Investing in growth stocks under $10 could prove incredibly lucrative over the long term. However, with mega-cap stocks dominating the market, it’s easy to overlook penny stocks that could become giants in the future. Remember, today’s stock market bellwethers began as humble, low-priced stocks.
Taking a page from Warren Buffett’s early playbook, there’s a gold mine of stocks under $10 that effectively merge value with explosive growth. Here are three stocks under $10 stocks that aren’t just bargains but are brimming with tremendous upside. However, it’s important to act, as these price points aren’t going to be around forever. These three stocks have been an impressive performer in their respective niches. Moreover, these stocks are targeting multi-year trends that are likely to deliver impressive gains for those willing to stomach the risk. Hence, these stocks are on track to evolve into headline-makers down the road.
Growth Stocks Under $10: Bitfarms (BITF)
If you’re a Bitcoin (BTC-USD) investor, there’s much to gloat over, especially with the upcoming interest rate cuts. Moreover, the bullishness effectively has spill-over effects on crypto mining stocks like Bitfarms (NASDAQ:BITF). Following BTC’s robust rally in the past year, BITF stock jumped an eye-catching 110%, trouncing the S&P 500’s 25% return.
Most recently, Bitfarm’s stock has been ticking in the green following a rejected takeover bid from Riot Platforms (NASDAQ:RIOT). As of the first quarter (Q1) 2024, the company boasts a zero-debt balance sheet and a liquidity reserve totaling $124 million. Moreover, its current hash rate capacity stands at 7.5EH/s, and it is targeting a leap to 21EH/s by the end of this year.
The firm is targeting an ambitious 35 EH/s in hash rate capacity by 2025, underscoring its commitment to scaling operations. Hence, its forward-thinking approach makes BITF stock a stand-out investment in the burgeoning crypto sphere.
Joby Aviation (JOBY)
The flying car industry is one of the hottest investing areas, evolving into a $29 billion sector by the end of 2030. Moreover, Joby Aviation (NYSE:JOBY) might be the top pick for cashing in on the future of flying cars and eVTOLs.
However, in the past six months, JOBY stock has shed more than 25% of its value despite breaking ground on the operational front. It recently entered the next phase of its certification program and is all set to commercialize its eVTOL by next year.
Adding to its competitive edge, the company recently acquired Xwing’s autonomous flight division, which boasts 250 fully autonomous flights and over 500 auto-landings. With its partnerships in the UAE and Saudi Arabia, Joby is positioning itself as a sector bellwether, pointing to solid growth prospects for 2025 and beyond. Its dual focus on technological innovation and strategic expansion makes JOBY stock stand out in its niche.
Valley National Bancorp (VLY)
Valley National Bancorp (NYSE:VLY) is another compelling penny stock bet due to its innovative cannabis banking initiatives. However, the stock has struggled amidst the choppiness in the cannabis market, shedding more than 39% of its value year-to-date (YTD). Nevertheless, with the upcoming rate cuts, smaller regional banks such as VLY are set to benefit immensely.
Furthermore, VLY has done a remarkable job of managing its financials, reflecting strong depositor trust. Through its proactive financial strategies, it has effectively bolstered its loan loss reserves by $22 million to $487 million. Also, by focusing on more stable markets such as Florida, VLY is marginalizing risk while tapping into emerging opportunities in the cannabis industry. Hence, its careful planning and diversification make VLY an attractive option for investors.
VLY stock currently yields an attractive 6.7%, offering an excellent blend of stability and upside potential. Also, VLY stock trades at an attractive discount compared to its intrinsic value, offering a 28% upside from current price levels.
On the date of publication, Muslim Farooque 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.
