Stocks trading under $10 can be attractive for investors looking to scoop up some cheap shares. Unfortunately, quality stocks in that price range are few and far between, and they can be red flags that something serious is wrong with a company. Many of these stocks have challenged underlying business models or difficult near-term outlooks. Fortunately, the CFRA Research analyst team has identified these cheap, high-quality stocks that could be excellent buying opportunities in 2023.
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Here are eight of the best stocks to buy under $10, according to CFRA:
| Stock | Implied upside over March 22 closing price |
| Nokia Corp. (ticker: NOK) | 41.6% |
| Telefonica SA (TEF) | 10% |
| Carnival Corp. (CCL) | 37.9% |
| Aegon NV (AEG) | 65.5% |
| Telecom Italia SpA (TIIAY) | 9.7% |
| iQiyi Inc. (IQ) | 22.8% |
| Crescent Point Energy Corp. (CPG) | 22% |
| Rocket Lab USA Inc. (RKLB) | 107.8% |
Nokia Corp. (NOK)
Nokia is a telecom equipment and digital map data vendor that also licenses intellectual property to third parties. Analyst Keith Snyder says 5G investment momentum in North America and China is a bullish catalyst for Nokia, and he expects the global 5G upgrade cycle will be larger and longer than previous cycles. Nokia lost North American mobile network market share in 2022, but management says it can regain lost share and outgrow the overall industry this year. Snyder expects a rebound year for Nokia in 2023. CFRA has a “buy” rating and $6.50 price target for NOK stock, which closed at $4.59 on March 22.
Telefonica SA (TEF)
Telefonica is the leading telecom company in Spain. Analyst Adrian Ng says Telefonica’s acquisitions of Germany’s E-Plus and Brazil’s GVT, along with its exit from Central America, have helped strengthen its top businesses and improve its balance sheet. In addition, its deal to combine U.K. telecom assets into a joint venture with Liberty Global PLC (LBTYA) will provide 2.5 billion pounds ($3.1 billion) in cash. Ng expects Telefonica will generate about 3% earnings before interest, taxes, depreciation and amortization growth in 2023, the high end of the company’s guidance range. CFRA has a “buy” rating and $4.50 price target for TEF stock, which closed at $4.09 on March 22.
Carnival Corp. (CCL)
Carnival is the world’s largest cruise line operator. Carnival investors experienced a near worst-case scenario when the entire cruise industry was completely shut down for more than a year during the worst stages of the COVID-19 pandemic. Carnival shares are down 82.3% from Jan. 1, 2020 through March 22, 2023, but analyst Razak Ashman says it may finally be time to buy the dip. Ashman says Carnival’s recent operating trends are strong, and he projects pent-up demand will drive 16% compound annual revenue growth over the next five years. CFRA has a “buy” rating and $12.40 price target for CCL stock, which closed at $8.99 on March 22.
Aegon NV (AEG)
Aegon is a Dutch insurance company that offers insurance, savings, pension, and investment products and services around the world. Analyst Jeff Lye says Aegon has an attractive track record of execution and is positioned to significantly deleverage its balance sheet and generate 600 million euros ($653 million) in free cash flow in 2023. Lye is bullish on the company’s strategy of focusing on assets that generate attractive returns on capital and reduce capital ratio volatility. In addition, he says the company’s commitment to capital returns makes it a shareholder-friendly investment. CFRA has a “buy” rating and $7 price target for AEG stock, which closed at $4.23 on March 22.
Telecom Italia SpA (TIIAY)
Telecom Italia is the leading fixed-line and wireless telecom provider in Italy. The company plans to split off its network business into a separate company, and Ng says merger and acquisition news will remain the primary catalyst for Telecom Italia as the company divests assets to reduce its debt. KKR & Co. Inc. (KKR) has reportedly made a nonbinding offer to buy Telecom Italia’s network business in a deal valued at about 20 billion euros ($21.8 billion). Competition in Italy remains fierce, but Telecom Italia’s Brazil business has been an attractive growth source. CFRA has a “buy” rating and $3.50 price target for TIIAY stock, which closed at $3.19 on March 22.
iQiyi Inc. (IQ)
iQiyi is a leading Chinese streaming video platform that is often compared to U.S. streaming platform Netflix Inc. (NFLX). Analyst Nazira Abdullah says iQiyi has differentiated premium and on-demand content, and its tiered membership services allow it to monetize a wide range of customers. The company is on track for its first profitable year in 2023 after years of growing its subscriber count, online advertising revenues and content distribution. Abdullah says recent cost-cutting has demonstrated iQiyi’s ability to maintain subscriber growth even when tightening its profitability belt. CFRA has a “buy” rating and $8.50 price target for IQ stock, which closed at $6.92 on March 22.
Crescent Point Energy Corp. (CPG)
Crescent Point Energy is a Canadian oil and gas exploration and production company that has assets in Western Canada, Utah and North Dakota. Global energy shortages coupled with commodity price inflation have led to record energy sector profits. Analyst Jonnathan Handshoe says Crescent Point has taken advantage of the favorable environment by significantly reducing debt. He projects nearly 1.34 billion Canadian dollars ($980.6 million) in excess cash flow in 2023. CFRA has a “buy” rating and CA$11 ($8.05) price target for CPG stock, which closed at $6.60 on March 22.
Rocket Lab USA Inc. (RKLB)
Rocket Lab is an aerospace and defense company that specializes in launch services, spacecraft engineering and design, components manufacturing, and other spacecraft management solutions. Analyst Keith Snyder says Rocket is a top launch provider for customers with small payloads. Snyder says Rocket has a better track record of successful launches than smaller competitors and can offer customers more orbit flexibility than SpaceX and other larger competitors. Finally, he says Rocket Labs is positioned to reduce launch costs as it works to make its Electron rocket reusable. CFRA has a “buy” rating and $8 price target for RKLB stock, which closed at $3.85 on March 22.
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8 of the Best Cheap Stocks to Buy Under $10 originally appeared on usnews.com
Update 03/23/23: This story was previously published at an earlier date and has been updated with new information.
