In this article, we will look at the 10 Best Undervalued Stocks to Buy Under $10.
On January 30, Goldman Sachs’ Ben Snider appeared on CNBC to discuss the market, saying he expects the broadening of the equity market returns to continue. He stated that he has a very different perspective on US equities, whether one looks at them in absolute terms or relative to other markets. Giving the example of last year, Snider said that the S&P 500 generated a total return of 18%, which is a “quite extraordinary” and a very solid return. However, at the same time, it was also one of the worst-performing global markets.
This year, he sees a continued diversification or broadening of equity market returns, just like we have witnessed in the last few weeks of this year. He, however, added that these trends do not mean that US equities themselves cannot continue to perform well, which is also his expectation.
READ ALSO: 10 Best Strong Buy Stocks to Invest In Under $5 and 11 Best Strong Buy Growth Stocks to Buy According to Hedge Funds.
Talking about the AI trade, he stated that the key point for the market for this year, along with the last three years of the AI trade, is a focus on visible near-term earnings. Therefore, the reason why infrastructure spending has been the driver of the AI trade for the last three years is because that is where the earnings have been visible. The trends are now changing, at least in the US markets, according to Snider, as we are now seeing a clear earnings accretion from companies outside the tech sector using AI. That should help broaden the trade.
With these trends in view, let’s look at the best undervalued stocks to buy under $10.
Our Methodology
We used stock screeners to find companies that satisfied the following criteria:
- Stock Price Below $10.
- Forward P/E Below 15.
We then selected the top 10 stocks with the highest number of hedge fund holders, as of Q3 2025. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund holders.
Note: All data was recorded on January 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 Undervalued Stocks to Buy Under $10
10. Lloyds Banking Group plc (NYSE:LYG)
Number of Hedge Fund Holders: 15
Lloyds Banking Group plc (NYSE:LYG) is one of the best undervalued stocks to buy under $10. On January 29, Bank of America Securities reiterated a Hold rating on Lloyds Banking Group plc (NYSE:LYG) and set a price target of p110.00. The rating update came the same day Lloyds Banking Group plc (NYSE:LYG) announced its financial results for 2025. It reported diversified revenue growth across the business, delivering £1.4 billion of annualised additional revenues from strategic initiatives in 2025. Management expressed confidence in delivering c.£2 billion by the end of 2026, which is ahead of its previous target of c.£1.5 billion.
Lloyds Banking Group plc (NYSE:LYG) also reported an underlying net interest income of £13.6 billion, up 6% compared to 2024 and reflecting a banking net interest margin of 3.06%, up 11 basis points year-on-year, alongside higher average interest-earning banking assets of £462.9 billion.
As part of its financial results, Lloyds Banking Group plc (NYSE:LYG) announced the same day that GenAI delivered around £50 million of value in 2025, and it expects over £100 million in additional value in 2026 through the continual scaling of both agentic AI and GenAI across the Group.
Lloyds Banking Group plc (NYSE:LYG) operates as a financial services company providing banking and financial services. The company’s operations are divided into the following segments: Retail, Commercial Banking, Insurance and Wealth, and Other.
9. Aegon Ltd. (NYSE:AEG)
Number of Hedge Fund Holders: 16
Aegon Ltd. (NYSE:AEG) is one of the best undervalued stocks to buy under $10. Aegon Ltd. (NYSE:AEG) received several rating updates in January. On January 16, Berenger Bank reiterated a Buy rating on the stock and set a price target of €7.40. Aegon Ltd. (NYSE:AEG) also received a rating update from Morgan Stanley on January 9, with the firm cutting the price target on the stock to EUR 7 from EUR 7.30 while maintaining an Overweight rating.
In another development, Deutsche Bank resumed coverage of Aegon Ltd. (NYSE:AEG) on January 7 with a Hold rating and a EUR 7.30 price target. The rating update came after Aegon Ltd. (NYSE:AEG) announced on January 5 that Aegon UK is set to expand access to private market assets to over 375,000 members of its second-largest workplace default fund, the £12 billion Aegon LifePath strategy.
Management reported that Aegon LifePath will invest across a wide range of asset classes from summer 2026, including protected equities, diversified global private markets, and multi-asset credit. It added that the private market assets would be accessed through three Long-Term Asset Funds, managed by specially selected fund managers, including Aegon Asset Management. Aegon Ltd. (NYSE:AEG) further reported that the initiative would build on the successful integration of private markets to 700,000 members of Aegon UK’s largest workplace default fund, the £14 billion Universal Balanced Collection.
Aegon Ltd. (NYSE:AEG) is an international financial services company that provides protection, investment, and retirement solutions. The company’s operations are divided into the following segments: Americas, The Netherlands, the United Kingdom, International, Asset Management, and Holding and Other Activities.
