We recently compiled a list of the 12 Stocks Under $10 With High Upside Potential. In this article, we are going to take a look at where Transocean Ltd. (NYSE:RIG) stands against the other stocks under $10 with high upside potential.
Small-cap stocks in the U.S. have suffered as the broader market is under pressure due to the ongoing tariff policy transition. The Russell 2000 small cap index fell over 15% from its November 2024 highs as of March 7. It has dropped by almost 9% year-to-date. In comparison, the S&P 500 index, which tracks large-cap stocks, has plunged over 3.50% so far in 2025.
However, things could change for small-cap stocks. President Trump’s focus on domestic economic growth could make them more attractive. The prospect of higher interest rates remains a major hurdle, as rising borrowing costs tend to impact smaller companies more than larger ones. Keith Lerner, co-chief investment officer at Truist Advisory Services, addressed this situation as a “tug of war”—where strong economic growth could benefit small caps, but higher rates pose a challenge to them.
Experts’ Take on Small-Cap Prospects in 2025
Experts have a mixed view of small caps. Some see potential growth opportunities due to better economic activity in the domestic market, while others have doubts due to fewer interest rate cuts expected in 2025. Those bullish on small-cap stocks expect reduced regulations and support for domestic industries from Trump’s policies.
Sameer Samana, senior global market strategist at Wells Fargo Investment Institute, noted that small companies are more US-focused than multinational corporations. However, a tariff increase can create disruption in supply chains, which may hurt smaller businesses too.
MJP Wealth Advisors chief investment officer Brian Vendig appeared on Yahoo! Finance’s Catalysts and addressed the potential outlook of small-cap stocks in 2025. Vendig sees a stable economy and policy that will positively impact the small-caps, creating business expansion and merger opportunities. He added that the market will remain choppy in the first few months of 2025, but things will improve as the policies become clearer.
According to RBC Wealth Management, small caps finally seem ready for a comeback after years of trailing behind large-cap stocks.
Our Methodology
We used the Finviz stock screener to compile a list of stocks under $10 with an upside of over 50%. Once we had an aggregated list, we ranked these stocks based on the analyst upside potential sourced from CNN. Please note that the share price is accurate as of March 7. We also mentioned hedge fund sentiment around each stock, as of Q4 2024. Finally, the 12 best stocks under $10 with high upside are ranked in ascending order of the upside potential.
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).
An aerial view of an oil rig with drillers in hard hats working on the platform.
Transocean Ltd. (NYSE:RIG)
Share Price: $2.75
No. of Hedge Fund Holders: 38
Analyst Upside Potential: 76.36%
Transocean Ltd. (NYSE:RIG) is a global leader in offshore contract drilling and provides essential services to the oil and gas industry. The company specializes in ultra-deepwater and harsh environment drilling. It owns and operates one of the most advanced drilling fleets in the industry.
The company recently executed the first two 20K subsea completions in industry history. With this achievement, Transocean now has a competitive edge in the sector. Transocean Ltd. (NYSE:RIG) has reported strong Q4 2024 results, posting contract drilling revenues at $952 million and adjusted EBITDA at $323 million. The company secured several high-value contracts, including a $410,000 per day contract with Reliance Industries in India. This contract ensures strong cash flow through 2027. In addition to that, the company’s total backlog stands at a remarkable $8.3 billion, reflecting substantial revenue visibility into 2026. This strong financial stability makes it one of the top stocks under $10.
Overall RIG ranks 10th on our list of the stocks under $10 with high upside potential. While we acknowledge the potential of RIG as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RIG 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 Invest In According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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