Best Cheap Stocks to Buy Under $10 for December 2025

Kevin Voigt Updated on December 30, 2025

CIONSKILAPPSDBISHIP

Cheap stocks trading under $10 often attract investors looking to stretch their capital, uncover turnaround stories, or gain exposure to growing industries at a lower entry point. While a low share price alone doesn’t guarantee value, many sub-$10 stocks are established businesses temporarily out of favor, emerging growth companies, or overlooked operators with improving fundamentals.

Are Cheap Stocks a Good Investment?

Stocks priced under $10 can present appealing entry points for investors seeking asymmetric returns — the potential for outsized gains relative to the initial investment. Reputable analysts and financial outlets frequently flag these names because a depressed price can mask solid businesses facing temporary earnings pressure, cyclical slowdowns, or sentiment-driven selloffs.

That said, cheap does not always mean valuable. A low price may reflect:

Temporary earnings weakness or cyclical downturns.
Industry-wide headwinds.
Cash flow constraints.
Poor management execution.

Investors must separate quality cheap stocks from value traps, where structural issues cap long-term upside. As Warren Buffett has often emphasized, a stock is only a bargain if the underlying business can earn durable profits.

Below, we analyze and rank the best cheap stocks under $10 using a blend of Zacks Rank signals, Style Scores, and fundamentals.

5 Best Cheap Stocks to Buy Today

Company (Ticker)	12 Week Price Change	Forward PE	Price	Proj EPS Growth (1 Year)	Projected Sales Growth (1Y)
CION Investment Corporation (CION)	2.67%	5.30	$9.73	1.12%	-4.19%
Skillsoft (SKIL)	-48.86%	1.88	$8.23	-3.70%	-3.55%
Digital Turbine (APPS)	-21.10%	15.64	$5.04	-5.71%	0.00%
Designer Brands (DBI)	124.07%	NA	$7.98	-107.41%	-4.03%
Seanergy Maritime Holdings (SHIP)	10.79%	8.84	$9.30	-56.09%	-8.89%

*Updated on December 30, 2025.

CION Investment Corporation (CION)

$9.73 USD +0.13 (1.35%)

3-Year Stock Price Performance

Premium Research for CION

Zacks Rank This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below. Zacks Rank Definition Annualized Return 1 Strong Buy 23.90% 2 Buy 18.19% 3 Hold 10.07% 4 Sell 5.53% 5 Strong Sell 2.72% S&P 500 11.48% Zacks Rank Education - Learn about the Zacks Rank Zacks Rank Home - Zacks Rank resources in one place Zacks Premium - The only way to fully access the Zacks Rank: Strong Buy 1

Zacks Rank	Definition	Annualized Return
1	Strong Buy	23.90%
2	Buy	18.19%
3	Hold	10.07%
4	Sell	5.53%
5	Strong Sell	2.72%
S&P	500	11.48%

Zacks Industry Rank The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank: Bottom 29% (173 out of 243)

Zacks Sector Rank The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank. A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. Zacks Sector Rank Education - Learn more about the Zacks Sector Rank The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank: Top 19% (3 out of 16)

Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

Value Score A

Growth Score A

Momentum Score A

VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

A Value A Growth C Momentum A VGM

Earnings ESP Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. Visit the Earnings ESP Center See the Full List of Stocks To Beat Earnings: 0.00%

Market Cap: $499.51 M (Small Cap)
Projected EPS Growth: 1.12%
Last Quarter EPS Growth:131.25%
Last EPS Surprise: 111.43%
Next EPS Report date:March 12, 2026

Our Take:

CION Investment is a middle-market business development company focused on senior secured lending to U.S. companies. It has a market cap of about $499.5 million. Its latest quarter reflected steady NAV accretion and a conservatively positioned portfolio dominated by first-lien loans, which make up roughly 80% of investments. Approximately 89% of performing loans carry floating rates, which helps support income as rates normalize.

Management plans to shift the base dividend to a monthly payout in 2026, enhancing income visibility. Leverage remains controlled, with net debt-to-equity improving to 1.28x, ample liquidity, and a well-diversified portfolio across 91 companies and 23 industries.

