Each investor is on the hunt for different things. For beginning investors, the lower the stock price the better. This is because most new investors don’t have a lot of money to invest with. They are looking to get the most shares for the least amount of money. For these investors, I present 3 hot stocks under $10.

Compiling this list was a little more work than I thought as many stocks priced under $10 are done so for a reason. They are going through a turnaround and investors beat the stock price down as they sold in waves.

It’s not easy to find hot stocks under $10 that are worth investing in, regardless if you are looking to invest long term or just make a quick return on a popping of the stock price.

So after some research, I present to you these 3 hot stocks under $10. They do carry some risk with them, but risk and reward are related, so you could make a nice profit if they are able to make things happen.

#1. Fitbit (NYSE: FIT)

Fitbit stock is trading at just over $5 per share because of the mountain of competition in the wearable technology industry. And when Apple decided to enter the market with its Apple Watch, most other companies in the industry took a hit. This includes Fitbit.

But the company does have the potential for a bright future. Later in 2017 the company is introducing new products, including ones that will help with diabetes and sleep apnea.

Then there are rumors that the company is developing a watch that will rival Apple’s and even do things that the Apple Watch cannot do.

Recent earnings were not amazing, with earnings per share coming in at $0.00 which beat by $0.15. Revenues were $353 million, also beating estimates but down 40%.

The company needs a lot to go right with their new generation of products in order to jump-start the stock price. But they do have an ace up their sleeve. At a market cap of under $1 billion, they are a prime takeover target.

#2. Cliffs Natural Resources (NYSE: CLF)

Cliffs is an iron miner that has fallen on tough times and is in the process of turning around its business. With iron prices low, the company is focusing its efforts to reduce its debt burden, which it lowered by 35% over the past year.

The company is committed to continue knocking down its debt so that it can be more profitable when the price of iron does recover.

When will this happen? No one knows for sure, but if the US does start to work on updating its infrastructure, you can bet that would be a time for it to happen.

The stock is currently trading at $7.50 a share and it is still profitable and growing. This is evident by their recent earnings per share of $0.27, which beat estimates by $0.10. Revenues also beat, coming in at $569 million, an increase of 15%.

While the stock price won’t pop tomorrow, it should see a nice return in the coming years.

#3. XG Technology (NASDAQ: XGTI)

Finally we have XG technology. They develop communications technologies for wireless networks. As a tech company, analysts expect massive growth and in the past, XG has not delivered.

As a result, the stock price sank to under $2 a share. The company is still working on righting the ship. Recent earnings per share came in at ($0.09) which missed estimates by $0.10. Revenues came in at $14 million, an increase of 756%.

Many analysts think for full year 2017 revenues should increase by 700% and earnings per share by 100%. If they can pull this off, the stock price should respond with a healthy run.

Final Thoughts

So there are 3 hot stocks under $10 to invest in. Regardless if you have a lot of money to invest or just a little bit of money, these 3 stocks could provide you with a nice return if they can execute on their goals.

But if they can’t, then there isn’t much hope for the stock prices to go much higher. In other words, invest at your own risk.

This author has no positions in any stock mentioned and does not plan to open any positions in any stocks mentioned for at least 72 hours after publication of this article.