How to Find the Best Cheap Stocks Under $10 to Buy Now

Group 1: Market Overview - Artificial intelligence stocks experienced a decline following a potential breakthrough from DeepSeek, prompting Wall Street analysts to question major tech companies like Microsoft and Meta about the implications for the industry and their capital expenditure plans [1] - The recalibration of the AI trade may provide opportunities for other market sectors to recover, particularly low-priced stocks with strong fundamentals [2] Group 2: Investment Opportunities - Investors are encouraged to explore stocks priced at $10 or less, which are considered to have strong fundamentals and improving earnings outlooks, as indicated by favorable Zacks Ranks [3][6] - Stocks trading under $10 are generally less risky than penny stocks, which are defined as securities trading for less than $5, but still carry speculative risks [4][6] Group 3: Stock Screening Criteria - A screening process has been established to identify promising stocks under $10, focusing on parameters such as an average broker rating of 3.5 or lower, at least two analysts covering the stock, and upward earnings estimate revisions [7][8] - The Honest Company (HNST) is highlighted as a notable stock under $10, with a significant recovery of 425% from its October 2023 lows and a projected sales growth of 9% in FY24 [9][11][12]