10 Stocks Under $10 to Buy Now

6. Alector Inc. (NASDAQ:ALEC)

Share Price as of July 30: $1.7

Number of Hedge Fund Holders: 29

Alector Inc. (NASDAQ:ALEC) is one of the stocks under $10 to buy now. On July 28, Mizuho upgraded Alector from Neutral to Outperform, while raising the price target from $2.50 to $3.50. The decision reflected Mizuho’s belief that the pessimism surrounding Alector’s shares is excessive, especially considering the company’s cash position of ~$350 million, which is roughly double its current valuation.

Mizuho’s confidence is also driven by feedback from key opinion leaders regarding latozinemab, which is Alector’s lead asset for frontotemporal dementia/FTD, raising its probability of success from 50% to 60%. The firm favors the stock in anticipation of the Phase 3 data for latozinemab, expected in Q4 2025. The company is advancing its clinical pipeline, with the INFRONT-3 Phase 3 trial for latozinemab on schedule for topline data release in Q4 2025.

In Q1 2025, Alector reported revenue of $3.7 million, which fell short of the estimated $4.38 million. The revenue decline from $15.9 million in Q1 2024 was due to the completion of performance obligations related to the AL002 program and the latozinemab FTD-C9orf72 Phase 2 trial in late 2024. However, the net loss per share of $0.41 was better than the estimated loss of $0.48 per share.

Alector Inc. (NASDAQ:ALEC) is a late-stage clinical biotechnology company that develops therapies that are focused on counteracting the devastating progression of neurodegenerative diseases.