In this article, we will take a look at some of the best small-cap industrial stocks under $10 that are currently offering attractive upside to investors.
On June 12, CNBC reported that U.S. equities advanced as easing geopolitical tensions in the Middle East and a rebound in semiconductor stocks lifted investor sentiment. The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all closed higher after President Donald Trump said planned U.S. strikes on Iran had been canceled and that a deal with the country was nearing completion. Oil prices fell after the news, despite earlier gains driven by fears of disruptions to the energy market.
Meanwhile, economic data showed producer prices rose 1.1% in May, above expectations, while core inflation remained below forecasts. Capital spending tied to artificial intelligence also remained in focus, with Oracle announcing plans to raise an additional $20 billion in equity and debt to fund its AI buildout.
Globalt Investments’ senior portfolio manager, Thomas Martin, reflected on spiked-up oil prices and indicated that in the current environment, such an inflationary trend has not affected other areas. This offers fundamental strength to the broader economy. He stated:
“Markets don’t seem to be fazed by the Middle East conflict. Inflation reports that we’ve gotten don’t show that the higher price of oil is really pushing through to other areas, so the underpinnings of the economy are still fairly strong. That’s all kind of status quo-ish for the markets.”
With that background, let’s explore our 15 Most Promising Small-Cap Industrial Stocks Under $10.
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Our Methodology
To identify relevant stocks for this article, we screened U.S.-listed industrial companies with market capitalizations between $300 million and $2 billion. Also, we only shortlisted stocks with a share price below $10 and at least 20% upside potential, according to consensus, as of the June 12 close. Finally, we selected 15 stocks with the highest upside and ranked them in ascending order.
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 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
15. Hyliion Holdings Corp. (NYSE:HYLN)
Some of the recent commercial collaborations, backed by bullish analyst ratings, make Hyliion Holdings Corp. (NYSE:HYLN) one of the 15 most promising small-cap industrial stocks under $10. On June 10, Sean Milligan from Needham assigned a Buy rating to Hyliion Holdings Corp. (NYSE:HYLN) while setting a $9 price target. The analyst expects the company to transition from the development phase to the commercialization of its Karno power module over the next 12 months.
According to Milligan, Karno is a linear generator platform that would achieve best-in-class fuel flexibility, emissions, noise levels, siting requirements, electrical efficiency, and maintenance cycle characteristics. The operational capabilities have the potential to position the platform as a disruptor within bring-your-own power end markets.
Back on May 19, Hyliion Holdings Corp. (NYSE:HYLN) announced a collaboration with the U.S. Navy’s Office of Naval Research and the Defense Advanced Research Projects Agency. Under this joint initiative, the military has designated the USX-1 Defiant to serve as the primary testing platform for the company’s KARNO power generation systems.
The preliminary sea trials are receiving financial backing through an Office of Naval Research development program, which is specifically designed to evaluate and integrate KARNO Cores to supply electrical power aboard naval ships.
Hyliion Holdings Corp. (NYSE:HYLN) builds power generators that carry mobile and stationary applications. Its core power-generating offering is KARNO Power Module, which is entirely fuel-agnostic. It utilizes conventional fuel sources such as waste fuels, diesel, zero-carbon fuels, natural gas, and ammonia for power generation.
14. Energy Vault Holdings Inc. (NYSE:NRGV)
Energy Vault Holdings Inc. (NYSE:NRGV) is one of the 15 most promising small-cap industrial stocks under $10. The stock carried a moderately bullish consensus sentiment as of June 12 closing. It received Buy ratings from 3 of the 5 analysts who provided coverage. With 1 Hold and 1 Sell rating, the stock has a median 1-year target price of $5.48, resulting in an upside of more than 27%.
However, what really makes it a compelling investment case is the management’s proactive approach across new markets. On May 27, Energy Vault Holdings Inc. (NYSE:NRGV) rolled out updates regarding its geographic expansion. The company concluded the acquisition of a Japanese Battery Energy Storage System development portfolio from BayWa r.e. A holistic approach to the acquired portfolio yields a total capacity of 850 MW.
This transaction successfully establishes the operational footprint for Energy Vault inside Japan. About 350 MW of the deal consists of advanced-stage BESS projects. These specific sites are tracking to reach the Notice to Proceed stage in the second half of 2027.
