Stocks rebounded again Wednesday morning as investors continued buying beaten-down stocks across AI and beyond after last week’s selloff pushed the Nasdaq into correction territory on Friday, November 6 (down ~12% from its recent peaks).

The bulls decided, at least for now, that the selling helped cool the market enough, as they defended the Nasdaq near key technical levels, including its late 2025 and early 2026 peaks, its 50-week, and its 200-day. Wednesday morning’s buying pushed the Tech-heavy index solidly above its 200-day.

Investors are shaking off some of the AI bubble fears and the possibility that the blue wave might hinder data center construction in favor of the fundamentals on the ground.

Total S&P 500 earnings are expected to grow by +29.4% in 2026 on +9.8% higher sales, with growth projected in 15 out of 16 sectors, based on the most recent Zacks data. Benchmark earnings are projected to grow another 19.4% in 2027 and 16.7% in 2028.

Plus, the selloff, mixed with the strong earnings growth outlook, has the Tech sector trading at a ~43% discount to its highs, ~25% below its 10-year median, and not too far from its decade-long lows.

With this in mind, let’s dig into why investors might want to buy highly-ranked cheap stocks that are trading for under $10 a share right now as the stock market rebounds. 

On top of their cheap under-$10-a-share prices, the stocks we learn how to find boast improving earnings outlooks that land 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.

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

Buy Cheap, $5-a-Share Consumer Packaged Goods Stock HNST for Breakout Potential

The Honest Company (HNST Quick QuoteHNST - Free Report)  is a consumer packaged goods firm that operates across the wider personal care category from babies to adults. HNST, which was founded in 2012, sells everything from baby wipes, diapers, and sanitizing wipes to skincare and bath and body products.

Honest aims to make “cleanly-formulated and sustainably-designed” products. The firm struggled since going public in 2021. But it’s in the midst of its Transformation 2.0 plan that it rolled out last fall. 

Image Source: Zacks Investment Research

HNST is streamlining its business and focusing on profitability, which includes “exiting certain lower margin, non-strategic categories and channels, including exiting Honest.com fulfillment and apparel, as well as exiting retail and online stores in Canada…” and more.

HNST reported GAAP earnings of $0.69 a share on a trailing twelve-month basis at the end of Q3, marking its first sustained stretch of profitability on record. It reported adjusted earnings of +$0.03 a share in Q3, topping Zacks breakeven estimate.

HNST grew its organic revenue by 9% last quarter, driven by wipes and personal care products. It also raised its 2026 guidance across the board. Honest’s upbeat earnings outlook, especially for FY27, helps it earn a Zacks Rank #2 (Buy).

Image Source: Zacks Investment Research

Honest stock has soared ~105% in 2026, including a ~55% run in the last six months. It recently overtook its 50-day moving average after holding its ground at a key technical range.

Now it looks poised for a possible technical breakout while trading roughly 70% below its all-time highs from 2021. HNST also boasts a sturdy, debt-free balance sheet.

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