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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That said, 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 July 22 close* |
| Telefonica SA (ticker: TEF) | -0.7% |
| Nokia Corp. (NOK) | 21.6% |
| Kinross Gold Corp. (KGC) | -2.1% |
| Aegon Ltd. (AEG) | 17.4% |
| Korea Electric Power (KEP) | 39.5% |
| Telecom Italia SPA (OTC: TIIAY) | 33.6% |
| Veren Inc. (VRN) | 20.7% |
| Arcadium Lithium PLC (ALTM) | 97.7% |
| iQiyi Inc. (IQ) | 92.3% |
*Based on 12-month target prices.
Telefonica SA (TEF)
Telefonica is the leading telecommunications company in Spain. The stock pays a 7.2% dividend, the highest on this list and a rarity among stocks priced under $10. Analyst Adrian Ng says Telefonica has made several major portfolio restructuring decisions to streamline business and reduce debt. Those changes include exiting Central America and combining its U.K. telecom assets in a joint venture deal with Liberty Global Ltd. (LBTYA). Telefonica has also acquired E-Plus in Germany and GVT in Brazil. Ng says Telefonica has positive momentum in 2024. CFRA has a “buy” rating and $4.50 price target for TEF stock, which closed at $4.53 on July 22.
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 upgrade cycle is gaining momentum, particularly in China and North America. Snyder predicts the 5G upgrade cycle will be larger and longer-lasting than previous network upgrade cycles, supporting Nokia’s demand. Snyder says Nokia management is confident the company can regain North American mobile network market share. He says the company has successfully managed inflation and supply chain challenges. CFRA has a “buy” rating and $4.50 price target for NOK stock, which closed at $3.70 on July 22.
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 about 48% this year, the best performance of any stock on this list. Analyst Matthew Miller says gold prices will likely continue to rise, creating attractive growth prospects. Even after the recent run, Miller says Kinross shares are attractively valued and trade at a discount to peers. He says drilling results in the company’s Great Bear property in Ontario are encouraging. CFRA has a “buy” rating and 12 Canadian dollar ($8.72) price target for KGC stock, which closed at $8.91 on July 22.
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’s 2024 targets for operating capital generation and free cash flow are well within reach. He is bullish on the company’s strategy of extracting capital from non-core financial assets, and focusing on strategic assets that reduce capital ratio volatility and generate an attractive return on capital. In addition, Lye says Aegon’s aggressive capital return program should support the stock price. CFRA has a “buy” rating and $7.50 price target for AEG stock, which closed at $6.39 on July 22.
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 offset a weakening Korean economy and softening demand in 2024. Korea Electric recently reported just its third quarter of operating profit since the first quarter of 2021, which Halim says is encouraging news. The Korean government is also a majority owner of Korea Electric, suggesting the company will continue to benefit from favorable policies. Profitability should also benefit from its ongoing cost-cutting initiative. CFRA has a “buy” rating and $10 price target for KEP stock, which closed at $7.17 on July 22.
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 about $24 billion. Ng says Telecom Italia’s strategic restructuring efforts are in line with his expectation that the company will prioritize debt reduction and asset divestitures. He says Telecom Italia has opportunities for additional asset sales in the future if large investor Vivendi SE (OTC: VIVHY) is on board. CFRA has a “buy” rating and $3.50 price target for TIIAY stock, which closed at $2.62 on July 22.
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 elevated oil and gas prices in recent years and used its excess cash flow to reduce debt and improve its balance sheet. He projects about $730 million in 2024 free cash flow and about $800 million in 2025. Veren anticipates production and capital expenditure growth this year after the company acquired additional assets in the Western Canadian Sedimentary Basin. CFRA has a “buy” rating and CA$13 ($9.44) price target for VRN stock, which closed at $7.82 on July 22.
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 54% this year, the worst performance on this list. Analyst Brooks Idlet says the U.S. government’s $7,500 tax credit for EV purchases and other government subsidies around the world will help push EV adoption and stimulate EV-related lithium demand. Idlet says Arcadium has an attractive valuation and plenty of financial flexibility, and he says the market is overestimating lithium supply and underestimating demand in 2024. CFRA has a “buy” rating and $7 price target for ALTM stock, which closed at $3.54 on July 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 Siti Salikin says iQiyi has an innovative monetization model that includes a large library of premium, on-demand content and tiered membership services. This unique model allows iQiyi to tap into a wide range of different customer types, expanding its addressable market. In 2023, iQiyi original content accounted for seven of the 10 most viewed dramas in China, a testament to the quality of the platform’s productions. CFRA has a “buy” rating and $6.50 price target for IQ stock, which closed at $3.38 on July 22.
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9 Best Cheap Stocks to Buy Under $10 originally appeared on usnews.com
Update 07/23/24: This story was published at an earlier date and has been updated with new information.
