Finder makes money from featured partners, but editorial opinions are our own.

Best growth stocks under $10 in Australia (2024)

We used Finder's proprietary algorithm to find the 10 best stocks under $10 on the ASX.

Want to see the stocks? Take me there
Important note

There's no one stock or ETF that's 'best' for everyone. Instead, consider your own individual needs and investment strategy to decide what stock is right for you. Further, nobody can say for certain which direction a share will go as past performance is no guarantee of future results. So keep in mind these are stock ideas only and should not be taken as personal financial advice.

The current market volatility is creating new opportunities for investors. With share markets being off to their worst start since WW2 last year, many investors are being scared out of the market.

This is especially the case with smaller, less-established stocks. But that doesn't mean you should avoid this section of the market altogether. Instead, finding the hidden gem in a volatile market could help your portfolio outperform.

For some investors, that means identifying high quality stocks that fall below a certain price range. To help out, we've created a list of stocks to watch that are priced under $10.

What's the methodology behind our "best stocks under $10"?

To help identify stock picks for 2024 that are currently under $10, we used Finder's proprietary algorithm to filter Australian-listed companies that have strong fundamentals.

We take into account historical prices, dividends, revenue growth, (low) price volatility and profit margins, which might indicate a quality stock.

To avoid the more speculative stocks, we only include companies with a market cap of more than $1 billion. We filtered out stocks that have been listed on the ASX for less than 5 years to better compare historical data.

Again, this doesn't mean these are the best stocks for you or your personal situation. Always do your own research and chat with a professional when in doubt.

Remember

Investments can go up and down and we do not guarantee the performance or returns of any investment.

Stocks under $10 to watch

This list of stocks was last updated January 05, 2024.


Helia Group Limited (HLI.AU)

Helia Group Limited, together with its subsidiaries, is involved in the loan mortgage insurance business primarily in Australia. The company facilitates residential mortgage lending by transferring risk from lenders to lenders mortgage insurance (LMI) providers, primarily for high loan to value ratio residential mortgage loans; and portfolio of seasoned home loans.
  • Market cap: A$1.172 billion
  • YTD performance: 66.26%
  • 1-year performance: 23.53%
  • 5-year performance: 200%
  • P/E ratio: 4.7235
  • Headquarters: Australia

Boss Resources Ltd (BOE.AU)

Boss Energy Limited explores for, develops, and produces uranium deposits in Australia. It holds a 100% interest in the Honeymoon uranium project covering an area of approximately 2,595 square kilometers located in South Australia.
  • Market cap: A$2.334 billion
  • YTD performance: 5631.96%
  • 1-year performance: 103.67%
  • 5-year performance: 16252.95%
  • P/E ratio: 27.05
  • Headquarters: Australia

Infratil (IFT.AU)

Infratil Limited is an infrastructure investment firm specializing in digital Infrastructure, renewables, and social infrastructure. They prefer to invest in renewable electricity, data centers, telecommunications networks healthcare, and airports.
  • Market cap: A$8.382 billion
  • YTD performance: 45.22%
  • 1-year performance: 14.52%
  • 5-year performance: 204.56%
  • P/E ratio: 10.4479
  • Headquarters: Australia

Azure Minerals Limited (AZS.AU)

Azure Minerals Limited engages in the exploration of precious and base minerals in Australia. The company primarily explores for nickel, cobalt, gold, and copper deposits.
  • Market cap: A$1.693 billion
  • YTD performance: 609.62%
  • 1-year performance: 685.11%
  • 5-year performance: 7280%
  • P/E ratio: N/A
  • Headquarters: Australia

MFF Capital Investments Limited (MFF.ASX)

MFF Capital Investments Limited is a closed ended equity mutual fund launched and managed by Magellan Asset Management Limited. The fund invests in public equity markets across the globe.
  • Market cap: A$1.688 billion
  • YTD performance: A$1.688 billion
  • 1-year performance: 37.5%
  • 5-year performance: 66.04%
  • P/E ratio: 4.5714
  • Headquarters: Australia

Megaport (MP1.AU)

Megaport Limited provides elastic interconnection services to the enterprises and service providers in Australia, New Zealand, Hong Kong, Singapore, Japan, North America, and Europe. It operates a platform that enables customers to connect their network to other services, as well as creates agile network that connects in multiple regions.
  • Market cap: A$2.366 billion
  • YTD performance: 5.35%
  • 1-year performance: 165.61%
  • 5-year performance: 291.13%
  • P/E ratio: 247.3333
  • Headquarters: Australia

