We will talk about the ten equities that hedge funds think are the best to purchase for under $10 in this post.
Because of their resources, expertise, and access to cutting-edge techniques, hedge funds are consistently seen as being one step ahead of regular investors in the financial game. While some hedge funds are heavily diversified, others are specialized in particular industries.
In an age of increasing market values, cheap stocks with potent growth catalysts provide investors the chance to make excellent returns quickly. Jamie Harmon, the co-manager of Fidelity Low-Priced Stock, believes that there are still some amazing deals to be had.
“The opportunity with low-priced stocks is that you’re looking where no one else is looking.”
Cheap stocks are certainly not as fancy and well-known as Twitter, Inc., Apple Inc., Amazon.com, Inc. (NASDAQ:AMZN), or Microsoft Corporation (NASDAQ:MSFT) (NYSE:TWTR). Nevertheless, given the financial impact of Covid-19 on the US economy and the influence on population income levels, they may be profitable investments. According to the IMF, the global economy contracted by 4.4% in 2021, and 8.9% of Americans lost their jobs. This is said to be one of the things luring investors to inexpensive stocks. Bloomberg reports that in the first quarter of 2022, the average increase in value for Russell 3000 equities with a price below $2 was around 13%. While shares of companies trading for under $5 were up roughly 10%. This growth was more than three times that of stocks with a stock price of $100 or higher.
Best Stocks To Buy Under $10 According To Hedge Funds
10. Southwestern Energy Company (NYSE:SWN)
Number of Hedge Fund Holders: 27
One of the largest US producers of natural gas liquids is Southwestern Energy Company (NYSE:SWN). According to hedge funds, the firm is tenth on our list of the top 10 companies to purchase for under $10.
With a $92 million interest in Southwestern Energy Company, Kopernik Global Investors is the hedge fund with the highest holding among them (NYSE:SWN). Southwestern Energy Company (NYSE:SWN) is the subject of a total stake held by 27 hedge funds worth $257.7 million, or 5% of the stock’s market value.
On October 18, Vincent Lovaglio reaffirmed a Buy rating on Southwestern Energy Company (NYSE:SWN), although he increased the price target by $1 to $8 in light of the anticipated higher winter natural gas prices. The market’s improved demand and supply conditions led Neal Dingmann at Truist to raise the target price from $5 to $6 while maintaining a Hold rating.