Finding high-quality investment opportunities among stocks priced under $10 is a challenge considering most companies with low stock prices have significant risks and uncertain futures.
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However, there are a handful of hidden gems that offer frugal investors a rare combination of affordability and strong fundamental performance. These investments come with all the perks of stocks trading for hundreds of dollars a share, but they won’t cost you an arm and a leg. And at under $10, these stocks have major upside potential. Bank of America analysts have sifted through the market to identify eight high-quality, low-priced stocks under $10.
| Stock | Implied upside* |
| Itau Unibanco Holding SA (ticker: ITUB) | 21% |
| Banco Bradesco SA (BBD) | 44% |
| Companhia de Saneamento Basico do Estado de Sao Paulo (SBS) | 25% |
| Blue Owl Capital Inc. (OWL) | 80% |
| Grab Holdings Ltd. (GRAB) | 57% |
| Full Truck Alliance Co. Ltd. (YMM) | 23% |
| Gerdau SA (GGB) | 14% |
| Ultrapar Participacoes SA (UGP) | 15% |
*Based on July 24 closing price and Bank of America analysts’ price targets.
Itau Unibanco Holding SA (ITUB)
Itau Unibanco is a top Brazilian bank and financial services provider that accounts for a leading share of Brazil’s commercial foreign exchange market. The bank also provides financial products and services throughout Latin America, such as asset management, investment banking and insurance. Analyst Mario Pierry says Itau is facing a difficult environment in Brazil that has included slowing revenue growth and normalization of asset quality. However, Pierry says the bank has de-risked its loan book, improved its efficiency ratio and maintained a solid balance sheet. Bank of America has a “buy” rating and $10 price target for ITUB stock, which closed at $8.28 on July 24.
Banco Bradesco SA (BBD)
Banco Bradesco is Brazil’s leading private-sector bank in several key segments, including insurance, leasing, private pension funds and asset management. In April, Bradesco successfully completed the merger of its healthcare assets with Odontoprev and executed a reverse initial public offering for the new entity, BradSaude SA (SAUD3.SA). Pierry says deferred tax asset consumption, efficiency improvements and a better macroeconomic environment will help further improve Bradesco’s return on equity. The company aims to reach a 40% efficiency ratio in 2028. Bank of America has a “buy” rating and $5.20 price target for BBD stock, which closed at $3.60 on July 24.
Companhia de Saneamento Basico do Estado de Sao Paulo (SBS)
Sabesp is a Brazilian water and sewage utility company that provides water supply and sanitation services. The company’s business involves all parts of the water lifecycle, including water planning, processing and infrastructure, as well as sewage collection, treatment and disposal. Analyst Gustavo Faria says Sabesp’s stock is attractively valued, trading at a 2026 estimated enterprise value to regulated asset base ratio of just 1.3. In addition, Faria says Sabesp is a more reliable, safer investment than Brazilian power company stocks. Bank of America has a “buy” rating and $7 price target for SBS stock, which closed at $5.61 on July 24.
Blue Owl Capital Inc. (OWL)
Blue Owl Capital is an alternative asset management firm that provides attractive financing and capital solutions to investment management firms and their portfolio companies. It manages several business development companies, including Blue Owl Capital Corp., Blue Owl Technology Income Corp. and Blue Owl Capital Corp. II. Analyst Craig Siegenthaler says Blue Owl’s fundraising is currently transitioning through a temporary lull period and sponsor activity has been muted. However, Siegenthaler says Blue Owl’s stock is significantly undervalued based on his 2028 earnings estimates. Bank of America has a “buy” rating and $17 price target for OWL stock, which closed at $9.45 on July 24.
[Read: 7 Best Safe Stocks to Buy Now]
Grab Holdings Ltd. (GRAB)
Grab is a leading super-app in Southeast Asia, providing services such as deliveries, mobility and digital financial services to millions of customers in Singapore, Malaysia, Indonesia, Thailand, Vietnam, the Philippines, Cambodia and Myanmar. The Grab app connects millions of users, drivers and merchants, and the company generates revenue via commissions on transactions. Analyst Sachin Salgaonkar says Grab’s priority is profitable growth in both its deliveries and mobility businesses. He says the company’s super-app status creates opportunities for cross-selling, total addressable market expansion and flywheel-driven growth. Bank of America has a “buy” rating and $5.20 price target for GRAB stock, which closed at $3.31 on July 24.
Full Truck Alliance Co. Ltd. (YMM)
Full Truck Alliance is a leading digital freight platform in China that facilitates shipments by connecting shippers with truckers. The company generates profits from freight matching businesses, including the spreads on its freight brokerage services, transaction service fees and subscription membership fees for freight listings. Analyst Fan Tso says Full Truck Alliance is positioned for accelerating earnings growth and projects roughly 20% compound annual net income growth through 2028. Tso says the company’s strong growth and attractive valuation make it an excellent investment opportunity. Bank of America has a “buy” rating and $11.30 price target for YMM stock, which closed at $9.21 on July 24.
Gerdau SA (GGB)
Gerdau is a Brazilian steel producer that specializes in long steel products and operates throughout the Americas. The company also runs a major scrap metal recycling operation. Analyst Caio Ribeiro says steel producer earnings in the second quarter of 2026 and beyond will reflect stronger volumes, higher commodity prices and elevated profitability in North America, and he expects Gerdau to be a standout within the group. Ribeiro says Gerdau is reporting impressive results across all its divisions, a trend which he expects to continue. Bank of America has a “buy” rating and $5.50 price target for GGB stock, which closed at $4.81 on July 24.
Ultrapar Participacoes SA (UGP)
Ultrapar Participacoes is a leading Brazilian energy, mobility and logistics infrastructure conglomerate. The company’s major subsidiaries include its Ipiranga fuel station network, its Ultragaz liquefied petroleum gas distributor and its Ultracargo independent liquid bulk storage provider. Analyst Leonardo Marcondes says a healthier Brazilian fuel distribution environment coupled with higher near-term margins will lead to improved cash generation for Ultrapar in 2026. He is bullish on Ultrapar’s deleveraged balance sheet and strong operating performance and says the company has the flexibility to prioritize shareholder returns. Bank of America has a “buy” rating and $7.40 price target for UGP stock, which closed at $6.43 on July 24.
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8 Best Cheap Stocks to Buy Under $10 originally appeared on usnews.com
Update 07/27/26: This story was published at an earlier date and has been updated with new information.
