Is BigCommerce Holdings Inc. (BIGC) the Best Tech Stock to Buy Right Now Under $10?
Our list today highlights stocks that are priced under $10 and can offer opportunities for growth. These stocks offer diversification away from the typical large and mid-cap names with the use of lower capital. These stocks often belong to companies that are trying to create niche businesses or are in various stages of product evolution, including emerging growth firms and established businesses, giving tough competition to larger rivals. In our view, this space has the potential for high returns, particularly if these companies can successfully execute their business strategies and capitalize on market trends.
In the technology sector, many undervalued stocks are well-positioned to benefit from the ongoing trends of digital transformation, and transition to cloud and AI. Companies offering innovative software solutions, cybersecurity, and cloud services are anticipated to thrive as businesses continue to invest in technology to enhance their competitive position and security. By identifying promising companies in these areas, investors can potentially achieve good returns although with a little higher risk. That said, we believe that stock selection remains crucial in the small-cap space due to the volatility of these names. For comparison, the S&P SmallCap600 Index has underperformed the broader S&P500 Index over the last 3, 5, and 10 years which indicates that you might not get enough returns if you take a broader approach.
The technology sector continues to be driven by rapid innovation and the adoption of cutting-edge technologies. Advances in technology are significantly impacting lives, industries, and economies worldwide. The integration of AI and ML is revolutionizing workflows, enhancing productivity, and creating new revenue opportunities. Organizations globally are undergoing digital transformations to stay competitive, streamline operations, improve customer engagement, and drive innovation in their products and services.To shortlist the 12 Best Tech Stocks to Buy Right Now Under $10, we screened technology stocks with current share price below $10. We overlaid this criterion with additional criteria of market capitalization of at least $300 million and a potential upside of greater than 10%. The stocks were then arranged in ascending order of the number of hedge fund holders for each company, based on hedge fund data from Insider Monkey's database.At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Highlighting the company's sector and industry, a technician working on a complex SaaS in a technology lab.
On the bottom of our list is BigCommerce Holdings Inc. (NASDAQ:BIGC), a cloud-based e-commerce platform that empowers businesses to establish and manage online stores. The company provides a comprehensive suite of tools and services designed to support the development, customization, and optimization of e-commerce websites. The platform not only assists customers in creating and managing their own branded online stores but also facilitates seamless integration with various sales channels, including popular online marketplaces, social networks, and offline point-of-sale (POS) systems used in physical stores. BigCommerce Holdings Inc. (NASDAQ:BIGC) caters to a wide range of clients, from small businesses and mid-market enterprises to large corporations.
In Q3 2024, BigCommerce Holdings Inc. (NASDAQ:BIGC) reported a 7.3% year-over-year growth in sales, reaching $83.7 million, which met street expectations. The company's EPS of USD 0.06 significantly surpassed consensus estimates. Serving both business-to-consumer (B2C) and business-to-business (B2B) merchants on a single platform, BigCommerce Holdings Inc. (NASDAQ:BIGC) expects to benefit from the increasing investment in e-commerce platforms which is projected to grow to $16.5 billion by 2027. With rising demand from larger B2C and B2B merchants, the company focuses on high-value enterprise accounts to support revenue growth.
Overall BIGC ranks 12th on our list of the best tech stocks to buy under $10. While we acknowledge the potential of BIGC as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BIGC but that trades at less than 5 times its earnings, check out our report about the .
READ NEXT: 20 Best AI Stocks To Buy Now and .
Disclosure: None. This article is originally published at Insider Monkey.

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