cyclical business model place it well for long-term growth, even during the macroeconomic uncertainties. Additionally, its strategic emphasis on cost optimization, competitive advantages as a result of market exits by key players, and efficiency gains resulting from technology further aid the favourable outlook. Also, new product launches and the usage of AI tools continue to enhance the user engagement and operational efficiency, says Jiang.
While we acknowledge the potential of GRAB as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for a deeply undervalued AI stock that is more promising than GRAB but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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