A Zacks Rank #1 (Strong Buy) and Style Scores of A for Value and Growth, and C for Momentum indicate positive estimate revisions at an appealing valuation. On the Price, Consensus & EPS Surprise chart, shares have steadied as 2026–27 consensus lines turn higher after a mid-year dip, an alignment that supports multiple stability as underwriting discipline and capital returns take hold.

Skillsoft (SKIL)

$8.23 USD +0.40 (5.11%)

3-Year Stock Price Performance

Premium Research for SKIL

Zacks Rank This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below. Zacks Rank Definition Annualized Return 1 Strong Buy 23.90% 2 Buy 18.19% 3 Hold 10.07% 4 Sell 5.53% 5 Strong Sell 2.72% S&P 500 11.48% Zacks Rank Education - Learn about the Zacks Rank Zacks Rank Home - Zacks Rank resources in one place Zacks Premium - The only way to fully access the Zacks Rank: Strong Buy 1

Zacks Rank	Definition	Annualized Return
1	Strong Buy	23.90%
2	Buy	18.19%
3	Hold	10.07%
4	Sell	5.53%
5	Strong Sell	2.72%
S&P	500	11.48%

Zacks Industry Rank The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank: Top 39% (95 out of 243)

Zacks Sector Rank The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank. A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. Zacks Sector Rank Education - Learn more about the Zacks Sector Rank The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank: Bottom 25% (12 out of 16)

Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

Value Score A

Growth Score A

Momentum Score A

VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

A Value B Growth A Momentum A VGM

Earnings ESP Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. Visit the Earnings ESP Center See the Full List of Stocks To Beat Earnings: 0.00%

Market Cap:$68.58 M (Micro Cap)
Projected EPS Growth:-3.70%
Last Quarter EPS Growth:172.34%
Last EPS Surprise:30.95%
Next EPS Report date: April 13, 2026

Our Take:

Skillsoft provides enterprise learning and skills-management software (Percipio) plus instructor-led training via Global Knowledge (GK). It has a market cap of $68.6 million. The latest updates emphasized product and portfolio focus, and strategic partnerships, such as one with edX.

It launched an AI-native Percipio platform with agentic capabilities and signed its first large-enterprise wins, while beginning a strategic review of Global Knowledge to reduce cash drag and concentrate on the higher-margin TDS segment. In Q3 fiscal 2026, LTM Dollar Retention Rate (DRR) improved to 99%, and TDS federal business recovered with a DRR of 104%, suggesting stabilization in core customers.

A Zacks Rank #1 and Style Scores of A for Value and Momentum and B for Growth reflect positive estimate revisions and improving price action. On the chart, 2026–27 consensus lines rise while the stock stays subdued, hinting at rerating potential if AI-led product traction and any GK outcome clarify the path to steadier growth.

Digital Turbine (APPS)

$5.04 USD -0.12 (-2.33%)

3-Year Stock Price Performance

Premium Research for APPS

Zacks Rank This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below. Zacks Rank Definition Annualized Return 1 Strong Buy 23.90% 2 Buy 18.19% 3 Hold 10.07% 4 Sell 5.53% 5 Strong Sell 2.72% S&P 500 11.48% Zacks Rank Education - Learn about the Zacks Rank Zacks Rank Home - Zacks Rank resources in one place Zacks Premium - The only way to fully access the Zacks Rank: Strong Buy 1

Zacks Rank	Definition	Annualized Return
1	Strong Buy	23.90%
2	Buy	18.19%
3	Hold	10.07%
4	Sell	5.53%
5	Strong Sell	2.72%
S&P	500	11.48%

Zacks Industry Rank The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank: Top 26% (62 out of 243)

Zacks Sector Rank The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank. A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. Zacks Sector Rank Education - Learn more about the Zacks Sector Rank The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank: Top 6% (1 out of 16)

Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

Value Score A

Growth Score A

Momentum Score A

VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

D Value C Growth D Momentum D VGM

Earnings ESP Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. Visit the Earnings ESP Center See the Full List of Stocks To Beat Earnings: 0.00%

Market Cap: $578.69 M (Small Cap)
Projected EPS Growth:-5.71%
Last Quarter EPS Growth: NA
Last EPS Surprise:150.00%
Next EPS Report date: Feb. 4, 2026

Our Take:

Digital Turbine provides on-device app discovery and monetization solutions to carriers, Android OEMs, and advertisers, with a market capitalization of $578.7 million. Recent results reflected improving top-line momentum as carriers and OEM partners increased adoption of On-Device Solutions, supported by advertising demand.

