Stocks trading for less than $10 can be attractive for investors looking to scoop up some cheap shares. Unfortunately, quality stocks trading below $10 are few and far between. In truth, single-digit stock prices are often 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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Caveats aside, the CFRA analyst team has identified nine cheap, high-quality stocks that could be excellent buying opportunities for frugal investors in 2025. Here are nine of the best stocks to buy under $10, according to CFRA:
| Stock | Upside potential* |
| Vale SA (ticker: VALE) | 33.2% |
| Nokia Corp. (NOK) | 10.2% |
| Telefonica SA (TEF) | 16.8% |
| Aegon Ltd. (AEG) | 12.6% |
| Korea Electric Power Corp. (KEP) | 22.3% |
| Telecom Italia SpA (OTC: TIIAY) | 6.4% |
| Goodyear Tire & Rubber Co. (GT) | 25.3% |
| Topgolf Callaway Brands Corp. (MODG) | 147.6% |
| Bumble Inc. (BMBL) | 12.3% |
*As of Feb. 14 close, based on CFRA’s 12-month price targets.
Vale SA (VALE)
Vale is a Brazilian miner and is one of the world’s largest iron ore and nickel producers. Vale shares lagged in 2024 and — even after factoring in an elevated dividend yield — are down 19.5% in the past year. The silver lining is that the pullback has truly made Vale’s dividend yield hard to ignore at 15.1%, the highest on this list and a rarity among stocks priced under $10. Analyst Matthew Miller says Vale has improved safety following the deadly Brumadinho and Samarco dam disasters, and investors don’t fully appreciate Vale’s impressive free cash flow profile. CFRA has a “buy” rating and $13 price target for VALE stock, which closed at $9.76 on Feb. 14.
Nokia Corp. (NOK)
Nokia is a telecom equipment and digital map data vendor that also licenses intellectual property to third parties. Analyst Firdaus Ibrahim says the global 5G upgrade cycle is gaining momentum, particularly in North America and China. He says the 5G cycle will be larger and longer-lasting than previous cycles, supporting Nokia’s demand for the next several years. Ibrahim says Nokia has successfully navigated inflation and supply chain disruptions in recent years, and the company is anticipating market conditions will continue to improve in 2025. CFRA has a “buy” rating and $5.50 price target for NOK stock, which closed at $4.99 on Feb. 14.
Telefonica SA (TEF)
Telefonica is the leading telecommunications company in Spain. Analyst Adrian Ng says Telefonica has made major changes to its portfolio in recent years to divest underperforming segments, improve its balance sheet and reinforce its core markets. The company exited the Central America market 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). Ng says Telefonica’s business performance has exceeded expectations and it should continue that positive momentum in 2025. CFRA has a “buy” rating and $5 price target for TEF stock, which closed at $4.28 on Feb. 14.
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 financial targets are achievable, and the company has a long track record of strong execution. Lye is bullish on Aegon’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. He says the company’s aggressive share buyback program reflects management’s confidence and should also help support the stock. CFRA has a “buy” rating and $7.50 price target for AEG stock, which closed at $6.66 on Feb. 14.
Korea Electric Power Corp. (KEP)
Korea Electric Power is an integrated electric utility company that transmits and distributes electricity in South Korea. Analyst Ahmad Halim says higher tariffs should help Korea Electric mitigate the negative impact of a slowdown in the Korean economy. Halim says Korea Electric has strung together several consecutive quarters of operating profit, an encouraging sign. Meanwhile, the company’s cost-cutting program should help support margins moving forward. In the long term, the Korean government’s majority ownership stake in Korea Electric will likely ensure the company receives favorable treatment. CFRA has a “buy” rating and $9 price target for KEP stock, which closed at $7.36 on Feb. 14.
Telecom Italia SpA (OTC: TIIAY)
Telecom Italia is the leading fixed-line and wireless telecommunications provider in Italy. The company sold its network operations to KKR & Co. Inc. (KKR) in 2024. Telecom Italia shares are already up 13.7% in 2025 through Feb. 14, making it a standout performer on this list. Ng says the divestment of the company’s network operations is in line with his expectation that Telecom Italia’s primary goal is reducing debt. He is bullish on the asset sales, which should allow the company to focus more on high-margin services revenues. CFRA has a “buy” rating and $3 price target for TIIAY stock, which closed at $2.82 on Feb. 14.
Goodyear Tire & Rubber Co. (GT)
Goodyear Tire & Rubber is the largest U.S. tire manufacturer. The company also produces other rubber, plastic and chemical products. Down 19.3% in the past year, analyst Garrett Nelson says the weakness in Goodyear’s stock is a buying opportunity for long-term investors. He says Goodyear’s transformation plan could unlock significant value, giving the stock a compelling risk-reward profile. With the average age of vehicles on the road at record highs, Goodyear will benefit from elevated high-margin replacement tire sales. Shareholders recently got some great news, as blowout fourth-quarter results sparked a one-day surge of 17.3% on Feb. 14. CFRA has a “strong buy” rating and $12 price target for GT stock, which, even after the furious rally, closed at $9.58 on Feb. 14.
Topgolf Callaway Brands Corp. (MODG)
Topgolf Callaway Brands operates golf entertainment venues and produces premium golf equipment and apparel. Analyst Zachary Warring says Topgolf is another excellent opportunity for long-term investors to scoop up a high quality stock at a discounted price following a steep sell-off that has halved the price of the stock over the past 12 months. Warring says Topgolf has secured partnerships with some of the world’s top golfers, including John Rahm and Xander Schauffele. Warring says new Topgolf locations will be the company’s primary growth driver, funded by cash flow from the Golf Equipment segment. CFRA has a “buy” rating and $18 price target for MODG stock, which closed at $7.27 on Feb. 14.
Bumble Inc. (BMBL)
Bumble is a leading online dating services provider and is the parent company of the Bumble and Badoo mobile apps. Analyst Shreya Gheewala says Bumble has had success with its Badoo redesign, and its promising artificial intelligence features highlight Bumble’s potential to capture high-intent users. Gheewala says Bumble faces near-term revenue challenges, but the stock is undervalued given the potential of its user experience and marketing initiatives. Gheewala says the introduction of a lower-cost Bumble subscription tier aimed at Gen Z users could be a bullish catalyst. CFRA has a “buy” rating and $9.50 price target for BMBL stock, which closed at $8.46 on Feb. 14.
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9 Best Cheap Stocks to Buy Under $10 originally appeared on usnews.com
Update 02/18/25: This story was published at an earlier date and has been updated with new information.
