Generally speaking, you want to minimize your exposure to cheap stocks under $10. Yes, smaller companies have the potential to rise dramatically higher than their larger counterparts. In part, that’s because they’re unpredictable – and this ambiguity cuts both ways.
Sure, cheap stocks under $10 have the benefit of the law of small numbers working in their favor during upswings. Basically, it doesn’t take as much energy to push a pebble up the mountain. However, if you climb too high up that mountain and you slip, bad things can happen. That’s the danger with lesser-known enterprises.
Still, by talking calculated risks – especially with analyst-endorsed ideas – you could potentially win out. With that possibility in mind, here are some cheap stocks under $10 to consider.
Crescent Point Energy (CPG)
As a hydrocarbon specialist, Crescent Point Energy (NYSE:CPG) might not seem the most promising of cheap stocks under $10. First, you have the ongoing relevancy issue with the oil and gas space amid the rising prominence of renewable infrastructures. Second, the fossil-fuel players haven’t performed that well recently (though CPG stock appears to be an exception).
Still, investors are gradually feeling confident about Crescent. Yes, in the company’s third quarter of 2023, it posted a loss per share of $1.13. That was well below expectations calling for earnings per share of 35 cents. However, in Q4, Crescent made good, posting EPS of $1.26 against an estimated 28 cents.
For the current fiscal year, analysts anticipate revenue to reach $3.19 billion. If so, that would be a 34.7% skyrocketing against last year’s print of $2.37 billion. And in 2025, they believe sales of $3.67 billion are in order. That would imply a 15.1% year-over-year lift.
Analysts rate shares a unanimous strong buy with a $9.78 price target. The high side calls for a strong $11.11 target.
Taboola.com (TBLA)
One of the riskiest ideas among cheap stocks under $10, Taboola.com (NASDAQ:TBLA) is simultaneously among the more compelling. A public advertising company, you’re probably aware of Taboola even if you don’t know the corporate label. It’s responsible for the “Around the Web” and “Recommended for You” advertisements at the bottom of many online news articles.
Basically, it puts food on the table for folks like me. It’s a tough and competitive business, no doubt about it. However, Taboola has a dominating presence in its niche market. In Q3 last year, the company posted EPS of 2 cents, beating out expectations for a per-share loss of 4 cents. Then, in Q4, the company posted earnings of 9 cents per share. This beat out the estimate for 3 cents.
For fiscal 2024, analysts anticipate revenue to hit $1.92 billion. If so, we’re talking a growth rate of 33.4%. Last year, the company rang up sales of $1.44 billion.
Analysts peg shares as a strong buy with a $6 price target. The worst rating is a lone hold.
Genius Sports (GENI)
I must say that I’m torn about Genius Sports (NYSE:GENI). I love the concept. Per the company’s public profile, Genius is a sports data and technology firm. It provides data management, video streaming, and integrity services to sports leagues, bookmakers, and media companies. With interest in sports viewership and gambling rising, GENI stock seems an interesting idea.
However, it entered the public arena via a reverse merger with a blank-check firm. That’s problematic given the format’s history. Also, its earnings performances have not been pleasant. In Q3, Genius posted a loss of 6 cents per share against an expected loss of 4 cents. It added to concerns in Q4 when it posted a loss of 12 cents against an anticipated loss of 7 cents. Yikes!
Still, analysts believe this fiscal year’s revenue will land at $480.54 million. That would be up 16.4% against last year’s tally of just under $413 million. And they also view 2025 sales as reaching $554 million.
Analysts have the final word, rating shares a unanimous strong buy. The average price target clocks in at $8.79.
TScan Therapeutics (TCRX)
Based in Waltham, Massachusetts, TScan Therapeutics (NASDAQ:TCRX) is a clinical-stage biopharmaceutical company dedicated to creating life-changing T-cell therapies. The company aims to unleash the untapped potential of the human immune system through its proprietary TargetScan technology. It’s a wildly choppy entity but investors seem excited about TCRX’s prospects.
Since the start of the year, shares gained almost 19% of market value. Over the past 52 weeks, they’re up more than 159%. Interestingly, in Q1 2023, TScan posted a loss of 93 cents per share. That was a bad miss compared to the expected loss of 74 cents. However, since Q2, the company has been delivering the goods. Indeed, the past three quarters averaged a positive earnings surprise of 36.3%.
Still, the risk factor is that in 2024, analysts project sales to land at $16.51 million. That’s 21.6% below last year’s print of $21.05 million. However, the ultimate endorsement could be the unanimous strong buy assessment among five individual races. Further, the $11 target implies 62% growth potential, making it one of the enticing cheap stocks under $10.
TransAlta (TAC)
An electricity power generator and wholesale marketing company, TransAlta (NYSE:TAC) operates wind, hydroelectric, natural gas and coal power generation facilities. Although a relevant idea for the permanently relevant narrative of energy distribution, investors have a dim view of TAC stock. Since the start of the year, shares slipped more than 21%. In the past one year, the company is down 20%.
Part of the volatility could be centered on the performance of its last earnings report. In Q4, the company posted a loss per share of 20 cents. However, experts anticipated EPS of 14 cents. However, it’s important to keep in mind the context. From Q1 to Q3 last year, the average positive earnings surprise stood at 206.3%.
Admittedly, analysts are cautious for this fiscal year and next, anticipating revenue of $2 billion and $1.82 billion, respectively. In 2023, TransAlta posted sales of $2.49 billion.
Still, the Street rates TAC a unanimous strong buy with a $11.19 price target. That’s up nearly 72% from the time-of-writing price, making TransAlta one of the cheap stocks under $10 to consider.
BrainsWay (BWAY)
An international enterprise, BrainsWay (NASDAQ:BWAY) engages in the development of a medical device that uses specialized technologies for deep transcranial magnetic stimulation. The purpose is to facilitate a non-invasive treatment for depression, obsessive-compulsive disorder (OCD), and smoking addiction. While an exciting concept, BWAY stock is also extremely risky, suffering a loss of more than 21% since January.
Still, the broader context is that BWAY is up almost 200% over the past 52 weeks. Notably, in the first half of fiscal 2023, the company posted losses per share of 14 cents and 10 cents. However, things turned around in Q3 and Q4, with the company posting a loss per share of 2 cents and a breakeven print, respectively.
For the current fiscal year, analysts believe that Brainsway can post sales of $37.78 million. That would be up nearly 19% from last year’s tally of $31.79 million. For 2025, they believe $44.04 million is possible, thus representing 16.6% YOY growth.
Covering experts peg BWAY as a unanimous strong buy with a $10.67 price target. That makes it a high-risk, high-reward idea among cheap stocks under $10.
Stereotaxis (STXS)
Headquartered in St. Louis, Missouri, Stereotaxis (NYSEAMERICAN:STXS) aims to improve healthcare through the use of advanced automation equipment. Specifically, Stereotaxis is involved in the field of interventional medicine, helping to improve outcomes through surgical robotics. According to Grand View Research, the global surgical robots market size reached a valuation of $3.92 billion last year.
What’s more, industry insiders believe that the space could expand at a compound annual growth rate of 9.5% from 2024 to 2030. At the forecast’s culmination point, the industry could print revenue of $7.42 billion. To be fair, the company has been posting losses per share that have come in worse than anticipated.
However, analysts anticipate a potential turnround this year, with the company projected to post sales of $30.37 million. If so, that would represent a 13.4% increase from last year’s sales of $26.77 million. And in 2025, sales may reach $43.8 million, implying over 44% YOY growth.
Finally, analysts rate STXS a unanimous strong buy with a $4.50 price target. That implies nearly 84% upside potential.
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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.
