The 9 Best Stocks Under $10 To Buy in 2021

March 26, 2021March 26, 2021 James Bradford

For those taking their first steps into the world of investing, affordable stocks are often the way to go. They are very accessible to those with a limited investment budget. The best stocks under $10 dollars are a great way to build a starter portfolio.

We’ll be blunt – not all cheap stocks are great buys. However, when you find an affordable stock that offers true value, there’s huge earnings potential to be had.

Some of today’s top stocks started under $10. Apple and Netflix are industry behemoths now, but when they started, their stocks were worth just a few dollars.

We’ve rounded up some of the best under $10 stocks on the market right now. Here’s what you should keep your eye on.

What To Look For When Investing In Stocks Under $10

Stocks under $10 can have plenty of earning potential. However, they can also be quite volatile. It’s important to know what to look for before purchasing low priced stocks.

Generally, you’ll want to stick to stocks traded on major exchanges like NYSE and NASDAQ. This is because these stocks have much better liquidity. Stocks with very low liquidity are subject to extreme volatility.

Before purchasing any affordable stock, you’ll also want to look at their price history. In particular, consider their support and resistance levels. When the stock hits its support level, that means it is likely to go up and it may be time to buy.

Finally, you’ll want to spend time researching each company before making a purchase. This includes their yearly earnings and revenue, as well as their growth and their current cash flow. You should also consider whether or not they have a dividend yield.

Taking the time to research your stocks is key. While you can’t predict exactly where the market will go, familiarity with your investments is a good base for success.

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Best Tech & Communications Stocks Under $10

Nokia (NYSE:NOK)

Nokia made a name for themselves in the ’90s and early 2000s manufacturing flip phones. While their phones aren’t considered so trendy anymore, that doesn’t mean you should discount this stock.

The Finnish company has pivoted to diversify their business model. While they still make cell phones, the thing that has made them particularly interesting is their stake in 5G networks.

In 2017, Nokia became the first provider to showcase a 5G network. Much of their revenue stream comes from contracts with other companies. If major cell phone providers choose to partner with Nokia for 5G service, this could mean an uptick in Nokia’s stock prices.

Nokia’s stock dropped a bit in September 2020 when they missed out on a 5G deal with Verizon. However, there’s still potential for other 5G deals in the future. Nokia produces many other types of communication technology as well.

This stock spiked in mid-January as a result of investment trends on Reddit. Retail investors on Reddit started buying up stocks that institutional investors had shorted, including Nokia. The stock price has tapered off a bit since then.

Nokia’s long-term earnings are set to hold steady on a slightly upward trajectory. Growth may take some time, as Nokia is still recovering from the economic challenges of the COVID-19 pandemic. However, investors who are willing to be patient could see positive returns in the long run.

Another excellent advantage of this stock is that they pay a 2.82 percent dividend yield. If you’re looking to get in on the 5G game, Nokia could be a good stock to start with.

A10 Networks (NYSE:ATEN)

A10 Networks specializes in application delivery controllers. They offer both hardware and software products that carry important audio and video signals to electronic devices.

Since their products are important to many different types of electronic devices, A10 is likely to be able to ride out this year’s ups and downs. Many of their products are designed to integrate with cloud or 5G products. Both of these technologies are expected to go mainstream in the

A10’s share price has rebounded from a dip in March 2020. Their revenue also grew year over year in both the first and second quarters of 2020.

A10 Networks hasn’t lost much business as a result of the coronavirus pandemic. However, it’s likely that their demand will grow as the world starts to go back to work.

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Best Stocks Under $10: Entertainment

Allied Esports Entertainment (NASDAQ:AESE)

The esports industry has exploded over the last few years, with avid gamers around the world competing for lucrative prizes. The pandemic has only made esports even more appealing, because they can be played remotely.

Allied Esports Entertainment is a growing esports holding company based in Irvine, California. This stock is a relatively affordable way for investors to dip their toes in the esports industry.

The company’s most notable property is the HyperX Esports Arena in Las Vegas. They also run esports events around North America and in Europe.

Allied recently announced that they are selling the World Poker Tour, which was another one of their more notable assets. There hasn’t been any word yet on what their next acquisition will be, but they’ve indicated that they could branch out into the broader entertainment industry.

This stock has been slowly going up in price since the beginning of 2021. Investors will want to keep an eye on their earnings reports, as well as news about any forthcoming business plans.

Sirius XM Holdings (NASDAQ:SIRI)

Sirius XM was created as a result of a merger between Sirius and XM Radio in 2008. They also recently purchased Pandora in 2018. Although they have stiff competition from music services like Spotify, Sirius XM is in the unique position of dominating the satellite radio market.

Although Sirius XM hasn’t seen explosive growth, they’ve steadily continued building their subscriber base year over year. They also acquired Stitcher, a popular podcast app, in October 2020.

Sirius XM has been surprisingly successful during the pandemic. With people working from home this year, they have more freedom to listen to music or talk shows while they work.

