While the adage that you get what you pay for generally rings true, you can sometimes cheat up this narrative with the best stocks to buy under $10. While you can’t get much for a Hamilton these days, you can acquire shares of surprisingly compelling enterprises. Better yet, these ideas carry positive assessments from Wall Street analysts.
A major factor that bolsters cheap stocks to buy under $10 is the mathematical leverage. To get a low-priced security moving, it doesn’t take as much “energy” as say a blue-chip stock. Because of this dynamic, investors don’t need to put up as much capital at risk to see substantive rewards. Of course, we’re talking about investment opportunities that cost the equivalent of a lunch meal at a fast-food restaurant. So, you’ve got to keep some perspective here. Nevertheless, if you’re willing to gamble, these ideas may deserve the label stocks to buy under $10 2023.
| CLBT | Cellebrite | $5.40 |
| WTT | Wireless Telecom | $1.77 |
| ISSC | Innovative Solutions and Support | $6.65 |
| EPM | Evolution Petroleum | $6.35 |
| ELA | Envela | $6.22 |
| OCUP | Ocuphire Pharma | $5.89 |
| SRTS | Sensus Healthcare | $4.78 |
Cellebrite (CLBT)
Based in Israel, Cellebrite (NASDAQ:CLBT) offers a digital intelligence platform to modernize investigative workflow in the pursuit of justice. Per its website, the company extends services to state and local governments, criminal investigation units, corrections facilities, border security agencies and private enterprises. Closing the May 2 session at $5.39, it may be one of the best stocks under $10 to buy.
For one thing, Cellebrite might benefit from short-squeeze speculation. According to data from Fintel, its short interest pings at just under 6% of its float. While not the most elevated stat, the short interest ratio comes in at 31.66 days to cover, which is significantly elevated. Further, CLBT scores 75.08 out of 100 in Fintel’s proprietary Short Squeeze Score. It ranks 702 out of 4,601 of the most shorted securities.
On the financials, Cellebrite enjoys a combination of cash-rich balance sheet, solid three-year revenue growth and excellent trailing-year net margin (at 44.63%). Finally, analysts peg CLBT as a consensus moderate buy. Their average price target lands at $6.55, implying almost 22% upside potential.
Wireless Telecom (WTT)
Hailing from New Jersey, Wireless Telecom (NYSEAMERICAN:WTT) claims to enable the wireless future. Per its website, Wireless is a global designer and manufacturer of advanced RF and microwave components, modules, systems and instruments. Priced at under $2, WTT technically makes a case for stocks under $10 to buy. Fortunately, it’s not just price point that makes Wireless a worthy name on this list of affordable stocks under $10. According to Fintel, WTT at time of writing features a put/call options ratio of 0.44. Because puts (the numerator in this case) generally represent bearish bets, put/call ratios below one indicate bullish sentiment.
Financially, the company enjoys a stout balance sheet. In particular, its cash-to-debt ratio pings at 33.67, above 86.66% of the competition. Also, WTT enjoys an excellent trailing-year net margin of 65.22%. While no one covers WTT recently, about five months ago, B. Riley Financial’s Marc Wiesenberger pegged it a buy. As well, the analyst posted a $2.25 price target, implying nearly 26% upside potential.
Innovative Solutions and Support (ISSC)
Headquartered in Malvern, Pennsylvania, Innovative Solutions and Support (NASDAQ:ISSC) bills itself as a leading systems integrator that designs and manufactures cost-effective next-generation flight navigation systems and precision flight instrumentation equipment for the aerospace industry. Trading hands at $6.79, ISSC incurred a loss of over 16% since the Jan. opener. However, it could be one of the best stocks under $10 to buy for speculators.
Fundamentally, Innovative Solutions enjoys a potentially lucrative industry. According to Fortune Business Insights, the global pilot training market size reached a valuation of $2.35 billion in 2021. By 2029, this sector could hit $20.21 billion, representing a compound annual growth rate (CAGR) of 31.55% during the forecast period.
Another factor that contributes to ISSC being one of the cheap stocks under $10 is the financials. First, Innovative enjoys excellent strengths in the balance sheet, particularly a blistering cash-to-debt ratio of 44.7. Operationally, it prints an impressive three-year net margin of 15.7% and net margin of 18.47%. Right now, EF Hutton’s Tim Moore pegs ISSC a buy. The expert forecasts a price target of $11, implying 62% upside potential.
