Top Stocks Under $10 to Invest in 2024

Conventional wisdom would say that stocks that trade under $10 are best left alone, as they tend to be riskier than others, but the right stocks in that price range may offer unparalleled returns. Microsoft, the world’s most valuable company, used to be one of them. On March 24, 1986, Microsoft shares traded at a record low of only $0.06 per share. Now they are worth more than $400.

The benefits include that stocks that trade under $10 are more accessible to the average investor and allow them to better diversify their portfolios than more expensive shares. For example, if you only have $1,000 to invest, you could buy $100 worth of 10 different companies, or more, if their shares trade at $10 or less. In this guide, we take a look at our picks of the top 10 stocks under $10. 

Top Stocks Under $10 to Invest in 2024

  1. Lindblad Expedition Company: The U.S.-based small-cap expedition travel company joined forces with National Geographic to provide unique travel experiences. 
  2. Ceragon Networks: The Israel-based wireless data transmission equipment maker made a big move to diversify and grow its market last year by buying Siklu, a wireless fiber connectivity provider.
  3. Clarivate: The London-based mid-cap is a subscription-based service that sells analytical products to help scientific and academic researchers find information, manage workflow and measure progress. 
  4. Taboola: The U.S. online advertising company is consistently growing revenue and using AI to improve business. It’s edging closer to profitability, thanks to deals with firms such as Yahoo, CNBC, and the BBC.
  5. Culp: The U.S. small cap with improving margins is one of the largest marketers of mattress fabrics for bedding and upholstery fabrics for residential and commercial furniture. 
  6. Archer Aviation: The small-cap company isn’t profitable and has no revenue yet, but it’s the furthest along of several companies looking to make an electric air taxi. 
  7. Doman Building Materials: The small-cap Canadian company has managed to improve profitability, despite challenging conditions with falling lumber prices. It’s trading at less than 10 times earnings.
  8. Cemex: The Mexican company makes and sells cement and ready-mix concrete. It’s the fifth largest cement company in the world based on production.
  9. Tencent Music: The Chinese company runs music streaming services, which have more than 594 million monthly active users (MAUs) combined. 
  10. Viant: The U.S.-based small-cap advertising software company has a platform that allows companies to buy ads across various channels, such as mobile, desktop, connected TVs, audio, and digital billboards.

A Closer Look at the Top Stocks Under $10 in 2024

Let’s take a more in-depth look at the top stocks under $10 to invest in this year:

1. Lindblad Expeditions: Luxury Ecotourism, Strong Margins

Lindblad Expeditions has ecotourism cruises and land excursions to all seven continents. Its 16-ship fleet offers cruises for up to 148 people, much smaller than those of a typical cruise line. 

Lindblad chartA report by The Brainy Insights placed the adventure tourism market at $295.37 billion in 2022 and expects it to grow at a compound annual growth rate (CAGR) of 17.56% to a $1.49 trillion market by 2032.

Lindblad has remarkably high yields with its cruises running at an average price of $14,000 per passenger. It focuses on wealthy tourists who are generally 50 and older.

In the third quarter, revenue rose 22%, year over year, to $176 million and EPS was $0.08, compared to a loss per share of $0.18 in the same quarter a year earlier. Lindblad’s 2023 reservations were up 42% compared to 2019.

Ticker  One-year price change  Price (as of 2/9/24)
NASDAQ: LIND -12.62% $9.22

2. Ceragon Networks: Best Stock Under $10 for Connectivity

It makes the hardware, such as radios, antennas and base stations, used by companies to maintain their wireless networks, as well as equipment that allows voice, data and video to travel by radio waves over long distances.

Ceragon graphicCeragon is predicting 2023 revenue of between $338 million to $346 million, compared to 2022 revenue of $295.2 million. In 2024, it said it expects to pull in between $385 million and $405 million in revenue, representing 14% growth at the midpoint. In the third quarter, Ceragon had revenue of $87.3 million, up 10.9%, year over year and EPS of $0.04, compared to a loss per share of $0.01 in the same quarter a year ago.