Their share prices could go up even more as people do start to make their morning commutes again. In the past, Sirius XM was most popular as a car accessory. Sirius XM has even partnered with car companies to pre-install satellite radio in vehicles. This means that a rebounding car market could also be good for Sirius XM’s success.

Best Health & Wellness Stocks Under $10

Ironwood Pharmaceuticals (NASDAQ:IRWD)

Ironwood Pharmaceuticals is a company that specializes in treatments for gastrointestinal problems. Their revenue is currently driven by the drug Linzess. This drug is designed to treat IBS and relieve constipation.

In the past, Ironwood Pharmaceuticals has relied entirely on this one drug. This has made it difficult for them to break out of this lower price range. However, they currently have another drug in trials to treat GERD.

If this new drug makes it to the market, it could push Ironwood’s share price up in the long run. Ironwood’s stock is currently priced very reasonably given the company’s earnings.

While total revenue is down from last year, Ironwood still made a profit in 2020. They were able to keep sales up despite the pandemic. Demand for Linzess has remained steady, and we’re likely to see continued growth throughout this year.

Ironwood’s stock has grown by nearly a dollar per share in just a few days at the beginning of March. This stock seems poised to break above the $10 in the months to come.

Accuray Inc. (NASDAQ:ARAY)

Accuray is a company working to make radiation therapy more precise, efficient, and effective for cancer patients. Their technology delivers the radiation directly to the afflicted area, while minimizing exposure to other parts of the body.

Historically, cancer treatments have been very physically and mentally challenging. Accuray’s technology aims to change that and make the process easier for both patients and medical providers.

Like many medical stocks, Accuray struggled during the pandemic. Many medical providers were limiting in-person treatments, which meant that sales stagnated. However, the stock has started to recover in recent months. They’ve been on a strong upward trajectory since November.

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Ovid Therapeutics (NASDAQ:OVID)

Ovid Therapeutics is an American pharmaceutical company that develops treatments for neurological diseases. They currently have five products in their pipeline, one of which is in Phase 3 trials, and another that is in Phase 2 trials. Some of the conditions that Ovid Therapeutics are working to treat include Angelman syndrome, Fragile X syndrome, seizures, and more.

This stock tanked in the beginning of December as a result of disappointing trial results. Their Angelman syndrome drug failed to deliver in its phase 3 trial. However, it’s important to note that there’s no current treatment available for Angelman syndrome. The research that Ovid has already conducted will likely be vital in the future for developing even further treatments.

After a few months of struggling, Ovid Therapeutics stock has finally started improving at the beginning of March. This is because another company, Takeda Therapeutics, has expressed interest in buying the rights to another drug that Ovid Therapeutics is developing. This drug is an experimental treatment for rare forms of epilepsy and seizures.

If this sale goes through, it could be very lucrative for Ovid and boost their revenue dramatically. This is one biopharmaceutical company to keep your eye on in the long run.

More Of The Best Stocks Under $10 To Buy Now

FAT Brands Inc. (NASDAQ:FAT)

FAT Brands is restaurant group to watch as the world slowly starts to reopen. They own a variety of fast casual restaurants, most notably Fatburger. They also purchased Johnny Rockets in 2020, which should help them boost their revenue this year despite global pandemic restrictions.

In addition to this major purchase, FAT Brands also opened more than 45 restaurants across all of their franchises during 2020. In a time when many restaurants were closing their locations and struggling to stay afloat, this is particularly impressive.

FAT Brands stock has been steadily improving since last summer. With vaccine distribution on the rise and many cities reopening restaurants, now is a great time to buy into this growing restaurant group.

United Microelectronics Corporation (NYSE:UMC)

United Microelectronics Corporation, or UMC, is a Taiwanese company that manufactures circuits for semiconductors. Semiconductors are an important component of many of the electronics we use every day, such as computers and smartphones.

People are currently relying on their electronics for business, personal communication, entertainment, and so much more. With this high demand, companies like UMC are unlikely to slow down anytime soon. UMC stands out because they are able to customize their products to suit each individual client.

They’re also committed to offering new products and expanding their technology. UMC’s share value has been on an upward trajectory since July. It’s helped that one of their competitors was hit with restrictions by the U.S government just a few months ago.

UMC has reported that demand for their products is increasing. As a result, they’re planning on upping their production capacity next year. If UMC continues on this upward trajectory, it could be one of the best lowest price stocks to buy right now.

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Best Stocks Under $10: Final Thoughts

Buying stocks under $10 isn’t for everyone. However, for investors who are willing to do their homework and find the best stock under $10, there could be plenty of financial advantages.

Because these low prices stocks come with some added risk, investors should carefully consider market data and share prices before making a purchase.

Buying stocks with low prices can be a good way for new investors to test the waters without paying too much per share. Some of the highest performing companies on the stock market today started off under $10, so you never know what might happen.

For more info on low priced stocks you can check out our best stocks under $1 and best stocks under $5 articles next!