Evolution Petroleum (EPM)
Based in Houston, Texas, Evolution Petroleum (NYSEAMERICAN:EPM) aims to provide a lower-risk investment opportunity in the energy sector that prioritizes free cash flow and generates superior returns through consistent dividends and growth. Priced at $6.31, EPM suffered a year-to-date loss of more than 9%. However, it could be one of the best stocks under $10 to buy.
Geopolitically, the alliance between the Organization of the Petroleum Exporting Countries (OPEC) and non-member oil-producing nations — known as OPEC+ — shocked the world with a production cut in early April. Basically, the oil cartel sent the message to the U.S. that the Federal Reserve isn’t the only entity that influences the dollar. So, additional production cuts may not be out of the question.
Financially, Evolution commands excellent strengths in the balance sheet, particularly its robust cash position. Also, it prints an impressive three-year revenue growth rate of 35.9% as well as net margin of 29.52%. No one covers EPM within the past three months. However, about four months ago, Northland Securities’ Donovan Schafer pegged EPM a buy. The expert forecasted an $11 price target, implying over 74% upside potential.
Envela (ELA)
A holding company owning subsidiaries engaged in various business activities, Envela (NYSEAMERICAN:ELA) made a name for itself focusing on re-commerce. According to TechTarget, “[r]ecommerce is the selling of previously owned items through online marketplaces to buyers who reuse, recycle or resell them.” Aligning with the sensibilities of young consumers, Envela’s shares – priced at $6.17 – popped up over 17% YTD.
One factor that could make ELA one of the best stocks under $10 to buy centers on trader sentiment. According to Fintel, ELA’s put/call ratio pings at 0.57, which again indicates bullish sentiment. Also, an excellent point to consider is insider transactions. Generally speaking, Envela’s corporate executives love buying up their own shares. That’s a powerful endorsement.
On the financials, Envela enjoys an overall strong profile. In particular, its three-year revenue growth rate comes in at a very impressive 30.6%. As well, its net margin does the job well at 8.59%. Also, ELA trades at a trailing multiple of 10.64, favorably lower than about 71% of its peers. Lastly, Lake Street’s Mark Argento pegs ELA a buy. The expert forecasts an $11 price target, implying over 78% upside potential.
Ocuphire Pharma (OCUP)
Shifting our attention to the wild side of stocks under $10, Ocuphire Pharma (NASDAQ:OCUP) is a clinical-stage ophthalmic biopharmaceutical company focused on developing and commercializing therapies for the treatment of refractive and retinal eye disorders. Priced at $5.52, OCUP has already enjoyed a blistering start, gaining over 57% YTD. Still, it could fly even higher.
Somewhat cynically speaking, Grand View Research pointes out that the global retinal disorder treatment market size reached an estimated $12.57 billion in 2022. Further, analysts project that between 2023 to 2030, the segment will expand at a CAGR of 9.3%. At the culmination of the forecasted period, sector revenue should hit $25.69 billion.
Another factor that makes OCUP an intriguing candidate for best stocks under $10 to buy is its financial profile. Primarily, Ocuphire features outstanding strengths in the balance sheet, which suffers no debt. Therefore, Ocuphire enjoys flexibility under these trying times. As well, its Altman Z-Score hits 24.55, indicating high fiscal stability and low bankruptcy risk. Turning to Wall Street, analysts peg OCUP as a consensus moderate buy. Their average price target stands at $19, implying over 244% upside potential.
Sensus Healthcare (SRTS)
Hailing from Baco Raton, Florida, Sensus Healthcare (NASDAQ:SRTS) specializes in a process called superficial radiation therapy for patients diagnosed with non-melanoma skin cancer or keloid. The primary benefit centers on the requirement of little to no cutting, along with no scarring and no downtime. Sadly, the market didn’t respond well to SRTS, with shares falling over 35% since the Jan. opener.
Still, speculators might find value in Sensus as one of the best stocks under $10 to buy. Fundamentally, SRTS aligns with a burgeoning field. According to Grand View Research, the global non-invasive aesthetic treatment market size reached a valuation of $61.2 billion last year. Analysts project that the segment will expand at a CAGR of 15.4% between 2023 to 2030. By the culmination of the forecasted period, sector revenue may hit $190.5 billion.
Financially, Sensus benefits from excellent strengths in the balance sheet, along with decent revenue growth and a towering net margin of 54.44%. SRTS also trades at 5.4-times forward earnings, though Gurufocus warns it’s a value trap. Analysts are less ambiguous, pegging SRTS a unanimous strong buy. Their average price target lands at $16.83, implying 270% upside potential.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.