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.
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The CFRA analyst team has identified nine cheap, high-quality stocks that could be excellent buying opportunities in 2024 for frugal investors. Here are nine of the best stocks to buy under $10, according to CFRA:
| Stock | Implied upside from June 25 close* |
| Telefonica SA (ticker: TEF) | 5.1% |
| Nokia Corp. (NOK) | 20.6% |
| Aegon Ltd. (AEG) | 19.2% |
| Kinross Gold Corp. (KGC) | 14.9% |
| Korea Electric Power (KEP) | 43.5% |
| Telecom Italia SPA (OTC: TIIAY) | 48.9% |
| Veren Inc. (VRN) | 20.3% |
| Arcadium Lithium PLC (ALTM) | 119.4% |
| GoodRx Holdings Inc. (GDRX) | 15.1% |
*Based on 12-month target prices.
Telefonica SA (TEF)
Telefonica is the leading telecommunications company in Spain. The stock pays a 7.6% dividend, the highest on this list and a rarity among stocks priced under $10. Analyst Adrian Ng says Telefonica’s major restructuring in recent years has helped it improve its balance sheet and streamline its business. Telefonica left Central America and acquired E-Plus in Germany and GVT in Brazil. It has also combined its U.K. telecom assets in a joint venture deal with Liberty Global Ltd. (LBTYA). Ng says Telefonica has positive momentum in 2024. CFRA has a “buy” rating and $4.50 price target for TEF stock, which closed at $4.28 on June 25.
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 global 5G network upgrade investment cycle is gaining momentum, particularly in North America and China. Snyder predicts the 5G upgrade cycle will be larger and longer-lasting than previous cycles, which will support Nokia’s demand in coming years. He says Nokia has navigated a difficult climate and delivered impressive results despite rising costs. He projects a return to earnings growth in 2024. CFRA has a “buy” rating and $4.50 price target for NOK stock, which closed at $3.73 on June 25.
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 solid execution, suggesting the company’s 2024 goals for operating capital generation and free cash flow are within reach. Lye is bullish on Aegon’s strategy of focusing on strategic assets that reduce capital ratio volatility and generate an attractive return on capital. In addition, he says the company’s aggressive capital return program is a testament to Aegon’s financial strength. CFRA has a “buy” rating and $7.50 price target for AEG stock, which closed at $6.29 on June 25.
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 26% through June 25 this year on strong demand for gold. Analyst Matthew Miller says Kinross has an attractive growth profile and an appealing valuation. In addition, Miller’s bullish outlook for gold prices bodes well for Kinross’ margins and profitability. He is particularly optimistic about the prospects for the company’s Great Bear property in Ontario. CFRA has a “buy” rating and 12 Canadian dollar ($8.76) price target for KGC stock, which closed at $7.62 on June 25.
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 an economic slowdown in Korea in 2024 will weigh on Korea Electric’s organic growth prospects, but higher tariffs will help offset that weakness. Korea Electric reported its first profitable quarter in more than two years to kick off 2024, a development that Halim says is encouraging for investors. The Korean government is a majority shareholder of Korea Electric, suggesting supportive government and regulatory policies are likely. CFRA has a “buy” rating and $10 price target for KEP stock, which closed at $6.97 on June 25.
[See: Artificial Intelligence Stocks: The 10 Best AI Companies.]
Telecom Italia SPA (OTC: TIIAY)
Telecom Italia is the leading fixed-line and wireless telecom 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 about $24 billion. Ng says the company’s recent moves are in line with its strategy of divesting non-core assets and reducing debt. However, he says major shareholder Vivendi SE (OTC: VIVHY) may make it difficult for Telecom Italia to complete additional merger and acquisition deals in the future. CFRA has a “buy” rating and $3.50 price target for TIIAY stock, which closed at $2.35 on June 25.
Veren Inc. (VRN)
Veren is a Canadian oil and gas exploration and production company that owns properties in Western Canada, Utah and North Dakota. Analyst Jonnathan Handshoe says Veren took advantage of higher oil and gas prices in 2023 and used its excess cash flow to pay down the debt it accumulated from acquiring additional assets in the Western Canadian Sedimentary Basin. Veren has guided for 23% production growth in 2024, and Handshoe projects free cash flow of about $730 million in 2024 and $800 million in 2025. CFRA has a “buy” rating and CA$13 ($9.49) price target for VRN stock, which closed at $7.89 on June 25.
Arcadium Lithium PLC (ALTM)
Arcadium Lithium produces lithium chemical products used in portable electronics, electric vehicles and stationary energy storage facilities. The stock is down 57.3% through June 25 this year, the worst performance on this list. Analyst Brooks Idlet says the global push for EV adoption, including the U.S.’ $7,500 per-vehicle tax credit, should generate favorable lithium demand trends in both the short and long term. Idlet says Arcadium has a strong balance sheet, including cash and cash equivalents that are double current liabilities. Idlet also likes its attractive valuation. CFRA has a “buy” rating and $7 price target for ALTM stock, which closed at $3.19 on June 25.
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’s business model of publicizing “usual and customary” cash drug costs for uninsured patients and then taking a cut from routing their business to pharmacies is unique and niche. Meyer says U.S. prescription volume trends have been positive, and GoodRx has a massive addressable market to target. She says the company’s recently renewed contract with Kroger Co. (KR) will also support sales. CFRA has a “buy” rating and $9 price target for GDRX stock, which closed at $7.82 on June 25.
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9 Best Cheap Stocks to Buy Under $10 originally appeared on usnews.com
Update 06/26/24: This story was published at an earlier date and has been updated with new information.
