Are you looking for cheap stocks to buy now, while the market is regaining momentum? Well, you aren’t the only one. In fact, many investors are taking advantage of the volatile market to buy stocks that are trading for less than $10.

What do you consider to be a cheap stock? Some people will narrow it down to penny stocks, which commonly trade for less than $5. Others won’t put a number on it at all. Instead, they’ll look at massive drops in share price as an indicator. Let’s dig a little deeper below and identify three stocks to keep a close eye on.

Discover the best cheap stocks to buy now

How to Find the Best Cheap Stocks to Buy Now

Before we can determine which stocks to consider, it’s important to define what a cheap stock is. For most investors, this price is based on their current portfolio and the amount of money they are willing to invest.

For some investors, the best cheap stocks to buy now will trade in the $10-or-less range. But there are always outliers to consider.

For example, airline stocks are an exception at this time. Publicly traded airlines regularly trade for much more than $10 a share. Due to recent travel bans, these stocks are taking massive hits.

American Airlines stock was trading around $30 a share for all of 2019. Yet it’s dropped below $10 on multiple occasions over the past few months and currently sits at $11.11. That’s a pretty cheap stock at the moment, if you ask me.

The most experienced traders take these factors into consideration every day. In addition, this is where you may find the highest growth potential.

Below is a list of the top three cheap stocks to buy now that even the richest of investors are opening their pockets for. You may want to add these stocks to your portfolio while the price is appetizing and the outlook is good.

JetBlue Airways

As I mentioned above, airline stocks have had a rough few months. But a resurgence in travel is just a matter of time. Once travel restrictions lessen, these stocks will begin to take off.

JetBlue (Nasdaq: JBLU) may be ready to recover better than any of its competitors. Its first quarter earnings report of 2020 noted the airline corporation has $1.8 billion in cash and equivalents. It also reached an agreement with the U.S. Treasury to receive $936 million under the Payroll Support Program of the CARES Act.

This places JetBlue in the perfect position to survive the coronavirus outbreak, especially if there is another wave of cases. The levels of cash at its disposal make it one of the best cheap stocks to buy now. The available cash protects the company and also gives it more leverage in preparing for the post-lockdown surge in travel.

JetBlue stock dropped as low as $6.61 in late March and is currently trading in the $10 price range. Before the outbreak, this stock regularly traded for double its current price.

Sirius XM Holdings

Sirius XM (Nasdaq: SIRI) is in the minority when it comes to stocks, having actually benefited from the coronavirus. After an original drop in March, it quickly regained momentum in April, while most stocks were falling apart.

Sirius XM has a lot going for it at the moment. Shelter-in-place orders are bringing a lot of traction to podcasts and satellite radio. Sirius XM stock is reaping the benefits.

There’s also its recent acquisition of Pandora to consider. It seems to be the perfect match. This merger makes Sirius XM the largest audio entertainment company in the world… and one of the best cheap stocks to buy now. It’s currently trading just above $6 a share.

Zynga Inc.

A few years ago, nobody thought mobile gaming was going to last. Then, it completely exploded and put social gaming on the map for good.

Zynga (Nasdaq: ZNGA) is one of the more successful social game developers. It’s known for massive hits such as FarmVille and Words with Friends.

Zynga stock is currently on an eight-year high after agreeing to acquire Istanbul-based Peak, the creator of many mobile gaming franchises that have topped the charts. The deal is for $1.8 billion, and it adds to Zynga’s ever-growing global success.

Zynga began June trading at $9.42 a share and shows no signs of slowing down after its recent acquisition. Now may be the time to get in, before Zynga sets the standard in mobile game development.

Find the Best Cheap Stocks to Buy Now

Every great investor has their eyes peeled, searching for the next diamond in the rough. At Investment U, our experts do the hard work for you. Sign up for our daily e-letter below to receive the latest insights and stock market trends.

The stocks above have a lot of potential and may be the perfect additions to your portfolio. Overall, the best cheap stocks to buy now are either thriving during the pandemic or preparing for a resurgence this summer. You may not want to let these investment opportunities pass on by.