Management also strengthened financial flexibility through a new four-year $430 million term loan, easing near-term maturity risk while enabling continued investment in SingleTap distribution and international partnerships.

A Zacks Rank #1 signals positive estimate revisions even as Style Scores lean weak, with D for Value and Momentum and C for Growth, framing APPS as a revisions-driven idea rather than a traditional value or momentum setup. On the chart, estimates declined through 2024–25 but have stabilized for 2026 and started rising into 2027, while the stock has formed a base amid recent upside surprises. If carrier execution holds post-refinancing, multiple stabilization and operating leverage could emerge.

Designer Brands (DBI)

$7.98 USD +0.16 (2.05%)

3-Year Stock Price Performance

Premium Research for DBI

Zacks Rank This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below. Zacks Rank Definition Annualized Return 1 Strong Buy 23.90% 2 Buy 18.19% 3 Hold 10.07% 4 Sell 5.53% 5 Strong Sell 2.72% S&P 500 11.48% Zacks Rank Education - Learn about the Zacks Rank Zacks Rank Home - Zacks Rank resources in one place Zacks Premium - The only way to fully access the Zacks Rank: Strong Buy 1

Zacks Rank	Definition	Annualized Return
1	Strong Buy	23.90%
2	Buy	18.19%
3	Hold	10.07%
4	Sell	5.53%
5	Strong Sell	2.72%
S&P	500	11.48%

Zacks Industry Rank The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank: Top 24% (59 out of 243)

Zacks Sector Rank The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank. A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. Zacks Sector Rank Education - Learn more about the Zacks Sector Rank The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank: Bottom 44% (9 out of 16)

Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

Value Score A

Growth Score A

Momentum Score A

VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

A Value D Growth A Momentum A VGM

Earnings ESP Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. Visit the Earnings ESP Center See the Full List of Stocks To Beat Earnings: 0.00%

Market Cap:$388.15 M (Small Cap)
Projected EPS Growth: -107.41%
Last Quarter EPS Growth: 11.76%
Last EPS Surprise:111.11%
Next EPS Report date: March 19, 2026

Our Take:

Designer Brands is a footwear designer, producer, and retailer best known for DSW, Camuto Group, and owned brands like Keds and Topo. It has a $388.1 million market cap. Strategically, DBI is leaning into owned brands and omnichannel scale across more than 670 stores, aiming for structurally higher margins.

The latest quarter underscored operational progress beyond EPS. Gross margin expanded 210 bps to 45.1% on better mix and store execution, inventories were trimmed versus last year, and management guided to $50–$55 million in FY25 adjusted operating income, evidence that the turnaround is sticking despite softer sales.

A Zacks Rank #1 with A scores for Value and Momentum and D for Growth frames DBI as a revisions-led recovery at a discounted multiple with improving price action. On the chart, estimates bottomed through 2025, flattened into 2026, and began to lift for 2027 as shares base, an alignment consistent with the Rank’s positive revision signal.

Seanergy Maritime Holdings (SHIP)

$9.30 USD +0.06 (0.65%)

3-Year Stock Price Performance

Premium Research for SHIP

Zacks Rank This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below. Zacks Rank Definition Annualized Return 1 Strong Buy 23.90% 2 Buy 18.19% 3 Hold 10.07% 4 Sell 5.53% 5 Strong Sell 2.72% S&P 500 11.48% Zacks Rank Education - Learn about the Zacks Rank Zacks Rank Home - Zacks Rank resources in one place Zacks Premium - The only way to fully access the Zacks Rank: Strong Buy 1

