In this article we discuss the top 5 best stocks under $10 in 2021 that are currently very attractive . If you want to read our comprehensive analysis about these companies, go directly to the 10 Best Stocks Under $10 in 2021.
5. Sumitomo Mitsui Financial Group, Inc. (NASDAQ: SMFG)
Number of Hedge Fund Holders: 10
Sumitomo Mitsui Financial Group, Inc. (NASDAQ: SMFG) offers general banking services and financial services to its customers. It has a range of business segments, including structured finance, trade finance, corporate finance, risk management, consumer loans, asset-backed finance, and securities underwriting. Despite its diverse product portfolio, the stock is modestly priced, closing the latest trading session at $7 per share. Its business segments are high-growth areas, and the combination of a low stock price earns it a spot as one of the top 10 stocks under $10.
Ten hedge funds had a stake in SMFG in Q3 2020, led by Ares Management Corp with slightly over 12 million shares. Ares Management announced a public offering through which it would offer 9.5 million shares. SMFG agreed to participate in the offering by purchasing $250 million worth of shares from Ares.
SMFG is reportedly working on an expansion plan that it will execute through a partnership with a U.S-based global investment bank and an Asian lender. The company is reportedly looking for a partner that will underwrite the sale of bonds and equities in the U.S to leverage the post-pandemic boom. The expansion into the U.S will provide more growth opportunities for the stock, which is why it is one of the top 10 stocks under $10 that have a lot of potential.