In this article, we will take a look at the 10 best tech stocks to buy under $10.
Technology stocks have paved the way for economic growth in the past few years, reaching valuations that many analysts now term sky-high. Of the 10 largest companies in the world based on market capitalization, six operate in the technology sectors, including Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), Facebook, Inc. (NASDAQ:FB) and Alphabet Inc. (NASDAQ:GOOG).
According to a report by McKinsey, the increasing importance of technology to both the strategy and operations conducted by companies can be measured by the amount of resources allocated to fund their digital and technology capabilities during the pandemic, even if it came at the cost of cutting resources from other sectors of the business.
According to Forrester, the outlook for the US tech market is steadily becoming more hopeful as US tech budgets are expected to increase by 7.4% in 2021 and 6.7% in 2022.
Some of the most notable tech stocks under $10 include Nokia Corporation (NYSE:NOK), Blackberry Limited (NYSE:BB) and Conduent Incorporated (NASDAQ:CNDT), among others discussed in detail below.
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Our Methodology
Let us now analyze our list of the 10 best tech stocks to buy under $10. We took into account hedge fund sentiment, analysts’ ratings, long-term growth potential, and fundamentals while choosing these stocks.
Why should we pay attention to hedge fund sentiment while choosing stocks?
Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the S&P 500 ETF (SPY). Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
10 Best Tech Stocks to Buy Under $10
10. iClick Interactive Asia Group Limited (NASDAQ:ICLK)
Number of Hedge Fund Holders: 5
Stock Price as of October 2: $5.52
iClick Interactive Asia Group Limited (NASDAQ:ICLK) is a leading online marketing technology platform in China that provides data analysis and digital marketing services. Ranked tenth on the list of the 10 best tech stocks to buy under $10, iClick Asia Group Limited has a market capitalization of $521.01 million.
At the end of the second quarter of 2021, 5 hedge funds in the database of Insider Monkey held stakes worth $5.03 million in iClick Interactive Asia Group Limited.
iClick Interactive Asia Group Limited issued its quarterly earnings report for the second quarter of 2021 on August 25, with reported earnings per share at $0.03, beating estimates by $0.01. The declared revenue for the quarter came in at $78 million, surpassing estimates by $3.28 million.
The company’s revenue has more than doubled over the last three years leading up to 2020, and its gross profit grew even faster, indicating the company’s improving margins.
9. ASE Technology Holding Co., Ltd. (NYSE:ASX)
Number of Hedge Fund Holders: 7
Stock Price as of October 2: $7.89
ASE Technology Holding Co., Ltd. (NYSE: ASX) is a semiconductor manufacturing firm. Founded in 1984, the China-based company, with operations in Asia, North America and Europe, is ranked ninth on the list of the 10 best tech stocks under $10.
At the end of the second quarter of 2021, 7 hedge funds in the database of Insider Monkey held stakes worth $241 million in ASE Technology Holdings Co., Ltd..
For the second quarter of 2021, ASE Technology Holding Co., Ltd. reported an EPS of $0.16, beating market estimates by $0.02.
The company’s (NYSE:ASX) stock has returned more than 55% to investors over the past year. Out of the hedge funds being tracked by Insider Monkey’s database, Washington-based investment firm Fisher Asset Management is a leading shareholder in ASE Technology Holding Co., Ltd. with 26.39 million shares worth more than $212.5 million.
In August 2021, sales for the global semiconductor industry rose over 29.7% to $47.2 billion, with regional sales increasing across all markets on a year-over-year basis. ASE Technology Holding Co., Ltd was one of the companies with the highest registered sales growth, with over 8.6% increase on a month-by-month basis.
Just like Nokia Corporation, Blackberry Limited and Conduent Incorporated, ASE Technology Holding Co., Ltd is a notable tech stock under $10.
8. AXT Inc. (NASDAQ:AXTI)
Number of Hedge Fund Holders: 11
Stock Price as of October 2: $8.28
AXT Inc. (NASDAQ:AXTI) is a semiconductor manufacturing company that designs and manufactures high-performance components for a number of electronics. The California-based company is ranked eighth on the list of the 10 best tech stocks to buy under $10.
AXT Inc. reported quarterly earnings for the second quarter of 2021 on July 27, posting a revenue of $33.73 million, up 52.41% compared to the same period last year. The company also reported $0.10 in earnings per share, beating estimates by $0.03.