Zacks Rank	Definition	Annualized Return
1	Strong Buy	23.90%
2	Buy	18.19%
3	Hold	10.07%
4	Sell	5.53%
5	Strong Sell	2.72%
S&P	500	11.48%

Zacks Industry Rank The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank: Top 30% (74 out of 243)

Zacks Sector Rank The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank. A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. Zacks Sector Rank Education - Learn more about the Zacks Sector Rank The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank: Top 44% (7 out of 16)

Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

Value Score A

Growth Score A

Momentum Score A

VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

A Value D Growth C Momentum B VGM

Earnings ESP Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. Visit the Earnings ESP Center See the Full List of Stocks To Beat Earnings: 0.00%

Market Cap: $193.14 M (Small Cap)
Projected EPS Growth: -55.88%
Last Quarter EPS Growth:416.67%
Last EPS Surprise: 45.65%
Next EPS Report date: March 5, 2026

Our Take:

Seanergy Maritime is a pure-play Capesize dry-bulk owner operating a young fleet serving global iron ore and coal trades. It has a $193.1 million market cap. The latest update underscored disciplined capital returns and a cleaner structure. Management declared a 13-cent quarterly dividend, its 16th straight, and the last outstanding warrants expired, removing legacy dilution. A profitable vessel sale further tightened focus on high-quality Capes/Newcastlemax tonnage.

Operationally, Seanergy continued to lock in attractive coverage as the Capesize market recovered in 2H25. Contract discipline, alongside a conservative balance sheet, helps smooth cash generation through rate volatility.

A Zacks Rank #1 and Style Scores of A for Value, C for Momentum, and D for Growth frame SHIP as a revisions-led value idea tethered to cyclical shipping dynamics. On the chart, shares have trended off mid-year lows as 2026–27 estimates stabilize, with several recent positive surprises, an alignment supportive of the Rank’s signal.

Methodology

The Zacks Rank is a proprietary stock-rating model that uses trends in earnings estimate revisions and earnings-per-share (EPS) surprises to classify stocks into five groups: #1 (Strong Buy), #2 (Buy), #3 (Hold), #4 (Sell) and #5 (Strong Sell). The Zacks Rank is calculated through four primary factors related to earnings estimates: analysts' consensus on earnings estimate revisions, the magnitude of revision change, the upside potential and estimate surprise (or the degree in which earnings per share deviated from the previous quarter).

Zacks builds the data from 3,000 analysts at over 150 different brokerage firms. The average yearly gain for Zacks Rank #1 (Strong Buy) stocks is +23.62% per year from January, 1988, through June 2, 2025.

Selections for Best Cheap Stocks Under $10 are based on the current top ranking stocks based on Zacks Indicator Score, Style Scores and fundamentals. For this list, only companies that have average daily trading volumes of 100,000 shares or more were considered, as well as companies from the top 50% of all industries. All information is current as of market open, Dec. 30, 2025.

General Questions About Cheap Stocks

What are the Benefits of Buying Cheap Stocks?

Cheap stocks can make investing more accessible, especially for investors who don’t want to commit large sums to a single position. Because these stocks trade at lower prices, investors can spread their capital across multiple companies, sectors, or strategies, helping improve diversification.

In addition, many stocks fall below $10 not because the underlying business is broken, but because of temporary challenges such as economic slowdowns, industry cycles, earnings volatility, or broader market sell-offs. When conditions improve, these stocks may rebound sharply, offering attractive upside potential. Cheap stocks can also provide exposure to undervalued or overlooked sectors that are out of favor but poised for recovery.

Learn more about Cheap Stocks Under $10 from Zacks.

What are the Risks of Buying Cheap Stocks?

The primary risk with cheap stocks is that their low price may reflect genuine business problems rather than temporary setbacks. These companies often experience higher volatility, meaning prices can swing sharply in either direction. Many also have weaker balance sheets, higher debt loads, or limited cash reserves, making them more vulnerable during economic downturns.

Additionally, cheap stocks may face challenges raising capital, maintaining profitability, or competing with larger rivals. Without careful analysis, investors risk buying into so-called “value traps” — stocks that appear inexpensive but continue to decline because fundamentals fail to improve.

