Stocks trading for less than $10 can be attractive for investors looking to scoop up some cheap shares. Unfortunately, quality stocks trading beneath the $10 mark 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 analyst team has identified nine high-quality cheap stocks that could be excellent buying opportunities in 2024 for frugal investors.
[Sign up for stock news with our Invested newsletter.]
Here are nine of the best cheap stocks to buy under $10, according to CFRA:
| Stock | Implied upside from Feb. 16 Close |
| Telefonica SA (ticker: TEF) | 16.6% |
| Nokia Corp. (NOK) | 54.9% |
| Korea Electric Power (KEP) | 7.7% |
| Aegon Ltd. (AEG) | 14.0% |
| Telecom Italia SPA (OTC: TIIAY) | 18.6% |
| First Quantum Minerals Ltd. (OTC: FQVLF) | 14.3% |
| Arcadium Lithium PLC (ALTM) | 61.9% |
| Crescent Point Energy Corp. (CPG) | 41.0% |
| Polestar Automotive Holding UK PLC (PSNY) | 41.2% |
Telefonica SA (TEF)
Telefonica is the leading telecommunications company in Spain. The stock pays an 8.4% dividend, highest on this list and a rarity among stocks priced under $10. Analyst Adrian Ng says Telefonica has made several restructuring deals to reduce debt, consolidate its business and improve its balance sheet. The company has acquired E-Plus in Germany and GVT in Brazil, while exiting the Central America market. Its joint venture deal in the U.K. with Liberty Global Ltd. (LBTYA) also generated more than $3 billion in cash for Telefonica. CFRA has a “buy” rating and $4.50 price target for TEF stock, which closed at $3.86 on Feb. 16.
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 5G investment cycle in North America and China is gaining momentum, a significant growth tailwind for Nokia. Snyder projects the current 5G cycle will be larger and longer-lasting than previous cycles, and Nokia is optimistic it can regain lost market share and outgrow industry peers in 2024 and beyond. He projects a return to positive revenue growth this year. CFRA has a “buy” rating and $5.50 price target for NOK stock, which closed at $3.55 on Feb. 16.
Korea Electric Power (KEP)
Korea Electric Power is an integrated electric utility company that transmits and distributes electricity in South Korea. Korea Electric shares are up 8.8% year to date through Feb. 16, the best performance of any stock on this list. Analyst Siti Salikin says an economic slowdown in Korea will continue to weigh on growth prospects, but higher tariffs will help offset weakness in commercial and industrial power demand. Salikin says long-term investors can rest assured the Korean government will issue supportive policies given its 51.1% ownership stake in the company. CFRA has a “buy” rating and $8.50 price target for KEP stock, which closed at $7.89 on Feb. 16.
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 has a track record of strong execution and its near-term financial targets are well within reach. Lye is bullish on the company’s focus on strategic assets that generate attractive returns on capital and reduce capital ratio volatility. He says the company is strongly committed to dividend payments and buybacks, and he projects a double-digit percentage cash yield to shareholders within the next year. CFRA has a “buy” rating and $6.50 price target for AEG stock, which closed at $5.70 on Feb. 16.
[See: Artificial Intelligence Stocks: The 10 Best AI Companies.]
Telecom Italia SPA (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. Analyst Adrian Ng says Telecom Italia is prioritizing asset divestitures to reduce its debt and risk levels for investors, including its deal to sell its fixed-line network to KKR & Co. Inc. (KKR) for nearly $24 billion. Ng says Telecom Italia will likely continue to face declining revenues in its highly competitive core markets, but the stock is attractively valued at current levels. CFRA has a “buy” rating and $3.50 price target for TIIAY, which closed at $2.95 on Feb. 16.
First Quantum Minerals Ltd. (OTC: FQVLF)
First Quantum Minerals is one of the world’s largest copper producers, operating mines in Zambia, Panama, Finland, Turkey, Spain and Mauritania. Analyst Matthew Miller says he is bullish on the outlook for copper prices and says investors are being overly pessimistic about First Quantum following the government shutdown of its Cobre Panama mine in 2023. Miller says the market is now assigning zero value to Cobre Panama, but he says the mine is simply too valuable to the Panamanian economy to remain closed for the long term. CFRA has a “buy” rating and $10.33 price target for FQVLF, which closed at $9.04 on Feb. 16.
Arcadium Lithium PLC (ALTM)
Arcadium Lithium produces lithium chemical products used in portable electronics, electric vehicles and stationary storage facilities. The stock is down 33.9% year to date, the worst performance on this list. However, analyst Emily Nasseff Mitsch says the recent sell-off is a buying opportunity for long-term investors given the stock’s attractive valuation and her bullish view on the global outlook for lithium demand. In the near term, Mitsch says Arcadium has a strong financial position, including current assets covering 3.5 times current liabilities and no debt maturing until mid-2025. CFRA has a “buy” rating and $8 price target for ALTM stock, which closed at $4.94 on Feb. 16.
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. Analyst Jonnathan Handshoe says Crescent Point opportunistically took advantage of surging oil and gas prices in 2022 by dramatically improving its balance sheet and nearly cutting its long-term debt in half. In addition, Handshoe says the company’s acquisition of assets in the Western Canadian Sedimentary Basin has positioned Crescent Point to generate more than $800 million in free cash flow in 2024. CFRA has a “buy” rating and $9.59 price target for CPG stock, which closed at $6.80 on Feb. 16.
Polestar Automotive Holding UK PLC (PSNY)
Polestar Automotive designs and manufactures battery-electric vehicles. The company has two EV models on the market and expects to launch three additional models by 2025. Analyst Garrett Nelson says he is confident about Polestar’s growth prospects relative to most of its EV automaker peers. The company has grown its EV deliveries by a factor of five over the past two years. Nelson says new luxury model launches will boost margins and Polestar’s high exposure to the EV-friendly European market differentiates it from many other popular EV stocks. CFRA has a “buy” rating and $2.50 price target for PSNY stock, which closed at $1.77 on Feb. 16.
More from U.S. News
Billionaire George Soros’ 7 Top Stock Picks in 2024
7 Best Monthly Dividend Stocks to Buy Now
7 of the Best Long-Term Stocks to Buy Now
9 Best Cheap Stocks to Buy Under $10 originally appeared on usnews.com
Update 02/20/24: This story was previously published at an earlier date and has been updated with new information.
