12 single-digit stocks that are best for investment

In this article, we’ll look at the 12 best single-digit stocks to invest in. Skip the article about affordable stocks and how they earn or suffer like all other stocks such as small caps and large caps. From the broader macroeconomic environment, 5 best single-digit stocks for investment.

Stocks can be broadly classified into three categories based on market capitalization. Each of these represents companies whose stocks are moving with different dynamics within the broader market environment. The three main stock categories are small-cap, mid-cap, and large-cap, and over time, the valuations of NVIDIA Corporation (NASDAQ:NVDA), Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ), etc. It reached trillions of dollars. :AAPL) has also created a new category commonly referred to as mega-cap stocks.

Similarly, the proliferation of computing products across the financial industry has made stock trading easier, leading to thousands of companies entering categories such as microcap and nanocap stocks. These stocks also include companies with single-digit stock prices, which puts them on the more “affordable” end of the spectrum. Single-digit stocks slightly outperform big-name stocks in a broader category called penny stocks. These stocks typically refer to companies whose stock prices trade below $5. Considering the general advantages and disadvantages of investing, single digit stocks and penny stocks follow the same rules.

Both have a higher potential for greater returns through stock price appreciation. Similarly, penny stocks and single-digit stocks belong to companies that receive little media coverage, making it more likely for scammers to take advantage of unaware investors. This is the early stage of the “pump” in a typical scam, in which the stock price of a single-digit or penny stock determines whether its performance is driven by underlying fundamentals or other legitimate tailwinds. Because it rises much faster than the media’s response to it. And if more investors flock in and the price falls, most people will lose money.

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But where there’s risk, there’s reward, and one of the key advantages that single-digit stocks have over penny stocks is that single-digit stocks include companies whose stock prices trade between $5 and $10. This means that the security of a larger stock increases, which increases the chances of profit. price. Additionally, another important advantage unique to single-digit stocks is that they often have access to shares in large, established foreign corporations that allow American Depositary Receipts (ADRs) to be traded on the U.S. stock market. is.

This trend is mainly seen in the banking sector, with Mitsubishi UFJ Financial Group (NYSE:MUFG), Lloyds Banking Group plc (NYSE:LYG), and Santander Bank (NYSE: SAN) being good examples. Each of these is a major player in their country’s financial system, playing a similar role to major U.S. banks such as JPMorgan Chase & Co. (NYSE:JPM) and Goldman Sachs Group (NYSE:GS).

Therefore, investing in single-digit stocks not only gives you a chance of profit-taking but also stability. Continuing with the single-digit banking stock example, MUFJ stock has risen a respectable 16% since the beginning of the year, even though Japan’s economy is not doing as well as other developed countries such as the UK and Germany. Similarly, despite the UK being officially in recession territory, the Lloyds share price has fallen by just 6% in the past 12 months, and if the share price hadn’t fallen in January, it would have been much more in line with the UK economy. The stock price should have remained almost flat in terms of growth rate.

Before getting into the list of the best single digit stocks, it is important to also keep in mind recent stock market and economic news. Now that NVIDIA Corporation’s (NASDAQ:NVDA) blockbuster earnings are over, investors will now turn their attention to interest rates and U.S. GDP growth. The two are very closely related. Starting with the latter, S&P Global, Inc. (NYSE:SPGI) has announced that it will be the fastest growing U.S. economy in 2024, ahead of its flagship S&P 500 surpassing his coveted 5,000-point barrier and setting a new record. The forecast has also been revised upward. Rating companies currently believe that: The US economic growth rate in 2024 is expected to be 2.4%, a significant upward revision from the previous forecast of 1.5%. This in itself suggests that the Federal Reserve’s latest minutes also show that the central bank is worried about cutting rates too soon, not too late.

Therefore, I decided to investigate what kind of stocks hedge funds are buying using single-digit stocks that can be expected to provide returns and stability. Stocks to watch include Southwestern Energy Company (NYSE:SWN), Warner Bros. Discovery, Inc. (NASDAQ:WBD), and Transocean Ltd. (NYSE:RIG).

Close-up of hands counting a huge pile of money in a bank vault.

our methodology

To create a list of the best single-digit stocks to buy, we looked at the 60 most valuable single-digit stocks in terms of market capitalization, based on the number of hedge funds that bought the stock as of December 2023. Ranked. Among these, the single-digit stocks were selected by those with the highest number of hedge fund investors.

We also mentioned hedge fund sentiment for these top single digit stocks. The top 10 consensus stocks selected by hedge funds have outperformed the S&P 500 index by more than 140 percentage points over the past 10 years (Please see here for the detail). That’s why we pay close attention to this often ignored metric.

12 Best single digit stocks to invest in

12. Garrett Motion Co., Ltd. (NASDAQ:GTX)

Number of hedge fund investors in Q4 2023: 32

Garrett Motion Inc. (NASDAQ:GTX) is an American auto parts manufacturer that sells high-performance products such as automotive turbos and industrial air compressors. Stocks beat analysts’ EPS estimates in only one of the last four quarters, indicating a late start on the list of single-digit blue chips.

Insider Monkey investigated the stock holdings of 933 hedge funds in the fourth quarter of 2023 and found that 32 hedge funds invested in the company. The largest shareholder in Garrett Motion Inc. (NASDAQ: GTX) in our database is Howard Marks Oak Tree, offering $426 million of its stake courtesy of his Capital Management.

Along with Warner Bros. Discovery Co. (NASDAQ:WBD), Southwestern Energy Company (NYSE:SWN), and Transocean Inc. (NYSE:RIG), Garrett Motion Co. (NASDAQ:GTX) ranks in the top single digits. It’s a brand. Hedge funds are gathering.

11. Marketa Corporation (NASDAQ:MQ)

Number of hedge fund investors in Q4 2023: 32

Marqeta, Inc. (NASDAQ:MQ) is an American software company that provides financial technology products that enable users to issue cards and perform other functions. Amid ongoing turmoil in terms of earnings, with the company repeatedly falling short of expectations, Bank of America upgraded the company to “buy from neutral” in February 2024, raising the possibility of Marketa Inc. (NASDAQ:MQ). As a result, stock prices rose. sales will increase by 20%.

By the end of the December 2023 quarter, 32 of the 933 hedge funds profiled by Insider Monkey had purchased Marketa Inc. (NASDAQ:MQ) stock. Jim Simmons’ Renaissance Technologies owned $76 million worth of stock, making it the company’s largest hedge fund shareholder.

10. Newell Brands, Inc. (NASDAQ:NWL)

Number of hedge fund investors in Q4 2023: 33

Newell Brands Inc. (NASDAQ:NWL) is a diversified consumer products company that sells products such as coffee and cleaning products. Unlike Marketa, whose stock price soared in 2024, Newell Brands (NASDAQ:NWL) fell to an all-time low in February 2024 after its full-year earnings outlook disappointed investors.

As of the end of December 2023, 33 of the 933 hedge funds surveyed by Insider Monkey held shares in the company. Among these, the largest stakeholder in Newell Brands, Inc. (NASDAQ: NWL) is Richard S. Pzena’s Pzena Investment Management, with an investment of $469 million.

9. Clarivate (NYSE:CLVT)

Number of hedge fund investors in Q4 2023: 33

Clarivate Plc (NYSE:CLVT) is a leading UK technology company that enables researchers and others to integrate, analyze and manipulate data. A leading stock to watch in the current AI wave, the company’s stock has an average rating of Buy, but analysts’ average price target has no upside.

In terms of stock holdings in Q4 2023, 33 out of 933 hedge funds tracked by Insider Monkey bought and owned shares of Clarivate, Inc. (NYSE:CLVT). Leonard Green’s Leonard Green & Partners held $1 billion worth of stock, making it the largest investor.

8. BGC Group Co., Ltd. (NASDAQ:BGC)

Number of hedge fund investors in Q4 2023: 34

BGC Group, Inc. (NASDAQ:BGC) is an American securities company that offers a variety of investment products and securities. BGC Group (NASDAQ:BGC) shares soared after announcing record earnings in February 2024, but ultimately reversed all gains a week later, so make our list of the best single-digit stocks One of the most interesting stocks. .

During December 2023, 34 out of 933 hedge funds surveyed by Insider Monkey held shares in BGC Group (NASDAQ:BGC).

7. Kinross Gold Corporation (NYSE:KGC)

Number of hedge fund investors in Q4 2023: 36

Kinross Gold Corporation (NYSE:KGC) is a Canadian gold company with operations in the United States, Canada, and other countries. With demand for gold increasing around the world over the past 12 months, Kinross Gold Corporation (NYSE: KGC) has exceeded analyst estimates for his EPS in all four of his most recent quarters. We are doing well in terms of profits.

By the end of the last quarter of 2023, 36 of the 933 hedge funds profiled by Insider Monkey were shareholders of the company. Kinross Gold Corporation (NYSE:KGC)’s largest hedge fund shareholder is Jim Simmons’ Renaissance Technologies, with a stake of $178 million.

6. Grab Holdings Limited (NASDAQ:GRAB)

Number of hedge fund investors in Q4 2023: 37

Grab Holdings Limited (NASDAQ:GRAB) is a Singapore software company whose app provides users with an integrated platform for ordering goods and rides and availing other services. Despite the company’s efforts to attract investors with a share buyback program, its 2023 full-year earnings report still predicted 2024 sales of $2.75 billion, lower than analysts expected, resulting in a significant price decline. led to a decline.

Insider Monkey examined the portfolios of 933 hedge funds in the fourth quarter of last year and found that 37 bought and owned shares in Grab Holdings Limited (NASDAQ:GRAB). Chase Coleman and Feroz Dwan’s Tiger Global Management LLC was the largest investor with $172 million worth of stock.

Southwestern Energy Company (NYSE:SWN), Grab Holdings Limited (NASDAQ:GRAB), Warner Bros. Discovery, Inc. (NASDAQ:WBD), and Transocean Ltd. (NYSE:RIG) are among the top single-digit hedge fund stocks. It is listed in.

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Disclosure: None. 12 single-digit stocks that are best for investment Originally published on Insider Monkey.