The 3 Best Under $10 Stocks to Buy in April 2024

Stocks to buy

The market has a risk-on sentiment that is shifting investor sentiment to growth stocks. This includes low-priced small-cap equities that trade at a low price.

Stocks that trade for less than $10 can be volatile. In fact, the phrase “gradually, then suddenly” can be an apt description of the way these stocks move. The waiting can truly be the hardest part.  

But the thing about buying stocks under $10 is that you can put up less capital (and less risk) to take advantage of the potential reward. That can make it easier to hold on through the times when the stocks aren’t doing much.  

Therefore, that’s the premise of choosing these three companies as some of the best under $10 stocks to buy in April. Each stock may present investors with a hurry up and wait outlook. But the reward for that wait could be explosive.  

Transocean (RIG)

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Transocean (NYSE:RIG) provides offshore contract drilling services for oil and gas wells worldwide. And even with the U.S. extracting a record 12.9 million barrels of oil a day in 2023, there is likely to be more demand in 2024.  

The reason has to do with oil prices. Production is up but the actual number of drilling sites is down. But as oil prices rise, and OPEC showing no signs of increasing production, it’s likely that more drilling sites will be approved even if the Biden administration is re-elected in 2024.  

And if it does, offshore drilling is the preferred method of drilling because it has lower environmental impact. All of this sets up well for Transocean and RIG stock. The company’s revenue grew year over year (YOY) in 2024, and the company is reporting a strong backlog of $9 billion. It also has ample cash on its balance sheet.  

What’s missing is earnings. But those are expected to turn positive in the back half of 2024. RIG stock gets a strong buy rating from 7 out of 19 analysts.  

SoFi Technologies (SOFI)

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Investors love-hate relationship with SoFi Technologies (NASDAQ:SOFI) can be summarized in its stock chart. The stock is up 24% in the last 12 months yet is down 24% in 2024. And that’s despite the fintech giant posting its first-ever EBITDA profitable quarter in January 2024.

But investors seem to be waiting to see if the company can do it again. Predictions for the company’s upcoming earnings report in April are for average positive earnings of around 1 cent per share. That would be encouraging, but maybe not enough to get investors excited.

What could get investors more interested are interest rate cuts. While those cuts are likely to be pushed off further than investors first thought, the general belief is that when rates do change the move will be down not up.  

SOFI stock has a consensus hold rating, but this may be a case of following what investors are doing more than what they’re saying they’re going to do. Institutional ownership is only about 38%. However, institutions have bought about $768 million in SOFI stock in the last 12 months while selling approximately 197 million.  

Newell Brands (NWL)

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Newell Brands (NYSE:NWL) was one of the worst performing stocks in 2022 and that performance has continued into 2023. NWL stock is down 38% in the last 12 months and 12% year to date (YTD). This is a consumer staples company that is feeling the pinch as consumers stick to must-have products.  

The YOY losses on the top line and, more importantly, the bottom line aren’t massive, but enough to concern investors. However, Newell is in the middle of executing its turnaround agenda which involves a sharp focus on the company’s top 25 brands and top 10 markets. This has also meant the company has exited certain markets.  

In the company’s most recent quarter, Newell posted revenue that was 6% higher than analysts’ expectations. Earnings were even better coming in 29% higher than expectations. That lends credibility to the company’s expectations for 35% earnings growth in 2024. That growth is not reflected in the company’s stock price, which is why NWL could be one of the best under $10 stocks to buy in April. 

On the date of publication, Chris Markoch 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. 

Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.

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