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.
To help identify stock picks for 2025 that are currently under $10, we used Finder's proprietary algorithm to filter Australian-listed companies that have strong growth.
We analyse which stocks have the best weekly, 1-year and 5-year returns and filter out penny stocks with values below $0.10 to ensure we only select quality stocks.
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.
Investments can go up and down and we do not guarantee the performance or returns of any investment.
We currently don't have a partnership for that product, but we have other similar offers to choose from (how we picked these ):
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.
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:
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.
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:
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.
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