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.
8. Venture Global, Inc. (NYSE:VG)
Number of Hedge Fund Holders: 27
Venture Global, Inc. (NYSE:VG) is one of the best undervalued stocks to buy under $10. On January 28, RBC Capital cut the price target on Venture Global, Inc. (NYSE:VG) to $11 from $13 while maintaining an Outperform rating on the shares. The rating update came as part of a broader research note by the firm previewing fiscal Q4 for U.S. Midstream.
The firm told analysts that a majority of its estimate changes are being driven by production curtailments and commodity prices. It added that although natural gas focused names underperformed the broader group in fiscal Q4 due to AI bubble concerns, RBC Capital still favours the natural gas growth story and anticipates it to be a significant theme throughout the earnings season.
In another development, Venture Global, Inc. (NYSE:VG) received a rating update from JPMorgan on January 27, with the firm downgrading the stock to Neutral from Overweight while raising the price target to $11 from $10. It told investors in a research note that the company’s regulatory filing earlier this month reflected a negative revision to its 2025 adjusted EBITDA guidance, and this marks the third downward revision since the initial look.
According to JPMorgan, the revisions show Venture Global, Inc.’s (NYSE:VG) high sensitivity to short-term pricing, and it believes this dynamic will continue, with near-term supply additions raising the price uncertainty for liquified natural gas.
Venture Global, Inc. (NYSE:VG) is involved in the construction and development of liquefied natural gas production. The company’s projects include Calcasieu, Plaquemines, CP2, CP3, and Delta projects.
7. The Western Union Company (NYSE:WU)
Number of Hedge Fund Holders: 28
The Western Union Company (NYSE:WU) is one of the best undervalued stocks to buy under $10. The Western Union Company (NYSE:WU), on January 23, announced that it would release its fiscal Q4 and full year 2025 results on February 20, 2026, at 8:30 a.m. ET. Prior to the earnings release, Cantor Fitzgerald initiated coverage of The Western Union Company (NYSE:WU) on January 26 with an Underweight rating and a $9 price target.
The firm told investors that although the brick-and-mortar network is a structural disadvantage when compared to the digital-only or digital-first remittance platforms, the company has made impressive improvements in its business. It, however, added that The Western Union Company (NYSE:WU) needs to navigate the ongoing regulatory developments, U.S. immigration reform, and stablecoin-related sentiment headwinds.
In a separate development, Wolfe Research reiterated a Sell rating on the stock on January 8 and set a price target of $10. However, Keefe Bruyette lifted the price target on The Western Union Company (NYSE:WU) to $10 from $9 on January 2 and maintained a Market Perform rating on the shares, releasing the rating update as part of its price targets adjustments in the consumer finance and payments groups.
The Western Union Company (NYSE:WU) provides money transfer and payment services, with the company’s operations divided into the following segments: Consumer Money Transfer, Business Solutions, and Consumer Services.
6. Coty Inc. (NYSE:COTY)
Number of Hedge Fund Holders: 30
Coty Inc. (NYSE:COTY) is one of the best undervalued stocks to buy under $10. TD Cowen cut the price target on Coty Inc. (NYSE:COTY) to $3.40 from $3.50 on January 21, maintaining a Hold rating on the stock. It told investors that it adjusted price targets in the beauty space as part of a Q4 preview, and that it sees Estee Lauder as having the most upside potential on sustained U.S. momentum and improving China trends. TD Cowen added that beauty trends appear solid, and this is expected to drive revenue upside for all companies.
In another development, Barclays also cut the price target on Coty Inc. (NYSE:COTY) to $3 from $3.50 on January 16 while maintaining an Underweight rating on the shares. The rating update came as part of the firm adjusting price targets in the consumer staples group in a Q4 earnings preview, with Barclays attributing the recent “enthusiasm” in the stock to “a flight to safety”. It remains concerned about the sector- and company-level fundamentals, adding that potential oil and currency headwinds may materialise in 2026.
