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Top Cheap Stocks Under $10 to Buy for Big Gains in 2025
GRABGrab (GRAB) ZACKS·2024-12-17 21:00

Market Overview - The Nasdaq reached another record high on Monday, driven by the outlook for lower interest rates and technology-driven earnings growth [1] - Despite Nvidia dropping over 10% from its peaks, the market continues to show bullish signs, indicating a cooling off of one of the best-performing stocks [1] - The stock market may experience profit-taking in the coming weeks, presenting opportunities to buy stocks and ETFs at discounted prices [2] Investment Opportunities - Bullish investors might consider buying home run stocks heading into 2025, particularly highly-ranked cheap stocks trading for 10ashareorless[3]−WallStreetanalystsareoptimisticaboutthesecheapstocksduetotheirimprovingearningsoutlooksandstrongZacksRanks[3]−Investorscanfindwinningstocksunder10 a share or less [3] - Wall Street analysts are optimistic about these cheap stocks due to their improving earnings outlooks and strong Zacks Ranks [3] - Investors can find winning stocks under 10 by being extremely selective, with a narrowed list of speculative stocks that could boost portfolios [7] Penny Stocks and Stocks Under 10−Pennystocks,traditionallydefinedastradingfor10 - Penny stocks, traditionally defined as trading for 1 or less, now include securities trading for less than 5ashare,oftenconsideredspeculative[4]−Pennystocksoftentradeinfrequently,havewidebid/askspreads,andexhibitexcessivevolatility,thoughsomeperformexceptionallywell[5]−Stockstradinginthe5 a share, often considered speculative [4] - Penny stocks often trade infrequently, have wide bid/ask spreads, and exhibit excessive volatility, though some perform exceptionally well [5] - Stocks trading in the 5 to 10rangearegenerallylessriskythanpennystocksbutstillmorespeculativethanhigher−pricedstocks[6]ScreeningParametersforCheapStocks−Pricelessthanorequalto10 range are generally less risky than penny stocks but still more speculative than higher-priced stocks [6] Screening Parameters for Cheap Stocks - Price less than or equal to 10 [8] - Volume greater than or equal to 1,000,000 [8] - Zacks Rank less than or equal to 2 (No Holds, Sells, or Strong Sells) [8] - Average Broker Rating less than or equal to 3.5 (Hold or Better) [8] - Minimum of two analysts covering the stock [8] - No downward revisions in earnings estimates over the past 12 weeks [8] Grab Holdings Limited (GRAB) - Grab Holdings Limited is a Singapore-based company operating in deliveries, mobility, and digital financial services via its 'superapp' [9] - The app allows users to order food and groceries, send packages, hail rides, and access financial services like lending and insurance [9] - Grab operates in over 700 cities across eight Southeast Asian countries, with a 15% growth in gross merchandise value in Q3 and a 16% increase in monthly transacting users to 42 million [10] - Grab posted adjusted Q3 earnings of 0.01pershare,beatingestimates,andraiseditsrevenueoutlook,projectinggrowthfrom0.01 per share, beating estimates, and raised its revenue outlook, projecting growth from 2.36 billion in FY23 to 3.28billioninFY25[12]−Thecompanyisexpectedtoreduceitsadjustedlossfrom−3.28 billion in FY25 [12] - The company is expected to reduce its adjusted loss from -0.11 in 2023 to -0.03in2024andachieveaprofitof+0.03 in 2024 and achieve a profit of +0.06 per share in 2025 [13] - Grab holds a Zacks Rank 1 (Strong Buy) and has 12 out of 15 brokerage recommendations as "Strong Buys" [13] - Grab stock has surged 45% in the last six months, despite a 70% drop from its November 2021 peaks, and is approaching positive earnings [15]