Can Cheap Stocks Actually Make Money?

Yes, cheap stocks can generate meaningful returns when purchased at the right time and for the right reasons. Numerous well-known companies have traded below $10 during periods of market stress, corporate restructuring, or industry downturns before eventually recovering.

That said, success is far from guaranteed. Cheap stocks tend to require patience, a willingness to tolerate volatility, and a focus on long-term business trends rather than short-term price movements.

Are Cheap Stocks a Good Investment for Beginners?

Cheap stocks can be suitable for beginners if approached cautiously. Their lower price points allow new investors to learn portfolio management, diversification, and risk control without committing excessive capital.

However, beginners should avoid concentrating too much money in a single cheap stock or chasing speculative names purely because they look inexpensive. Focusing on established companies, clear business models, and basic fundamentals can help reduce risk while building investing experience.

What is the Difference Between Cheap Stocks and Penny Stocks?

Cheap stocks generally trade under $10 but are listed on major exchanges like the NYSE or Nasdaq and are required to meet stricter regulatory and reporting standards. Penny stocks, by contrast, often trade under $5 — and frequently under $1 — and are commonly found on over-the-counter (OTC) markets.

Penny stocks typically carry far higher risk due to low liquidity, limited transparency, and greater susceptibility to manipulation. While some cheap stocks are speculative, they usually offer better disclosure and stability than penny stocks.

How to Select Fundamentally Strong Cheap Stocks

How can I Analyze a Cheap Stock's Potential?

Analyzing a cheap stock starts with examining its financial health and business model. Key areas to review include revenue growth trends, profitability or progress toward profitability, debt levels, and cash flow generation. Investors should also evaluate the company’s competitive position within its industry, the durability of its products or services, and management’s long-term strategy.

Beyond the numbers, it’s important to consider industry tailwinds, upcoming catalysts such as new products or restructuring efforts, and whether the company has a credible path to improving performance.

How do I Know if a Stock is Cheap or Just Bad?

A truly cheap stock trades at a low valuation relative to its future earnings potential, assets, or cash flow, often due to temporary challenges. These companies usually have a realistic plan for recovery, cost control, or growth.

A bad stock, on the other hand, lacks earnings visibility, suffers from persistent losses, carries excessive debt, or operates in a declining or obsolete industry. If management cannot articulate a clear strategy for improvement, or if fundamentals continue to deteriorate, the stock may remain cheap for the wrong reasons.

Strategy and Portfolio Building with Cheap Stocks

Is it Better to Buy 100 Shares of a Cheap Stock, or 1 Share of an Expensive Stock?

The number of shares owned is largely irrelevant. What matters is the percentage return on investment and the level of risk taken. A single share of a high-quality company can outperform hundreds of shares of a struggling business. Investors should focus on expected returns, downside risk, and how each position fits within the broader portfolio.

How do I Build a Diversified Portfolio Using Cheap Stocks?

Diversification with cheap stocks involves spreading investments across multiple sectors, industries, and business models. Combining growth-oriented names with income or value stocks can help balance risk and reward. Limiting position sizes — especially for more speculative companies — helps prevent any single stock from dominating portfolio performance.

How can I Screen for Cheap Stocks with Growth Potential?

Investors can use stock screeners to identify candidates by filtering for price, market capitalization, revenue growth, manageable debt levels, and improving margins. Additional filters such as analyst earnings revisions, insider buying, or strong free cash flow can further refine results. Screening helps narrow the field, but deeper research is still essential before investing.

Cheap Stock Investing Through ETFs

What are Some Good ETFs that Hold Cheap or Value Stocks?

Investors who prefer diversification over picking individual stocks may consider value-focused ETFs. Examples include:

Vanguard Value ETF (VTV).
iShares Russell 2000 Value ETF (IWN).
SPDR Portfolio S&P 600 Small Cap Value ETF (SLYV).

These funds hold baskets of undervalued stocks across multiple sectors and market capitalizations. ETFs can reduce single-stock risk while still providing exposure to companies trading at attractive valuations.