The Nasdaq jumped to another record on Monday. Wall Street bulls have pushed stocks higher throughout 2024 and off the market’s 2022 lows based on the outlook for lower interest rates and impressive, technology-driven earnings growth.

The recent run to all-time highs came even though Nvidia has dropped over 10% from its peaks. This is another bullish sign since it indicates one of the best-performing stocks and a true market driver has already cooled off.

The stock market is likely to experience some profit-taking in the coming weeks. But any downturn in the near term should be seen as an exciting opportunity to buy great stocks and ETFs at discounts.

Bullish investors might consider buying some home run stocks heading into 2025.

Today we explore how to find highly-ranked cheap stocks trading for $10 a share or less that investors might want to buy now and throughout 2025.

On top of their cheap price tags, Wall Street analysts are high on all of these stocks and their improving earnings outlooks earn them strong Zacks Ranks.

Penny Stocks

One dollar or less used to be the common threshold for what we call “penny stocks.” Today, the SEC has expanded penny stocks to securities that trade for less than $5 a share. Many investors avoid these stocks because they are speculative in nature.

Meanwhile, penny stocks often trade infrequently and hold wide bid/ask spreads. These stocks also carry many other traits that, in many cases, cause excessive volatility. With that said, some penny stocks perform incredibly well, which helps them remain attractive.

Stocks Under $10

Moving on, let’s briefly discuss the next class of cheap stocks. Stocks that trade in the $5 to $10 range are generally less risky than their penny stock counterparts. Investors might be more likely to have heard of these companies or seen the tickers. They are, however, still inherently more speculative than many other higher-priced stocks.

Investors can obviously find winning stocks for under $10 if they are extremely selective. So today, we narrowed the list of thousands of these more speculative stocks down to a more manageable group of $10 and under stocks that might help boost your portfolio.

Screen Parameters

• Price less than or equal to $10

• Volume greater than or equal to 1,000,000

• Zacks Rank less than or equal to 2

(No Holds, Sells or Strong Sells.)

• Average Broker Rating less than or equal to 3.5

(Average Broker Rating of a Hold or Better.)

• # of Analysts in Rating greater than or equal to 2

(Minimum of at least two analysts covering the stock.)

• % Change F1 Earnings Estimate Revisions -- 12 Weeks greater than or equal to 0

(Preferably upward earnings estimate revisions, but definitely no downward revisions.)

Here is one stock out of the roughly 75 highly-ranked names trading under $10 a share that made it through the screen today…

Why This Cheap $5 Tech Stock Could Be a Huge 2025 Winner

Grab Holdings Limited ((GRAB Quick QuoteGRAB - Free Report) ) is a Singapore-based company that operates across deliveries, mobility, and digital financial services via what Grab calls its ‘superapp.’

Grab’s app enables people to order food and groceries, send packages, and hail a ride or taxi. On top of that, Grab’s technology allows its users to pay for online purchases and access financial services such as lending and insurance.

Grab operates in over 700 cities in eight Southeast Asian countries, including Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. Grab’s ability to expand in key growth areas outside of China is crucial. Grab grew its gross merchandise value (the sum of the total dollar value of transactions) by 15% in Q3. Grab boosted its group monthly transacting users by 16% to 42 million.

Image Source: Zacks Investment Research

Grab posted adjusted Q3 earnings of $0.01 a share to top our breakeven estimate. The company raised its outlook on November 11, with the tech company projected to grow its revenue by 18% in 2024 and 2025 to climb from $2.36 billion in FY23 to $3.28 billion in FY25.

Grab is projected to cut its adjusted loss from -$0.11 last year to -$0.03 in 2024 and then swing to +$0.06 a share next year. Grab’s positive earnings revisions help it earn a Zacks Rank #1 (Strong Buy) right now. Wall Street is also high on the stock, with 12 of the 15 brokerage recommendations Zacks has coming in at “Strong Buys.”

Image Source: Zacks Investment Research

Grab stock has tumbled 70% from its November 2021 peaks as Wall Street sold unprofitable companies. Thankfully, the Southeast Asian technology firm is racing toward positive earnings.

Grab stock has ripped 45% higher in the last six months. The stock hit resistance at a key 2022 level. But a pullback down to its 50-day moving average might spark another rally.  

Get the rest of the stocks on this list and start looking for the newest companies that fit these criteria. It's easy to do. And it could help you find your next big winner. Start screening for these companies today with a free trial to the Research Wizard. You can do it.

Click here to sign up for a free trial to the Research Wizard today.

Want more articles from this author? Scroll up to the top of this article and click the FOLLOW AUTHOR button to get an email each time a new article is published.

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

Disclosure: Performance information for Zacks’ portfolios and strategies are available at: www.zacks.com/performance_disclosure