Stocks trading under $10 can be attractive for investors looking to scoop up some cheap shares. Unfortunately, quality stocks trading in that price range are few and far between and can be a red flag 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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There are still some opportunities, however, and the CFRA analyst team has identified some cheap, high-quality stocks that could be excellent buying opportunities in 2024. Here are nine of the best stocks to buy under $10, according to CFRA:
| Stock | Implied upside from May 24 close |
| Telefonica SA (ticker: TEF) | 1.1% |
| Nokia Corp. (NOK) | 16.9% |
| Aegon Ltd. (AEG) | 11.9% |
| Korea Electric Power (KEP) | 36.6% |
| Telecom Italia SPA (OTC: TIIAY) | 34.1% |
| Arcadium Lithium PLC (ALTM) | 48.9% |
| iQiyi Inc. (IQ) | 36% |
| GoodRx Holdings Inc. (GDRX) | 26.1% |
| Kinross Gold Corp. (KGC) | 9% |
Telefonica SA (TEF)
Telefonica is the leading telecommunications company in Spain. The stock has a 7.3% forward dividend yield, the highest on this list and a rarity among stocks priced under $10. Analyst Adrian Ng says Telefonica’s major restructuring efforts in recent years have shored up its core businesses and reduced its debt load. Those changes include exiting Central America, combining its U.K. telecom assets in a joint venture deal with Liberty Global Ltd. (LBTYA), and acquiring E-Plus in Germany and GVT in Brazil. Ng says Telefonica has strong momentum in 2024. CFRA has a “buy” rating and $4.50 price target for TEF stock, which closed at $4.45 on May 24.
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 5G wireless infrastructure upgrade cycle will be larger and more durable than previous upgrade cycles, and 5G investments in North America and China are ramping up significantly. Nokia reported mixed financial numbers in 2023, but management is optimistic it can regain lost market share in 2024. Snyder says Nokia’s earnings visibility has improved, and the company has executed well in a difficult environment. CFRA has a “buy” rating and $4.50 price target for NOK stock, which closed at $3.85 on May 24.
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 impressive execution, and management’s 2024 financial targets are well within reach. Lye is bullish on the company’s strategy of focusing on strategic assets that reduce capital ratio volatility and generate an attractive return on capital. The company’s aggressive buyback program also demonstrates its commitment to rewarding shareholders. Lye projects 8.7% revenue growth in 2024. CFRA has a “buy” rating and $7.50 price target for AEG stock, which closed at $6.70 on May 24.
Korea Electric Power (KEP)
Korea Electric Power is an integrated electric utility company that transmits and distributes electricity in South Korea. Analyst Ahmad Halim says higher tariffs will help Korea Electric offset a projected slowdown in the Korean economy in 2024. Korea Electric recently reported only its second profitable quarter since the first quarter of 2021. Halim believes the company’s profitability momentum will continue, and he expects positive full-year earnings per share in 2024 and 2025 after three years of negative EPS. He says the Korean government’s majority ownership stake in Korea Electric will ensure supportive policies. CFRA has a “buy” rating and $10 price target for KEP stock, which closed at $7.32 on May 24.
[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 management business into a separate company and has agreed to sell its fixed-line network to KKR & Co. Inc. (KKR) in a deal valued at up to $24 billion. Ng says he’s positive on Telecom Italia’s opportunities for additional deals moving forward despite concerns about securing votes from major shareholder Vivendi. The company will continue to face headwinds in Europe, but Ng says Brazil will be a major growth driver. CFRA has a “buy” rating and $3.50 price target for TIIAY stock, which closed at $2.61 on May 24.
Arcadium Lithium PLC (ALTM)
Arcadium Lithium produces lithium chemical products used in portable electronics, electric vehicles and stationary storage facilities. The stock is down about 37% this year on faltering EV demand, but analyst Emily Nasseff Mitsch says Arcadium’s stock is undervalued given the strong long-term demand outlook for electric vehicles and their lithium batteries. Mitsch says Arcadium has a healthy balance sheet and plenty of financial flexibility, including more than $400 million in cash. She says the market is currently underestimating lithium demand and overestimating supply in 2024. CFRA has a “buy” rating and $7 price target for ALTM stock, which closed at $4.70 on May 24.
iQiyi Inc. (IQ)
iQiyi is a leading Chinese streaming video platform that is often compared to U.S. streaming platform Netflix Inc. (NFLX). Analyst Siti Salikin says iQiyi has an innovative business model, tiered membership services that appeal to many different customer types and an attractive mix of content. In fact, iQiyi accounted for 7 of the 10 most-watched dramas in China in 2023, a testament to the company’s original content creation. With over 280 movies and series scheduled for release in 2024, Salikin says iQiyi will maintain its leadership position. CFRA has a “buy” rating and $6.50 price target for IQ stock, which closed at $4.78 on May 24.
GoodRx Holdings Inc. (GDRX)
GoodRx is a health care technology company that provides tools and information to assist customers in comparing U.S. prescription drug prices. Analyst Paige Meyer says GoodRx has identified a valuable, niche market in publicizing “usual and customary” cash drug costs for patients lacking insurance coverage. In return for routing customers to pharmacies, GoodRx gets a cut of the sales. Meyer says U.S. drug prescription volumes have been strong, and GoodRx has a massive addressable market. She says revenue growth will return to positive territory in 2024. CFRA has a “buy” rating and $9 price target for GDRX stock, which closed at $7.14 on May 24.
Kinross Gold Corp. (KGC)
Kinross Gold is a Canadian gold miner that has a diversified portfolio of properties in Canada, the U.S., Brazil, Chile and Mauritania. Kinross shares are up 34% this year, the best performance of any stock on this list. Analyst Matthew Miller says the rising gold prices that have boosted KGC’s share price in 2024 will continue to drive upside. In addition, Miller says Kinross has an attractive valuation and growth outlook. He is particularly bullish about the value potential of the Great Bear properties in Ontario. CFRA has a “buy” rating and 12 Canadian dollar ($8.80) price target for KGC stock, which closed at $8.07 on May 24.
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9 Best Cheap Stocks to Buy Under $10 originally appeared on usnews.com
Update 05/28/24: This story was published at an earlier date and has been updated with new information.
