We've compiled it recently Buy 14 Best Growth Stocks Now Buy Under $10. In this article, we will explore Warner Bros. Discovery, Inc. (NASDAQ:WBD) position, against other growth stocks below $10.
Growth stocks are companies that increase their earnings and revenues at interest rates higher than the broad market. The growth factor of investment is widely regarded as an important driver of stock price returns, especially during periods of low interest rates, low volatility and economic growth. For reference, the growth stocks represented by thematic ETFs have always outperformed the U.S. market during secular bull runs, such as the 2010-2021 and 2023-2024 periods.
However, in 2025, growth factors have lost favor and are slightly behind the wider market. As mentioned above, growth stocks are booming under the current unmet conditions. Interest rates are still high, and there is a lot of uncertainty about whether the Fed will rush to cut them. In addition, the turmoil and actions of the new U.S. government undermined the prospects of the U.S. economy. The good news is that growth stocks are currently trading at discounts against the beginning of the year, which is a great opportunity for those willing to bet against the trend in a wide range of markets. As we discuss below, some trustworthy signals suggest that growing stocks may be favored again and begin to outperform the wider market.
Please read also: Buy 11 Oversold Growth Stocks Now
There are some signs that the “tariff detox” period is over and the Trump administration may be shifting tax cuts and deregulation. Growth stocks like economic and geopolitical certainty, which means the end of the tariff plight is an extremely bullish signal. JP Morgan recently expressed his views on the evolution of U.S. policy:
“In terms of tariffs, the government points to progress made in potential deals with Japan, South Korea and India, which may be a template for other trading partners. Most importantly, China, where the government has shown some willingness to find a common basis and may soon be concluded (the increasing risks of small business default cycles are starting to draw attention).
In addition, there are a lot of negative official data every week, which has caused a lot of fear in the market. We firmly believe that once the U.S. government sends the right signal, many negative data are short-lived and can rebound at any time. For example, container data from China recently showed a decline in goods amid tariff turmoil. Many people worry that consumers' sales, transportation and industrial activities will be greatly slowed down due to low import volumes. Some early data from the Federal Reserve in Dallas and Philadelphia have confirmed that manufacturing and general business activity is cooling down while new order indexes have plummeted. Now, just think about it - goods from China can be restored immediately the moment the Trump administration announced a trade deal with its major trading partners. Even if a deal directly with China cannot be reached quickly, there is unlimited possibility of evading 140% tariffs through third countries, similar to the export method that Europe continues to Russia after 2022 sanctions.
Another important indicator of forward-looking is considered to be strong - U.S. employers added 177,000 jobs in April, with unemployment at 4.2%. We believe this shows that the CEO is not rushing to reduce the size of the business amid possible temporary turmoil. Furthermore, we encourage us to see a high-yield credit gap lowered from its peak two weeks ago - which is very beneficial for small capitalized stocks, mainly in the growth category. This means fixed income investors acknowledge that economic risks are fading.
All in all, a wise way to make money in the stock market is to place the counter-trend bet when most market participants are deeply afraid. With the discounted price of growing stocks, this is an opportunistic moment to invest in the best growing stocks, which may be favored again as the current tariff challenges navigate.
To compile our list of the best growth stocks, we used screeners to identify companies with stock prices below $10.00, with revenue CAGR of at least 20% over the past 5 years. We then compare the list with the proprietary database of the internal monkeys and include it in this article, ranking in the top 14 stocks of hedge funds as of the fourth quarter of 2024, in ascending order.
Why are we interested in stocks that hedge funds to accumulate? The reason is simple: Our research shows that we can beat the market by mimicking the top stocks of the best hedge funds. Our strategy for quarterly newsletters selects 14 small and large stocks every quarter, returning 373.4% since May 2014, beating its benchmark by 218 percentage points (See more details here).
The cinema auditorium was filled with audiences and enjoyed a blockbuster movie.
Stock price as of May 2ND: $8.54
Revenue CAGR in the last 5 years: 40.98%
Number of hedge fund holders: 64
Warner Bros. Discovery, Inc. (NASDAQ:WBD) is a global media and entertainment conglomerate formed in 2022 through the merger of Warnermedia and Discovery. The company operates film and television production under brands such as Warner Bros Pictures, New Line Cinema, New Line Cinema and Warner Bros Television Group. The company also owns a variety of portfolios of TV channels (Discovery Channel, Cartoon Network and Animal Planet, etc.) and focuses on streaming services through Max and Discovery+ platforms.
Warner Bros. Discovery, Inc. (NASDAQ:WBD) ended in 2024 with approximately 117 million subscribers in more than 70 countries, adding 6.5 million subscribers and nearly 20 million subscribers in less than a year. The company's direct consumer business has seen significant improvements, contributing nearly $700 million in EBITDA and a $3 billion increase in just two years, with expectations nearly doubled in 2025. The company successfully received a multi-year renewal agreement and received six largest compensation-TV providers, of which six largest compensation TV providers have increased their businesses in the overall U.S. expenses and businesses that offer them and their range of strength.
Looking to the future, Warner Bros. Discovery, Inc. (NASDAQ:WBD) A pathway to reach at least 150 million subscribers by the end of 2026, supporting further revenue and EBITDA growth. The company has implemented a new organizational structure designed to provide better visibility for its streaming and studio businesses while creating strategic value and options for the future. The studio business showed positive momentum, especially in releases like Superman in July, where the company will focus on getting $3 billion or more from EBITDA in the studio space.
Overall WBD Ranked first On our list of the best growth stocks to buy under $10 now. While we acknowledge the potential of WBD as an investment, our belief is that AI stocks have higher returns in a shorter time frame and do this in a shorter time frame. AI stocks have risen since the beginning of 2025, while popular AI stocks have lost about 25%. If you are looking for AI stocks that are more promising than WBD but have less than 5 times its earnings, check out our report Cheapest AI stocks.
Read the next article: Buy 20 Best AI Stocks Now and According to the billionaire, there are 30 best stocks
Disclosure: None. This article was originally published in Internal monkey.