It’s always a good idea to fortify your portfolio with blue-chip stocks – solid, dependable names that you can bank on to deliver each quarter. But you can’t stop there. In order to diversify your portfolio and set yourself up for success, investors should also closely consider adding top stocks that cost under $10.
Most stocks that are priced at less than $10 are growth stocks that are looking to expand or scale their offerings. Investing in companies so early in their growth stories have often have more room for appreciation compared to higher-priced counterparts.
This is particularly true for firms in emerging industries or those undergoing restructuring and improvement.
As these companies grow and stabilize, their stock prices can increase substantially, providing oversized returns for early investors.
And then, of course, you have the advantage of buying more shares with your money. For example, with $1,000, you can buy over 100 shares of top stocks for under $10 each. But the same amount of money would only allow you to buy 10 shares of a stock priced at $100.
Owning more shares provides greater flexibility in managing your investment portfolio. You can sell a portion of your holdings to lock in profits or to rebalance your portfolio without having to liquidate your entire position.
We’re using the Portfolio Grader to identify top stocks for under $10, based on analyst ratings, momentum, earnings history and growth. These low-priced stocks are among the best you can buy right now, and are ideal candidates to help you diversify your winning portfolio.
SoundHound AI (SOUN)
SoundHound AI (NASDAQ:SOUN) is a voice recognition company that uses artificial intelligence to power its products.
It’s no coincidence that SoundHound is actually incorporating “AI” in the company’s name to capitalize on the keen investor interest in generative AI products today.
SoundHound products help vehicle owners understand their cars and trucks because it powers the technology to respond to verbal queries about vehicle features and information in the owner’s manual.
SoundHound also works with restaurants to help power voice AI in more than 10,000 locations.
The stock was valued at nearly $9 per share earlier this year but pulled back following a “short report” issued by short selling firm Capybara Research on March 19.
But the company’s earnings report for the first quarter showed the company’s growth spurt. Revenue of $11.5 million was up 73% from a year ago.
The growing company posted an operating loss of $19.8 million, or 7 cents per share, which was slightly worse than a year ago and reflects the company’s recent purchase of SYNQ3, which closed during the quarter.
While losses are to be expected for a company that’s scaling, I’m optimistic that revenue will continue to increase. SoundHound issued full-year guidance calling for revenue to be in a range from $65 million to $77 million for the year.
SOUN stock is up 135% this year and gets a “B” rating in the Portfolio Grader.
Elevation Oncology (ELEV)
Elevation Oncology (NASDAQ:ELEV) is a Boston-based company that is working on therapies to treat cancer.
It currently has two candidates undergoing trials — for treating solid tumors in combination with immunotherapy and targeted agents for gastric, gastroesophageal junction, pancreatic and esophageal cancers.
The challenge for investing in biotech companies such as Elevation Oncology is that until the drugs pass successful trials, get approval from the Food and Drug Administration, and are successfully taken to market, there’s no revenue to be had.
Bringing a drug to market is an expensive and risky proposition, but the rewards for investors can be immense if the therapies work.
But ELEV appears to be financially sound – it has $104.1 million in cash and cash equivalents as of March 31, up from $83.1 million in the previous quarter. The company’s ability to raise cash to offset its research and development gives it enough money to operate into 2026. And I’m sure it will raise more money if needed.
ELEV stock started the year at less than $1 per share. The stock price is up more than 580% this year and it gets a “B” rating in the Portfolio Grader.
Uranium Energy (UEC)
Uranium Energy (NYSEAMERICAN:UEC) is a miner of uranium, which is used to power naval ships and submarines and to fuel nuclear power plants.
With projects in Texas, Wyoming, New Mexico, Arizona, Canada and Paraguay, Uranium Energy controls some of the biggest uranium resources in the Western Hemisphere.
Those resources put Uranium Energy in an ideal position as Congress just approved a ban on Russian uranium imports. On May 13, President Biden signed the ban into law, affecting roughly $1 billion in annual imports into the U.S.
