People love cheap stocks for their affordability factor and their ability to reap big gains in a short period of time (though, this also means investors can suffer big losses in a hurry).
But it's important to remember that cheap stocks are not necessarily better stocks.
"False promises of quick and painless riches are easier to fall for when an investment can be made with so little money up front," writes Kiplinger contributor Dan Burrows in his feature on penny stocks.
"An investor might think, 'How risky could it be?'" The answer, Burrows says, is plenty.
"Per the Securities and Exchange Commission: 'Academic studies find that OTC [over-the-counter] stocks tend to be highly illiquid; are frequent targets of alleged market manipulation; generate negative and volatile investment returns on average; and rarely grow into a large company or transition to listing on a stock exchange.'"
If you are interested in cheap stocks, it's vital to do your research beyond just looking at the latest print for prices. You need to take a hard look at risk metrics, recent performance and future outlook in order to invest responsibly.
Why should I buy cheap stocks?
Some investors gravitate to cheap stocks because they see these companies as creating opportunities for larger returns.
And many folks simply don't have the cash to buy some of the priciest stocks on Wall Street, such as auto parts retailer AutoZone (AZO), which trades for roughly $3,100 a share at present.
One choice investors always have is to buy fractional shares of a stock whose price exceeds what they have available to invest.
Another is to find high-quality, cheap stocks. To be clear, this is referring to share price and not valuation metrics like book value or the current price compared with earnings estimates that signal undervalued stocks.
But this process can be difficult for investors. Unlike the best value stocks that tend to boast strong balance sheets and a solid commitment to shareholders, cheap stocks often face weak fundamentals. They are also known to be risky and volatile, which understandably makes some folks hesitant to buy them.
If you only have a few hundred dollars or you want to trade in round lots instead of a single share, then cheap stocks – or at least cheaper stocks – with strong fundamentals are one way to go.
Our methodology to find the best cheap stocks to buy
I have written extensively about the equity market and investing for nearly two decades. Along the way, I've learned how to separate legitimate investing opportunities such as those found in the best stocks to buy from those more likely to result in volatility or dubious performance.
So when I put together this list of the top cheap stocks priced under $10 per share, I focused on companies that are well-liked by the analyst community and that have displayed strong fundamentals, including impressive top and bottom line growth.
The best cheap stocks to buy
With that in mind, here are five of the best cheap stocks to buy that are priced at or under $10 per share.
Note that one of the risks of buying cheap stocks is that they move quickly, so if you decide to invest in them, do so with small amounts of capital that you can afford to lose.
Data is as of June 25.
Ticker |
Company |
Share price |
|---|---|---|
MNTN |
MNTN |
$8.40 |
EOSE |
Eos Energy Enterprises |
$6.09 |
AVAH |
Aveanna Healthcare Holdings |
$8.48 |
DCH |
Dauch |
$5.79 |
ADMA |
ADMA Biologics |
$8.72 |
MNTN
- Sector: Communication services
- Market value: $620.9 million
- Analysts' consensus recommendation: Strong Buy
In addition to being a cheap stock, MNTN (MNTN) is a relative newcomer to the public market, having held its initial public offering (IPO) in May 2025. This creates an added layer of potential risk for investors, but Wall Street is bullish about the advertising software firm's near-term prospects.
Of the 10 analysts following MNTN stock who are tracked by S&P Global Market Intelligence, six say it's a Strong Buy, three have it at Buy and one rates it a Hold. This works out to a consensus Strong Buy recommendation. They also expect the communications services stock to more than double over the next year or so, based on the average price target of $20.
Wall Street anticipates strong top-line growth for MNTN, too, with consensus estimates forecasting revenue to jump 21% this fiscal year and 18% in fiscal 2027.
"From a moat point of view, what we like most about MNTN is that it buys Connected TV ad units at a discount from ~200 premium streaming networks (eg, NBC, Pluto, Tubi, Paramount, Fox, etc.) and resells them at higher CPMs, keeping the upside," says Needham analyst Laura Martin.
Martin, who has a Buy rating on MNTN, adds that the company is taking advantage of digital advertising trends that are moving toward CTV and data-driven pricing power.
Eos Energy Enterprises
- Sector: Industrial
- Market value: $2.1 billion
- Analysts' consensus recommendation: Buy
Eos Energy Enterprises (EOS) plunged more than 39% on February 26 after the battery storage solutions specialist reported a wider per-share loss than Wall Street expected for the fourth quarter and a big revenue miss.