By the end of the second quarter of 2021, 11 hedge funds in the database of Insider Monkey held stakes worth $29.8 million in AXT Inc.. The number of hedge funds with stakes in the company remained the same for both the first and second quarter of 2021.
On September 14, BWS Financial analyst Hamed Khorsand kept a Buy rating on AXT Inc. along with a $20 price target on its shares.
7. Celestica Inc. (NYSE:CLS)
Number of Hedge Fund Holders: 14
Stock Price as of October 2: $9.25
Celestica Inc. (NYSE:CLS) is a Canadian multinational electronics company. Ranked seventh on the list of the 10 best tech stocks under $10, the Toronto-based company is a provider of hardware and supply chain solutions.
The company issued its quarterly earnings report for the second quarter of 2021 on July 26, with reported earnings per share at $0.30, beating estimates by $0.06. The declared revenue for the quarter came in at $1.42 billion, surpassing market predictions by $42.74 million.
By the end of the second quarter of 2021, 14 hedge funds in the database of Insider Monkey held stakes worth more than $123 million in Celestica Inc.. This is compared to 13 hedge funds in the previous quarter that held stakes worth approximately $134.8 million.
On September 23, Citi analyst Jim Suva raised his price target on Celestica Inc. to $8.50 from $8 and kept a Sell rating on the shares.
Just like Nokia Corporation, Blackberry Limited and Conduent Incorporated, Celestica Inc. is a notable tech stock under $10.
6. Wipro Limited (NYSE:WIT)
Number of Hedge Fund Holders: 14
Stock Price as of October 2: $8.94
Wipro Limited (NYSE: WIT) is an Indian multinational technology company that provides information technology and business consulting services. Founded in 1945, the IT company is placed sixth on our list of 10 best tech stocks to buy under $10.
For the second quarter of 2021, Wipro Limited reported an EPS of $0.06, in-line with the market predictions for the quarter. However, the reported revenue of $2.06 billion fell short of estimates by $0.80 million.
By the end of the second quarter of 2021, 14 hedge funds in the database of Insider Monkey held stakes worth more than $164 million in Wipro Limited. This is compared to 13 hedge funds in the previous quarter that held stakes worth approximately $130.6 million.
On September 30, JPMorgan analyst Ankur Rudra upgraded Wipro Limited to Neutral from Underweight with a price target of $8.77, up from $6.34.
Just like Nokia Corporation, Blackberry Limited and Conduent Incorporated, Wipro Limited is a notable tech stock under $10.
5. BlackBerry Inc. (NYSE:BB)
Number of Hedge Fund Holders: 20
Stock Price as of October 2: $9.70
BlackBerry Limited is a cybersecurity company based in Waterloo, Canada. Ranked fifth on the list of the 10 best tech stocks to buy under $10, the company provides security software that make use of artificial intelligence and machine learning against cyberthreats.
The company reported revenues of $266 million in its earnings report for the second quarter of 2021, which beat estimates by $26.26 million. The earnings per share was reported to be $0.11, surpassing estimates for the quarter by $0.09.
At the end of the second quarter of 2021, 20 hedge funds in the database of Insider Monkey held stakes worth more than $732 million in BlackBerry Limited. This is compared to 24 hedge funds in the previous quarter that held stakes amounting to approximately $499.7 million.
On September 23, TD Securities analyst Daniel Chan raised his price target on BlackBerry Limited to $9 from $8.50 and kept a Reduce rating on the shares after the company released its second quarter report.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment fund Kahn Brothers is a leading shareholder of BlackBerry Limited, with over 1.76 million shares worth $21.54 billion.
4. Infinera Corporation (NASDAQ:INFN)
Number of Hedge Fund Holders: 21
Stock Price as of October 2: $8.38
Infinera Corporation (NASDAQ:INFN) is a California-based telecommunications equipment company. Ranked fourth on the list of the 10 best tech stocks to buy under $10, Infinera Corporation manufactures optical transmission equipment and IP transport technologies.
The company issued its quarterly earnings report for the second quarter of 2021 on August 3, with reported earnings per share at -$0.03, crossing estimates by $0.02. On the other hand, the revenues reported to be $338.23 million, missed estimates by $6.65 million.