The U.S. plans to ask suppliers to bid next month on as much as $3.4 billion in contracts for nuclear reactor fuel, according to Bloomberg. Uranium Energy will seek to get some of that business.
UEC stock is up 10% in 2024 and gets an “A” rating in the Portfolio Grader.
Cronos Group (CRON)
Cronos Group (NASDAQ:CRON) is a cannabis company that sells products under the Spinach, Peace Naturals and Lord Jones brands.
The company’s major investor is Altria Group (NYSE:MO), which purchased a 45% stake in 2019.
And while federal regulation of marijuana hasn’t come to fruition in as investors had hoped, the U.S. is making small, steady steps toward allowing everyday use of recreational marijuana.
The Justice Department published a proposed rule that would reclassify recreational marijuana as a less dangerous Schedule III substance. And a new study shows that daily marijuana use in the U.S. is more common than daily alcohol use.
Cronos sees some of that business as well. Revenue in the first quarter was $25.2 million, up 30% from a year ago. The company posted a net loss of $2.4 million, but that was much better than the $18 million loss it recorded a year ago.
CRON stock is up 26% this year and gets a “B” rating in the Portfolio Grader.
Mama’s Creations (MAMA)
Mama’s Creations (NASDAQ:MAMA) is a food company that makes easy-to-prepare meals that can be bought in grocery stores and a direct-to-customer e-commerce platform.
The company operates under several brands, including MamaMancini’s, Creative Salads and The Olive Branch.
Its offerings appear in more than 8,400 stores across the country.
The company is seeing solid growth as well. Revenue in the fourth quarter was $26.7 million, up 17% from the fourth quarter of 2022. Full-year revenue was $103.3 million, a gain of 11% from 2022.
MAMA reported net income of $1.4 million in the fourth quarter, down slightly from the previous year as it launched its e-commerce platform for MamaMancini.
MAMA stock is less than $10, but may not be for long. The stock is up 37% this year and gets an “A” rating in the Portfolio Grader.
Optex Systems (OPXS)
There’s a lot of money to be had for government contractors. And the federal government makes it a priority to work, when it can, with smaller companies, which creates an opening for businesses like Optex Systems (NASDAQ:OPXS).
Optex is a Texas company that specializes in making optical sighting systems and assemblies for the military and the prime contractors that serves the military.
Its products include periscope assemblies for armored vehicles and tanks, eyepieces and lenses worn on an individual soldier’s helmet, and laser filter units attached to rifles and other weapons.
You can find Optex products in water and land military vehicles, including Abrams and Bradley fighting vehicles and light armored and security vehicles.
Optex has a market cap of only $53 million, but it has a backlog of work of $44.2 million – there’s plenty of work to keep the company moving forward.
Revenue for the first quarter of 2024 was $8.52 million, up 33.8% from a year ago. Income was $1.06 million, up 121% from a year ago.
OPXS stock is up 25% this year and gets an “A” rating in the Portfolio Grader.
Rigetti Computing (RGTI)
Rigetti Computing (NASDAQ:RGTI) isn’t a well-known computing company, but perhaps it should be.
Rigetti is a quantum computing company, which represents the future of computing because it uses quantum bits to perform tasks much faster than traditional computers.
Rigetti’s role is operating cloud-based quantum computers that integrate with public and private clouds. The company designs and manufactures its own chips. Its new 128-qubit chip is said to enable new applications and should help it scale up quantum systems.
Revenue in the first quarter of 2024 showed a significant increase from a year ago, coming in at $3.05 million versus $2.2 million a year ago. The company posted a net loss of $20.7 million and 14 cents per share, but that was a slight improvement from a year ago when it lost $23.3 million and 19 cents per share.
RGTI stock is up 7% so far in 2024 and gets a “B” rating in the Portfolio Grader.
On the date of publication, Louis Navellier had long positions in MAMA and UEC. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