Following that, their Commercial Operation Dates are projected to begin in mid 2028. The other 500 MW consists of early-stage projects. Having this extra capacity ensures a multi-year development runway and offers clear expansion potential as Energy Vault scales its regional platform.
Energy Vault Holdings Inc. (NYSE:NRGV) develops and sells utility-scale energy storage solutions across the globe. The company’s offerings include G-Vault, B-Vault, and H-Vault. It also provides Vault-Bidder, Vault-Manager, and software solutions such as Vault-OS Energy Management System.
13. TIC Solutions Inc. (NYSE:TIC)
TIC Solutions Inc. (NYSE:TIC) is one of the 15 most promising small-cap industrial stocks under $10.
On June 1, TIC Solutions Inc. (NYSE:TIC) announced that the repricing of about $1.6 billion worth of First Lien Term Loan had been completed. A 25-basis-point cut in the appropriate margin was included in the loan’s repricing to SOFR + 250 basis points. All other significant elements of the credit arrangement have not been altered, and the maturity date is still July 30, 2031.
Back on May 8, Roth Capital updated its outlook for TIC Solutions Inc. (NYSE:TIC) based on the company’s first quarter results, which projected a mixed setup compared to consensus expectations. The firm kept its Buy rating on the shares but changed the price target from $10 up to $11.50.
The firm noted a favorable landscape across the consulting engineering space. It particularly highlighted the Geospatial segment, which carries significant potential for acceleration. The firm also anticipated a lucrative combined potential for Inspection and Mitigation (I&M) businesses, and has projected modest expansion to occur somewhere during the tail end of the year.
TIC Solutions Inc. (NYSE:TIC) performs critical asset integrity services in North America. The company offers testing, inspection, certification, and compliance (TICC) services and various non-destructive testing (NDT) techniques. It also provides market rope access technician solutions, TICC services, and geospatial services. The company serves industrial markets such as the pipeline, chemical, paper, and mining industries.
12. LegalZoom.com Inc. (NASDAQ:LZ)
Despite recent guidance for the upcoming quarter falling short of consensus estimates, LegalZoom.com Inc. (NASDAQ:LZ) still offers attractive upside potential and is one of the 15 most promising small-cap industrial stocks under $10.
On May 22, the price target on LegalZoom.com Inc. (NASDAQ:LZ) was reduced from $8.5 to $7.5 by Citi analyst Ronald Josey. Despite the downward revision, the estimates yield an upside potential of over 27%.
Following the first quarter report, the analyst maintained a Neutral rating on the stock. He informs investors that although the company’s first-quarter revenue and EBITDA exceeded projections, its second-quarter outlook fell short of expectations.
During early May, LegalZoom.com Inc. (NASDAQ:LZ) shared a strategic reinvention for its enterprise customer base. It involves the company’s LegalZoom Virtual Mail service, which would now integrate the company’s compliance and legal offerings with a top-of-the-line AI-enabled digital mailroom. This would enable business entities to preserve privacy and manage information flows in a more efficient manner.
It is pertinent to mention that many of the biggest AI-linked businesses are making use of LegalZoom Virtual Mail solutions. But the latest updates will further augment this experience for clients. More importantly, clients would be able to achieve such enhanced efficiency without additional overhead costs.
LegalZoom.com Inc. (NASDAQ:LZ) manages an online platform that fulfills the legal, compliance, and business management needs of small businesses and consumers in the United States. The company’s platform offers business formation products and intellectual property products. It also provides consumer, estate planning, subscription services, and other services like concierge services, business licenses, and power of attorney.
11. PureCycle Technologies Inc. (NASDAQ:PCT)
PureCycle Technologies Inc. (NASDAQ:PCT) is one of the 15 most promising small-cap industrial stocks under $10.
On June 12, the price target on PureCycle Technologies Inc. (NASDAQ:PCT) was reduced from $14 to $13 by Northland. The firm maintained an Outperform rating on the stock after factoring in the current week’s $395M in capital raises into its estimates.
According to the firm, PureCycle appears to be exhibiting decent progress with four back-to-back quarters of impressive revenue growth, and the firm anticipates an increased growth momentum in the latter half of the year.
