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.