On Friday, September 5, the three major averages closed in the red following a weaker-than-expected US jobs report, which caused concerns about a slowing economy.
The Bureau of Labor Statistics reported that only 22,000 jobs were added in August, much less than the 75,000 jobs that economists polled by Dow Jones had expected. The unemployment rate also went up to 4.2%, which was in line with expectations.
The report increased the chances that the Federal Reserve will lower interest rates by at least a quarter-point at its meeting later this month.
On Friday, the S&P 500 dropped by 0.32%. The Nasdaq Composite lost 0.03%. The Dow Jones Industrial Average fell by 0.48%. Earlier in the session, all three indexes had reached new record intraday highs.
Even though stocks declined on Friday, the S&P 500 and the tech-heavy Nasdaq still finished the week with gains, gaining 0.33% and 1.14%, respectively. The Dow finished the week down 0.32%.
While the major indexes fell on Friday, the Russell 2000, which is the small-cap index, gained 0.48%. This performance on Friday helped the Russell 2000 achieve a fifth positive week in a row.
With this background in mind, let’s take a look at the top 10 stocks under $10 that could triple.
Our Methodology
To compile our list of the top 10 stocks under $10 that could triple, we used the Finviz stock screener to look for stocks with a share price of less than $10 and stocks that analysts believe can gain more than 200% over the next 12 months. We sorted our results based on market capitalization and picked the top 25 stocks that met these criteria as of September 5, 2025.
Next, we focused on the top 10 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q2 2025 database of 983 elite hedge funds. Finally, the top 10 stocks under $10 that could triple were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q2 2025.
Why do we care about what hedge funds do? 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).
Top 10 Stocks Under $10 That Could Triple
10. Sana Biotechnology, Inc. (NASDAQ:SANA)
Share Price: $2.96
Average Price Target Upside Potential According to Analysts: 204.57%
Number of Hedge Fund Holders: 16
Sana Biotechnology, Inc. (NASDAQ:SANA) is one of the top stocks under $10 that could triple. On August 21, JMP Securities reaffirmed its Market Outperform rating for Sana Biotechnology, Inc. (NASDAQ:SANA) with a price target of $5.
This decision came after Sana Biotechnology, Inc. (NASDAQ:SANA) shared financial results and updates for the second quarter of 2025.
The research firm highlighted the six-month clinical results from the company’s ongoing UP421 study for type 1 diabetes (T1D) as the most important recent news.
JMP analysts pointed out that the modified pancreatic islet cell program is validating Sana Biotechnology, Inc.’s (NASDAQ:SANA) HIP platform for treating type 1 diabetes.
The firm also highlighted that the company’s iPSC program is advancing and the company plans to submit an IND filing in 2026. JMP analysts also pointed to another key catalyst for the company, the upcoming SC291 data for autoimmune disease (AID) expected in Q4 2025.
Sana Biotechnology, Inc. (NASDAQ:SANA) reported a pro forma Q2 2025 cash position of $177.2 million. JMP analysts noted that this is enough to support the company’s ongoing research and development efforts.
Sana Biotechnology, Inc. (NASDAQ:SANA) is a biotechnology company focused on developing and delivering engineered cells as a new class of medicines.
9. aTyr Pharma, Inc. (NASDAQ:ATYR)
Share Price: $5.61
Average Price Target Upside Potential According to Analysts: 230.06%
Number of Hedge Fund Holders: 16
aTyr Pharma, Inc. (NASDAQ:ATYR) is one of the top stocks under $10 that could triple. On August 22, Jefferies increased its price target for aTyr Pharma, Inc. (NASDAQ:ATYR) from $9 to $17 while keeping a Buy rating.
This decision comes ahead of the Phase 3 trial results for aTyr Pharma, Inc.’s (NASDAQ:ATYR) lead candidate, efzofitimod. The company plans to release topline data from its Phase 3 EFZO-FIT study of efzofitimod in pulmonary sarcoidosis in mid-September 2025.
Jefferies outlined three possible outcomes for the trial results. The firm sees a 37% chance of a strong positive result, showing a drop of more than 3mg in daily oral corticosteroid dose. According to the firm, this could cause aTyr Pharma, Inc.’s (NASDAQ:ATYR) stock price to rise by 3 to 5 times.
The firm sees a 23% chance for base case results, with a 1.87 to 3mg reduction, which could push the stock price 1 to 3 times higher. Jefferies assigned a 40% probability to negative results from the study, which could see the stock price fall by up to 75%.
Jefferies pointed out that there is a big unmet need for treatments for pulmonary sarcoidosis, which does not have any approved therapies yet. The firm noted that early Phase 1 and 2 proof-of-concept data showed encouraging signs, offering hope for positive outcomes in the Phase 3 trial.
aTyr Pharma, Inc. (NASDAQ:ATYR) is a clinical-stage biotechnology company focused on using evolutionary intelligence and tRNA synthetase biology to develop new treatments for diseases involving fibrosis and inflammation.
