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. Stocks priced 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. However, the CFRA Research analyst team has identified nine cheap, high-quality stocks that could be excellent buying opportunities in 2024 for frugal investors.
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Here are nine of the best stocks to buy under $10, according to CFRA:
| Stock | Implied upside from Dec. 19 closing price |
| Telefónica SA (ticker: TEF) | 9% |
| Nokia Corp. (NOK) | 66.2% |
| Tencent Music Entertainment Group (TME) | 2.6% |
| Aegon Ltd. (AEG) | 13% |
| Korea Electric Power Corp. (KEP) | 19.4% |
| Telecom Italia S.p.A. (OTC: TIIAY) | 15.1% |
| First Quantum Minerals Ltd. (OTC: FQVLF) | 29.3% |
| Polestar Automotive Holding UK PLC (PSNY) | 21.5% |
| iQiyi Inc. (IQ) | 38.3% |
Telefónica SA (TEF)
Telefónica is the leading telecommunication company in Spain. The stock also pays a 7.8% dividend, which is a rarity among stocks priced under $10. Analyst Adrian Ng says Telefónica has made proactive moves to reduce its debt load and focus its portfolio on its highest-performing core markets. The company exited the Central American market and acquired E-Plus in Germany and GVT in Brazil. It also combined its U.K. telecom assets in a joint venture deal with Liberty Global PLC (LBTYA, LBTYB). CFRA has a “buy” rating and $4.50 price target for TEF stock, which closed at $4.13 on Dec. 19.
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 the initial stage of the 5G investment cycle in North America and China is a tailwind for Nokia, and the company is optimistic it can regain lost market share and generate industry-leading revenue growth. Inflation and supply chain disruptions have negatively impacted Nokia’s finances in recent years, but Snyder says he is bullish on Nokia’s improved earnings visibility and solid underlying demand outlook. CFRA has a “buy” rating and $5.50 price target for NOK stock, which closed at $3.31 on Dec. 19.
Tencent Music Entertainment Group (TME)
Tencent Music Entertainment is a leading online music platform in China and is the parent company of QQ Music, Kugou Music and WeSing. Crackdowns on U.S.-listed Chinese tech stocks by Chinese and U.S. regulators have eased in 2023, but Chinese stocks have continued to underperform as the post-pandemic rebound in the Chinese economy has fallen short of expectations. Analyst Ahmad Halim says the company’s online music services revenue recovery will drive margin expansion, but stricter compliance policies in China will weigh on social entertainment service revenue. CFRA has a “buy” rating and $9 price target for TME stock, which closed at $8.77 on Dec. 19.
Aegon Ltd. (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 is within reach of its 2023 financial targets for deleveraging, free cash flow and operating capital. Lye says the company is focused on strategic assets that generate attractive returns and reduce its capital ratio volatility. He is bullish on the company’s commitment to dividends and buybacks and projects a double-digit-percentage cash yield to shareholders within the next 12 months. CFRA has a “buy” rating and $6.50 price target for AEG stock, which closed at $5.75 on Dec. 19.
[SEE: 9 Best Cheap Stocks to Buy Under $5.]
Korea Electric Power Corp. (KEP)
Korea Electric Power is an integrated electric utility company that transmits and distributes electricity in South Korea. Analyst Siti Salikin says a slowdown in Korea’s economic growth in 2024 will reduce commercial and industrial power demand, but that slowdown will be offset by higher tariffs. The company’s plan to sell its stakes in Kepco KDN, a solar power plant in the Philippines and additional real estate in Seoul will reduce costs. Salikin says the government’s majority ownership of Korea Electric also ensures that it will get policy support. CFRA has a “buy” rating and $8.50 price target for KEP stock, which closed at $7.12 on Dec. 19.
Telecom Italia S.p.A. (OTC: TIIAY)
Telecom Italia is the leading fixed-line and wireless telecommunications provider in Italy. The company plans to split off its network business into a separate company. Telecom stocks are not generally known for their huge returns, but Telecom Italia shares are up 33.3% in 2023, the best performance of any stock on this list. Ng says the sale of Telecom Italia’s network to KKR & Co. Inc. (KKR) demonstrates the company is prioritizing asset divestitures and debt reduction. Brazil has also been an impressive growth market for Telecom Italia. CFRA has a “buy” rating and $3.50 price target for TIIAY, which closed at $3.04 on Dec. 19.
First Quantum Minerals Ltd. (OTC: FQVLF)
First Quantum Minerals is one of the world’s largest copper producers, and it operates mines in Zambia, Panama, Finland, Turkey, Spain and Mauritania. First Quantum shares are down 60.8% through Dec. 19 this year, the worst performance of any stock on this list. Analyst Matthew Miller says geopolitical risks in Panama are largely responsible for the sell-off, but he is bullish on the outlook for copper prices. Miller says First Quantum’s current share price suggests zero value for the company’s shuttered Cobre Panama mine, but he is optimistic the mine will reopen. CFRA has a “buy” rating and 14 Canadian dollar ($10.51) price target for FQVLF stock, which closed at $8.13 on Dec. 19.
Polestar Automotive Holding UK PLC (PSNY)
Polestar Automotive designs and manufactures electric vehicles. The company has two EV models on the market and expects to launch three additional models by 2025. Analyst Garrett Nelson says Polestar has an attractive growth outlook relative to most other EV manufacturer peers. In addition, Polestar has already reached gross profitability, and it has increased its deliveries by a factor of five in the past two years. Nelson is particularly bullish on Polestar’s exposure to Europe, which has high EV adoption rates relative to the U.S. CFRA has a “buy” rating and $3 price target for PSNY stock, which closed at $2.47 on Dec. 19.
iQiyi Inc. (IQ)
iQiyi is a leading Chinese streaming video platform that is often compared to U.S. streaming platform Netflix Inc. (NFLX). Salikin says iQiyi has an innovative monetization model that includes a library of premium and on-demand content, as well as tiered membership models that cater to a wide range of customer types. For the past five years, iQiyi has focused on increasing subscribers and has reported net losses. However, Salikin says online advertising growth has the company on track to turn a profit in 2023. CFRA has a “buy” rating and $6.50 price target for IQ stock, which closed at $4.70 on Dec. 19.
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9 Best Cheap Stocks to Buy Under $10 originally appeared on usnews.com
Update 12/20/23: This story was previously published at an earlier date and has been updated with new information.
