Pure-play artificial intelligence and AI-adjacent stocks drove the market lower on Tuesday as investors race to protect massive first-half profits.

Investors looking to keep buying stocks to start September might consider areas outside of the AI sphere. Some might also consider taking a swing at highly-ranked cheap stocks that are trading for under $10 a share as Wall Street begins what could be a near-term pivot away from the AI trade.

Alongside their cheap, under-$10-a-share prices, the stocks we learn how to find boast improving earnings outlooks that land them strong Zacks Ranks. Wall Street is also very high on these cheap stocks trading for $10 a share or less to start September.

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 Cheap Stocks Under $10 to Buy Now

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 60 highly-ranked stocks trading under $10 a share that made it through the screen today…

Best Cheap Stocks to Buy Now: Surging STGW Stock for Value and Breakout Potential

Stagwell Inc. (STGW Quick QuoteSTGW - Free Report)  is a global marketing network that sells creative advertising, media buying, public relations, research, and digital transformation work. It also builds software and data tools that help in-house marketing teams plan campaigns, measure results, and use AI to produce content and more.

Image Source: Zacks Investment Research

The company reports its business in five units: Marketing Services, Digital Transformation, Media & Commerce, Communications, and The Marketing Cloud. The stock has rallied on better results and a stronger outlook. In its latest quarter, Stagwell beat estimates, grew revenue about 11%, and raised full-year adjusted EPS guidance.

Digital transformation work and new business wins have been strong, and the company has highlighted AI-driven marketing tools. STGW grew its adjusted Q2 earnings by 39% YoY to $0.25 a share, blowing away our estimate by 47%.  

Stagwell said when it reported its strong beat-and-raise Q2 results on July 30 that its “unique combination of software, services and engineers is being embraced by the industry leading to another record-breaking Net New Business quarter of $171 million, highlighted by recent wins with IBM, Adobe, Mondelez and Heineken.”

Looking ahead, the advertising firm is projected to grow its revenue by 10% in 2026 and 5% next year to reach $3.36 billion. Better yet, it is expected to boost its adjusted earnings by 31% and 17%, respectively. And its upbeat EPS outlook helps it earn a Zacks Rank #2 (Buy). Plus, its Advertising and Marketing industry rests in the top 19% of nearly 250 Zacks industries.

Image Source: Zacks Investment Research

STGW stock has ripped 75% higher in 2026 and 53% in the last year. Its average Zacks price target implies 14% upside from its current level.

Plus, the cheap under $10-a-share ad stock is on the verge of a potential breakout above its highs over the last five years and its 200-week moving average. On top of that, it trades in line with its industry and at a 43% discount to its recent highs at 8.3X forward 12-month earnings.  

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