On June 11, PureCycle Technologies Inc. (NASDAQ:PCT) announced the pricing of its previously announced underwritten public offerings, comprising 17,661,388 shares of ordinary stock priced at $8.21 per share. It involves a total principal amount of $250 million of 4.75% convertible senior notes scheduled to expire in 2032.
The total capital raised from the offers is anticipated to be around $395 million. Additionally, the company gave the underwriters of the notes offering a 30-day option to buy up to an additional $37.5 million in principal notes to wrap over-allotments. Besides that, the underwriters of the common stock offering will also have a 30-day option to buy as many as 2,283,800 more shares of common stock.
PureCycle Technologies Inc. (NASDAQ:PCT) uses its patented solvent-based purification technology to recycle waste polypropylene into recycled resin. This technology allows them to separate color, odor, and other contaminants from the plastic waste, making it a renewable source for companies.
10. StealthGas Inc. (NASDAQ:GASS)
StealthGas Inc. (NASDAQ:GASS) is one of the 15 most promising small-cap industrial stocks under $10.
On June 5, StealthGas Inc. (NASDAQ:GASS) released its unaudited financial figures for the first quarter. First quarter revenue increased 2% YoY to $42.8 million, irrespective of increasing drydocking and voyage costs. Moreover, the company generated a net income of $15.9 million, which translated into a 24% rise versus the previous quarter.
A $2.5 million profit on a ship sale and reduced interest expenses post-debt settlement all contributed to the results. The company’s substantial $131.2 million cash and cash equivalents position by the end of the quarter reflects its resilient financial position.
As the usual fleet size dropped to 27.8 boats, operational performance showed lower depreciation charges, slightly higher operating and war-risk insurance costs, and increased drydock expenditures for 3 ships. With over $100 million in committed revenue and 54–55% of fleet days for the rest of 2026 already fixed under period charters, the business continued to concentrate on obtaining forward charter coverage.
The company’s cautious, debt-free balance sheet strategy is reinforced by additional new and extended charters on a number of LPG carriers, which also improve earnings visibility.
StealthGas Inc. (NASDAQ:GASS) offers seaborne transportation solutions to producers of LPG, covering different regions around the globe. Its carriers can handle different types of products, such as isopropane, butane, propane, propylene, butadiene, and vinyl chloride monomer.
9. Satellogic Inc. (NASDAQ:SATL)
Active pursuit of strategic opportunities makes Satellogic Inc. (NASDAQ:SATL) one of the 15 most promising small-cap industrial stocks under $10. Their recent contract wins make for a highly captivating investment case.
On May 26, a multinational defense client awarded a 1-year contract worth over $18 million to Satellogic Inc. (NASDAQ:SATL) for persistent Earth observation imagery involving high frequencies.
The arrangement illustrates both the urgency of client demand and also the urgency of the company’s operational capacity, since it signifies a swift growth from a preliminary trial to complete rollout in less than six months.
Later on May 27, Roth Capital maintained its Buy rating on Satellogic Inc. (NASDAQ:SATL), while adjusting the price target from $10 up to $15. The revision now leads to almost 133% upside potential at the current level.
The firm noted that due to the latest international defense customer contract, the existing backlog is experiencing an incremental boost. It also reflected an increased confidence in the company’s earth observation capabilities, which has garnered attention from foreign governments. Roth Capital believes that this could potentially be a leading factor to drive consistent growth for the business.
Satellogic Inc. (NASDAQ:SATL) is a designer and operator of satellite systems to serve commercial entities, governments, and local bodies. The company offers space system solutions and decision-useful geospatial data and insights that help in navigating global issues such as climate change, food security, and energy supply.
8. ACCO Brands Corp. (NYSE:ACCO)
ACCO Brands Corp. (NYSE:ACCO) is one of the 15 most promising small-cap industrial stocks under $10.
As of the close of play on June 12, ACCO Brands Corp (NYSE:ACCO) carried a strongly bullish consensus sentiment. The stock received Buy ratings from 2 analysts covering it. It also offers an attractive upside of over 73%, based on a median 1-year price target of $7.
