Stocks under $10 are generally considered to be low-risk bets because they are much lower than the typical trading price of a stock. These stocks are typically penny stocks that can be purchased with $10 or less. Penny stocks can be quite volatile and often have high volatility as well. However, they are generally considered to be low-risk because they tend to be small and not very liquid, so there is less investor interest in them. They also tend to trade at relatively low prices, so they can be bought on a very small margin and therefore less likely to cause significant losses.
There are a number of different types of low-risk stocks that can be purchased at a penny stock price, including growth companies, business development companies (BDCs), dividend paying stocks, REITs, and preferred stocks. In this FintechZoom article you can watch 5 stocks to buy under $10:
Lufax Holding Ltd (NYSE: LU)
Lufax is a technology-empowered personal financial services platform based in Beijing. The company was founded in 2013 by CEO Yichen Wang and COO Xunhao Guo. Prior to Lufax, Wang worked as the director of e-commerce at the online Chinese marketplace JD.com, while Guo had an extensive background in mobile application development and working with payment processing systems. The two met at JD.com, where they recognized a common goal of building a more efficient way to communicate and transact money with clients. Since then, Lufax has developed a proprietary software platform that enables customers to manage their finances in one place, access personalized financial advice and earn rewards for their loyalty and engagement.
Lufax has entered into strategic partnerships with other companies including China Union Pay, WeChat Pay, Ping An Bank and Tencent. The company’s offerings include personal lending products such as micro loans and installment loans, as well as wealth management products such as peer-to-peer lending loans, trust loans and deposit accounts. In addition to its consumer offering, Lufax also provides investment services for retail investors and institutional investors through digital assets exchanges such as Binance Launchpad (BNP) and Huobi’s Launchpad (HPL).
The overall goal of Lufax is to provide people with easy access to reliable financial services through technology integration.
| Index | – | P/E | 2.20 | EPS (ttm) | 0.85 | Insider Own | 0.57% | Shs Outstand | 2.29B | Perf Week | 2.73% |
| Market Cap | 4.62B | Forward P/E | 2.00 | EPS next Y | 0.94 | Insider Trans | 0.00% | Shs Float | 2.28B | Perf Month | 8.67% |
| Income | 2.13B | PEG | 21.99 | EPS next Q | 0.18 | Inst Own | 16.60% | Short Float / Ratio | 0.83% / 1.68 | Perf Quarter | -53.81% |
| Sales | 9.00B | P/S | 0.51 | EPS this Y | 12.60% | Inst Trans | -2.58% | Short Interest | 18.78M | Perf Half Y | -68.61% |
| Book/sh | 5.84 | P/B | 0.32 | EPS next Y | 18.54% | ROA | 4.20% | Target Price | 5.89 | Perf Year | -72.59% |
| Cash/sh | 2.44 | P/C | 0.77 | EPS next 5Y | 0.10% | ROE | 16.10% | 52W Range | 1.30 – 7.16 | Perf YTD | -66.61% |
| Dividend | 0.17 | P/FCF | – | EPS past 5Y | – | ROI | 12.50% | 52W High | -73.74% | Beta | – |
| Dividend % | 9.04% | Quick Ratio | – | Sales past 5Y | – | Gross Margin | – | 52W Low | 44.62% | ATR | 0.23 |
| Employees | 92380 | Current Ratio | – | Sales Q/Q | 3.10% | Oper. Margin | 35.40% | RSI (14) | 48.35 | Volatility | 14.39% 13.20% |
| Optionable | Yes | Debt/Eq | 0.55 | EPS Q/Q | -33.90% | Profit Margin | 23.70% | Rel Volume | 1.81 | Prev Close | 2.02 |
| Shortable | Yes | LT Debt/Eq | 0.55 | Earnings | Nov 23 AMC | Payout | 0.00% | Avg Volume | 11.15M | Price | 1.88 |
| Recom | 1.80 | SMA20 | 11.51% | SMA50 | -19.58% | SMA200 | -59.57% | Volume | 20,128,095 | Change | -6.93% |
180 Life Sciences Corp. (NasdaqCM:ATNF)
There are a lot of reasons to like Life Sciences Corp (NasdaqCM:ATNF). But let’s start with how cheap the stock is. It trades for just 11 times forward earnings estimates. That’s far below the peer average of 20. And ATNF is also seeing revenues rise at a faster clip than its peers. So it looks like a good bet to deliver solid profits over the long haul.
