Earlier on July 1, Peter Kraus, Aperture Investors chairman and CEO, joined ‘Squawk Box’ on CNBC to suggest that the small and mid-cap area is a place for significant growth. Kraus began by stating that if another Liberation Day event (referring to the April tariff imposition) were to occur, the market would undoubtedly decline. He explained that the uncertainty caused by such events and the resulting delays in business decisions across various sectors would lead to a market fall. He emphasized that a lack of progress on trade deals creates a difficult problem for the market, leading to negative reactions that the current administration dislikes, suggesting they would prevent such a scenario. Kraus also believes long-term investors in AI will do well, though he cautioned that identifying individual winners can be challenging, suggesting that betting on a set of companies exposed to a particular AI trend is more likely to succeed. His primary concern, however, lies with valuation, particularly for the large tech companies that have driven the market for the past 15 years. He said that the key concern is the relative valuation of these companies compared to others, asserting that many small-cap and mid-cap companies are also exposed to technology and growth opportunities.
Small-cap stocks had a particularly strong performance during the quarter, given past concerns about tariffs disproportionately affecting them and their general underperformance. Kraus confirmed that the Russell index, particularly since Liberation Day, has outperformed the S&P and the MAG7, which have underperformed in the first 6 months. Kraus also reiterated his belief that the small and mid-cap market capitalization area is underinvested. He noted that investors have been disappointed with this space over the past decade due to its underperformance, which led many to reduce or eliminate their exposure. Kraus concluded that this presents an opportunity for growth and advised investors lacking exposure to this area in their portfolios to consider adding some.
That being said, we’re here with a list of the 10 stocks under $10 to buy now.
A portfolio manager in front of their computer screen, evaluating a variety of mid-cap stocks.
Our Methodology
We sifted through the Finviz stock screener to compile a list of the top stocks that were trading under $10 as of July 30. 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 Q1 2025.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Stocks Under $10 to Buy Now
10. Abeona Therapeutics Inc. (NASDAQ:ABEO)
Share Price as of July 30: $6.8
Number of Hedge Fund Holders: 26
Abeona Therapeutics Inc. (NASDAQ:ABEO) is one of the stocks under $10 to buy now. On July 29, AscellaHealth announced its successful HUB partnership with Abeona Therapeutics in the pre- and post-launch commercialization of ZEVASKYN (prademagene zamikeracel), which is an FDA-approved cell-based gene therapy.
The collaboration addresses the clinical, operational, and reimbursement needs of this novel autologous cell-based gene therapy by designing and executing patient-centric, end-to-end solutions. An outcome of this partnership was the development and launch of AbeonaAssist, which is a customized patient support program designed to provide a seamless experience for patients, caregivers, and healthcare providers.
ZEVASKYN is the first and only autologous cell sheet-based gene therapy indicated for the treatment of wounds in adult and pediatric patients with recessive dystrophic epidermolysis bullosa/RDEB.
Abeona Therapeutics Inc. (NASDAQ:ABEO) is a clinical-stage biopharmaceutical company that develops gene and cell therapies for life-threatening diseases.
9. Astria Therapeutics Inc. (NASDAQ:ATXS)
Share Price as of July 30: $7.07
Number of Hedge Fund Holders: 26
Astria Therapeutics Inc. (NASDAQ:ATXS) is one of the stocks under $10 to buy now. Earlier on June 13, Astria Therapeutics announced positive initial results from the ALPHA-SOLAR long-term open-label trial of navenibart (STAR-0215) in hereditary angioedema/HAE patients. These findings were presented at the European Academy of Allergy and Clinical Immunology/EAACI Annual Congress.
The trial showed an overall reduction in the monthly HAE attack rate, with a 92% mean and 97% median reduction. These results support the potential for every three-month and every six-month dosing regimens for navenibart, as well as its favorable safety and tolerability profile. These initial results from ALPHA-SOLAR are consistent with the “best-in-class” profile observed in the earlier ALPHA-STAR Phase 1b/2 trial.
The ALPHA-SOLAR trial is a long-term, open-label study designed to assess the safety and efficacy of navenibart in adults with HAE Type 1 or 2. All 16 target enrollment participants from the Phase 1b/2 ALPHA-STAR trial opted to enroll in ALPHA-SOLAR. Patients from ALPHA-STAR Cohorts 1 and 2 joined Arm A, while Cohort 3 patients joined Arm B.
Astria Therapeutics Inc. (NASDAQ:ATXS) is a biopharmaceutical company that discovers, develops, and commercializes therapeutics for allergic and immunological diseases in the US.