With three consecutive quarters of profitability, Ceragon appears to have turned a corner. The deal to buy Siklu opens up more opportunities in the U.S. market and gives Ceragon access to smaller service providers and private networks.

Ticker  One-year price change Price (as of 2/9/24)
NASDAQ: CRNT 32.68% $2.59

3. Clarivate: AI Increases Demand for Its Information Services

Clarivate operates in three segments: Academia and Government, Life Sciences and Healthcare, and Intellectual Property, the latter becoming more important with the rise in AI.

Clarivate chartSome of its best-known products include the Web of Science, which gives access to multiple databases that provide reference and citation data in academic research, EndNote, a software package used to manage bibliographies and references for essays, reports and articles, and Publons, a platform for researchers to share recognition for peer review. 

In the third quarter, the company reported $647 million in revenue, up 1.7%, year over year and net income of $12.3 million, compared to a net loss of $4.4 billion in the same quarter a year ago, mostly related to acquisitions. Last fall, the company formed a partnership with EveryLibrary, a library advocacy organization and Clarivate renewed its contract with the Federal Library and Information network, a group of U.S. federal agencies that supports libraries and information centers.

Ticker  One-year price change Price (as of 2/9/24)
NYSE: CLVT -14.15% $9.38

4. Taboola: Ubiquitous Yet Still Underbought

If you’ve noticed the “Around the Web” sections at the bottom of news stories or “Recommended for You: sections at the bottom of news articles, that’s Taboola. The company uses AI-driven algorithms to steer relevant content and advertisers to users, based on their browsing history.

Taboola chartThe company has consistently grown its ex-TAC (traffic acquisition costs) margins, which show how much profit it’s making after accounting for the expense of acquiring users of traffic. 

In the third quarter, Taboola had revenue of $360.2 million, up 8.3%, year over year and above the top end of its earlier predictions. It lost money, with a loss per share of $0.07, but that was a 35.7% improvement from the same period a year ago. The company’s 2023 guidance points to revenue between $1.44 billion and $1.47 billion, after earning $1.4 billion in revenue in 2022.

While it isn’t profitable yet, it paid down $30 million in debt and reported $23 million in share buybacks through the third quarter.

Ticker  One-year price change Price (as of 2/9/24)
NASDAQ: TBLA 14.52% $4.81

5. Culp: Best Stock for a Turnaround Play

Culp makes fabrics for mattresses and bedding and upholstery fabrics for furniture. The company is facing macroeconomic headwinds, most notably, inflationary pressures that are tamping down consumer spending and a challenging labor market. If you buy Culp stock, you are looking for a turnaround as the company’s shares are down considerably since it cut its dividend in 2022.

Culp graphicHowever, there are two long-term trends that should help Culp’s business. As seniors age, healthcare facilities are expanding and with it, the needs for mattresses and bedding are increasing. On top of that, homeowners are opting for more high-end and advanced mattresses and that creates more demand for Culp’s products.

In the second quarter of fiscal 2024, Culp had sales of $58.7 billion, up 0.6%, year over year, led by a 19.6% climb in mattress fabric sales, and mitigated by a 14.9% drop in upholstery fabric sales. The company has tightened its spending and it said it had a net loss of $2.4 million, or $0.19 per share , compared to a loss of $12.2 million, or $0.99 per share in the same period in fiscal 2023.

Ticker  One-year price change Price (as of 2/9/24)
NYSE: CULP -5.29% $5.01

6. Archer Aviation: Air Taxi Visionary With Long-Term Potential

Archer is competing with several companies, such as Joba and Beta, to be the first to have an approved electric air taxi with zero emission. In just three months, the company had a successful test of the first part of its Midnight program. It aims Midnight to become the lead vehicle in an electric air taxi service, sometimes called flying cars, which would cut commuting times from hours to minutes. The prototype is designed for 20-mile to 50-mile trips in crowded urban areas and can carry a pilot and four passengers.

Archer Aviation chartWhile this may sound like science fiction, Fortune Business Insights projects 58.01% CAGR for the market through 2040. Archer lost $51.6 million in the third quarter and had no revenue, but it has $461.4 million in cash and big-name collaborators in automaker Stellantis and United Airlines, Atlantic Aviation and NASA. The company also has a $142 million contract with the Department of Defense to help the Air Force replace helicopters with safer and quieter aircraft.

