2 stocks under $10 with a “Strong Buy” rating for July 2024

For traders and investors looking to maximize returns with minimal effort, low-value stocks under $10 represent an attractive option.

Through careful market analysis, savvy investors can identify stocks with significant growth potential. These stocks deserve serious consideration due to their promising growth prospects, strategic market positions and attractive valuations.

Investing in these stocks under $10 not only offers the potential to generate significant gains, but it is also a valuable way to diversify a portfolio with promising and low-cost assets.

Finbold has analyzed current market conditions and growth prospects and identified two stocks that analysts rate as a “Strong Buy” long-term investment.

SoundHound AI stock (NASDAQ: SOUN)

Speech recognition specialist SoundHound AI (NASDAQ: SOUN) uses artificial intelligence (AI) and natural language understanding to enhance conversational experiences.

Recently, SoundHound AI shares saw a dramatic increase due to a significant development with automaker Stellantis (NYSE: STLA). SoundHound’s Chat AI voice assistant, integrated with ChatGPT, is currently produced under Stellantis’ Peugeot, Opel and Vauxhall brands.

This technology is currently available in 11 European markets and will soon expand to 17 markets in 12 languages. In addition, SoundHound’s technology has been integrated by major companies such as Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOGL) for various applications in hardware and smart home devices.

According to sources, analysts at Wedbush noted that the company raised the lower limit of its full-year revenue forecast from $65 million to $77 million.

From a valuation perspective, SoundHound AI has a market cap of $2.04 billion and an enterprise value of $1.93 billion.

The company has 329.71 million shares outstanding, with insider ownership at 22.31%, reflecting high confidence among management.

The company reported revenue of $50.76 million and gross profit of $15.26 million over the last twelve months. Strong revenue growth and technological advances underscore the potential for significant value creation.

The price-to-sales (P/S) ratio of 40.21 suggests that the market expects significant future growth for SOUN. Analysts have set an average price target of $7.50, representing an increase of 20.97% from the last trading price of $6.20 and giving a rating of Strong Buy.

Grab Holdings Limited (NASDAQ: GRAB)

Singapore-based Grab Holdings (NASDAQ: GRAB) operates in the ridesharing and third-party delivery market, a global growth industry.

The price is around $3.50 per share. Grab uses AI and machine learning to improve its operations and profitability.

In the first quarter, Grab’s revenue increased 24% year-on-year, with adjusted EBITDA reaching a record $62 million.

The company’s on-demand gross merchandise value (GMV), which represents the total dollar value of transactions for Grab’s products and services, increased 21% in constant currency.

Grab also revised upward its full-year earnings forecast, now forecasting EBITDA in the range of $250 million to $270 million (previous forecast: $180 million to $200 million).

Grab Holdings has a market capitalization of $14.18 billion and an enterprise value of $8.93 billion. The company has 3.91 billion shares outstanding, with insider ownership at 34.70%, indicating a high level of confidence from the leadership.

Grab reported revenue of $1.43 billion and gross profit of $988 million for the last twelve months. The revenue growth and increased profitability underscore the company’s potential for significant gains.

The price-to-sales (P/S) ratio is 5.57, reflecting the market’s optimism about its growth potential.

Analysts have set an average price target of $4.66, representing an increase of 29.09% from the last trading price of $3.61, thus representing a “strong buy” rating.

Both of the stocks mentioned above represent good buying opportunities under $10 and have significant growth prospects and solid analyst valuations.

However, investors should exercise caution and perform their own due diligence to ensure that these investments are consistent with their risk appetite and investment objective.

Disclaimer: The content of this website does not constitute investment advice. Investments are speculative. When you invest, your capital is at risk.