Stocks trading for less than $10 can be attractive for investors looking to scoop up some cheap shares. Unfortunately, quality stocks trading for under $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.
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Many of these stocks have challenged underlying business models or difficult near-term outlooks. However, 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 change from Sept. 23 close |
| Telefonica SA (ticker: TEF) | 2.9% |
| Nokia Corp. (NOK) | 4.4% |
| Kinross Gold Corp. (KGC) | 7.4% |
| Korea Electric Power (KEP) | 6.2% |
| Aegon Ltd. (AEG) | 19.8% |
| Coty Inc. (COTY) | 29.2% |
| Telecom Italia SPA (OTC: TIIAY) | 13.6% |
| Veren Inc. (VRN) | 50.1% |
| Rocket Lab USA Inc. (RKLB) | -7.4% |
Telefonica SA (TEF)
Telefonica is the leading telecommunications company in Spain. The stock pays a 6.7% dividend, the highest on this list and a rarity among stocks priced under $10. Analyst Adrian Ng says Telefonica has significantly restructured its company in recent years to streamline its business and improve its balance sheet. The company exited Central America and acquired E-Plus in Germany and GVT in Brazil. It also combined its UK telecom assets in a joint venture deal with Liberty Global Ltd. (LBTYK) that included a large cash infusion for Telefonica. CFRA has a “buy” rating and $5 price target for TEF stock, which closed at $4.86 on Sept. 23.
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 stages of the global 5G investment cycle have gained momentum, especially in North America and China. Snyder says the 5G cycle will likely be larger and longer-lasting than previous wireless network upgrade cycles, supporting Nokia’s long-term demand. Nokia is optimistic the company can regain lost market share by generating industry-leading revenue growth, and Snyder is bullish on Nokia’s improved earnings visibility. CFRA has a “buy” rating and $4.50 price target for NOK stock, which closed at $4.31 on Sept. 23.
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. Including dividends, Kinross shares are up 61% year to date through Sept. 23, the best performance of any stock on this list. Analyst Matthew Miller says Kinross’ stock remains attractively valued even after its impressive 2024 run. Miller projects gold prices will continue to rise and says Kinross has attractive growth prospects. He is particularly optimistic about its Dixie Project in Ontario, which it acquired in its Great Bear Resources buyout. CFRA has a “buy” rating and $10.32 price target for KGC stock, which closed at $9.61 on Sept. 23.
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 the negative impacts of a slowdown in economic growth in Korea. Halim says four consecutive profitable quarters for Korea Electric are a positive sign. Looking ahead, he says the Korean government’s majority ownership stake in Korea Electric likely ensures the government will support the company with favorable tariffs and other policies. The company’s cost cutting plan could also improve margins. CFRA has a “buy” rating and $8 price target for KEP stock, which closed at $7.53 on Sept. 23.
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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 free cash flow and operating capital generation targets are within reach, which is not surprising given its management team has a long track record of impressive execution. Lye says the company’s strategy of focusing on strategic assets that reduce capital ratio volatility and generate an attractive return on capital will create value for investors. Aegon’s buyback program will also support the stock. CFRA has a “buy” rating and $7.50 price target for AEG stock, which closed at $6.26 on Sept. 23.
Coty Inc. (COTY)
Coty is a global producer of fragrances, color cosmetics and skin care products. The stock is down 25.2% year to date, the worst performance on this list. Analyst Ana Garcia says the stock’s weakness is a buying opportunity for long-term investors due to the improving outlook for Coty’s business. Garcia says the company’s Prestige brands benefit from healthy high-end U.S. consumers, and fragrance demand and new product launches will support sales volumes. She says the planned divestment of Coty’s Wella stake will also be a deleveraging opportunity. CFRA has a “buy” rating and $12 price target for COTY stock, which closed at $9.29 on Sept. 23.
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 network to KKR & Co. Inc. (KKR) in a deal valued at about $20 billion. Ng says the network divestment deal is right on target given Telecom Italia should be focused on ways to scale back its business to reduce its debt load. He says the deal also allows the company to focus more on higher-margin services. CFRA has a “buy” rating and $3 price target for TIIAY stock, which closed at $2.64 on Sept. 23.
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 Stewart Glickman says Veren is generating significant free cash flow in recent quarters, which it is splitting between dividend payments, buybacks and debt reduction. Glickman says the company’s improved credit rating will help reduce interest expenses and accelerate future deleveraging efforts. He projects 23% production growth in 2024 will drive full-year free cash flow of around $737 million in 2024 and $811 million in 2025. CFRA has a “buy” rating and $9.59 price target for VRN stock, which closed at $6.39 on Sept. 23.
Rocket Lab USA Inc. (RKLB)
Rocket Lab is an aerospace and defense company that specializes in launch services, spacecraft engineering and design, components manufacturing, and other spacecraft management solutions. Rocket’s share price has nearly doubled since the beginning of 2023, but Snyder says the liftoff may have just begun. He says Rocket Lab is a top launch provider for customers with small payloads, providing more launch reliability than smaller competitors and more orbit flexibility than SpaceX and other larger competitors. Snyder says Electron rocket reusability will help Rocket Lab further reduce launch costs. CFRA has a “buy” rating and $7 price target for RKLB stock, which closed at $7.56 on Sept. 23.
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9 Best Cheap Stocks to Buy Under $10 originally appeared on usnews.com
Update 09/24/24: This story was previously published at an earlier date and has been updated with new information.
