Stocks trading under $10 can be attractive for investors looking to scoop up some cheap shares. Unfortunately, quality stocks trading for less than $10 are few and far between. Stock prices at this level can be a red flag for investors that something serious is wrong with a company. Many of these stocks have challenged underlying business models or difficult near-term outlooks.
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That being said, the Bank of America analyst team has identified eight cheap, high-quality stocks that could be excellent buying opportunities for frugal investors. Here are eight of the best stocks to buy under $10, according to Bank of America:
| Stock | Upside Potential Over July 18 Close |
| Mizuho Financial Group Inc. (ticker: MFG) | 18.5% |
| Banco Bradesco SA (BBD) | 6.7% |
| United Microelectronics Corp. (UMC) | 12.9% |
| Centrais Eletricas Brasileiras SA (EBR) | 50.6% |
| Suzano SA (SUZ) | 65.5% |
| Aegon Ltd. (AEG) | 11.7% |
| Companhia Paranaense de Energia (ELP) | 66.1% |
| Gerdau SA (GGB) | 26.3% |
Mizuho Financial Group Inc. (MFG)
Mizuho Financial is one of Japan’s largest financial services companies. Analyst Shinichiro Nakamura says Mizuho is attractively valued given the company’s return-on-equity improvements and increased share buybacks. Nakamura anticipates higher fee income and net profit guidance hikes in the coming quarters. He says Mizuho is his top stock pick among Japanese megabanks and projects Mizuho’s ROE improvements will outpace its large Japanese counterparts. In addition, as Mizuho approaches a 60% total payout ratio, Nakamura says earnings-per-share growth could accelerate. Bank of America has a “buy” rating and $6.59 price target for MFG stock, which closed at $5.56 on July 18.
Banco Bradesco SA (BBD)
Banco Bradesco is one of Brazil’s largest banks. Bradesco shares lagged in 2024 but have recovered sharply in 2025, gaining about 48% year to date. Analyst Mario Pierry recently upgraded Bradesco and says the company’s financial performance is a clear indication management’s 2024 restructuring plan is having a positive impact on ROE and other metrics. He projects 25% net income growth in 2025 and 13% growth in 2026, and expects consensus earnings estimates will continue to drift higher. Pierry says loan growth, net investment income and insurance trends are bullish. Bank of America has a “buy” rating and $3 price target for BBD stock, which closed at $2.81 on July 18.
United Microelectronics Corp. (UMC)
United Microelectronics is a Taiwanese semiconductor foundry that provides high-quality integrated circuit fabrication services that focus on logic and specialized technology. Despite tariff uncertainties, analyst Brad Lin says United Micro has maintained better-than-expected gross profit margins, and its improving product mix is supporting profitability as customers migrate to the company’s 22-nanometer process. Lin says United’s joint venture with Intel in the U.S. to collaborate on a 12-nanometer process platform and its geographically diversified supply chain could help mitigate concerns related to tariffs. Bank of America has a “buy” rating and $8.45 price target for UMC stock, which closed at $7.48 on July 18.
Centrais Eletricas Brasileiras SA (EBR)
Eletrobras, as it’s more commonly known, is the largest electric generation and transmission company in Brazil. It is a holding company for several Brazilian government generation and transmission subsidiaries. Analyst Gustavo Faria says he is bullish on the long-term outlook for Brazilian power prices, which should serve as a tailwind for Eletrobas. Faria says 98% of the company’s capacity is hydropower, which could fetch premium pricing relative to less-reliable renewable sources. He says Electrobras’ recent efficiency improvements are likely permanent, and political risks are lower than they once were. Bank of America has a “buy” rating and $10.50 price target for EBR stock, which closed at $6.97 on July 18.
Suzano SA (SUZ)
Suzano is the largest market pulp producer in the world and is the largest producer of graphic paper in Brazil. Analyst Caio Ribeiro says he is positive on Suzano following a recent call with the company’s management to discuss acquired assets from Pactiv Evergreen. Ribeiro says Suzano is focused on expanding outside Brazil and establishing a U.S. footprint. He says the stock has an attractive valuation, and pulp prices in Brazil are likely bottoming. Looking ahead, Suzano is considering expanding into fluff or containerboard. Bank of America has a “buy” rating and $15 price target for SUZ stock, which closed at $9.06 on July 18.
Aegon Ltd. (AEG)
Aegon is a Dutch company that offers insurance, savings, pension, and investment products and services around the world. Aegon’s forward dividend yield is 6%, the highest on this list and a rarity among stocks priced under $10. Analyst David Barma says Aegon’s capital return profile is attractive. Barma says the U.S. back-book market — or performance of existing, premium-generating policies that remain on the books — is strong. He says management is taking the right approach by focusing on reducing leverage and improving quality of capital. Bank of America has a “buy” rating and $7.90 price target for AEG stock, which closed at $7.07 on July 18.
Companhia Paranaense de Energia (ELP)
Companhia Paranaense de Energia, also known as COPEL, is a Brazilian integrated utility company that generates, transmits and distributes electricity. It also provides telecommunications services. In June, COPEL’s board of directors approved a plan to simplify its share structure and join Novo Mercado, a special section of Brazil’s main stock exchange known for its strict rules about operations and disclosures. Faria says the restructuring will potentially attract a broader investor base and enhance liquidity, and he says the stock is a top pick among Brazilian utilities. Bank of America has a “buy” rating and $14 price target for ELP stock, which closed at $8.43 on July 18.
Gerdau SA (GGB)
Gerdau is a Brazilian steel producer that specializes in long steel products and operates throughout the Americas. The company also runs a major scrap metal recycling operation. Ribeiro recently upgraded Gerdau and says prices in the U.S. long steel market have been trending higher as demand and lead times rise. He says new 50% U.S. tariffs on steel imports could drive further price increases for merchant bar steel and beams. Ribeiro projects at least a 13% free cash flow yield in 2026. Bank of America has a “buy” rating and $3.60 price target for GGB stock, which closed at $2.85 on July 18.
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8 Best Cheap Stocks to Buy Under $10 originally appeared on usnews.com
Update 07/21/25: This story was previously published at an earlier date and has been updated with new information.
