American stocks have a long history of doing well, with the Dow Jones, Nasdaq 100, and S&P 500 indices nearing their all-time highs. This growth has made some companies highly expensive, with the Berkshire Hathaway stock soaring to over $700k.
Therefore, investing in cheaper companies with huge growth potential may be a good idea. Here are some of the best stocks under $10 to buy and hold for 5x gains.
Nio (NIO)
Nio is one of the best stocks under $10 to buy and hold this year. It is a contrarian recommendation since its stock has crashed from $67 to $4.9 today. The main reason why it is a good stock to buy is that it is still selling thousands of vehicles a month even as competition rises.
Nio delivered 13,863 vehicles in January, a 37% annual increase. Analysts anticipate that Nio’s annual revenue grew by 23% in 2024 and anticipate that it will expand by 42% in 2025, helped by its ONVO brand and international expansion.
Read more: Nio stock price prediction 2025: a 70% surge is possible
Compass (COMP)
Compass is another stock under $10 to buy for huge gains ahead. Its stock has already jumped by over 300% from its lowest level in 2023 and is hovering at its highest point since April 2022. This performance is happening at a time when a court ruling dramatically changed how real estate agents are paid.
Compass business is gaining market share and is expected to continue growing. Annual revenue is expected to move from $5.63 million in 2024 to over $6.56 million this year. It will also benefit when the Federal Reserve starts cutting interest rates.
Redfin (RDFN)
Redfin is a top company in the real estate industry, where it runs a portal where people can search and find property for rent and purchases. It also offers Redfin Premier and mortgage solutions.
Redfin’s business has been challenging in the past few years as its revenue dropped from over $1 billion in 2022 to $967 million in 2023. Analysts are optimistic that the company will start thriving, as its annual revenue for 2024 is expected to be $1.04 billion, followed by $1.14 billion this year.
Redfin is also expected to continue narrowing its losses. The estimate is that its loss per share moved from $1.25 in 2024 to 98 cents this year. Redfin stock has formed a falling wedge pattern, pointing to a rebound later this year.
EVgo (EVGO)
EVgo is an American company that is building electric vehicle charging infrastructure in the country. It has attracted over 1 million customers, received a Department of Energy (DoE) loan, and inked a partnership with General Motors.
The company’s business is growing, with its annual revenue expected to come in at $258 million this year, followed by $361 million in 2025. This growth will continue as the firm plans to triple its stores in the next few years. Its top competitors, like Blink Charging and ChargePoint are struggling, which may benefit it.
Grab Holdings (GRAB)
Grab Holdings is another good stock under $10 to buy and hold. It is a large Uber alternative with large operations in Singapore and several Southeast Asian countries. The company has expanded its business by venturing into fintech, food and grocery deliveries, and other solutions.
Grab’s business is seeing modest growth. Revenue growth was $2.8 billion in 2024 and $3.4 billion in 2025. The stock may be supercharged if Grab Holdings merges with GoTo to create a $25 billion company.
Other top stocks under $10 to buy
Some of the other potential stocks under $10 to buy are ANGI, Plug Power, NextDoor, AMC Holdings, Clover Health, and Figs.
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