Best Cheap Stocks Under $10 to Buy Now for October

Despite near-term obstacles, the S&P 500 and the Nasdaq are trading near their all-time highs heading into October and the final quarter of 2026.

Investors aiming to buy stocks right now and throughout October might want to consider looking beyond the broader AI-everything trade.

Today we dig into why investors might want to buy highly-ranked cheap stocks that are trading for under $10 a share, especially if Wall Street rotates some of their winnings from the soaring AI trade to other pockets of Wall Street.

On top of their cheap, under-$10-a-share prices, the stocks we learn how to find boast improving earnings outlooks that land them strong Zacks Ranks.

Wall Street is also very high on these cheap stocks trading for $10 a share or less to consider buying to start October.

Penny Stocks

One dollar or less used to be the common threshold for what we call “penny stocks.” Today, the SEC has expanded penny stocks to securities that trade for less than $5 a share. Many investors avoid these stocks because they are speculative in nature.

Meanwhile, penny stocks often trade infrequently and hold wide bid/ask spreads. These stocks also carry many other traits that, in many cases, cause excessive volatility. With that said, some penny stocks perform incredibly well, which helps them remain attractive.

How to Find the Best Cheap Stocks Under $10 to Buy Now

Moving on, let’s briefly discuss the next class of cheap stocks. Stocks that trade in the $5 to $10 range are generally less risky than their penny stock counterparts. Investors might be more likely to have heard of these companies or seen the tickers. They are, however, still inherently more speculative than many other higher-priced stocks.

Investors can obviously find winning stocks for under $10 if they are extremely selective. So today, we narrowed the list of thousands of these more speculative stocks down to a more manageable group of $10 and under stocks that might help boost your portfolio.

Screen Parameters

• Price less than or equal to $10

• Volume greater than or equal to 1,000,000

• Zacks Rank less than or equal to 2

(No Holds, Sells or Strong Sells.)

• Average Broker Rating less than or equal to 3.5

(Average Broker Rating of a Hold or Better.)

• # of Analysts in Rating greater than or equal to 2

(Minimum of at least two analysts covering the stock.)

• % Change F1 Earnings Estimate Revisions -- 12 Weeks greater than or equal to 0

(Preferably upward earnings estimate revisions, but definitely no downward revisions.)

Here is one stock out of the roughly 60 highly-ranked stocks trading under $10 a share that made it through the screen today…

Buy Soaring Cheap Finance Stock LYG for Value, Growth, and Breakout Potential

Lloyds Banking Group (LYG) is one of Britain’s largest high-street banks. It takes deposits, writes mortgages, issues credit cards and personal loans, lends to businesses, and much more. LYG also sells insurance, pensions, and investments under brands like Lloyds, Halifax, Bank of Scotland, and Scottish Widows.

LYG stock has soared 130% in the past five years to blow away the broader Zacks Finance sector’s 54% and the S&P 500’s 81%. Lloyds Banking’s huge run helped it break above a key 2014/2015 range. On top of that, the stock recently experienced a long-term bullish golden cross, with its 50-week moving average climbing above its long-term 200-week moving average.  

The UK-focused financial services stock is down 10% from its August peaks, with its average Zack price target implying 20% upside from its current levels.

Lloyds Banking is trading at a 25% discount to its 10-year highs and 13% below its industry, and near its 10-year median at 9.4X foward 12-month earnings.

Lloyds Banking launched its Accelerate 2030 plan at the end of July. The four-year plan aims to cut about £2 billion of gross costs by 2030, while driving steady income growth and higher returns.

The strategy rests on three pillars: growing the franchise, innovating products and services, and simplifying how the bank operates.

LYG is projected to grow its revenue by 16% in 2026 and another 7% next year. More importantly, it’s projected to expand its adjusted earnings by 53% in FY26 and 15% in FY27 to hit $0.63 a share vs. $0.36 in 2025, based on the most recent Zacks estimates.

Lloyds Banking’s upward EPS revisions land it a Zacks Rank #2 (Buy) right now.

Get the rest of the stocks on this list and start looking for the newest companies that fit these criteria. It's easy to do. And it could help you find your next big winner. Start screening for these companies today with a free trial to the Research Wizard. You can do it.

Click here to sign up for a free trial to the Research Wizard today.

Want more articles from this author? Scroll up to the top of this article and click the FOLLOW AUTHOR button to get an email each time a new article is published.

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

Disclosure: Performance information for Zacks’ portfolios and strategies are available at: www.zacks.com/performance_disclosure

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research