In this article, we explore the 11 Best Low-Priced Stocks to Buy Right Now.
The focus in the equity market is slowly shifting from high-priced stocks that are trading at premium valuations. The increased focus on low-priced stocks stems from growing hope that the US Federal Reserve will start cutting its benchmark rate, as data shows weakness in the US economy.
Low-priced stocks benefit the most from easier monetary policy, as they often rely on borrowing for growth. That’s because interest rate cuts lower the cost of capital, making it easier to take out loans to expand the business. Wolfe Research strategist Rob Ginsberg has already pointed out that investors “wasted no time stepping in and buying the dip” after a recent broad market sell-off.
With more than 50% of stocks in the Russell 2000 index hitting their one-month lows, “A short-term indicator that is often met with buying is emerging,” Ginsberg said, adding that “the signal more often than not marks a near-term bottom and is met with buying.”
Tom Lee, Head of Research at Fundstrat Global Advisors, shares similar sentiments, reiterating that small-cap stocks are well-positioned to outperform in the second half of the year. According to Lee, the sell-off experienced in April gave rise to a new bull market.
“As I look at the second half, I think the small caps really have a strong case to be made, because as long as we move towards a tariff resolution, or the markets feel that way, then I think investors can actually start putting flows back into stocks other than the Mag Seven,” Lee said.
With that in mind, let’s take a look at the best low-priced stocks to buy right now, backed by solid underlying fundamentals and poised to outperform in the long term.
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Our Methodology
To compile the list of the 11 Best Low-Priced Stocks to Buy Right Now, we used Finviz screener to shortlist stocks in various sectors trading for less than $10 (as of August 11). Next, we narrowed our list to those that have positive year-to-date returns of more than 20%. These stocks are also popular among elite hedge funds in the first quarter of 2025. Finally, we ranked the stocks in ascending order based on their year-to-date returns.
Why are we interested in the stocks that hedge funds pile into? The reason is straightforward: our research has demonstrated that we can outperform the market by replicating 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).
Best Low-Priced Stocks to Buy Right Now
11. ADT Inc. (NYSE:ADT)
Current Share Price: $8.42
Number of Hedge Fund Holders: 36
Year-to-Date Returns: 20.63%
ADT Inc. (NYSE:ADT) is one of the best low-priced stocks to buy right now. On July 25, S&P Global Ratings upgraded ADT Inc. to a ‘BB’, buoyed by improvements in the company’s credit metrics. The rating firm also cited the significant reduction in ownership by financial sponsor Apollo.
Apollo’s equity holding in ADT has declined to about 14%, which S&P believes will lead to stronger governance and prudent financial policies. Likewise, the rating firm expects the company to build a broader investor base with a more diverse board of directors.
S&P Global Rating also expects ADT to pursue a financial policy focused on improving cash flows and disciplined capital allocation. The firm expects large shareholders, including State Farm and Google, to influence the company’s business and financial plans.
The remarks come as ADT continues to transition from underperforming solar and commercial alarm monitoring segments to core residential and small to mid-sized business operations. Revenues are increasing at an impressive rate, even as subscriber count remains flat.
ADT Inc. (NYSE:ADT) is a security & protection services company that provides home and business security solutions, including security systems, personal safety monitoring, and medical alarms. They offer 24/7 professional monitoring, smart home integration, and video surveillance. ADT also provides services like intrusion detection and business security systems.
10. Nomura Holdings, Inc. (NYSE:NMR)
Current Share Price: $7.07
Number of Hedge Fund Holders: 11
Year to Date Returns: 21.69%
Nomura Holdings, Inc. (NYSE:NMR) is one of the best low-priced stocks to buy right now. On July 29, the company delivered solid first-quarter results that affirmed underlying growth. Net income in the quarter was up 52% year over year to ¥104.6 billion or $706 million. It marked the sixth straight quarter of growth that exceeded the ¥76.4 billion average of three analyst estimates.
The significant earnings growth comes from the Japanese firm capitalizing on the equity trading boom. Revenue from stock trading was up 20% year over year, marking the ninth consecutive quarter of growth. Revenue from investment banking increased 2%, led by fees from bond underwriting.
Nevertheless, fees on mergers and acquisitions dropped even as Nomura took the top spot among financial advisers. Likewise, the company incurred a loss in its European operations due to a higher-than-expected effective tax rate of 33%. On the other hand, the wealth management division reported a quarterly profit increase of ¥2.8 billion, attributed to an increase in trading in bonds and equities.
Nomura Holdings, Inc. (NYSE:NMR) is a global financial services group that offers a wide range of services through its four business divisions: Wealth Management, Investment Management, Wholesale (comprising Global Markets and Investment Banking), and Banking. It provides services to individuals, institutions, corporations, and governments.
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