Investing in stocks priced below $10 can provide significant opportunities for investors looking for high growth potential at a low entry point. While it can be a hunting ground for high-risk speculative projects, it is also where market overreactions can create extraordinary opportunities. Here are five stocks under $10 that have strong upside potential and are worth buying now.
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The current market environment has created attractive opportunities among quality companies trading under $10 per share. Five stocks stand out as particularly attractive turnaround candidates: Snap (NYSE:), Melco Resorts & Entertainment (NASDAQ:), Bausch Health Companies (NYSE:), Wendy’s (NASDAQ:), and JetBlue Airways (NASDAQ:).
These are not failed startups; these are well-known brands and significant players in their industries that have been pushed into the single-digit area. For investors with a little patience, these five stocks under $10 represent compelling turnaround stories, each with a clear path to regaining the double-digit mark and beyond.
1. Snap – Social media platform with AI Upside
Current price: $7.60
Fair value estimate: $11.27 (+48.2% increase)
Market capitalization: $12.8 billion
Snap, Snapchat’s parent company, has been hit by volatility in the ad market and competition from TikTok and Meta, leaving its stock near its all-time low of $7.60, a decline of more than 90% from its 2021 high.
Source: Investing.com
But this pessimism ignores Snap’s explosive user growth and its innovative monetization plays. With 414 million daily active users (up 10% year-over-year) and Snapchat+ subscriptions up 42%, the company is diversifying beyond volatile ads and moving toward stable recurring revenue.
Analysts set a consensus target of $11.27, implying an upside of +48.2%, while machine learning-powered advertising tools increased conversions by 30% for app install campaigns.
Source: InvestPro
With a forward P/S ratio of just 3x, half the tech sector average, SNAP is undervalued by 8-60% by DCF…
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