Before I get into the best stocks under $10 to buy right now, let me start with this disclaimer: share price doesn’t really matter.
As Warren Buffett is fond of saying, “Price is what you pay, value is what you get.” That’s true. Still, for someone starting a portfolio with just a couple thousand dollars, investing in 50 shares of a $10 stock seems way more appealing than investing in one share of a $1,000 stock.
If you want to diversify, you don’t want to devote half your portfolio to one share of Amazon (AMZN) or Alphabet (GOOG). You can create a portfolio of 10 stocks even if you only have $2,000 or $3,000 to invest.
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To do it, however, you need to find low-priced stocks.
From there, it depends on what you’re looking for in your investments: long-term gains or a quick return in a prime turnaround stock candidate.
If you want to find the best stocks under $10 that you can buy and hold for a while, you should start with stocks that have already been trending upward for some time. A strong chart, after all, is one of the best indicators of future gains. For that, I screened for stocks with share prices under $10 that are trading above their 50-day moving average. There were quite a few on the list, so I narrowed it down to companies with a potentially powerful “story” (as Mike would call it) as well.
Best Stocks Under $10: Grab Holdings (GRAB)
Often called the Uber of Southeast Asia, Grab Holdings is a long-time favorite of Cabot Explorer Chief Analyst Carl Delfeld. And while they’ve not moved much in the last year (up 8%), Carl believes things could be turning around for the company. Here’s what he wrote recently:
“Headquartered in Singapore, Grab Holdings Limited (GRAB) is a widely known and used technology company that offers super apps that enhance merchants and consumer connections in Cambodia, Indonesia, Thailand, Malaysia, Myanmar, the Philippines, Singapore, and Vietnam.
“While the stock is down marginally so far this year, it delivered a first-ever adjusted core profit in the third quarter driven by cost reduction measures and strong demand for food delivery and ridesharing on its apps.
“Two years ago, Grab Holding traded over 12 a share, now it sits at just over 3 a share. Skeptics have been in charge, but this household name in Southeast Asia has made progress and the tide may be turning.”
And while this is more turnaround story than momentum stock, shares have perked up in the last few months and are once again heading in the right direction
Best Stocks Under $10: JetBlue (JBLU)
After selling off in the end of 2023 following a proposed merger with Spirit Airlines (SAVE), JBLU has seen an impressive 35% rally in the first four months of 2024 alone.
In early March, the prospective merger was officially terminated, which has helped to further buoy shares as we approach the summer months, a historically strong time for air travel. Of course, the industry has been rattled by poor quality control from key supplier Boeing (BA), but fortunately for JetBlue, their fleet is Boeing-free.
Shares have been capped to the upside at the 7.5 level, but a break above their would certainly be bullish for shares in what remains a bull market.
Best Stocks Under $10: Curaleaf Holdings (CURLF)
Given the recent strength in marijuana stocks, we’d be remiss to leave them off the list and Curaleaf is one of the best of the bunch, having just come off a fourth quarter in which they reported record revenues of $345 million.
The firm operates 145 dispensaries in 17 states and is the largest integrated cannabis company in Europe (where Germany is pursuing its own legalization efforts). It’s also a heavy hitter in Florida, which will see marijuana legalization on the ballot this fall, having opened six new stores there last year, which brings its total to 61.
As with all cannabis stocks, Curaleaf will be highly dependent on the news cycle, but progress on the rescheduling front could come at any time.
What are the best stocks under $10 that you’re buying now?
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