Coty, Inc. (NYSE:COTY) is a beauty company that operates a portfolio of brands in color cosmetics, fragrance, and skin and body care. Its Prestige segment operates an array of luxury brands, including Gucci, Marc Jacobs, Miu Miu, Tiffany & Co., Kylie Cosmetics by Kylie Jenner, Hugo Boss, Burberry, Chloe, Calvin Klein, SKKN BY KIM, and more. Coty, Inc.’s (NYSE:COTY) mass beauty products are primarily sold through supermarkets, hypermarkets, drugstores, department stores, e-commerce retailers, and other channels.
5. Super Group Limited (NYSE:SGHC)
Number of Hedge Fund Holders: 31
Super Group Limited (NYSE:SGHC) is one of the best undervalued stocks to buy under $10. Super Group Limited (NYSE:SGHC) provided a full-year business update on January 21, stating that it delivered another year of robust growth and expects both full-year revenue and Adjusted EBITDA to land within the previously stated guidance ranges of $2.17 to $2.27 billion and $555 to $565 million, respectively. Management further stated that the core business drivers remain strong, with the company anticipating healthy growth to continue in 2026.
The same day, Super Group Limited’s (NYSE:SGHC) Board of Directors declared a special cash dividend of $0.25 per ordinary share, attributed to robust cash generation, a strong balance sheet, and expectations for 2026. This dividend is payable on February 9, 2026, to shareholders of record as of the close of business on February 2, 2026.
Before the release, Needham reiterated a Buy rating on Super Group Limited (NYSE:SGHC) on January 14 with a price target of $17.00. The firm highlighted the company’s expected growth into 2026, supported by solid performance and the ongoing contribution of its 2025 consumer cohorts, anticipated to offer durable revenue momentum. Needham also cited Super Group Limited’s (NYSE:SGHC) geographic expansion as a key factor supporting the optimistic rating, especially the new market entries across Africa, where management expects attractive customer acquisition opportunities.
Super Group Limited (NYSE:SGHC) is a global digital gaming company involved in the global online sports betting and gaming businesses. The company’s operations are divided into the following segments: Betway, Spin, and Other.
4. Stellantis N.V. (NYSE:STLA)
Number of Hedge Fund Holders: 32
Stellantis N.V. (NYSE:STLA) is one of the best undervalued stocks to buy under $10. Reuters reported on January 30 that Stellantis N.V. (NYSE:STLA) is preparing to raise production shifts at a number of plants across Italy, introducing new models in pursuit of its goal to raise local production from 2026. In a meeting with Industry Minister Adolfo Urso on Friday, Stellantis Europe head Emanuele Cappellano highlighted the company’s production plans for its several plants in Italy.
Reuters further announced the start of production of the new DS 8 and Jeep Compass at Melfi, adding that the plant would resume a second production shift in the coming weeks. In addition, it was revealed that the group would begin the building of another DS model at Melfi in 2026, which would be followed by the new Lancia Gamma, both in electric and hybrid versions, later in the year.
Reuters also reported that a new model is also set to enter production at the plant by 2028 and that all of Stellantis N.V.’s (NYSE:STLA) Italian plants would remain open with confirmed production allocations through 2032.
Stellantis N.V. (NYSE:STLA) designs, manufactures, distributes, and sells vehicles. The company offers products under various brands, including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS, Fiat, Fiat Professional, Jeep, Lancia, Opel, Peugeot, Ram, and Vauxhall.
3. B2Gold Corp. (NYSE:BTG)
Number of Hedge Fund Holders: 37
B2Gold Corp. (NYSE:BTG) is one of the best undervalued stocks to buy under $10. B2Gold Corp. (NYSE:BTG) announced on January 22 that it is set to release its fiscal Q4 and full year 2025 financial results, along with 2026 guidance, after the close of North American markets on Wednesday, February 18, 2026. Prior to the earnings release, B2Gold Corp. (NYSE:BTG) received several rating updates from analysts in January.