Archer is shooting to have its ridesharing program ready by 2025, beginning in New York, Miami and Los Angeles. It plans to launch air taxi operations in Abu Dhabi by 2026. It also has plans for an electric air taxi route between O’Hare International Airport in Chicago and the Vertiport Chicago on the west side of the city. 

Ticker  One-year price change Price (as of 2/9/24)
NYSE: ACHR 103.96% $5.40

7. Doman Building Materials: Outstanding Dividend Given the Price

The vertically integrated building materials company owns 109,000 acres of forest, has five specialty sawmills, three truss plants and four specialty planing mills, along with 29 distribution centers. Over the past five years, yearly revenue increased by 132% and annual net income by 366%.

Doman chartIn the third quarter, revenue fell 13.47% to CAD 643.9 million ($478.3 million), which the company attributed to fewer housing starts. However, Doman increased net income by 82% over the same period, to CAD 21.2 million ($8.3 million). 

Doman’s dividend of CAD 0.14 ($0.10) equals a yield of around 7.12%, so investors can be patient to wait for revenue to increase. The company has paid a dividend for 55 consecutive quarters.

Ticker  One-year price change Price (as of 2/9/24)
OV: CWXZF 1.25% $5.66

8. Cemex: Building on a Solid Foundation

Cemex sells concrete, ready-mix cement and aggregates, which are loose, granular materials that are used in construction projects, such as sand, gravel and crushed stone, in more than 50 countries. Increased urbanization and infrastructure development globally, along with rising disposable incomes in emerging markets, are trends in the large-cap company’s favor.  

Cemex chartThe company’s sales are relatively diverse, divided nearly equally between the U.S., Mexico and Europe. Another positive development is that it has paid down its total debt by $696 million since the third quarter of 2022, helping to improve its margins.

In the third quarter, Cemex said it had revenue of $4.57 billion, up 15.55%, year over year and through nine months, revenue was up 10% to $13.2 billion. EPS through nine months is $0.42, down from $0.48 in the same period last year.

Ticker  One-year price change Price (as of 2/9/24)
NYSE: CX 49.62% $7.87

9. Tencent Music: Dominant Player Edge in China

The company’s music apps include QQ Music, Kugou Music, Kuwo Music and WeSing, with the first three being the most popular music Apps in China. In January, the company renewed a multiyear licensing deal with Universal Music Group that gives it access to UMG’s music catalogs for its streaming services.

Tencent music chartTencent has been profitable since its initial public offering in 2018 and it is seeing consistent growth in the number of paying users and average revenue per paying user, a more stable economic model than just depending on increased monthly average users. 

In the third quarter, the company saw revenue fall 10.8%, year over year, to RMB 6.57 billion ($900 million), but net income rose 15.6% to RMB 1.26 billion ($173 million).

Ticker  One-year price change Price (as of 2/9/24)
NYSE: TME 12.46% $9.62

10. Viant: Ready for a Future Without Cookies

Viant is a digital advertising company that uses a cloud-based platform to deliver omnichannel marketing campaigns for companies. The company’s services are becoming more important, thanks to the elimination of third-party cookies in web browsers that is expected to be complete by the end of this year.

Viant’s omnichannel DSP uses the Viant Household ID to help marketers to reach 115 million households with personalized advertising without using cookies. The company isn’t profitable, but is becoming more so and its focus on growth seems to be paying off. It also has no outstanding debt.

In the third quarter, the company’s revenue was $59.6 million, up 22%, year over year. It lost $672 million or $0.03 per share, but that compares to a loss of $12.4 billion, a per-share loss of $0.22 in the same period last year.

Ticker  One-year price change Price (as of 2/9/24)
NASDAQ: DSP 91.39% $8.78

How to Pick the Best Stocks Under $10

Focus on Growth and a Path Toward Profitability

Stocks under $10, sometimes called penny stocks (though that’s more common with stocks that trade under $5), present more risk and volatility than other stocks because they tend to be newer companies with smaller market caps. They can be great stocks for building wealth, provided you are willing to do thorough research. Take a clear-eyed look at a company’s financials. The best stocks under $10 have sustainable growth potential and, even if they’re not profitable yet, they are clearly on the way.

