In this article, we will take a look at some of the best stocks under $10 that currently offer an upside potential of at least 200%.
On July 2, Dominic Pappalardo, Chief Multi-Asset Strategist at Morningstar Wealth, shared his views on small-cap stocks, which are projected to sustain their above-market performance as valuations stay appealing relative to large-cap shares. In the midst of a volatile year, both Latin American and small-cap stocks have been rising since the start of the war in the Iran-U.S. conflict.
Pappalardo highlighted that during 2026, the Morningstar U.S. Small Cap Market Index has increased 14%, compared to a 10.7% jump for the Morningstar U.S. Market. He believes that the increase in small-caps has the strength to persist, given that U.S. small-cap stocks have underperformed their mid- and large-cap peers over the past 15 years.
He also noted that the small-cap group offers greater diversification relative to large caps, citing the S&P 500, which has 40% of its underlying composition concentrated in 10 names.
Morningstar Wealth believes that small-cap stocks appear more undervalued than they have in a long time, while large caps currently appear overvalued.
With that background, let’s explore our 10 Best Stocks Under $10 That Could Triple.
Photo by Austin Distel on Unsplash
Our Methodology
To identify relevant stocks for this article, we screened U.S.-listed companies with market capitalizations above $2 billion. Also, we only shortlisted stocks with at least 200% upside potential, according to consensus, as of the July 10 close. Finally, we selected 10 stocks with the highest upside and ranked them in ascending order.
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 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10. Verastem Inc. (NASDAQ:VSTM)
Verastem Inc. (NASDAQ:VSTM) is one of the 10 best stocks under $10 that could triple.
On July 7, RBC Capital maintained its Outperform rating on Verastem Inc. (NASDAQ:VSTM). The firm reduced the target price from $15 to $14, which still offers a revised upside potential of over 211%. The price target adjustment accompanies the firm’s broader biotech sector earnings preview for the second quarter.
RBC Capital highlighted the sector’s notable momentum during June, including a 2-week rally outpacing the S&P. This was supported by encouraging data around innovations, as well as a favorable sentiment regarding the FDA’s flexible stance.
The firm expects capital inflows to persist as the sector’s outlook offers more visibility compared to others. It acknowledged strong second quarter earnings across the sector, with more opportunities to achieve earnings beats, and maintains that the ongoing M&A activity is likely to offer more support.
Back on June 23, Verastem Inc. (NASDAQ:VSTM) revealed encouraging preliminary results from the company’s Phase 1/2 trial for the TARGET-D 101 study of VS-7375. It is an investigational oral inhibitor that targets KRAS G12D in patients with late-stage KRAS G12D-mutated tumors.
Results indicated promising clinical activity with a sound tolerability and safety profile across several tumor types and dosage levels. The tumors include advanced non-small cell lung cancer, metastatic colorectal cancer, and metastatic pancreatic ductal carcinoma.
Verastem Inc. (NASDAQ:VSTM) is a development-stage biopharmaceutical company involved in developing and commercializing drugs for the treatment of cancer. Its product candidates are Avutometinib, FAKZYNJA, Defactinib, VS-7375, CO-PACK, and AVMAPKI. The company is involved in clinical studies of RAMP 301, RAMP 205, FRAME, VS-7375-101, RAMP 203, and RAMP 201.