Most recently, Scotiabank lifted the price target on the stock to C$10 from C$8 on January 26 and maintained a Sector Perform rating on the shares. In another development, Bank of America Securities reiterated a Sell rating on B2Gold Corp. (NYSE:BTG) with a price target of $4.30.
B2Gold Corp. (NYSE:BTG) also received a rating update from Raymond James on January 14, with the firm lifting the price target on the stock to $6.50 from $6 while maintaining an Outperform rating on the shares. The firm told investors that it updated price targets in the mining group to take into account the updated commodity price forecasts for the precious and base metals complex. It raised gold and silver price estimates, attributing it to continued political and economic uncertainty. The firm continues to be inclined towards copper in the base metals complex, as it anticipates rising deficits in the medium to long term.
B2Gold Corp. (NYSE:BTG) is an exploration company that acquires and develops mineral properties. Its operations are divided into the following segments: Fekola Mine, Fekola Regional, Masbate Mine, Otjikoto Mine, Goose Project, Other Mineral Properties, and Corporate and Other.
2. Crescent Energy Company (NYSE:CRGY)
Number of Hedge Fund Holders: 38
Crescent Energy Company (NYSE:CRGY) is one of the best undervalued stocks to buy under $10. Crescent Energy Company (NYSE:CRGY) has received several rating updates from analysts since the beginning of 2026. Most recently, Piper Sandler reiterated a Buy rating on the stock on January 28 and set a price target of $13.
In another development, Wells Fargo cut the price target on Crescent Energy Company (NYSE:CRGY) to $13 from $15 on January 27 and maintained an Overweight rating on the shares, telling investors that it favors low-reinvestment, capital-disciplined frameworks in a softer macro, with 2026 plans broadly stable across the group. The firm cited the persistent pressure on oil macro, with downside-skewed fundamentals as strong non-OPEC growth and rising OPEC supply suggest continued price pressure and a near-term surplus.
Crescent Energy Company (NYSE:CRGY) also received a rating update from Jefferies on January 25. The firm resumed coverage of Crescent Energy Company (NYSE:CRGY) with a Hold rating, bringing the price target down to $9 from $10. It stated that the company’s outlook is undergoing improvements after the divestitures, and believes continued execution by the company to be the driving force behind the lowering of its cost of capital and building of confidence in its inventory depth.
Crescent Energy Company (NYSE:CRGY) is a differentiated US energy company with operations focused on Texas and the Rockies, with active development in the Eagle Ford and Uinta basins. The company is also involved in the operation of conventional assets in Wyoming, where it focuses on carbon capture, use, and storage (CCUS).
1. BGC Group, Inc. (NASDAQ:BGC)
Number of Hedge Fund Holders: 40
BGC Group, Inc. (NASDAQ:BGC) is one of the best undervalued stocks to buy under $10. On January 27, BGC Group, Inc. (NASDAQ:BGC) announced that BGC Brokers L.P. is now authorized as a U.K. registered benchmark administrator licensee with the U.K. Financial Conduct Authority under the U.K. Benchmarks Regulation. Management stated that the approved benchmark offering encompasses swaps pricing in EUR IRS, GBP IRS, & XCCY swaps, and EU and U.K. Inflation swaps, with the enhancement offering clients improved data quality, an FCA regulated reference page, and a strong alternative benchmark solution for their issuance activities.
Nadim Mourad, Executive Managing Director at BGC Group, Inc. (NASDAQ:BGC), further stated that the registration enables the company to provide regulated benchmark reference data to clients, supporting valuation and risk management activities across key rate markets. In a separate development, BGC Group, Inc. (NASDAQ:BGC) received a rating update from Piper Sandler on January 14, with the firm reiterating a Buy rating on the stock and setting a price target of $14.
BGC Group, Inc. (NASDAQ:BGC) provides brokerage and financial technology services, offering trade execution and broker-dealer services specializing in Foreign Exchange, Fixed Income (Rates and Credit), Equities, Shipping, Energy and Commodities, and Futures.
While we acknowledge the potential of BGC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BGC and that has 100x upside potential, check out our report about this cheapest AI stock.
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