The stock market trades near all-time highs in early October as Wall Street cheers on projected earnings growth, additional interest rate cuts, and more artificial intelligence deal-making.

Bullish investors looking to buy stocks heading into third-quarter earnings season and beyond might consider adding exposure to best-in-class cheap stocks trading for under $10 a share.

Along with their cheap price tags, the stocks we learn to find earn strong Zacks Ranks, driven by improving earnings outlooks. Wall Street is also very high on these cheap stocks trading for under $10 that look worth buying in October and beyond.

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.

How to Find the Best 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.

Stocks Under $10 to Buy 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 70 highly-ranked stocks trading under $10 a share that made it through the screen today…

Is Cheap ($4.50 a share) AI Energy Stock MVST a Must-Buy?

The energy trade is a direct long-term investment in the future of artificial intelligence, as large AI data centers consume as much electricity as a mid-sized city. This backdrop is a significant reason why U.S. electricity demand is projected to grow 75% by 2050.

It’s hard to pick AI winners in tech since Wall Street isn’t certain what the most profitable uses and applications of AI will be in the long run.

AI hyperscalers are taking an all-of-the-above approach to energy from nuclear and natural gas to solar, which is great for energy storage companies such as Microvast (MVST Quick QuoteMVST - Free Report)  because the sun isn’t always shining. The company designs, develops, and manufactures lithium-ion battery solutions.

Image Source: Zacks Investment Research

Microvast stock has skyrocketed roughly 2,400% off its November 2024 lows, including a 56% run in the past month that has it on the verge of breaking out meaningfully above its June highs.

If MVST climbs solidly above its summer peaks, the AI energy stock could be ready to climb up toward its all-time highs. Despite its run, it trades 20% below its average Zacks price target and 80% below its 2021 highs at roughly $4.50 a share.

Image Source: Zacks Investment Research

The Texas-based company is capitalizing on the long-term momentum of solar energy, which is leading to a rapid and huge expansion of utility-scale battery storage. MVST also offers investors exposure to the EV revolution. All three of the brokerage recommendations Zacks has for Microvast are "Strong Buys."

The battery technology firm posted a big beat-and-raise Q2 that sent its consensus earnings estimates 46% higher for 2025 and 21% higher for FY26. Microvast's positive earnings per share (EPS) revisions earn the AI energy stock a Zacks Rank #1 (Strong Buy), and it’s crushed our EPS estimate by an average of 270% in the past four quarters.

Image Source: Zacks Investment Research

MVST is projected to grow its revenue by 22% this year and next to reach $563.5 million, up from just $108 million in 2020. Its bottom-line outlook is even more impressive, with Microvast projected to soar from an adjusted loss of -$0.27 to +$0.19 a share in 2025 and then grow its EPS by another 53% next year. 

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.

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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