On October 16, Victoria Greene, Chief Investment Officer of G Squared Private Wealth Management, appeared on CNBC to state that small caps demonstrate lasting strength. Greene explained that investors are looking for something cheaper than mega-cap tech and that hasn’t moved up yet. He noted that the small caps are finally hitting new record highs after a couple of years and that many of them are more rate sensitive and a little bit more levered, which means that lower rates help them. While acknowledging that the market has been burned a couple of times with the small-cap breakout only to have them fall behind large-cap peers, he believes that the current breakout has sustained momentum and that small caps may be sticking around to stay, especially if the market sees another 50 basis points of cuts.
Greene also confirmed that he is very concerned about inflation and wants stability in tariffs and stability in pricing. He warned that as the market enters the holiday season, people may be very surprised by how much everything costs. He affirmed that inflation is a risk to margins and that his firm is watching profit margins extremely carefully to see how companies are protecting them and whether they are passing costs on to consumers.
That being said, we’re here with a list of the 10 best stocks under $3 to invest in.
Our Methodology
We sifted through the Finviz stock screener to compile a list of the best stocks with a share price under $3. 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 Q2 2025. 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 October 29.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10 Best Stocks Under $3 to Invest In
10. Wipro Limited (NYSE:WIT)
Share Price as of October 29: $2.67
Number of Hedge Fund Holders: 19
Wipro Limited (NYSE:WIT) is one of the best stocks under $3 to invest in. On October 29, Wipro Limited announced that it signed a multi-year strategic agreement with Hanesbrands Inc. (NYSE:HBI). This engagement transforms HanesBrands’ IT infrastructure and cybersecurity operations through an AI-first approach.
The agreement is a key component of HanesBrands’ strategic IT 2.0 transformation initiative, which is shifting the company toward a unified, AI-led managed services model. Wipro will use its Wipro Intelligence WINGS Operations AI platform, which is a part of the unified Wipro Intelligence suite of AI-powered platforms.
Wipro will further strengthen HanesBrands’ security posture by enabling AI-powered predictive and preventive operations and the automation of security workflows to reduce incident resolution times. The focus will also be on helping HanesBrands manage regulatory compliance and minimize business disruption through greater operational stability.
Wipro Limited (NYSE:WIT) operates as an IT, consulting, and business process services company worldwide that operates through IT Services and IT Products segments.
Hanesbrands Inc. (NYSE:HBI) designs, manufactures, sources, and sells a range of innerwear apparel for men, women, and children in the Americas, Europe, the Asia Pacific, and internationally.
9. Pulmonx Corporation (NASDAQ:LUNG)
Share Price as of October 29: $1.92
Number of Hedge Fund Holders: 20
Pulmonx Corporation (NASDAQ:LUNG) is one of the best stocks under $3 to invest in. On October 28, Lake Street lowered the firm’s price target on Pulmonx to $4 from $8 and kept a Buy rating on the shares.
The firm believes that Wall Street will view the return of former CEO Glen French and CFO Derrick Sung positively. The shares are attractive due to the vast clinical proof of concept of Zephyr valves, the strong market opportunity, and the new product pipeline.
On the same day, Stifel Nicolaus analyst Rick Wise maintained a Buy rating on Pulmonx and set a price target of $5.00. Additionally, John Young CFA from Canaccord Genuity maintained a Buy rating on Pulmonx, with a price target of $6.00.
Pulmonx Corporation (NASDAQ:LUNG) is a commercial-stage medical technology company that provides a minimally invasive treatment for patients with severe emphysema, a form of chronic obstructive pulmonary disease.
