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.
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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 | Upside Potential* |
| Telefonica SA (ticker: TEF) | 4.8% |
| Nokia Corp. (NOK) | -5.2% |
| Aegon Ltd. (AEG) | 16.6% |
| Korea Electric Power Corp. (KEP) | 4.3% |
| Coty Inc. (COTY) | 42.8% |
| Telecom Italia S.p.A. (OTC: TIIAY) | 11.5% |
| Veren Inc. (VRN) | 55.7% |
| Goodyear Tire & Rubber Co. (GT) | 84.3% |
| Sabre Corp. (SABR) | 1.1% |
*As of Oct. 18 close, based on CFRA’s 12-month price targets.
Telefonica SA (TEF)
Telefonica is the leading telecommunications company in Spain. The stock pays a 6.8% dividend, the highest on this list and a rarity among stocks priced under $10. Analyst Adrian Ng says Telefonica has made several positive adjustments to its business structure, including acquiring E-Plus in Germany and GVT in Brazil and exiting the Central American market. It also combined its U.K. telecom assets in a joint venture deal with Liberty Global Ltd. (LBTYK). Ng says these deals have helped fortify the company’s core business and improve its balance sheet. CFRA has a “buy” rating and $5 price target for TEF stock, which closed at $4.77 on Oct. 18.
Nokia Corp. (NOK)
Nokia is a telecom equipment and digital map data vendor that also licenses intellectual property to third parties. Nokia shares are up about 40% this year, the best performance of any stock on this list. Analyst Firdaus Ibrahim says the global 5G investment cycle is gaining momentum, especially in China and North America. Ibrahim says the 5G upgrade cycle will be larger and longer-lasting than previous network cycles, supporting Nokia’s demand for years to come. He says Nokia has delivered impressively strong results in a difficult environment. CFRA has a “buy” rating and $4.50 price target for NOK stock, which closed at $4.75 on Oct. 18.
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 is on track to achieve its 2024 targets for free cash flow and operating capital generation. 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. In addition, Aegon’s new buyback program announced earlier this year is an indication of management’s confidence in the company’s financial outlook. CFRA has a “buy” rating and $7.50 price target for AEG stock, which closed at $6.43 on Oct. 18.
Korea Electric Power Corp. (KEP)
Korea Electric Power is an integrated electric utility company that transmits and distributes electricity in South Korea. Analyst Siti Salikin says higher tariffs will help Korea Electric offset a general slowdown in the Korean economy. The company has strung together four consecutive quarters of positive operating profit, which Salikin says is encouraging. Salikin says the company will also benefit in the long term from the Korean government’s majority ownership stake in the company. The government’s stake likely ensures Korean Electric will get favorable treatment. CFRA has a “buy” rating and $8 price target for KEP stock, which closed at $7.67 on Oct. 18.
Coty Inc. (COTY)
Coty is a global producer of fragrances, color cosmetics and skin care products. Analyst Ana Garcia says the post-earnings sell-off in Coty shares is a buying opportunity for long-term investors. Coty announced it is reducing its footprint, which understandably spooked Wall Street. However, Garcia says the store closures will not significantly reduce 2025 sales numbers given the numerous channels the company uses to sell its products. She anticipates a strong consumer base will generate accelerating demand for Coty products in coming months. CFRA has a “buy” rating and $11 price target for COTY stock, which closed at $7.70 on Oct. 18.
Telecom Italia S.p.A. (OTC: TIIAY)
Telecom Italia is the leading fixed-line and wireless telecommunications provider in Italy. Ng says Telecom Italia has focused on divestitures and restructuring moves to reduce its debt levels. Ng says moves such as the $20 billion deal to sell its network to KKR & Co. Inc. (KKR) will help Telecom Italia reduce risk and focus on high-margin service revenue. He says competition in the company’s main markets will continue to weigh on overall revenue growth, but strength in its Brazil business will help offset core market weakness. CFRA has a “buy” rating and $3 price target for TIIAY stock, which closed at $2.69 on Oct. 18.
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 positioned to generate around $800 million in free cash flow in 2025. He says the company’s improved credit rating will also help reduce its cost of capital. Glickman says the 105,000 net acres, 56,000 barrels of oil equivalent per day in production and 800 premium drilling locations Veren acquired in its Hammerhead Energy acquisition will prove very valuable. CFRA has a “buy” rating and 13 Canadian dollar ($9.39) price target for VRN stock, which closed at $6.03 on Oct. 18.
Goodyear Tire & Rubber Co. (GT)
Goodyear is the largest U.S. tire manufacturer. The company also produces other rubber, plastic and chemical products. The stock is down about 40% this year, the worst performance on this list. Analyst Garrett Nelson says the weakness is a buying opportunity given Goodyear’s transformation strategy could expand margins and unlock value. The company is targeting $1.3 billion in annual cost-cutting benefits by 2026. Nelson projects Goodyear will return to positive revenue growth in 2025, and he says high-margin replacement tire sales will boost profitability. CFRA has a “strong buy” rating and $16 price target for GT stock, which closed at $8.68 on Oct. 18.
Sabre Corp. (SABR)
Sabre operates a platform that connects airlines to travel agencies and provides software solutions for the global travel industry. The travel industry went through a historically rough stretch during the COVID-19 pandemic, and Sabre’s stock price is down about 83% overall in the past five years. However, analyst Brooks Idlet says underlying travel trends are now positive as demand continues to rebound. He says Sabre has successfully cut costs and improved profitability, and lower interest rates could help reduce Sabre’s massive interest costs from its sizable debt load. CFRA has a “buy” rating and $3.70 price target for SABR stock, which closed at $3.66 on Oct. 18.
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9 Best Cheap Stocks to Buy Under $10 originally appeared on usnews.com
Update 10/21/24: This story was previously published at an earlier date and has been updated with new information.
