Low-priced stocks under $10 present a unique opportunity for those seeking high returns with a modest investment. By carefully screening, investors can pinpoint stocks with significant growth potential.
Utilizing the InvestingPro Fair Value metric, we’ve identified low-priced stocks poised for potential price increases of over 25%. This fair value upside underscores the expected growth trajectory of these stocks.
What is InvestingPro Fair Value?
InvestingPro Fair Value is a metric designed to estimate the true worth of a stock. Using this value, users can assess whether a stock is currently undervalued or overvalued by comparing its current market price to its intrinsic worth.
Methodology: Why We Picked These Stocks
Pricing Criteria: Our focus is on identifying cheap stocks trading under $10
Fair Value Assessment: We considered only stocks presenting a Fair Value upside potential of at least 25%, based on InvestingPro’s fair value assessment. We place considerable weight on InvestingPro’s fair value assessment to steer clear of overpriced stocks and pinpoint stocks with substantial upside potential.
Stock Market: We prioritized US-listed stocks for this screener.
With this methodology, we’re pursuing investments that combine value and growth potential.
Cheap Stocks Under $10 in January 2025
Company Name | Stock Symbol | Sector | Fair Value Upside |
Ryvyl Inc | RVYL | Financial Services | 52.8% |
Coursera, Inc. | COUR | Consumer Discretionary | 28.4% |
Ontrak Inc | OTRK | Healthcare | 75.2% |
GreenTree Hospitality | GHG | Hotels, Restaurants & Leisure | 42.2% |
Heritage Global Inc | HGBL | Capital Markets | 33.3% |
NIO Inc (Class A) | NIO | Automobiles | 36.7% |
Davis Commodities | DTCK | Consumer Staples Distribution | 22.8% |
iQIYI Inc | IQ | Entertainment | 55.4% |
- Market Cap: $9.61 M
- Fair Value: $1.99
- Fair Value Upside: 52.8%
Ryvyl Inc., a technology company, engages in the development, marketing, and sale of blockchain-based payment solutions in North America, Europe, and Asia. The company’s blockchain-based systems facilitate, record, and store a volume of tokenized assets representing cash or data on a blockchain-based ledger.
2. Coursera, Inc. (COUR)
- Market Cap: $1.34B
- Fair Value: $10.92
- Fair Value Upside: 28.4%
Coursera, Inc. is a prominent online learning platform that collaborates with universities and organizations worldwide to offer a wide range of courses, specializations, and degrees. Established in 2012 by Stanford professors Andrew Ng and Daphne Koller, Coursera aims to provide accessible, flexible, and affordable education to learners globally.
3. Ontrak Inc (OTRK)
- Market Cap: $7.55 M
- Fair Value: $3.14
- Fair Value Upside: 75.2%
Ontrak, Inc. operates as an artificial intelligence powered, telehealth-enabled, and virtualized healthcare company that provides in-person services to third-party payors in the United States. Its technology-enabled platform predicts people whose chronic disease will improve with behavior change, recommends effective care pathways that people are willing to follow, and engages and guides them to and through the care they need.
4. GreenTree Hospitality (GHG)
- Market Cap: $260 M
- Fair Value: $3.64
- Fair Value Upside: 42.2%
GreenTree Hospitality Group Ltd., through its subsidiaries, develops leased-and-operated, and franchised-and-managed hotels and restaurants in the People’s Republic of China.
5. Heritage Global Inc (HGBL)
- Market Cap: $67.23M
- Fair Value: $2.47
- Fair Value Upside: 33.3%
Heritage Global Inc., together with its subsidiaries, operates as an asset services company with focus on financial and industrial asset transactions.
6. NIO Inc (Class A) (NIO)
- Market Cap: $9.16B
- Fair Value: $6.05
- Fair Value Upside: 36.7%
NIO Inc. designs, develops, manufactures, and sells smart electric vehicles in China. It offers five and six-seater electric SUVs, as well as smart electric sedans. The company was formerly known as NextEV Inc. and changed its name to NIO Inc. in July 2017. NIO Inc. was incorporated in 2014 and is headquartered in Shanghai, China.
7. Davis Commodities (DTCK)
- Market Cap: $25.52M
- Fair Value: $1.28
- Fair Value Upside: 22.8%
Davis Commodities Limited, an investment holding company, operates as an agricultural commodity trading company in Asia, Africa, and the Middle East. The company trades in agricultural commodities, including sugar, rice, and oil and fat products under the Maxwill and Taffy brands.
- Market Cap: $1.92B
- Fair Value: $3.12
- Fair Value Upside: 55.4%
iQIYI, Inc., together with its subsidiaries, provides online entertainment video services in the People’s Republic of China. It offers various products and services, including online video, online games, online literature, animations, and other products.
How to Find Cheap Stocks Under $10
You can find stocks under $10 with a high upside easily using Investing Pro. Here are the steps:
- Visit the Screener tool.
- Select ‘Price, Current’ as a filter parameter on the Screener page, and set the threshold value to less than $10.
- Add a filter for ‘Fair Value Upside (InvestingPro)’ above 25%
- For U.S.-centric stocks, select ‘United States’ under the ‘Trading Region’ tab drop-down, and make sure to check (select) the ‘Primary Trading Item’ option.
- You can then see the list of all the companies falling in the desired screener filters’ range arranged in a descending order.
Cheap Stocks FAQ (Frequently Asked Questions)
What Are Cheap Stocks?
Cheap stocks are stocks with a low market value. Stocks priced under $5 are often referred to as penny stocks.
Why Invest in Cheap Stocks?
Investors buy cheap stocks for several reasons:
- Potential for High Returns: If the company grows, the stock price can increase significantly, offering high returns.
- Affordability: They allow investors to buy more shares with a smaller amount of money.
- Speculative Trading: Some traders are attracted to the high volatility and potential for quick gains.
Are there any regulations I should be aware of when trading cheap stocks?
Yes, there are several regulatory considerations:
- SEC Rules: The Securities and Exchange Commission (SEC) regulates the trading of penny stocks.
- Brokerage Requirements: Some brokers may have specific requirements or higher fees for trading cheap stocks.
- Disclosure Requirements: Companies trading at low prices must comply with specific disclosure requirements.
Is it possible to trade cheap stocks on major exchanges like the NYSE or NASDAQ?
Yes, some cheap stocks are listed on major exchanges like the NYSE or NASDAQ. However, many trade over-the-counter (OTC) or on smaller exchanges due to their lower market capitalization and less stringent listing requirements.