How to Find the Best Cheap Stocks Under $10 to Buy Now

Artificial intelligence stocks tanked on Monday following a potential breakthrough from DeepSeek. Wall Street analysts will press Microsoft, Meta, and most of the other Magnificent 7 tech stocks on their earnings calls this week about the impact DeepSeek might have on the industry and their capex plans.That said, Nvidia and tons of other soaring technology and AI stocks were due for a cooldown.The recalibration of the AI trade might help other areas of the market rebound. One area that investors might want to consider exploring as they wait and see what’s next from big tech are low priced stocks with strong fundamentals.Today we explore how to find great cheap stocks trading for $10 a share or less that investors might want to buy now and throughout 2025.On top of their cheap price tags, Wall Street analysts are high on all of these stocks and their improving earnings outlooks earn them strong Zacks Ranks.Penny StocksOne dollar or less used to be the common threshold for what we call “penny stocks.” Today, the SEC has expanded penny stocks to securities that trade for less than $5 a share. Many investors avoid these stocks because they are speculative in nature.Meanwhile, penny stocks often trade infrequently and hold wide bid/ask spreads. These stocks also carry many other traits that, in many cases, cause excessive volatility. With that said, some penny stocks perform incredibly well, which helps them remain attractive.Stocks Under $10Moving on, let’s briefly discuss the next class of cheap stocks. Stocks that trade in the $5 to $10 range are generally less risky than their penny stock counterparts. Investors might be more likely to have heard of these companies or seen the tickers. They are, however, still inherently more speculative than many other higher-priced stocks.Investors can obviously find winning stocks for under $10 if they are extremely selective. So today, we narrowed the list of thousands of these more speculative stocks down to a more manageable group of $10 and under stocks that might help boost your portfolio.Screen Parameters• Price less than or equal to $10• Volume greater than or equal to 1,000,000• Zacks Rank less than or equal to 2(No Holds, Sells or Strong Sells.)• Average Broker Rating less than or equal to 3.5(Average Broker Rating of a Hold or Better.)• # of Analysts in Rating greater than or equal to 2(Minimum of at least two analysts covering the stock.)• % Change F1 Earnings Estimate Revisions -- 12 Weeks greater than or equal to 0(Preferably upward earnings estimate revisions, but definitely no downward revisions.)Here is one stock out of the nearly 50 highly-ranked names trading under $10 a share that made it through the screen today…Why Investors Should Buy This Super Cheap Consumer Stock Before It SoarsThe Honest Company HNST is a consumer products maker taking on giants such as Kimberly-Clark by focusing on what it calls “cleanly-formulated and sustainably-designed” offerings. The Honest Company’s consumer products portfolio includes diapers, wipes, baby personal care, beauty, apparel, household care, and wellness. HNST went public in May 2021 and suffered a rough few years.Image Source: Zacks Investment ResearchThe Honest Company has turned around, with HNST up 425% off its October 2023 lows, including a 120% 12-month run. The Honest Company soared again after a beat-and-raise Q3 report in mid-November. The stock has pulled back after its huge run, down 25% vs. its 52-week highs from late November. HNST shares have found support near its gap higher from November. HNST popped Tuesday morning to $6.30 a share. Image Source: Zacks Investment ResearchThe Honest Company is projected to grow its sales by 9% in FY24 and 6% in FY25 to reach nearly $400 million. HNST is expected to trim its adjusted loss from -$0.41 to -$0.07 a share in FY24 and then surge to +$0.04 in 2025. The Honest Company’s upward earnings revisions land it a Zacks Rank#1 (Strong Buy) and its Most Accurate FY25 estimate came in 190% above consensus at $0.11 a share.Get the rest of the stocks on this list and start looking for the newest companies that fit these criteria. It's easy to do. And it could help you find your next big winner. Start screening for these companies today with a free trial to the Research Wizard. You can do it.Click here to sign up for a free trial to the Research Wizard today.Want more articles from this author? Scroll up to the top of this article and click the FOLLOW AUTHOR button to get an email each time a new article is published.Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.Disclosure: Performance information for Zacks’ portfolios and strategies are available at: www.zacks.com/performance_disclosureZacks' Super ScreenIt's hard to believe, even for us at Zacks. But since 2000, while the market gained +7.0% per year, one of our top stock-picking screens averaged +55.2% per year.In fact, our top 10 screens substantially outperformed the market with an average gain of +35.6%.Free – See the Stocks They're Turning Up for Today >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Honest Company, Inc. (HNST): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks