In our latest exploration of investment opportunities, we’ve compiled insights on the 10 Best Cheap Stocks to Buy Under $10, with a specific focus on Goodyear Tire & Rubber Co. (NASDAQ:GT). This analysis will help you understand how Goodyear stands against its peers in the low-cost stock arena and why it might still hold value for savvy investors.
According to Tom Lee, Fundstrat’s Chief Investment Officer, the current market may be nearing a turning point, emerging from a phase of peak uncertainty. He shared these insights during his appearance on CNBC’s ‘Squawk Box’ on April 21. Despite facing ongoing Federal Reserve uncertainties, Lee emphasized the resilience of companies and suggested a potential for a positive policy shift, such as tariff reductions with major trading partners like China, which could provide a much-needed boost to the market. This highlights a critical consideration for investors: while volatility persists, opportunities may soon arise from the market’s adaptation to changing conditions.
Investor sentiment is notably impacted by macroeconomic factors, and Lee highlighted that while we may be at a structural low in fear, economic risks could still create hesitation among investors. Notably, the last S&P 500 low hovers around 4,800, suggesting that further market adjustments could occur amidst the lingering uncertainties.
On a related note, Lee introduced an intriguing concept: the ‘Granny Shot’ ETF, targeting stocks aligned with enduring investment themes such as cybersecurity and demographic shifts. The premise is simple yet effective—select companies that are not only currently strong but well-positioned for long-term growth trends, much like a reliable basketball shot that consistently finds the net.
Additionally, Lee commented on the performance of Bitcoin, noting the effects of institutional deleveraging that had previously suppressed prices. With the market moving past this transitional phase, Bitcoin seems poised to regain its momentum as an alternative asset, potentially mirroring the recent bullish trends seen in gold, which is currently on a trajectory towards unprecedented heights.
Our research into the top cheap stocks involves utilizing the Finviz stock screener to find high potential candidates with a forward P/E ratio under 15 and priced under $10. We curated a list of these stocks based on popularity among elite hedge funds and strong analyst ratings. The stocks are ranked by the number of hedge funds backing them, drawing on insights from Insider Monkey’s extensive database, which tracks the investment strategies of over 1,000 elite money managers.
Update: Share price for Goodyear Tire & Rubber Co. as of April 22 stands at $9.93, with a forward P/E ratio of 7.19 and backed by 37 hedge fund holders. Goodyear operates in a competitive environment, developing a range of tires for vehicles and heavy machinery under notable brands like Goodyear, Dunlop, and Roadmaster.
Interestingly, despite challenges in the consumer replacement market, the US Consumer Original Equipment (OE) sector driven by Goodyear has experienced significant growth, with a 20% increase in Q4 2024. This suggests that while the low-end import sector is gaining traction, Goodyear’s focus on the premium tire market—through planned product line expansions and significant investments in manufacturing capabilities—positions it strategically for future profitability.
While Goodyear stands at 9th place on our list of best cheap stocks, let’s not overlook sectors that have demonstrated even more explosive growth. We believe that AI stocks are currently positioned to deliver higher returns over shorter timelines than traditional manufacturing stocks like Goodyear. If you’re on the lookout for promising investments, especially in the AI sector, our report on the cheapest AI stock is a must-read and could prove instrumental in your investment strategy.
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Disclosure: None. This article is originally published at Extreme Investor Network.