Paladin Energy Ltd (PDN.AU)

Paladin Energy Ltd develops, explores for, owns, and operates uranium mines in Australia, Canada, and Africa. The company operates through Exploration, Namibia, and Australia segments.
  • Market cap: A$5.119 billion
  • YTD performance: 6059.26%
  • 1-year performance: 2767.25%
  • 5-year performance: 43663.16%
  • P/E ratio: 60.3333
  • Headquarters: Australia

Pilbara Minerals Limited (PLS.AU)

Pilbara Minerals Limited engages in the exploration, development, and operation of mineral resources in Australia. The company primarily explores for lithium.
  • Market cap: A$12.22 billion
  • YTD performance: 364.37%
  • 1-year performance: 30.33%
  • 5-year performance: 2686.21%
  • P/E ratio: 8.8889
  • Headquarters: Australia

Telix Pharmaceuticals (TLX.AU)

Telix Pharmaceuticals Limited, a commercial-stage biopharmaceutical company, focuses on the development and commercialization of diagnostic and therapeutic radiopharmaceuticals and related medical devices for cancer and rare diseases in Australia, Belgium, Japan, Switzerland, and the United States. Its products portfolio include Illuccix for the treatment of prostate cancer;, TLX591, a radio antibody-drug conjugate, which is in phase 3 clinical trial for the treatment of prostate cancer; TLX250-CDx that is in Phase III clinical trials for the treatment and diagnosis of renal (kidney) cancer; TLX101-CDx for the diagnosis and treatment of glioblastoma (brain cancer); TLX66-CDx to treat bone marrow conditioning and rare diseases; TLX300-CDx for the treatment and diagnosis of soft tissue sarcoma; TLX250, which is in Phase II clinical trials for the diagnosis and treatment of kidney cancer; TLX101 that is in Phase II clinical trials for the treatment of glioblastoma (brain cancer); TLX66, which is in Phase II clinical trials for the treatment of bone marrow conditioning and rare diseases; and TLX300 that is in Phase I clinical trial for the treatment and diagnosis of soft tissue sarcoma.
  • Market cap: A$5.174 billion
  • YTD performance: 308.91%
  • 1-year performance: 87.07%
  • 5-year performance: 1928.58%
  • P/E ratio: 774.25
  • Headquarters: Australia

Codan Ltd (CDA.AU)

Codan Limited develops technology solutions for United Nations organizations, mining companies, security and military groups, government departments, individuals, and small-scale miners. It operates through Communications and Metal Detection segments.
  • Market cap: A$1.928 billion
  • YTD performance: -5.98%
  • 1-year performance: 49.16%
  • 5-year performance: 231.14%
  • P/E ratio: 25.9268
  • Headquarters: Australia

Buy stocks under $10 through an online broker

Name Product Price per trade Inactivity fee Asset class International
eToro
Finder AwardExclusive
eToro
$0
US$10 per month if there’s been no log-in for 12 months
ASX shares, Global shares, US shares, ETFs
Yes
Finder exclusive: Get 12 months of investment tracking app Delta PRO for free when you fund your eToro account (T&Cs apply).
CFD service. Capital at risk.
Join the world's biggest social trading network when you trade stocks, commodities and currencies from the one account.
CMC Invest
Finder Award
CMC Invest
$0
$0
ASX shares, Global shares, Options trading, US shares, ETFs
Yes
$0 brokerage on US, UK, Canadian and Japanese markets (FX spreads apply).
Trade over 45,000 shares and ETFs from Australia and 15 major global markets. Plus, buy Aussie shares or ETFs for $0 brokerage up to $1,000 (First buy order of each security, each day - excludes margin loan settled trades).
Tiger Brokers
US$2
$0
ASX shares, Global shares, US shares, ETFs
Yes
Finder exclusive: 10 no-brokerage US or ASX market trades in the first 180 days + 7% p.a. on uninvested cash with first deposit of any amount, plus US$30 TSLA + US$30 NVDA shares with deposits up to AU$2000. T&Cs apply.
Trade Australian, US and Asian stocks with no minimum deposit on Tiger Broker’s feature-packed platform.
Webull
US$0.25
$0
ASX shares, Global shares, Options trading, US shares, ETFs
Yes
Get 30 days of $0 brokerage fees when you open your account. Receive $50 of TSLA shares and a $50 trading voucher when you deposit $200. T&Cs apply.
Trade ASX and US stocks and US options, plus gain access to inbuilt news platforms and educational resources. You can also start trading for less with fractional shares.
Saxo Invested
US$1
$0
ASX shares, Global shares, Options trading, US shares, ETFs
Yes
Access 22,000+ stocks on 50+ exchanges worldwide
Low fees for Australian and global share trading, no inactivity fees, low currency conversion fee and optimised for mobile.
Go to site
loading

Important: The standard brokerage fee displayed is the trade cost for new customers to purchase $1,000 of either Australian or US shares. Where a platform charges different fees for both US and Australian shares we show the lower of the two. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.

