SFTBY - The 7 Best Under $10 Stocks to Buy in July 2024

2024-07-06 08:00:00 ET

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Savvy investors are discovering rewarding opportunities in some of the best stocks under $10 a share.

Years ago, I found Advanced Micro Devices (NASDAQ: AMD ) at $10 a share and watched it rocket above $200 on the artificial intelligence ( AI ) boom. Netflix (NASDAQ: NFLX ) briefly traded around $10 before exploding higher, splitting twice. Even Nvidia (NASDAQ: NVDA ) was once well under $10 a share before ramping splitting six times.

And there’s plenty more just like these.

Just look at the weight loss drug story, for example. In late 2022, Viking Therapeutics (NASDAQ: VKTX ) traded at around $5 a share. Now thanks to its drug trial success, it’s up to $50.

With more opportunities, investors can uncover AI, machine learning, weight loss treatment stocks, green energy, electric vehicles ( EV s), metals and more. You just need to take the time to do the research and spot hot trends before they become explosive.

Let’s delve into a few best stocks under $10 a share you may want to jump on today.

Altimmune ( ALT )

At $6.60, Altimmune (NASDAQ: ALT ), a clinical-stage biopharmaceutical developing pemvidutide, a GLP-1/glucagon dual receptor agonist for weight loss, is a steal.

It may also have the same fiery potential we’ve seen with other weight loss drug stocks.

Most recently, the company released Phase 2 data on its drug candidate pemvidutide, which showed that participants lost a mean of 15.6% of body weight at 48 weeks based on the highest dose tested.

Reportedly, the treatment also led to “better lean mass preservation compared to other marketed incretin mimetic medications, such as Novo Nordisk’s (NYSE: NVO ) Wegovy (semaglutide) and Eli Lilly’s (NYSE: LLY ) Zepbound (tirzepatide).”

After all, preservation of lean mass with weight loss is critical, says the company. If a person loses too much lean mass during weight loss, it can lead to severe medical outcomes, such as musculoskeletal issues and bone fractures.

That news alone could be a massive game changer for ALT.

Arcadium Lithium ( ALTM )

Another one of the best stocks under $10 is Arcadium Lithium (NYSE: ALTM ).

First, lithium prices appear to be bottoming out. Next, analysts at Fastmarkets say demand for lithium in the U.S. could grow by 487% to 412,000 tons by the time 2030 rolls around. Should that happen, a shortage of supply coupled with explosive demand will lead to another massive spike in lithium. Third, we’re just starting to see a pickup in electric vehicle ( EV ) demand, which will lead to an increase in lithium demand. And that will eventually lead to higher valuations for beaten-down lithium stocks , like ALTM.

Additionally, analysts at RBC Capital just initiated a buy rating on the stock with a price target of $4, noting that ALTM “will increase lithium carbonate equivalent production from 61K tons in 2023 to 142K tons in 2027, a five-year compound annual growth rate of 23%, resulting in earnings tripling over the period,” as noted by Seeking Alpha .

Arcutis Biotherapeutics ( ARQT )

The last time I highlighted an opportunity in Arcutis Biotherapeutics (NASDAQ: ARQT ), it traded at $2.30 on Nov. 15, 2023 . That was just weeks ahead of a favorable Dec. 15 U.S. Food and Drug Administration ( FDA ) ruling, which we used as our initial catalyst for buying the stock.  Today, ARQT is up to $9.92, and it’s still a buy.

Recent earnings were equally as impressive.

Its earnings per share loss of 32 cents beat by 41 cents. Meanwhile, revenue of $49.57 million – up 1,682.4% year-over-year ( YOY ) – beat by $34.43 million. Also, the company saw substantial growth with Zoryve (roflumilast) treatment for plaque psoriasis and seborrheic dermatitis. Revenue for that was $21.6 million, an increase of about 676% YOY.

