As the Christmas season approaches, it is time to think about not only spreading holiday cheer, but also about some great investments to carry you into 2024. One way to give yourself an ideal gift is to invest in stocks under $10.
These stocks under $10 can be a memorable and potentially profitable addition to your Christmas stocking, and, because they are low in price, you can afford to buy several shares. Investing small amounts in these stocks can be an ideal opportunity for beginners or those with limited funds to start building their investment portfolios.
Although these stocks under $10 don’t have the same value as higher-priced blue-chip stocks, they still have the potential for significant growth. Because they start at a lower price point, an increase in price means a larger percentage gain, so even a small increase in value could yield substantial returns.
These low-cost options are also an ideal way to give yourself some diversification in your portfolio. Spreading your investments across multiple companies and sectors mitigates risks and increases the chances of overall portfolio growth.
We’ll use the Portfolio Grader to identify some of the best options on the market, based on these companies’ earnings history, overall growth, momentum, analyst sentiment, and other factors.
SoundHound (NASDAQ:SOUN) is a fast-growing technology company that uses artificial intelligence to power its voice recognition products.
The company has a music recognition app that identifies and plays songs hummed by a user. That’s a fun idea. But it’s seeing growth lately by incorporating its products into business applications.
For instance, SoundHound just announced a new voice AI product, Employee Assist, aimed at restaurants. Users can verbally ask questions such as, “How do I clean the fryer?” and get step-by-step audio instructions through a headset. Employee Assist will also answer follow-up questions and participate in a two-way conversation.
Another product for vehicle owners responds to detailed questions about their cars, giving them hands-free access to their vehicle manuals.
Revenue in the third quarter was $13.3 million, up 19% from a year ago. The company posted a net loss of $20 million, an improvement from $30 million a year ago, making it one of the stocks under $10 to keep your eye on.
SoundHound is well on its way to profitability and the stock is up 22% this year. It gets “B” ratings for growth and overall in the Portfolio Grader.
Rigetti Computing (RGTI)
Rigetti Computing (NASDAQ:RGTI) is a California-based quantum computing company. Quantum computing is the next wave of computing technology, using quantum bits to perform calculations much faster than traditional computers.
Rigetti operates cloud-based quantum computers that integrate with public and private clouds. The company designs and manufactures its own chips and developed what it calls the first multi-chip quantum processor.
In August, the company introduced its 84-qubit Ankaa-1, a faster and more connected system, an important step towards achieving narrow quantum advantage.
Revenue in the third quarter was $3.1 million, up from $2.8 million a year ago. RGTI stock is valued at just over $1 per share, but that’s up 44% this year. Rigetti gets “B” ratings for growth and overall in the Portfolio Grader.
D-Wave Quantum (QBTS)
D-Wave Quantum (NASDAQ:QBTS) is another quantum computing company. It was the first to sell quantum computers with quantum effects in British Columbia.
It serves customers who are developing quantum computing solutions to solve logistics problems, manage supply chains, perform scheduling tasks and ease traffic congestion.
Its enterprise customers include food, defense, aerospace, automotive and marketing. It also has a global reach, signing or renewing contracts recently with a Japanese mobile phone company, a European fintech company and a European financial services company.
Revenue in the third quarter was $2.6 million, up 51% from a year ago. It issued guidance for the full year for revenue between $10 million and $11.5 million, and for full-year losses to be less than $56 million.
D-Wave stock is even cheaper than Rigetti, so the percentage of gains and losses is extreme. At one point this year the stock price was as much as $3, showing a 100% gain for the year. Currently, it’s down 44% in 2023, but I don’t expect that to last.
QBTS stock gets an “A” rating for growth in the Portfolio Grader, and a “B” rating overall.
OppFi (NYSE:OPFI), also known as Opportunity Financial, is a Chicago-based company that operates a financial platform to connect community banks to customers who lack access to traditional lenders.
The company’s OppLoans platform allows customers to apply, and if approved, connects them to a lender for a loan between $500 and $4,000.
The key to the company’s success has been adjusting its credit models to provide accurate assessments to banks about a borrower’s ability to repay.
The company reported third-quarter revenue of $133.1 million, up 7% from a year ago. It reaffirmed its full-year revenue guidance of $500 million to $520 million and raised its net income forecast from $29 million to $35 million to $40 million to $42 million.
It raised earnings per share guidance for the full year to a range of 47 cents to 49 cents, from a range of 34 cents to 41 cents. This is one of the stocks under $10 with potential.
OPFI stock is up 72% this year. It gets an “A” rating for growth and a “B” overall rating in the Portfolio Grader.
Profire Energy (PFIE)
Profire Energy (NASDAQ:PFIE) is a great example of a very cheap stock that has worldwide applications and amazing potential. It’s one of my favorite stocks under $10 these days.
Profire is a Utah company that designs burner and combustion management systems for gas and oilfield companies. Its products are used by some of the biggest companies in the world and are used to control startups and shutdowns and monitor temperatures.
Profire’s products also have use for the utility sector, metals and mining, and the pulp and paper industry.
As the oil and gas industry continues to see high demand and as hydrocarbon demand increases over the next few years, Profire’s outlook is strong. The company is on track to record its best annual revenue in Profire’s history.
PFIE stock is up 58% in 2023. It gets a “B” rating for growth and an “A” overall rating in the Portfolio Grader.
Sadot Group (SDOT)
Sadot Group (NASDAQ:SDOT) is a Texas company that operates in all facets of the food industry. It bought 5,000 acres of farmland this year in Zambia to grow soybeans, wheat, corn, mango and avocados. It also trades in the commodities market and operates 45 restaurants in the U.S. and Dubai.
The company originated as Muscle Maker and went public in 2020 before pivoting to agri-food. Last year it merged with Aggia FZ, a Dubai-based global supply chain consulting company, to create Sadot LLC..
The company quickly launched trading operations in Kiev, Dubai and Singapore, then expanded to the Americas. It rebranded as Sadot Group in July 2023 and began trading on the Nasdaq.
Earnings for the third quarter included revenue of $182 million, up from $3 million a year ago (a result of the company’s rapid expansion).
It posted a third-quarter loss of $841,000, compared to a loss of $1.4 million a year ago. But for the first nine months of the year, Sadot has a profit of $2.8 million compared to a $4.1 million loss for the same period of 2022.
Optex Systems (OPXS)
Optex Systems (NASDAQ:OPXS) is a Texas-based company that makes optical sighting systems and products. Its equipment includes periscope configurations, rifle and surveillance sights and night vision products.
Optex’s products are primarily used by the Department of Defense and are used in water and land military vehicles, including Abrams and Bradley fighting vehicles and light armored and security vehicles.
The company has a backlog of $45.6 million in pending work, including a new $2.9 million order to provide sighting systems for armored vehicles.
Earnings for the company’s fiscal third quarter (ending July 2, 2023) included revenue of $7.17 million, up 16.7% from a year ago. Net income of $576,000 was up 34.6% from a year ago.
Optex’s close relationship with the Pentagon will keep money flowing in. OPXS stock gets a “B” rating for growth and an “A” overall in the Portfolio Grader.
On the date of publication, Louis Navellier had a long position in PFIE. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.