The other thing that’s making ATNF attractive is its strong cash flow profile. The company generated $21 million in free cash flow last year, which was more than enough to cover its $38 million in capital expenditures. So there’s no need to worry about having too much debt hanging over its head. That makes ATNF an appealing buy for value investors who prefer to focus on companies with strong balance sheets and stable cash flows.
Read How to Find the Best Robo Advisor: A Guide to Selecting an Investment Management Service.
| Index | – | P/E | 0.75 | EPS (ttm) | 0.70 | Insider Own | 0.70% | Shs Outstand | 40.46M | Perf Week | 40.83% |
| Market Cap | 19.39M | Forward P/E | – | EPS next Y | -0.46 | Insider Trans | 0.00% | Shs Float | 28.21M | Perf Month | 5.05% |
| Income | 23.80M | PEG | – | EPS next Q | -0.27 | Inst Own | 15.30% | Short Float / Ratio | 3.22% / 4.19 | Perf Quarter | -38.04% |
| Sales | – | P/S | – | EPS this Y | 2.00% | Inst Trans | 196.43% | Short Interest | 0.91M | Perf Half Y | -58.53% |
| Book/sh | 0.67 | P/B | 0.79 | EPS next Y | -1250.00% | ROA | -30.40% | Target Price | 4.00 | Perf Year | -86.87% |
| Cash/sh | 0.10 | P/C | 5.39 | EPS next 5Y | – | ROE | -42.80% | 52W Range | 0.35 – 6.96 | Perf YTD | -86.49% |
| Dividend | – | P/FCF | – | EPS past 5Y | – | ROI | – | 52W High | -92.43% | Beta | 0.42 |
| Dividend % | – | Quick Ratio | 1.40 | Sales past 5Y | – | Gross Margin | – | 52W Low | 50.49% | ATR | 0.06 |
| Employees | 7 | Current Ratio | 1.40 | Sales Q/Q | – | Oper. Margin | – | RSI (14) | 58.42 | Volatility | 18.20% 13.06% |
| Optionable | Yes | Debt/Eq | 0.02 | EPS Q/Q | -201.00% | Profit Margin | – | Rel Volume | 1.07 | Prev Close | 0.48 |
| Shortable | Yes | LT Debt/Eq | 0.00 | Earnings | – | Payout | – | Avg Volume | 216.52K | Price | 0.53 |
| Recom | 2.50 | SMA20 | 22.33% | SMA50 | -7.59% | SMA200 | -63.96% | Volume | 231,311 | Change | 10.00% |
i-80 Gold Corp. (NYSEAMERICAN: IAUX)
IAUX is a gold mining company focused on the exploration and development of its 100% owned mine in Burkina Faso. IAUX has two mines: the Sonteg Gold Mine and the St Joachim Gold Mine. The Sonteg Gold Mine was discovered in 1995 and started production in 1997. The mine has an annual gold production capacity of 1,000 metric tons. As of November 19, 2022, IAUX had 240.37 million shares outstanding.
The St Joachim Gold Mine was discovered in 2005 and production started in 2009. The mine has an annual gold production capacity of 6,000 metric tons. As of November 19, 2022, IAUX had 612.94 million Market Cap.