8. Berry Corporation (NASDAQ:BRY)
Share Price as of July 30: $3.14
Number of Hedge Fund Holders: 26
Berry Corporation (NASDAQ:BRY) is one of the stocks under $10 to buy now. On July 17, Piper Sandler adjusted the price target for Berry Corporation from $5 to $4, while maintaining a Neutral rating on the shares. The revision came as the investment environment for E&P companies remains challenging after the second quarter. The sector is navigating volatile oil prices, increased geopolitical risks, and higher supplies from OPEC+.
In Q1 2025, Berry Corporation reported oil and gas sales of $148 million, with a realized oil price at 93% of Brent. The company generated $17 million in free cash flow and $68 million in Adjusted EBITDA for the quarter, with operating cash flow at $46 million. Production averaged 24,700 barrels per day.
Despite market volatility, Berry Corp reaffirmed its full-year guidance for 2025, projecting average daily production between 24,800 and 26,000 boe/d (with oil expected to be ~93% of total). Specifically, its Thermal Diatomite program in California is generating a rate of return exceeding 100%, and the Yuenta asset development is progressing well with cost reductions and production exceeding expectations from non-operated wells.
Berry Corporation (NASDAQ:BRY) is an independent upstream energy company in the western US. It operates through 2 segments: Exploration & Production/E&P, and Well Servicing & Abandonment.
7. Cullinan Therapeutics Inc. (NASDAQ:CGEM)
Share Price as of July 30: $8.31
Number of Hedge Fund Holders: 27
Cullinan Therapeutics Inc. (NASDAQ:CGEM) is one of the stocks under $10 to buy now. On July 22, Taiho Oncology Inc. and Cullinan Therapeutics announced that abstracts for zipalertinib had been accepted for mini oral presentations at the International Association for the Study of Lung Cancer’s/IASLC 2025 World Conference on Lung Cancer/WCLC.
The conference is scheduled to take place from September 6-9 this year, in Barcelona, Spain. The presentations will include updated efficacy and safety data from the Phase 2b REZILIENT1 trial of zipalertinib. The trial focuses on patients with non-small cell lung cancer/NSCLC harboring epidermal growth factor receptor/EGFR exon 20 insertion mutations (ex20ins) who have been previously treated with amivantamab.
Amivantamab (sold as Rybrevant) is a bispecific monoclonal antibody that targets both EGFR and MET receptors, approved for NSCLC with EGFR ex20ins mutations. EGFR ex20ins mutations are a distinct subtype of NSCLC that are generally less responsive to conventional EGFR tyrosine kinase inhibitors (TKIs)
Cullinan Therapeutics Inc. (NASDAQ:CGEM) is a clinical-stage biopharmaceutical company that develops therapies for autoimmune diseases and cancer in the US.
Taiho Oncology Inc. is a company that focuses on improving the lives of cancer patients through the development and commercialization of orally administered anti-cancer agents. It is a subsidiary of Taiho Pharmaceutical Co., Ltd.
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.
5. Array Technologies Inc. (NASDAQ:ARRY)
Share Price as of July 30: $6.8
Number of Hedge Fund Holders: 29
Array Technologies Inc. (NASDAQ:ARRY) is one of the stocks under $10 to buy now. On July 21, Susquehanna adjusted its price target for Array Technologies to $7.50 from $5.50, while maintaining a Neutral rating on the shares. The adjustment is part of the firm’s updated alternative energy estimates ahead of the upcoming Q2 2025 earnings reports.
In Q1 2025, Array Technologies announced revenues of $302.4 million, which represented a 97% year-over-year increase and a 10% sequential increase.
Positive developments for Array Technologies include a 143% increase in volume growth over the prior year, making Q1 2025 the second-largest quarter for volume shipped since Q2 2023. The company has also strengthened its management team with the addition of several solar industry veterans, and its new product offerings, such as OmniTrack and SkyLink, are gaining strong traction, now accounting for 15% of Q1 revenue and 30% of new bookings.
Array Technologies Inc. (NASDAQ:ARRY) is a company that manufactures and sells solar tracking technology products in the US, Spain, Brazil, Australia, and internationally.
4. Eledon Pharmaceuticals Inc. (NASDAQ:ELDN)
Share Price as of July 30: $3.17
Number of Hedge Fund Holders: 30
Eledon Pharmaceuticals Inc. (NASDAQ:ELDN) is one of the stocks under $10 to buy now. On July 17, Eledon Pharmaceuticals announced that updated clinical data from its ongoing open-label Phase 1b study of tegoprubart will be presented at the World Transplant Congress/WTC. The WTC will take place in San Francisco from August 2-6 this year.
