Stocks priced under $10 present an attractive entry point into the market for investors seeking to maximize portfolio diversification and growth potential without a significant upfront capital outlay. These affordable equities allow investors to acquire a larger number of shares for a given investment and can yield substantial percentage gains.
We have identified five companies, each currently trading below $10, that span diverse sectors and show promising prospects for the second quarter of 2025. These selections are intended to provide a starting point for investor research, highlighting potentially undervalued companies or those on the cusp of significant growth.
1. Ford Motor Company: The Electric Future with Dividends
Ford Motor Company (NYSE:F) is undergoing a transformative shift to solidify its position in the rapidly evolving electric vehicle market. While maintaining its established internal combustion engine (ICE) vehicle business under the Ford Blue segment, the company is aggressively investing in electrification through its Model e division.
Ford reported robust financial performance for the full year of 2024, achieving record revenue of $185 billion, and issued a positive outlook for 2025. The company’s commitment to returning value to shareholders is evident in its attractive dividend yield, which currently exceeds 6%.
Ford is investing heavily in its electric future, pledging up to $50 billion in EV infrastructure by 2026, including the development of a new EV manufacturing campus. It also aims for 2 million annual EV sales by that year.
2. Nokia: Rebuilding the Telecom Empire
Nokia Oyj (NYSE:NOK) is a Finnish global leader in telecommunications infrastructure. It is vital to the deployment of 5G networks and the development of 6G technology. Operating across four business groups, Nokia delivers comprehensive network solutions to service providers, enterprises, and governments worldwide.
Nokia's recent financial reports show improved health. The company exceeded Q4 2024 earnings expectations and projects an upbeat 2025 outlook, with a Comparable Operating Profit between approximately $2.1 billion and $2.7 billion (adjusted for currency conversion) and strong free cash flow conversion.
The company actively returns capital to shareholders through an ongoing share buyback program and a proposed dividend payout increase.
Nokia's leadership in the telecommunications sector positions it to benefit from the continued global rollout of 5G infrastructure and the future emergence of 6G networks. The company's expansion into adjacent high-growth markets, such as data center networking, diversifies revenue streams and captures new opportunities.
3. Goodyear: Undervalued Tire Giant
The Goodyear Tire & Rubber Co (NASDAQ:GT) is undergoing a significant transformation plan to boost profitability and reduce debt. With a diverse brand portfolio, including Goodyear, Cooper Tires, and Dunlop, the company manufactures and markets tires for various vehicles and applications worldwide.
Goodyear's Q4 2024 financial performance exceeded expectations, driven partly by the initial benefits of its "Goodyear Forward" transformation plan, which aims to achieve $1.5 billion in annual run-rate benefits by the end of 2025 through cost reductions, margin expansion, and portfolio optimization.
The company's full-year 2024 segment operating income of $1.318 billion, a substantial increase of $350 million year-over-year, reflects the early success of these initiatives. Goodyear Forward is expected to drive further margin expansion and enable meaningful debt reduction in the coming years.
4. Standard Lithium: Mining the Future
Standard Lithium (NYSE:SLI) presents a high-risk, high-reward investment opportunity within the electric vehicle (EV) battery supply chain. This development-stage company utilizes innovative Direct Lithium Extraction (DLE) technology, aiming for a more efficient and environmentally sustainable method of lithium extraction from brine.
Lithium is a critical metal for EV batteries, and with demand projected to surge in the coming years, Standard Lithium's focus on unlocking US lithium resources positions it for potential growth.
The company's flagship projects in Arkansas's Smackover Formation, a region rich in lithium brine deposits, have garnered attention. Notably, the conditional $225 million grant from the U.S. Department of Energy (DOE) for its South West Arkansas Project validates its potential and de-risks its path to production.
Additionally, the license agreement with Koch Technology Solutions for its Li-Pro LSS DLE technology further advances its technological capabilities.
5. Mereo BioPharma: Innovation in Rarity
Mereo BioPharma Group (NASDAQ:MREO) is a clinical-stage biopharmaceutical company that offers a high-risk, high-reward investment opportunity in the biotechnology sector. The company focuses on acquiring and developing drug candidates for rare and specialty diseases, targeting underserved patient populations.
Mereo's pipeline includes Setrusumab for osteogenesis imperfecta (OI) and Alvelestat for alpha-1 antitrypsin deficiency-associated lung disease (AATD-LD), both in late-stage development.
Setrusumab recently received Breakthrough Therapy Designation from the U.S. FDA, indicating its potential to address a high unmet medical need in OI.
Alvelestat is moving towards Phase 3 readiness, with ongoing discussions for potential partnerships. Mereo BioPharma has a cash runway extending into 2027, providing financial stability for its clinical programs.
Next Step: Diversification and Due Diligence
These five diverse companies, all priced under $10, present compelling investment opportunities for Q2 2025.
Ford and Goodyear, established industrial giants, offer potential value and dividends. Nokia, a telecom infrastructure leader, is poised to benefit from 5G expansion. Standard Lithium and Mereo BioPharma represent higher-risk, higher-reward opportunities in emerging sectors.
Investors should carefully consider their risk tolerance and investment goals when evaluating these stocks.