We recently compiled a list of the 10 Best Stocks Under $3 to Buy Now. In this article, we are going to take a look at where Ambev S.A. (NYSE:ABEV) stands against the other stocks under $3.

Investors are grappling with Trump-fueled stock market volatility in 2025. On March 12, 2025, Yahoo Finance reported that Penny Pennington, CEO of Edward Jones, explained on Yahoo Finance’s Opening Bid podcast that this volatility should have been expected. She noted that after years of relatively calm markets where we didn’t see the usual pullbacks, typically ranging from 5% to 15%. She further pointed out that the current environment, marked with uncertainties from tariffs and policy changes, is bound to provoke market reactions.

READ ALSO: 8 Fastest Growing AI Stocks To Buy Right Now and 10 Cheap Technology Stocks to Buy According to Hedge Funds.

The markets have been particularly volatile this year due to concerns about tariffs and potential economic slowdowns. The market has taken a hit, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all dropping around 5% on average in March alone. Large-cap tech companies have led this downturn. For the year, the Nasdaq has declined nearly 10%, the S&P 500 by 6%, and the Dow by 3%.

Recent economic data for consumer confidence from the Dallas Fed survey highlights growing caution among consumers and businesses. This has further fueled volatility as markets adjust to a potential slowdown in growth.

Pennington’s advice to investors is to stay prepared for several more years of volatility under the Trump administration.

The mix of policy uncertainty, tariff impacts, and inflation concerns has created a volatile environment, and this is likely to continue. Despite these concerns, some penny stocks continue to attract attention for their promising prospects.

Methodology

To compile our list of the 10 best stocks under $3 to buy now, we used the Finviz stock screener. We sorted our results based on market capitalization and picked the top 20 companies with a share price of under $3 as of March 10, 2025. Next, we focused on the top 10 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds. Finally, the 10 best stocks under $3 to buy now were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q4 2024.

Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Story Continues

Is Ambev S.A. (ABEV) The Best Stock Under $3 to Buy Now?

A close-up on several cans of freshly brewed beer in a commercial brewery.

Ambev S.A. (NYSE:ABEV)

Share Price: $2.23

Number of Hedge Fund Holders: 22

Ambev S.A. (NYSE:ABEV) is a Brazilian company that is best known for its beer brands like Skol, Brahma, Antarctica, Quilmes, Labatt, and Presidente. The company also produces soft drinks and other non-alcoholic and non-carbonated (NANC) beverages through brands like Guaraná Antarctica and Fusion. Ambev S.A. (NYSE:ABEV) has operations in 18 countries in Latin America, Central America, and the Caribbean. ABEV ranks among the best stocks under $3 to buy.

The company is focused on digital transformation as a key strategy to grow its business and improve customer engagement. Ambev S.A. (NYSE:ABEV) has expanded its B2B platform, BEES, which was live in 8 of its top 10 markets by the end of 2024. The company reported that BEES now handles over 88% of its gross revenue and serves 1.3 million monthly active buyers. On the direct-to-consumer (DTC) front, Ambev S.A. (NYSE:ABEV) reported that its Zé Delivery platform reached 9 million buyers and processed over 66 million orders in 2024. This represents a 10% increase compared to 2023. These digital initiatives have helped Ambev S.A. (NYSE:ABEV) to better understand customer needs and preferences. This has generated valuable insights for the company to proactively meet demands and improve customer satisfaction.

Overall, ABEV ranks 8th on our list of the best stocks under $3 to buy now. While we acknowledge the potential of ABEV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ABEV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.

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