At the end of the second quarter of 2021, 21 hedge funds in the database of Insider Monkey held stakes worth more than $428 million in Infinera Corporation. This is compared to 20 hedge funds in the previous quarter that held stakes amounting to approximately $372 million.
Earlier this September, MKM Partners analyst Michael Genovese kept a Neutral rating on Infinera Corporation alongside a price target of $9.00.
3. Conduent Incorporated (NASDAQ:CNDT)
Number of Hedge Fund Holders: 23
Stock Price as of October 2: $6.83
Conduent Incorporated is a business services provider company based in New Jersey that provides digital platforms for businesses. Ranked third on the list of the 10 best tech stocks to buy under $10, Conduent Incorporated has a market capitalization of $1.45 billion.
At the end of the second quarter of 2021, 23 hedge funds in the database of Insider Monkey held stakes worth more than $386.8 million in Conduent Incorporated. This is compared to 22 hedge funds in the preceding quarter that held stakes amounting to approximately $361 million.
On August 5, the company released its earnings report for the second quarter of 2021. The declared EPS came in at $0.17, surpassing market predictions by $0.03. The declared revenues were $1.03 billion, missing the consensus estimated revenues by $2.50 million.
On August 17, JPMorgan analyst Puneet Jain raised his price target on Conduent Incorporatedto $9 from $8 and kept a Neutral rating on the shares.
In its Q2 investor letter, Curreen Capital commented on the attractive sales growth and turnaround by Conduent Incorporated. Here is what the fund said:
“Conduent is a business process services company. It handles transaction intensive processing for government and commercial customers. After years of weak sales, declining profits, conflict with its largest shareholder (Carl Icahn), and the loss of its CEO – the company is turning around. Conduent’s new CEO is addressing the company’s key problems and is driving sales growth. Conduent currently trades at an extremely attractive upside-to-downside ratio.”
2. Sirius XM Holdings Inc. (NASDAQ:SIRI)
Number of Hedge Fund Holders: 24
Stock Price as of October 2: $6.00
Based in New York, Sirius XM Holdings Inc. (NASDAQ:SIRI) is a broadcasting company that engages in the provision of satellite radio and online radio services throughout the United States. The company comes in at second on our list of the 10 best tech stocks to buy under $10.
On July 29, Pivotal Research analyst Jeffrey Wlodarczak raised his price target on Sirius XM Holdings Inc. to $8.25 from $7.75, and kept a Buy rating on the shares of the company.
On July 27, the company posted earnings for the second quarter of 2021, reporting earnings per share of $0.10, beating market predictions by $0.03. The revenue over the period was more than $2.16 billion, up 15.21% on a year-on-year basis, surpassing estimates by $95.26 million.
At the end of the second quarter of 2021, 26 hedge funds in the database of Insider Monkey held stakes worth more than $577 million in Sirius XM Holdings. This is compared to 24 hedge funds in the preceding quarter that held stakes amounting to approximately $570 million.
Out of the hedge funds being tracked by Insider Monkey, Warren Buffett’s investment firm Berkshire Hathaway is a leading shareholder in Sirius XM Holdings Inc. with 43.6 million shares worth more than $285.5 million.
1. Nokia Corporation (NYSE:NOK)
Number of Hedge Fund Holders: 26
Stock Price as of October 2: $5.46
Nokia Corporation is a Finland-based multinational consumer electronics manufacturer. Specializing in telecommunications, information technology, and electronics, the company has a market capitalization of $31.55 billion, and ranks first on our list of the 10 best tech stocks to buy under $10.
In the second quarter of 2021, Nokia Corporation reported earnings per share of $0.11, beating the estimated EPS by $0.05.
At the end of the second quarter of 2021, 26 hedge funds in the database of Insider Monkey held stakes worth more than $494.3 million in Nokia Corporation. This is compared to 21 hedge funds in the preceding quarter that held stakes amounting to approximately $352.9 million.
On August 3, Societe Generale analyst Aleksander Peterc raised his price target of Nokia Corporation to $7.81 from $6.27, and kept a Buy rating on the stock.
You can also take a peek at 10 Best Biotech Stocks Under $10 and 10 Best Automotive Stocks to Invest in Now.
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This article is originally published at Insider Monkey.