The oral presentation, titled “Tegoprubart, an Anti-CD40L Antibody, for the Prevention of Rejection in Kidney Transplantation: An Ongoing Phase 1b Study,” will feature updated results from ~30 kidney transplant recipients. In addition to the oral presentation, Eledon Pharmaceuticals will sponsor a satellite symposium at the WTC titled: “What Truly Defines Kidney Transplant Success: Early Rejection or Lasting Function?”
Furthermore, new preclinical data on tegoprubart’s use for preventing rejection in non-human primates undergoing liver transplantation will be presented in a poster session.
Eledon Pharmaceuticals Inc. (NASDAQ:ELDN) is a clinical-stage biotechnology company that uses its immunology expertise in targeting the CD40 Ligand/CD40L pathway to develop therapies to protect transplanted organs and prevent rejection, and to treat amyotrophic lateral sclerosis/ALS.
3. Erasca Inc. (NASDAQ:ERAS)
Share Price as of July 30: $1.57
Number of Hedge Fund Holders: 30
Erasca Inc. (NASDAQ:ERAS) is one of the stocks under $10 to buy now. Earlier on June 2, Erasca announced that the US FDA had cleared its Investigational New Drug/IND application for ERAS-4001. This potential first-in-class and best-in-class pan-KRAS inhibitor is intended for the treatment of patients with KRAS-mutant (KRASm) solid tumors.
This clearance, along with that of ERAS-0015, which is a potential best-in-class pan-RAS molecular glue, occurred in May earlier this year, ahead of the company’s previously anticipated timeline. ERAS-4001 is designed to target multiple KRAS mutations as well as wild-type KRAS while sparing HRAS and NRAS, which could provide a better therapeutic window compared to broader pan-RAS inhibitors.
This differentiated approach aims to overcome treatment resistance to existing pan-RAS and mutant-selective KRAS inhibitors and address unmet needs for the estimated 2.2 million people diagnosed annually worldwide with KRASm tumors. Erasca anticipates disclosing initial Phase 1 monotherapy data for both ERAS-4001 and ERAS-0015 in 2026.
Erasca Inc. (NASDAQ:ERAS) is a clinical-stage precision oncology company that focuses on discovering, developing, and commercializing therapies for patients with RAS/MAPK pathway-driven cancers.
2. Aurora Innovation Inc. (NASDAQ:AUR)
Share Price as of July 30: $5.94
Number of Hedge Fund Holders: 33
Aurora Innovation Inc. (NASDAQ:AUR) is one of the stocks under $10 to buy now. On July 30, Aurora Innovation announced a significant expansion of its commercial operations, which initially began in May earlier this year. The expansion includes growing its driverless fleet to 3 trucks and surpassing 20,000 driverless miles by the end of June. The company also inaugurated a new terminal in Phoenix, Arizona, in June.
Aurora extended its existing driverless lane from Dallas to Houston to include nighttime driving. The capability allows for continuous utilization of the trucks, thereby shortening delivery times and advancing the company’s path toward autonomous trucking profitability.
Aurora also cited a 2021 Federal Motor Carrier Safety Administration report that noted 37% of fatal crashes involving large trucks occur at night, despite fewer miles being traveled during those hours. Autonomous trucks offer enhanced visibility compared to human drivers, who face challenges like low visibility and fatigue.
Aurora Innovation Inc. (NASDAQ:AUR) is a self-driving technology company in the US that focuses on developing Aurora Driver. This is a platform that brings self-driving hardware, software, and data services together to adapt and interoperate with various vehicle types and applications.
1. Crescent Energy Company (NYSE:CRGY)
Share Price as of July 30: $9.52
Number of Hedge Fund Holders: 34
Crescent Energy Company (NYSE:CRGY) is one of the stocks under $10 to buy now. On July 17, Piper Sandler analyst Mark Lear increased the price target for Crescent Energy from $14 to $15, while maintaining an Overweight rating on the shares. The adjustment came as the firm updated its outlook for the alternative energy sector.
In Q1 2025, Crescent Energy reported exceeding $240 million in free cash flow for the quarter, equating to an annualized free cash flow yield of ~45%. Production reached a record 258,000 barrels of oil equivalent per day. Adjusted EBITDA for the quarter was ~$530 million. Crescent Energy exited the quarter with a net leverage of 1.5x and ~$1.4 billion in liquidity, with no near-term maturities.
The company has maintained a consistent strategy for over a decade, focusing on substantial free cash flow generation through a less capital-intensive business model. The successful closure and integration of the Ridgemar acquisition added high-margin production and significant low-risk inventory.
Crescent Energy Company (NYSE:CRGY) is an energy company that engages in the exploration and production of crude oil, natural gas, and natural gas liquids in the US.
While we acknowledge the potential of CRGY 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 CRGY and that has 100x upside potential, check out our report about this cheapest AI stock.
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