| Index | – | P/E | 3.64 | EPS (ttm) | 0.70 | Insider Own | 28.29% | Shs Outstand | 240.37M | Perf Week | 19.72% |
| Market Cap | 612.94M | Forward P/E | – | EPS next Y | – | Insider Trans | 0.00% | Shs Float | 135.28M | Perf Month | 44.07% |
| Income | – | PEG | – | EPS next Q | – | Inst Own | 48.82% | Short Float / Ratio | 1.96% / 10.18 | Perf Quarter | 32.12% |
| Sales | 25.31M | P/S | 24.22 | EPS this Y | – | Inst Trans | – | Short Interest | 2.65M | Perf Half Y | -3.04% |
| Book/sh | 1.65 | P/B | 1.55 | EPS next Y | – | ROA | – | Target Price | – | Perf Year | 4.51% |
| Cash/sh | – | P/C | – | EPS next 5Y | – | ROE | – | 52W Range | 1.52 – 3.28 | Perf YTD | 3.98% |
| Dividend | – | P/FCF | – | EPS past 5Y | – | ROI | – | 52W High | -22.26% | Beta | – |
| Dividend % | – | Quick Ratio | – | Sales past 5Y | – | Gross Margin | – | 52W Low | 67.76% | ATR | 0.15 |
| Employees | – | Current Ratio | – | Sales Q/Q | – | Oper. Margin | – | RSI (14) | 77.50 | Volatility | 8.02% 6.95% |
| Optionable | No | Debt/Eq | – | EPS Q/Q | – | Profit Margin | – | Rel Volume | 2.05 | Prev Close | 2.40 |
| Shortable | Yes | LT Debt/Eq | – | Earnings | – | Payout | – | Avg Volume | 260.65K | Price | 2.55 |
| Recom | – | SMA20 | 32.62% | SMA50 | 37.52% | SMA200 | 16.79% | Volume | 533,136 | Change | 6.25% |
Landsea Homes Corporation (NASDAQ: LSEA)
Landsea Homes Corporation designs, constructs, markets, and sells suburban and urban single-family detached and attached homes in California, Arizona, Florida, Texas, and Metro New York. It offers a range of properties, including entry-level and first-time move-up homes. The company was incorporated in 2017 and is headquartered in Newport Beach, California. Landsea Homes Corporation is a subsidiary of Landsea Holdings Corporation. As of November 19, 2022, LSEA had 229.73 million Market Cap.
| Index | – | P/E | 2.97 | EPS (ttm) | 1.96 | Insider Own | 59.00% | Shs Outstand | 39.94M | Perf Week | 8.19% |
| Market Cap | 229.73M | Forward P/E | 4.18 | EPS next Y | 1.39 | Insider Trans | -27.61% | Shs Float | 14.36M | Perf Month | 24.15% |
| Income | 85.50M | PEG | 0.06 | EPS next Q | 0.94 | Inst Own | 13.30% | Short Float / Ratio | 1.82% / 3.72 | Perf Quarter | -15.43% |
| Sales | 1.42B | P/S | 0.16 | EPS this Y | 155.70% | Inst Trans | -8.92% | Short Interest | 0.26M | Perf Half Y | -18.63% |
| Book/sh | 15.77 | P/B | 0.37 | EPS next Y | -54.28% | ROA | 6.30% | Target Price | 7.75 | Perf Year | -30.67% |
| Cash/sh | 2.79 | P/C | 2.08 | EPS next 5Y | 48.60% | ROE | 13.70% | 52W Range | 4.48 – 9.21 | Perf YTD | -20.63% |
| Dividend | – | P/FCF | 3.23 | EPS past 5Y | – | ROI | 4.20% | 52W High | -36.92% | Beta | 0.52 |
| Dividend % | – | Quick Ratio | – | Sales past 5Y | – | Gross Margin | 20.80% | 52W Low | 29.69% | ATR | 0.29 |
| Employees | 380 | Current Ratio | – | Sales Q/Q | 56.70% | Oper. Margin | 8.30% | RSI (14) | 69.21 | Volatility | 5.46% 5.78% |
| Optionable | No | Debt/Eq | 0.00 | EPS Q/Q | 113.80% | Profit Margin | 6.00% | Rel Volume | 0.89 | Prev Close | 5.61 |
| Shortable | Yes | LT Debt/Eq | 0.93 | Earnings | Nov 03 BMO | Payout | 0.00% | Avg Volume | 70.12K | Price | 5.81 |
| Recom | 2.70 | SMA20 | 13.81% | SMA50 | 14.24% | SMA200 | -15.01% | Volume | 62,699 | Change | 3.57% |
Century Aluminum Company (NASDAQ: CENX)
Century Aluminum Company, together with its subsidiaries, produces standard-grade and value-added primary aluminum products in the United States and Iceland. It also owns and operates a carbon anode production facility in the Netherlands. The company was incorporated in 1981 and is headquartered in Chicago, Illinois. As of November 19, 2022, CENX had 766.42 million Market Cap.