But Stifel analyst Stephen Gengaro anticipates brighter skies ahead after the company reported improving production and higher-than-expected revenue in its first quarter.
Gengaro also calls Eos Energy's new venture with private equity firm Cerberus Capital Management "a plus," with the two entities creating Frontier Power USA, an independent development and investment company.
"We believe EOSE is very well-positioned to benefit from the sharp expected rise in demand for longer-duration battery storage that's being driven by rising intermittent energy sources (wind and solar)," explains Gengaro. He has a Buy rating and $12 price target on the industrial stock — representing implied upside of more than 100%.
Gengaro isn't the only bull in EOSE's corner. Of the seven analysts covering the stock who are tracked by S&P Global Market Intelligence, three rate it a Buy or Strong Buy, while seven have it at Hold. This works out to a consensus Buy recommendation.
Aveanna Healthcare Holdings
- Sector: Healthcare
- Market value: $1.8 billion
- Analysts' consensus recommendation: Buy
Analysts are overwhelmingly optimistic on Aveanna Healthcare Holdings (AVAH), a company that specializes in home healthcare, hospice and additional medical solutions.
Of the 11 analysts covering the healthcare stock who are tracked by S&P Global Market Intelligence, eight say it's a Buy or Strong Buy and three have it at Hold. This works out to a consensus Buy recommendation and with high conviction to boot.
Additionally, analysts' average price target of $10.05 represents implied upside of nearly 17% over the next year or so.
William Blair analyst Jared Haase is one of those with an Outperform (Buy) rating on AVAH. With shares trading at just eight times fiscal 2027 adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) on a pro forma basis, Haase says AVAH "presents a compelling risk/reward given Aveanna's unique exposure to an attractive market (private duty nursing) and robust EBITDA growth potential as a scaled national platform with strong managed care partnerships."
He sees "a compelling path for multiple expansion" once investors embrace the company's near-term growth outlook and efforts at reducing its debt.
Dauch
- Sector: Consumer discretionary
- Market value: $1.4 billion
- Analysts' consensus recommendation: Buy
Wall Street anticipates strong bottom-line growth for automotive parts supplier Dauch (DCH), which was formerly known as American Axle & Manufacturing. According to S&P Global Market Intelligence, analysts forecast an average earnings-per-share growth rate of 30.7% over the next three to five years.
The company is already posting impressive results following its February acquisition of U.K. automotive firm Dowlais Group, with first-quarter earnings up 54% year over year and revenue improving 69%.
DCH ended "its first full quarter as a combined company in what is setting up as a stable supply and demand environment," says BWS Financial analyst Hamed Khorsand. "Consumer demand for vehicles has been stable and slightly up from the year-ago period in multiple geographies."
The analyst adds that higher gas prices have not had a major impact on consumer spending and that Q2 and Q3 are "seasonally a peak period for DCH generating revenue." That should help Dauch hit the higher end of its full-year guidance.
Khorsand has a Buy rating on the consumer discretionary stock, and he's in good company. Of the 12 analysts covering DCH, six say it's a Buy or Strong Buy and six have it at Hold. That works out to a consensus Buy recommendation.
ADMA Biologics
- Sector: Healthcare
- Market value: $2.0 billion
- Analysts' consensus recommendation: Buy
Biotech stocks are notoriously volatile, and ADMA Biologics (ADMA) is no exception. Over the past 52 weeks, shares have traded between $7.21 to $20.46. ADMA tumbled to the low end of this range in early May after the company reported a massive revenue decline for its immunodeficiency treatment, BIVIGAM, in Q1.
But Wall Street doesn't seem too worried. The average price target among the five analysts covering the healthcare stock who are tracked by S&P Global Market Intelligence is $17.60, representing implied upside of roughly 100% from current levels. Additionally, the consensus recommendation is a high-conviction Buy.
Speaking for the bulls is Mizuho Americas analyst Anthony Petrone, who has an Outperform (Buy) rating on the small-cap stock and a $20 price target. While the analyst admits that trends in the immune globulin market — which include excess inventories and price drops that contributed to the sharp decline in BIVIGAM revenue — remain "opaque," he notes that "April showed green shoots" for the treatment.
"More importantly," says Petrone, "ASCENIV orders hit another record in April, which keeps the $1 billion story on track for the company's core growth engine."
