13 Promising Stocks Under $10 for Strategic Investment

Investors seeking affordable opportunities may find value in the latest analysis of stocks priced under $10. According to Ed Yardeni, president of Yardeni Research, the current market dynamics, notably the earnings growth, present a favorable environment for such investments. During a recent appearance on CNBC’s ‘Squawk on the Street,’ Yardeni expressed optimism that the S&P 500 could approach or reach the 7,000 mark by the end of the year, attributing this potential to strong earnings performance.

The earnings landscape has been surprisingly robust, with Yardeni highlighting that Q3 earnings for the S&P 500 are expected to rise by approximately 14%, significantly exceeding initial projections of 6.5%. As companies continue to report better-than-expected results, the focus now shifts to identifying cheap stocks that could yield substantial returns.

Methodology for Stock Selection

To identify promising stocks, a thorough analysis was conducted using Finviz to compile a list of stocks under $10 with a forward price-to-earnings (P/E) ratio below 15. The selection process focused on the top 13 stocks with the highest number of hedge fund holders as of Q2 2025, utilizing data sourced from Insider Monkey’s database. This methodology is grounded in the belief that following the investment choices of successful hedge funds can enhance market performance.

Highlighting Affordable Stock Opportunities

1. **Melco Resorts & Entertainment Limited (NASDAQ: MLCO)**
– **Stock Price**: $9.07
– **Forward P/E**: 15
– **Hedge Fund Holders**: 18
On November 10, JP Morgan raised its price target for Melco Resorts to $11, maintaining an Overweight rating. The company reported Q3 2025 earnings of $1.31 billion, marking an 11% increase from the previous year. CEO Lawrence Ho noted strong growth in Macau and the Philippines, with notable EBITDA improvements across its properties.

2. **Lloyds Banking Group plc (NYSE: LYG)**
– **Stock Price**: $5.03
– **Forward P/E**: 11.57
– **Hedge Fund Holders**: 19
Lloyds announced the launch of the UK’s first agentic AI financial assistant, set to enhance financial guidance for 21 million mobile app users. Analysts have raised price targets following positive market reception, indicating a strong outlook for the company.

3. **Hanesbrands Inc. (NYSE: HBI)**
– **Stock Price**: $6.66
– **Forward P/E**: 9.78
– **Hedge Fund Holders**: 23
Despite a 4.5% drop in US sales, Hanesbrands reported a 25% increase in adjusted earnings per share due to successful cost-saving strategies. The company remains focused on improving sales performance in the upcoming quarters.

4. **Ambev S.A. (NYSE: ABEV)**
– **Stock Price**: $2.53
– **Forward P/E**: 13.99
– **Hedge Fund Holders**: 23
Ambev’s Q3 results showed a 1.2% rise in organic net revenue. Although facing challenges, the company is managing costs effectively, maintaining a stable EBITDA margin.

5. **Fortuna Mining Corp. (NYSE: FSM)**
– **Stock Price**: $8.63
– **Forward P/E**: 11.62
– **Hedge Fund Holders**: 24
Fortuna reported a strong quarter with free cash flow reaching $73.4 million. The company is focused on expanding its operations and improving production efficiency.

6. **B2Gold Corp. (NYSE: BTG)**
– **Stock Price**: $4.18
– **Forward P/E**: 7.75
– **Hedge Fund Holders**: 27
B2Gold’s Q3 production reached 254,369 ounces of gold. The company anticipates a strong finish to the year, driven by multiple mine performances exceeding expectations.

7. **Bausch Health Companies Inc. (NYSE: BHC)**
– **Stock Price**: $6.94
– **Forward P/E**: 1.75
– **Hedge Fund Holders**: 28
Bausch is expanding its dental product line into Canada and Puerto Rico, aiming to enhance access to periodontal disease treatments.

8. **Clarivate Plc (NYSE: CLVT)**
– **Stock Price**: $3.47
– **Forward P/E**: 5.43
– **Hedge Fund Holders**: 33
Clarivate reported revenues of $623.1 million for Q3 2025, showing slight year-over-year growth despite overall revenue dips due to divestitures.

9. **Coty Inc. (NYSE: COTY)**
– **Stock Price**: $3.77
– **Forward P/E**: 8.54
– **Hedge Fund Holders**: 33
Following a challenging quarter, Coty remains optimistic about returning to growth, driven by strategic brand management and market innovations.

10. **The Western Union Company (NYSE: WU)**
– **Stock Price**: $8.91
– **Forward P/E**: 5.16
– **Hedge Fund Holders**: 36
Western Union is focusing on a growth strategy aimed at expanding its digital services, with a clear plan for revenue growth through 2028.

11. **BGC Group, Inc. (NASDAQ: BGC)**
– **Stock Price**: $9.17
– **Forward P/E**: 7.81
– **Hedge Fund Holders**: 39
BGC reported a remarkable 31% increase in revenues for Q3, indicating strong performance across various asset classes.

12. **ADT Inc. (NYSE: ADT)**
– **Stock Price**: $8.31
– **Forward P/E**: 9.19
– **Hedge Fund Holders**: 43
ADT’s revenues grew by 4% in Q3, supported by strong customer retention and strategic acquisitions.

13. **Amcor plc (NYSE: AMCR)**
– **Stock Price**: $8.41
– **Forward P/E**: 10.53
– **Hedge Fund Holders**: 47
Amcor reported adjusted EPS growth of 18% for Q3, bolstered by operational synergies from recent acquisitions.

Investors considering these stocks should conduct further research into each company’s fundamentals and market position. The ongoing earnings momentum and strategic initiatives across various sectors suggest that these affordable stocks could be worthy additions to investment portfolios.