The stock market dropped on Tuesday as Wall Street dumped all things AI and momentum-related. Meanwhile, beaten-down stocks such as Adobe and Intuit surged in what might mark the start of a possible rotation into underperforming areas following the massive AI-driven rally off the market’s March lows.
The overall backdrop for the stock market remains upbeat given that earnings growth is expected throughout the economy.
In fact, the early weeks of the third quarter and the start of July offer investors a chance to start buying stocks outside of the broader AI-everything trade that’s dominated the market recently.
One area of Wall Street that investors might want to start buying are strong, best-in-class, cheap stocks trading under $10 a share in July and throughout the rest of the year.
On top of their cheap stock prices, the stocks we learn to find earn strong Zacks Ranks, driven by improving earnings outlooks. Wall Street is also very high on these cheap stocks trading for under $10 a share.
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.
Finding 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 50 highly-ranked stocks trading under $10 a share that made it through the screen today…
Buy Surging Cheap Medical Stock TOI for Growth and 40% Upside Before it Breaks Out
The Oncology Institute TOI is an oncology company focused on what it calls “highly specialized, value-based cancer care in the community setting.” TOI operates through its roughly 100 clinics across five states, offering clinical trials, transfusions, chemotherapy, and other cancer-fighting efforts.
Image Source: Zacks Investment Research
The Oncology Institute is growing its value-based community oncology business, aiming to differentiate itself by getting rewarded for delivering better outcomes at lower costs vs. getting paid for doing more treatments. TOI grew its revenue by an average of 25% over the past four years while also significantly reducing its GAAP loss per share.
The cancer treatment standout posted an impressive beat-and-raise Q1 FY26, with its upward EPS revisions helping TOI land its Zacks Rank #2 (Buy). It is projected to grow its revenue by 30% in 2026 and another 25% next year. It is also projected to trim its adjusted loss from -$0.54 a share in 2025 to -$0.12 in 2027 to inch ever closer to profitability, according to our Zacks estimates.
Image Source: Zacks Investment Research
The medical services stock has skyrocketed by over 1,000% in the past two years. Despite the charge, it is still down around 45% from its 2021 highs following its IPO. The Oncology Institute’s average Zacks price target implies 43% upside from its roughly $5.60-a-share level.
The cheap medical stock is also on the verge of overtaking a critical technical level. TOI stock also it recently completed the bullish golden cross, after its 50-day moving average climbed above its longer-dated 200-day.
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.
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The Oncology Institute, Inc. (TOI): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).