| Index | – | P/E | 5.22 | EPS (ttm) | 1.63 | Insider Own | 0.70% | Shs Outstand | 91.30M | Perf Week | -10.55% |
| Market Cap | 766.42M | Forward P/E | 6.73 | EPS next Y | 1.26 | Insider Trans | -15.64% | Shs Float | 51.40M | Perf Month | 35.25% |
| Income | 153.70M | PEG | – | EPS next Q | -0.62 | Inst Own | 57.90% | Short Float / Ratio | 13.45% / 3.15 | Perf Quarter | 6.40% |
| Sales | 2.91B | P/S | 0.26 | EPS this Y | -34.50% | Inst Trans | -12.45% | Short Interest | 6.91M | Perf Half Y | -27.34% |
| Book/sh | 5.66 | P/B | 1.50 | EPS next Y | 2200.00% | ROA | 9.60% | Target Price | 8.00 | Perf Year | -40.53% |
| Cash/sh | 0.72 | P/C | 11.83 | EPS next 5Y | – | ROE | 33.10% | 52W Range | 5.27 – 30.36 | Perf YTD | -48.79% |
| Dividend | – | P/FCF | – | EPS past 5Y | 8.60% | ROI | 8.20% | 52W High | -72.07% | Beta | 2.70 |
| Dividend % | – | Quick Ratio | 0.90 | Sales past 5Y | 10.90% | Gross Margin | 4.80% | 52W Low | 60.91% | ATR | 0.75 |
| Employees | 2512 | Current Ratio | 1.90 | Sales Q/Q | 9.60% | Oper. Margin | -2.40% | RSI (14) | 57.04 | Volatility | 5.86% 8.55% |
| Optionable | Yes | Debt/Eq | 0.95 | EPS Q/Q | 173.50% | Profit Margin | 5.30% | Rel Volume | 0.76 | Prev Close | 8.39 |
| Shortable | Yes | LT Debt/Eq | 0.72 | Earnings | Nov 07 AMC | Payout | 0.00% | Avg Volume | 2.19M | Price | 8.48 |
| Recom | 3.30 | SMA20 | 11.46% | SMA50 | 21.16% | SMA200 | -35.49% | Volume | 1,673,332 | Change | 1.07% |
Should I Buy Stocks under $10?
Stocks under $10 can be a great way to get started with investing. After all, you’re not starting out with a huge investment. However, there are some things to consider before you decide to buy stocks under $10. First, you should make sure that the stock is listed on a major exchange. Second, you should look at the price-earnings ratio. This ratio shows how much the share is worth compared to how much it makes in profits. The lower this ratio is, the better. Finally, consider whether the company has positive earnings momentum or if it’s just experiencing short-term fluctuations.
Can I Make Money with $10 stocks?
$10 stocks are stocks that trade at a price of $10 or lower. In other words, the company’s market capitalization is valued at $10 or less. Since these stocks are so cheap, they tend to have a lot of potential. For example, many companies start with only a few hundred dollars, so it’s possible to get in on the ground floor.
Two things make this possible: First, $10 stocks are much more likely to succeed than $100 stocks. Second, many investors don’t know how to evaluate small companies. If you can identify promising new companies before anyone else does, you can potentially make a fortune.
That said, there are some risks to consider. First, $10 stocks are much less liquid than $100 stocks. This means it could take longer for them to be traded in large volumes, which makes them more susceptible to volatility and price swings. Second, most $10 stocks don’t have much history, so it’s hard to know how they will perform in the future.
Can I Use a Stock Screener to Find $10 stocks?
A stock screener is a tool that uses a set of criteria to select stocks for you to invest in. Stock screerers can help you find shares that have the potential to grow by looking for certain factors such as high growth, low P/E ratios and more.
One problem with using a stock screener to find $10 stocks is that there are many different criteria that you can use. The criteria can vary depending on what type of investor you are, how much time you want to spend researching the companies, and how much money you want to invest.
If you are unsure which criteria to use when screening stocks, it’s best to start with general market conditions. For example, if the U.S. stock market has been performing well over the past few years, this could be a good indicator that some of the companies in your portfolio will do well as well.
Conclusion
While it is true that there are no guarantees in investing, I believe that buying stocks that are priced under $10 can be a very good way to start. These are typically referred to as penny stocks and are generally considered to be riskier than stock in the $10-$50 range, but with a higher potential reward. This is because many investors like to start small before moving up to larger amounts. However, it is important to do your research and make sure you are comfortable with the risks involved with investing in these companies. If you do decide to buy a stock under $10, keep in mind that you will likely have to pay more for shipping and handling fees. You should also always check the company’s financial records and make sure they do not have any significant legal issues or other red flags that could put their long-term viability at risk.