Look for a Deep Moat

Stocks that are under $10 can succeed if they have a unique business model that isn’t easily replicated. Archer Aviation, Taboola, Viant and Tencent Music all have early-mover advantages that help them stand out from competitors.

Look for Overlooked Companies

Investors tend to invest in well-known companies that they know as consumers. Many of the best stocks that trade under $10 aren’t well-known to consumers but instead sell their products or services to other companies.  They have solid earnings, but not a lot of publicity and tend to fly under the radar of typical investors.

Understand Industry Trends

Smaller companies can sometimes be more agile in adjusting to changing business conditions or new business regulations that will lead to industry changes. Look for companies that are trendsetters in a particular industry. If there’s a sea change on the way, better to invest in a company that’s ready to surf that change.

Acknowledge the risks

Over time, stock prices generally find their level. That’s the beauty of the free market system. Often, there’s a good reason why a company’s shares are trading below $10. It makes sense to be more cautious with lesser-priced stocks and not to invest too much at one time. 

With such stocks, your overall portfolio diversification becomes even more important to balance the risks associated with stocks that trade under $10. It also pays to be patient, as the built-in volatility associated with smaller companies means it makes sense to hold them as long-term investments.

Where to Get Undervalued Stock Tips and Insights

AltIndex is designed to give investors an edge and it can be particularly helpful in finding good stocks under $10. The subscription-based service uses artificial intelligence (AI) and alternative data, pressing past conventional financial reports.

AltIndex Under $10 stocks graphic.The company even has a list, that it updates every 30 minutes of top stocks under $10

The service utilizes a variety of sources for its data, including social media, app downloads, customer satisfaction ratings, and other information regarding a company.

AltIndex gathers the information regarding a company, compares it to similar companies and uses machine learning to come up with investment insights. Stocks are scored from 1 to 100, simplifying the decision-making process for investors.

AltIndex has more than 10,000 members and is widely used. It provides more than 100,000 unique daily stock insights and alerts and has a very strong win rate of 75% from its AI stock picks.

You can try AltIndex’s Starter Plan for just $29 a month and receive stock picks directly to your email, as well many other useful features.

Conclusion

Investing in stocks under $10 requires a disciplined approach. The dangers associated with small-cap stocks can be worth it because they also present unique opportunities for huge growth. Buying such stocks as part of a larger portfolio can help add diversity while delivering long-term earnings growth.

Investors willing to do the research and stay informed regarding lesser-priced stocks can be rewarded. Even if some of the investments don’t pan out, it only takes one future Microsoft to make the risks worthwhile.

References

https://www.thebrainyinsights.com/report/adventure-tourism-market-13912

https://clarivate2023indexrb.q4web.com/news-events/press-releases/news-details/2023/Clarivate-Partners-with-EveryLibrary-to-Support-and-Nurture-Libraries-in-the-U.S/default.aspx

https://www.globenewswire.com/news-release/2022/10/04/2527458/0/en/Flying-Cars-Market-Size-Worth-USD-1533-471-Billion-Globally-by-2040-at-58-01-CAGR.html

https://www.statista.com/statistics/711295/china-leading-mobile-music-platforms-by-active-user-number/

https://www.marketingdive.com/news/death-cookie-deprecation-generative-ai-marketing-prediction/704240/

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Jim Halley
Editor
Jim Halley
Editor

I am an experienced journalist who has also worked as an editor and writer at the Savannah Morning News, Salt Lake Tribune, USA Today, Stars and Stripes, and The Motley Fool. I spent the first half of my career in sports journalism, but in recent years have switched to writing about my other passion, stocks, particularly healthcare, real estate and consumer staples stocks. I've won numerous journalism awards from the Associated Press and state press associations and have been a judge for the Georgia Sportswriters Association. I've written one non-fiction book, Just One More Time, about Georgia Southern football, and…