For traders and investors aiming to maximize returns with a modest outlay, low-priced stocks under $10 offer a compelling opportunity.
Through meticulous market analysis, savvy investors can identify stocks with substantial growth potential. These stocks warrant serious consideration due to their promising growth prospects, strategic market positions, and attractive valuations.
Investing in these under $10 stocks not only presents the potential for significant returns but also offers a valuable means of diversifying a portfolio with high-potential, low-cost assets.
Picks for you
Finbold has analyzed the current market conditions and growth outlooks to identify two such stocks that have received a ‘strong buy’ rating from analysts for long-term investment.
SoundHound AI (NASDAQ: SOUN) stock
Speech recognition specialist SoundHound AI (NASDAQ: SOUN) leverages artificial intelligence (AI) and natural language understanding to promote conversational experiences.
Recently, shares of SoundHound AI saw a dramatic rise due to a significant development with automaker Stellantis (NYSE: STLA). SoundHound’s Chat AI voice assistant, integrated with ChatGPT, is now in production under the Stellantis brands Peugeot, Opel, and Vauxhall.
This technology is currently available in 11 European markets and will soon expand to 17 markets in 12 languages. Additionally, SoundHound’s technology has been integrated by major companies such as Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOGL) for various applications in hardware and smart home devices.
Analysts at Wedbush have noted that the company raised the low-end of its revenue guidance for the full year to $77 million from $65 million, according to sources.
From a valuation perspective, SoundHound AI has a market capitalization of $2.04 billion and an enterprise value of $1.93 billion.
The company has 329.71 million shares outstanding, with insider ownership at 22.31%, reflecting significant confidence from its management.
The company reported revenue of $50.76 million over the last twelve months, with a gross profit of $15.26 million. The strong revenue growth and technological advancements highlight its potential for substantial appreciation.
The price-to-sales (P/S) ratio of 40.21 suggests the market anticipates significant future growth for SOUN. Analysts have set an average price target of $7.50, representing a 20.97% increase from its last trading price of $6.20, giving a ‘strong buy’ rating.
Grab holdings limited (NASDAQ: GRAB) stock
Singapore-based Grab Holdings (NASDAQ: GRAB) operates in the ride-hailing and third-party delivery market, which is a global growth industry.
Trading at around $3.50 per share, Grab is leveraging AI and machine learning to enhance its operations and profitability.
In the first quarter, Grab’s revenue jumped 24% year-over-year, with adjusted EBITDA reaching a record $62 million.
The company’s on-demand gross merchandise value (GMV) surged 21% on a constant currency basis, representing the total dollar value of transactions from Grab’s products and services.
Grab has also revised its profit outlook for the full year, now forecasting EBITDA in the range of $250 million to $270 million, up from the previous guidance of $180 million to $200 million.
Grab Holdings has a market capitalization of $14.18 billion and an enterprise value of $8.93 billion. The company has 3.91 billion shares outstanding, with insider ownership at 34.70%, indicating a high level of confidence from its executives.
Grab reported revenue of $1.43 billion over the last twelve months, with a gross profit of $988 million.The revenue growth and increased profitability underscore its potential for significant returns.
The price-to-sales (P/S) ratio is 5.57, reflecting the market’s optimism about its growth potential.
Analysts have set an average price target of $4.66, representing a 29.09% increase from its last trading price of $3.61, giving a ‘strong buy’ rating.
Both the above stocks represent strong buy opportunities under $10, with substantial growth prospects and robust analyst endorsements.
However, investors should exercise caution and conduct their own due diligence to ensure these investments align with their risk tolerance and investment goal
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