The company’s focus on innovation also backs the bullish stance. On June 9, ACCO Brands Corp.’s (NYSE:ACCO) Kensington brand launched its Pro Fit Ergo TB675 Vertical Wired and Wireless Trackballs. These trackballs are thumb-operated and are designed ergonomically to ensure a higher level of precision control. Moreover, they also offer more tailored productivity, which is relevant for professionals relying on multiple devices.
The design of these trackballs allows them to overcome the traditional flat mouse limitations, along with a lack of options in advanced thumb-operated trackballs. The latest launch incorporates a 60-degree vertical design that is ergonomist-approved and is more suitable for the natural positioning of the wrist and thumb. In fact, the shape allows it to be used effectively by individuals with average hand size. This would facilitate users to work through spreadsheets with more convenience, and manage multiple workflows with more authority.
ACCO Brands Corp. (NYSE:ACCO) offers gaming and computer accessories, planners, workspace machines, and note-taking products. The product portfolio also includes stapling, punching, planners, dry-erase boards, laminating, and binding machines, as well as do-it-yourself tools.
7. Electrovaya Inc. (NASDAQ:ELVA)
Recent analyst ratings clearly indicate a favorable sentiment towards the stock, making Electrovaya Inc. (NASDAQ:ELVA) one of the 15 most promising small-cap industrial stocks under $10.
On June 5, Roth Capital analyst Craig Irwin reiterated a Buy rating on Electrovaya Inc. (NASDAQ:ELVA) while increasing the price target from $12 to $20. The adjustment leads to a revised upside potential of almost 114%.
A recent trip to Electrovaya’s facility in Jamestown, New York, revealed that management has been able to gather a very competent group to expand its operational capabilities. In addition to this, Irwin noted that the company is on track with regard to building a dry room and purchasing equipment.
On May 15, Roth Capital increased the price target on Electrovaya Inc. (NASDAQ:ELVA) from $10 to $12, resulting in a revised upside potential of more than 28%. The firm also retained its Buy rating on the stock.
Roth Capital informed investors that although the management could not manage to deliver $1.4 million worth of finished goods during the second quarter due to supply chain concerns, the company reported results that were consistent with expectations. The firm noted that while airline customers’ expectations for demand for Electrovaya’s new airport equipment are being constrained by increased short-term uncertainty, the primary customer forklift battery demand is exceeding previous projections.
Electrovaya Inc. (NASDAQ:ELVA) is a manufacturer of lithium-ion batteries and battery management systems. Their offerings focus on preventing climate change and have various applications, including electric transportation, energy storage, warehousing, and heavy-duty electric vehicles. They leverage solid-state battery technology covering both low and high-voltage systems.
6. Merlin Inc. (NASDAQ:MRLN)
Merlin Inc. (NASDAQ:MRLN) is one of the 15 most promising small-cap industrial stocks under $10. The stock makes this list based on moderately bullish consensus views as of the June 12 close. Moreover, with a 1-year median target price of $13, it offers an upside of almost 91% to investors.
On June 5, Merlin Inc. (NASDAQ:MRLN) announced the successful completion of the critical design review for its C-130J autonomy program in partnership with the U.S. Special Operations Command. This accomplishment is a component of a contract that is aimed at demonstrating autonomous flight capabilities intended to lessen the heavy operational crew burden on large military aircraft.
The completion of this design assessment, according to Merlin CEO and creator Matt George, confirms the architectural platform designed for safe, scalable autonomy on large aircraft like the C-130J. He noted that it was made possible by the command’s cooperation and direction.
This project is a significant step towards demonstrating that the system satisfies the strict requirements necessary for actual US government and defense deployment. The company continues to be dedicated to showing that achieving full autonomy in flight, from initial takeoff to final landing, is one of the best methods to enhance efficiency and safety for the active duty warfighters.
Merlin Inc. (NASDAQ:MRLN) is an aerospace and defense technology company that offers Merlin Pilot, an integrated hardware and software solution to manage air traffic control communication, navigation, and real-time decision making. It also offers an overarching AI-Powered Software Platform, which manages autonomous flight. Merlin serves defense, commercial aviation clients, government agencies, and air cargo operators.
While we acknowledge the potential of MRLN 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 MRLN and that has 100x upside potential, check out our report about the cheapest AI stock.
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