We recently published a list of the 10 Best US Stocks Under $10 to Buy Right Now. In this article, we are going to take a look at where Peloton Interactive Inc. (NASDAQ:PTON) stands against other US stocks under $10 to buy right now.

On March 12, Stephanie Guild of Robinhood and Marci McGregor of Bank of America Merrill Lynch shared their perspectives on the current state of the market and strategies for navigating uncertainty. Guild explained that retail investors’ approach to buying the dip has shifted in line with changing market dynamics. While clients are still investing, they are focusing on specific names they favor. At the same time, she noted an increased tendency toward diversification, with investors allocating funds to index investments more than ever before. Additionally, many are taking advantage of Robinhood’s 4% cash yield, which reflects a balanced approach to investing during uncertain times.

McGregor emphasized the importance of focusing on long-term trends rather than reacting to short-term headlines, which often create unnecessary noise. She attributed some weak economic data from January to weather-related factors, calling it a temporary head fake. While acknowledging ongoing uncertainty around trade policy, McGregor highlighted key drivers for market recovery. She pointed out that 6 of the 11 S&P 500 sectors posted double-digit year-over-year earnings growth in Q4 and noted that market broadening is underway. Year-to-date, 63% of S&P constituents have outperformed the index compared to less than 30% over the last two years. This broadening trend signals potential strength in the market. Looking ahead, McGregor predicts a gradual easing of financial conditions later this year, potentially supported by a weaker dollar and improving corporate conditions. She suggested that if soft economic data begins to manifest more clearly, it could lead to Fed rate cuts. Factors such as deregulation, a merger cycle, and potential tax cut extensions may also contribute to recovery. Despite uncertainties, McGregor advised clients to buy on weakness and stay diversified. This includes exposure to international markets like Europe while maintaining confidence in the US as a leading market.

Our Methodology

We used the Finviz stock screener to compile a list of the top US stocks that were trading below $10 as of March 24. We then selected the 10 US stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.

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).

Peloton Interactive Inc. (NASDAQ:PTON)

Share Price as of March 24: $6.96

Number of Hedge Fund Holders: 49

Peloton Interactive Inc. (NASDAQ:PTON) provides an integrated fitness platform that offers connected fitness products like the Peloton Bike, Tread, and Row. These are marketed through e-commerce, showrooms, and retail partnerships. It focuses on delivering interactive and immersive fitness experiences to its customers.

The company’s Subscription segment drives its recurring revenue and member retention. It generated $421 million in FQ2 2025, which was 62% of total revenue. The company ended FQ2 with 2.88 million paid Connected Fitness subscriptions. This exceeded guidance by 19,000 subscriptions. The company’s monthly subscription churn was 1.4%, which was down 0.5% sequentially, due to fewer cancellations, pauses, and more reactivations. Members using multiple workout types had 60% lower churn.

Peloton Interactive Inc. (NASDAQ:PTON) added 220,000 users to its Strength+ app and over 300,000 to its 10K training program, which helped it expand its subscription offerings. The company prioritizes subscription growth and projects 2.75 to 2.79 million subscribers in 2025. It’s aiming for a 2x to 3x customer lifetime value (LTV) to acquisition cost (CAC) ratio. With a 50% gross margin forecast and 4.3/5 member satisfaction, subscriptions are a key strength for the company.

Greenlight Capital sees Peloton Interactive Inc. (NASDAQ:PTON) as a successful turnaround story with significant upside potential due to its cost-cutting measures and loyal customer base. It stated the following regarding the company in its Q4 2024 investor letter:

“We had some good successes, as well. Peloton Interactive, Inc. (NASDAQ:PTON) and Tenet Healthcare (THC), discussed below, were also large winners during 2024.

We presented our PTON thesis at the Robin Hood Investors Conference in October and previously sent you copies of the presentation. Yes, David rode for 20 minutes while presenting the thesis.5 PTON was a popular stock during the COVID era as demand for at-home fitness products and services skyrocketed. During this time, the company invested heavily for growth without any regard for profitability or expense management. After multiple missteps and subsequent management changes, the stock fell 98% from its peak price in early 2021. Throughout this time, PTON has maintained a loyal and engaged customer base through its subscription-based business model.

Recently, the company has committed itself to dramatically cutting costs. Should PTON be successful in right-sizing its cost structure, we expect significant EBITDA generation, and when applying a peer multiple to those profits, we believe the stock has significant upside. We established our position at an average price of $4.07 per share. PTON ended the year at $8.70.”

Overall, PTON ranks 2nd on our list of the best US stocks under $10 to buy right now. While we acknowledge the growth potential of PTON, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PTON but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

Disclosure: None. This article is originally published at Insider Monkey.