Why Cheap Stocks Matter in 2025 (And Why You Shouldn’t Ignore Them)
Let’s be real—there’s something undeniably satisfying about snagging a stock for less than the price of a fancy coffee. But cheap doesn’t mean worthless. In fact, stocks under $10 often carry explosive potential, especially when backed by solid fundamentals. As we dive into April 2025, smart investors are turning their attention to affordable plays with room to run.
These lower-priced stocks give you a shot at high percentage returns without needing a pile of capital. They’re ideal for younger investors, swing traders, or anyone looking to add some high-risk, high-reward spice to their portfolio. But here’s the twist: not all low-priced stocks are created equal—some are cheap for a reason (hi, bankruptcy), and others are just undervalued gems waiting to pop.
April 2025 Market Outlook: A Window of Opportunity?
Why April? Because we’ve entered earnings season, inflation is finally behaving itself, and whispers of rate cuts are warming up Wall Street like spring sunshine. This is the perfect storm for value hunters.
The S&P 500 has seen a modest rally this quarter, but sub-$10 stocks are still flying under the radar, which means less institutional noise and more upside for early movers. Plus, April typically kicks off a period of seasonal strength for small caps, so this is when the hidden players start to shine.
IAMGOLD Corp. (IAG) – A Golden Comeback Story
Ticker: IAG
Price (as of April 2025): ~$3.50
Sector: Materials (Gold Mining)
IAMGOLD is the stock equivalent of that one friend who went through a rough patch but is now glowing in post-breakup revenge mode. After a rough 2022-2023 stretch, IAG surged 107% in 2024, thanks to higher gold prices and smarter capital allocation. With gold hovering near record highs and investors rushing to hedge against currency instability, gold miners are back in fashion.
Why it’s hot in April: Analysts project another 25–30% upside, and the company’s low debt, expanding margins, and operational improvements make it a rare value play in the commodity space. Plus, when the economy gets shaky, gold tends to glisten—literally.
Transocean Ltd. (RIG) – Drilling into Deep Value
Ticker: RIG
Price (as of April 2025): ~$6.70
Sector: Energy (Oil & Gas Drilling)
If IAMGOLD is the comeback kid, Transocean is the dark horse ready to sprint. Specializing in offshore drilling rigs, RIG is one of the few legacy players still standing tall in a capital-intensive industry. And now that energy security is back on global priority lists (hello, geopolitics), offshore is making a serious comeback.
Transocean is trading below book value and is aggressively winning new contracts. Its backlog—aka future revenue—is growing steadily, and oil prices hovering near $80/bbl aren’t hurting either. This stock is volatile, sure, but that’s half the fun. It’s like buying a ticket to a rollercoaster you know ends in profit (hopefully).
Angel Oak Mortgage REIT (AOMR) – Big Yield, Small Price
Ticker: AOMR
Price (as of April 2025): ~$7.10
Dividend Yield: 13.42%
Sector: Real Estate (Mortgage REIT)
Let’s be honest: 13% dividend yield is the investing equivalent of a neon “FREE MONEY” sign. AOMR is a mortgage REIT focused on non-traditional residential loans. It’s small, overlooked, and trading at just 3.3x earnings—way below the sector average.
With mortgage rates stabilizing and delinquencies lower than feared, Angel Oak could surprise on the upside. Sure, it comes with risk (like all REITs exposed to mortgage-backed securities), but it offers a unique combination of income + undervaluation in a high-yield desert.
Honorable Mentions – More Stocks Under $10 Worth a Look
Not ready to commit? Here are a few more budget-friendly picks for your April 2025 watchlist:
- Nokia (NOK) – The 5G rollout is back on track, and this telecom giant is dirt cheap with steady global contracts.
- Tellurian Inc. (TELL) – An LNG play with potential tailwinds if global energy demand spikes. High risk, but juicy upside.
- Senseonics Holdings (SENS) – A biotech stock under $1 with an FDA-approved continuous glucose monitoring system (Eversense). Recent partnership expansions and a growing diabetes market make this one to watch.
Senseonics (SENS) brings a mix of tech + healthcare innovation at a low price point, and it’s riding the wave of demand for wearable health tech. If you’re into speculative plays with real-world applications, this one’s worth keeping on your radar.
Don’t Sleep on Cheap Stocks
So, are cheap stocks risky? Sure. But are they also where some of the best short-term gains live? Absolutely. With careful research and smart risk management, April 2025 could be your time to shine in the under-$10 arena.
Whether you’re looking for a dividend beast like AOMR, a gold breakout like IAMGOLD, or the energy swing of Transocean, there’s something here for every type of investor.
👉 What’s your favorite cheap stock right now? Drop it in the comments—we’re all in this wild ride together.
Please note that Tellurian was acquired by Woodside Energy for slightly under a dollar per share.