Should I buy stocks under $10?

It really depends on the business and your own personal circumstances.

It's important to remember that a lower priced stock doesn't necessarily mean it's 'cheap' or a 'good deal'.

By that same token, you shouldn't just assume a higher priced stock is a better buy than a lower priced stock. This isn't always the case.

Generally speaking, stocks have a higher price for 2 reasons:

  1. They are older, more established businesses
  2. They are currently popular

While there's nothing wrong with buying more established businesses, it may mean it's harder for prices to keep growing.

After all, in an efficient market, long-term share price growth reflects earnings growth. If the share price is already pricing in strong earnings growth, there's nowhere to go.

On the flipside, finding the right share under $10 could mean it is smaller but has a greater opportunity to grow. It could even take market share from the larger incumbents.

It is also not always the case that a smaller company based on its share price is in a worse position financially than larger businesses. In some instances, it is simply the market mispricing a business. Once again, though, it is important to find the right smaller company.

What to look for in stocks under $10

Regardless of what you are looking to buy, you should follow some basic pricing models to work out whether or not a share is "fair value".

After all, when buying shares, you're investing your hard-earned money into a business that you hope will grow, so you should have a basic understanding of what you own and why you own it.

Most investors use pricing models to work out roughly what the fair value of a share could be. It's important to remember each of these have their own limitations and few businesses will tick every single key metric.

And even if the business did, it does not guarantee the share price will rise.

But here are few tips you can look out for:

  • Earnings per share (EPS): EPS is calculated by dividing company profits by the outstanding shares of common stocks. The valuation should give you an indication of a company's profits.
  • Price to earnings ratio (P/E ratio): In short, the price to earnings for stock is how much the market is willing to pay today for a stock's past or future earnings. It is done by dividing a company's share price by its annual earnings per share. If, for example, a company is priced at $10 per share and its earnings per share is $1, then the P/E ratio would be 10/1 = 10. Theoretically, a lower P/E ratio means the company is cheap.
  • Price to sales (P/S): P/S is calculated for businesses that are not yet profitable. It is calculated by dividing the number of outstanding shares by the total sales or revenue over the last 12 months. The lower the P/S ratio, the more attractive the investment.
  • Profitability ratios: Not all businesses need to be profitable today to make for a good investment. But they need to have a path towards profitability. When measuring profitability, investors can use gross profits, operating profits, net profits, cash flow or even earnings before interest, taxes, and depreciation and amortisation (EBITDA).
  • Debt ratio: This is especially important in a rising interest rate world. It is worked out by dividing the total debt by total assets. A debt ratio of greater than 1 suggests the company has more debt than its assets.

Risks for investing in shares under $10

Buying shares always comes with some form of risk and you should never invest money that you might need over a short period of time.

And when buying stocks under $10, these risks may be magnified.

This is due to the size of the stock. Being smaller and having fewer shares on offer, it takes less volume to move a price. For smaller, less liquid stocks, at times a single trade can meaningfully impact the business's share price.

Here are the basic risks of share trading:

Volatility - The price of shares constantly fluctuates. With smaller shares, the price can dramatically fall, meaning investors lose their capital. Shares can even go to zero.

Unexpected events - Unfortunately, even the most well-thought-out plans come with risk. Company-specific bad news, changing economies and "black swan events" can all impact a share price. Just look at COVID-19, few predicted how the business landscape would change.

Not knowing what you own - Every share listed will have a story and will try to convince you to invest in them. Not knowing what you own or why you own it is a risk for investors.

Opportunity cost - Most of us have to make choices with our money. Choosing a stock that underperforms also has an opportunity cost attached with it. This is because we have missed out on buying a better performing stock.

Liquidity risk - Liquidity is the ease of which you can convert assets to cash. While stocks and bonds are usually liquid, in smaller shares they can be more illiquid. As such, you might have to accept a lower price in order to sell the asset quickly.

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades. Read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) for the product on the provider's website.

More guides on Finder

Go to site