Maxim G.
Thu, May 8, 2025, 10:05 AM 7 min read
In This Article:
We recently compiled a list of the 14 Best Growth Stocks Under $10 to Buy Right Now. In this article, we are going to take a look at where Flywire Corporation (NASDAQ:FLYW) stands against the other growth stocks under $10.
Growth stocks refer to companies that grow their earnings and revenues at rates much above those of the broad market. The growth factor in investing has been widely recognized as a significant driver of stock price returns, especially in periods of low interest rates, low volatility, and a growing economy. For reference, growth stocks, as proxied by thematic ETFs, have consistently outperformed the broad US market during secular bull runs, such as the 2010-2021 and the 2023-2024 periods.
However, the growth factor has fallen out of favor during 2025 and slightly lags the broad market year-to-date. As already mentioned above, growth stocks thrive under conditions that aren’t apparently met at the moment. Interest rates are still high, and there’s a lot of uncertainty about whether the Fed will rush to cut them. Furthermore, the outlook on the US economy has been undermined by tumultuous change and actions from the new US administration. The good news is that growth stocks are currently trading at a discount vs. the beginning of the year, which represents a great opportunity for those willing to take a contrarian bet against the broad market. As we discuss below, some trustworthy signals suggest that growth stocks might become favored again and start outperforming the broad market.
READ ALSO: 11 Oversold Growth Stocks to Buy Now
Some indications emerged that point to the possibility that the “tariff detox” period is over and the Trump administration may be shifting to tax cuts and deregulation. Growth stocks love certainty on the economy and geopolitics, meaning that the end of the tariff dilemma is an extremely bullish signal. JP Morgan recently expressed their view on the evolution of US policy:
“On tariffs, the Administration is indicating progress on potential deals with Japan, Korea, and India, which could serve as templates for other trading partners. Of most importance is China, where the Administration has signaled some willingness to find a common ground and possibly get a deal done soon (the increasing risk of a small business default cycle kicking off is gaining attention).”
In addition, there’s plenty of negative official data coming every week, which is causing a lot of fear in the market. We firmly believe much of the negative data is transitory and could rebound at any moment, as soon as the US administration gives the right signal. For instance, container data from China recently showed a massive decline in shipments amid the tariff turmoil; many fear that consumer sales, transportation, and industrial activity will drastically slow down because of lower imports. Some early data from the Dallas and Philadelphia Fed have confirmed that manufacturing and general business activity are cooling, while the New Orders index has plummeted. Now, just think about it – shipments from China can instantly recover the moment that the Trump administration announces a trade deal with its main trade partners. Even if a deal with China directly won’t be reached quickly enough, there are endless possibilities to evade the 140% tariffs through third countries, similar to how European exports continued into Russia after the 2022 sanctions.
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