Upcoming on July 7, the company has a U.S. FDA PDUFA date for its Zoryve cream as a potential treatment for atopic dermatitis. So far, all I know is that its supplemental news drug application (sNDA) on Zoryve is supported by three positive Phase 3 results.

XPeng ( XPEV )

Another one of the best stocks under $10 is XPeng (NYSE: XPEV ), which is ticking higher with multiple catalysts.

First, its X2 flying car just took its first flight at the Beijing Daxing International Airport . Second, the company wants to commercialize flying cars by the end of the year.

And third, China’s Guangzhou will invest more than $1.4 billion by 2027 in the “low-altitude economy,” says Nikkei Asia . We also have to consider that China is providing substantial support to flying car companies.

In addition, XPEV EV growth has been impressive. In June, for example, the company delivered 10,668 Smart EVs, a 24% YOY jump. For the first half of the year, it’s delivered 52,028 Smart EVs, a 26% YOY jump. Additionally, analysts at Daiwa recently upgraded the XPEV stock to a buy rating with a price target of $11.

SoundHound AI ( SOUN )

SoundHound AI (NASDAQ: SOUN ) provides voice control and audio analytics software to automakers, drive-through restaurants and other businesses with phone-based menu systems.

It also counts Nvidia as a major investor with its $3.7 million investment in the company. Even the investment arm of SoftBank (OTCMKTS: SFTBY ) invested $2.3 million in the stock. Those investments are on the small side, but it says a lot that industry giants are jumping into the underappreciated name.

Apple (NASDAQ: AAPL ) integrated its technology into hardware devices. Netflix (NASDAQ: NFLX ), Honda (NYSE: HMC ), Pandora (OTCMKTS: PANDY ), Square (NYSE: SQ ) and Mastercard (NYSE: MA ) use it. Even restaurants like Jersey Mike’s, Chipotle (NYSE: CMG ), and Papa John’s (NASDAQ: PZZA ) are using the technology.

Plus, according to analysts at Wedbush, the company raised the low-end of its revenue guidance for the full year to $77 million from $65 million.

Also, the firm noted that the raise was indicative that SoundHound is ‘well-positioned’ to capitalize on the demand for AI chatbots as it partners with various companies, including restaurants,” as quoted by Seeking Alpha .

Trulieve Cannabis ( TCNNF )

With the election nearing, rescheduling and a key cannabis vote in Florida in November, cannabis stocks like Trulieve Cannabis (OTCMKTS: TCNNF ) could race to higher highs. Also, consider that when about 88% of Americans want to see legalization, more states could vote to approve it.

And at some point, we may even see federal approval. In the meantime, when it comes to TCNNF, the key catalyst is the Florida vote. Remember, the Supreme Court’s decision to allow the legalization of cannabis to appear on ballots this November holds the key to unlocking a potential tripling of the total cannabis market in Florida to $6 billion in sales, as noted by Benzinga.com .

Furthermore, earnings have been strong. Its first-quarter EPS loss of five cents beat by six cents . Revenue of $298 million, up 4.6% YOY, beat by $12.27 million. Also, Trulieve Cannabis generated a free cash flow from operations of $139 million and a free cash flow of $124 million.

JetBlue ( JBLU )

Weakness in airline stocks , like JetBlue (NASDAQ: JBLU ), is also an opportunity.

Oversold at around $5.86 a share, JBLU is a buy. Going forward, I’d initially like to see it refill its bearish gap at around $7.50.

For one, with demand taking off, global airlines just raised their profit forecast to $30.5 billion for the year. The industry is preparing for about five billion passengers, as noted by the International Air Transport Association. That’s just over 11% higher than last year’s numbers. All of which should fuel undervalued airline stocks , like JBLU.

Two, top investors have been buying , too. At the end of March, Carl Icahn’s Icahn Enterprises bought 17.73 million shares. Jeffrey Talpins’ Element Capital bought 136,130 shares. Even Paul Reeder’s Par Capital increased its stake in JBLU by nearly 50% by adding 999,500 shares.

On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines .

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

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