In this article, we will now discuss the 11 Most Undervalued Stocks Under $10 to Buy Now
According to David Kostin (Chief US equity strategist in Goldman Sachs Research), apart from the improved outlook for interest rates, the strength of Q1 2025 earnings results strengthened the confidence that the largest stocks are expected to sustain current investor expectations for the long-term growth for at least the upcoming few quarters. This can help support valuation for the broader S&P 500 index.
What Can Investors Expect?
The projection for lower 10-Y Treasury yields by Goldman Sachs Research can fuel the stock market. As per their macro valuation model, every 50 bps fall in real bond yields is related to a ~3% rise in S&P 500 forward P/E, all else being equal. Furthermore, the research team of the firm increased its estimate for S&P 500 P/E to 22x from 20.4x.
Notably, the firm believes that shifting trade policy results in significant uncertainty associated with the earnings forecasts. Kostin’s team maintained the expectation for growth in S&P 500 stocks’ EPS at 7% in 2025 and 7% for the following year. Goldman Sachs opines that the healthy outlook for earnings growth in 2026, expectations of the rate cuts resuming, and neutral investor positioning tend to support the likelihood that the broader market would continue to increase, with the recent narrow rally broadening to the rest of the index.
Amidst such trends, let us now have a look at the 11 Most Undervalued Stocks Under $10 to Buy Now
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Our Methodology
To list the 11 Most Undervalued Stocks Under $10 to Buy Now, we used a screener to shortlist the stocks that trade at a price of less than $10. Next, we narrowed our list to the ones that have a forward P/E of less than 15.0x. We chose the ones popular among hedge funds. Finally, the stocks have been arranged in an ascending order of their hedge fund sentiments, 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).
11 Most Undervalued Stocks Under $10 to Buy Now
11. OMS Energy Technologies Inc. (NASDAQ:OMSE)
Forward P/E as of July 11: ~6.7x
Stock Price as on July 11: $6.78
Number of Hedge Fund Holders: N/A
OMS Energy Technologies Inc. (NASDAQ:OMSE) is one of the Most Undervalued Stocks Under $10 to Buy Now. Roth Capital analyst Gerry Sweeney initiated coverage of the company’s stock with a “Buy” rating and a price objective of $10, as reported by The Fly. The research firm noted OMS Energy Technologies Inc. (NASDAQ:OMSE)’s strategic positioning in the broader oil and gas sector, highlighting that it offers equipment and services via 11 manufacturing and distribution centers throughout the Middle East/North Africa (MENA) and Southeast Asia regions.
As per the firm, the Saudi Aramco contract demonstrates the company’s capabilities. Roth/MKM also highlighted that OMS Energy Technologies Inc. (NASDAQ:OMSE)’s facilities, as well as its extensive product catalogue, remain well-positioned to leverage strategic investments in the regions. After the IPO, the company remains focused on accelerating its growth, aided by healthy operational capabilities as well as a commitment to engineering excellence. OMS Energy Technologies Inc. (NASDAQ:OMSE) is targeting deepening of the long-standing customer relationships and has been investing in advanced manufacturing and R&D to fuel innovation, efficiency, and sustainable growth. The average price target on the company’s stock is $10.
OMS Energy Technologies Inc. (NASDAQ:OMSE) has a solid base of long-term contracts and longstanding relationships across global and local oil companies, drilling contractors, E&P, and oilfield service providers.
