Picking stocks under $10 to buy now isn’t easy, particularly in light of today’s mega-caps making up so much of the wider market’s movement. Typically, stocks under $10 fall into one of just a handful of camps: penny stocks destined to struggle to break free from micro-cap status, once-great winners slowly circling the drain, or highly speculative stocks with massive upside potential buffered by equally significant downside risk. AST SpaceMobile (NASDAQ:ASTS) being a prime example of the lattermost segment among former stocks under $10.

However, plenty of stocks under $10 offer value, growth, and upside potential without the inherent risk associated with penny plays or the most speculative stocks. These three stocks under $10 to buy now are prime examples of that select category. While they’re still priced to buy, they may not remain that way for long, as each has plenty of internal upside potential helped along by sector-specific tailwinds moving forward.

Rocket Lab USA (RKLB)

Rocket Lab USA (NASDAQ:RKLB) isn’t just another stock under $10 to buy now — it typifies a massive opportunity to invest today in tomorrow’s trillion-dollar space industry. The space stock made waves last year with a record number of launches in 2023. This year, it solidified its appeal in the under $10 stock category, buoyed by a government contract exceeding $500 million and a robust earnings report last month.

Rocket Lab’s launch and contract backlog, currently standing beyond $1 billion, while not ironclad as clients may cancel, still acts as a forward-looking indicator for potential revenue. With first-quarter revenue at $92.7 million, this backlog points to substantial future growth opportunities.

Space enthusiasts marked another major win for Rocket Lab this week, as the company signed a deal with Japanese firm Synspective for ten Electron launches through 2027. This deal cements Synspective’s preference for Rocket Lab as a space-based operator and delivery system for its satellites. While terms weren’t disclosed, the contract reinforces the role of the under $10 stock in the global space sector.

Cricut (CRCT)

Cricut (NASDAQ:CRCT) is a favorite among craft enthusiasts and DIYers, yet it remains somewhat overlooked by investors. Despite experiencing a minor revenue dip in its latest earnings report, Cricut maintains a 1.93% trailing dividend yield and stands to gain from a rebound in consumer sentiment. More individuals are turning to affordable, at-home hobbies, boding well for Cricut as new users begin to buy crafting supplies.

Sales decreased by 8% in the first quarter of 2024, but this was partly mitigated by increased paid subscribers and machine sales. This uptick in new users indicates potential future sales growth from ongoing supply purchases, although the long-term economics of the spike in consumer interest will likely take a few quarters to pan out.

But that’s just one reason that investing in the stock under $10 today is a timely decision. Cricut declared a one-time dividend of $0.40 per share, payable on July 19th to shareholders recorded as of July 2nd. This special dividend presents an attractive incentive for potential investors. It could serve as a dollar-cost-averaging plan to build a position if you elect to reinvest those distributions.

Valley National Bancorp (VLY)

Finally, as the best value-based play among these stocks under $10 to buy now, Valley National Bancorp (NYSE:VLY) sits at the intersection of value and growth opportunities, given its unique and niche role within the cannabis sector.

The cheap bank stock offers a standout 6.82% total yield. It also provides unique exposure to the emerging cannabis market through its cannabis banking initiatives. As one of the most attractively priced regional bank stocks, it trades at just 0.53x book value and 7x earnings, positioning it as both undervalued and often overlooked. The bank maintains a strong balance sheet with a low debt-to-equity ratio of 0.56. This is significantly below the industry average of 1.2, highlighting its minimal leverage relative to its peers. Its recent stock buyback bid and dividend yield outperforming Treasury Bills further demonstrate its financial health.

Analysts predominantly view Valley National as undervalued, with an average price target of $9.44 — more than 30% above its current share price. Market sentiment toward the bank has improved markedly, with 44% of analysts now advising a hold, indicating a 300% increase in positive sentiment compared to the previous period. This positions Valley National as an appealing option for investors looking for stable investments to augment their stocks under $10 portfolio.

On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.