8 of the best cheap stocks to buy for under $10:
Those stocks under $10 won’t break the bank.
The S&P 500 has struggled so far in 2022, providing buying opportunities in high-quality stocks. Unfortunately, the quality of stock trading at less than $10 a share is few and far between. Shares priced at this level can be a red flag for investors that something is seriously wrong with the company. Many of these stocks have challenged basic business models or challenging near-term prospects. However, the CFRA Research analyst team identified eight cheap, high-quality stocks that could be excellent buying opportunities for frugal investors. Here are eight of the best stocks under $10, according to the CFRA.
Nokia Oyj (index: NOK)
The first stocks are under $10. Nokia is a global company that sells communications equipment and digital map data that also licenses intellectual property to third parties. Analyst Jun Zhang Tan says the global 5G investment cycle will be longer and more intense than previous upgrade cycles, which is good news for Nokia. Tan says Nokia lost mobile network market share and pricing power in North America in 2021, but the company is confident it will regain that lost market share and overcome inflation and supply chain challenges in the coming quarters. CFRA has a “buy” rating and a target price of $6.50 for NOK stock, which closed at $4.45 on Oct.
Orange SA (Oran)
The second stock is under $10. Orange is the leading telecommunications company in France. Analyst Adrian Ng says Orange shares have an attractive value and that the difficult operating and regulatory environment in Europe is already priced in the shares. Eng says Orange can boost margins by cutting costs and can raise cash for investments by liquidating its tower assets. He expects a rebound in roaming revenue and strong services revenue in the near term. Orange is also committed to maintaining a dividend yield of 8.4%, which is the highest on this list and the rarity among low-priced stocks. CFRA has a “buy” rating and a $12 target price for Oran stock, which closed at $8.99 on Oct.
The third stocks under $ 10. Ericsson provides network infrastructure and services to the telecommunications industry. The US Department of Justice and the Securities and Exchange Commission are currently investigating Ericsson for compliance violations related to allegations of misconduct in Iraq from 2011 through 2019. In August, more than 500 American victims of terrorist attacks filed a lawsuit against Ericsson, claiming that the company She paid bribes to – Al-Qaeda and the Islamic State. Tan says Ericsson is benefiting from the early stages of the 5G investment cycle, and the investigation and lawsuit will ultimately have little impact on operations. CFRA has a “buy” rating and a $12 target price for ERIC stock, which closed at $6.20 on Oct.
Telefónica SA (TEF)
Fourth stocks under $10. Telefónica is a leading telecommunications company in Spain. Ng says Telefónica’s acquisition of E-Plus in Germany and GVT in Brazil, its exit from the Central American market and its merger of UK telecom assets with Liberty Global PLC (LBTYA, LBTYK) have helped Telefonica improve and streamline its balance sheet. her wallet. Ng says the company has a strong position in its core markets and is on track to achieve approximately 3% EBITDA, or EBITDA, growth in 2022. The CFRA has a “buy” rating and a $5 target price. TEF stock closed at $3.18 on Oct. 14.
Crescent Point Energy Corp. (CPG)
Fifth stocks under $10 Crescent Point Energy is a Canadian oil and gas exploration and production company with assets in Western Canada, Utah and North Dakota. Not only is Crescent Point the best performing stock on this list in 2022, with a gain of 28.3% as of Oct. 14, but it’s also the only stock on the list to ever have a positive return this year. Analyst Jonathan Handshaw says Crescent Point has benefited from higher oil and gas prices by paying down its debt and improving its balance sheet. CFRA has a “buy” rating and a target price of $8.74 for CPG stock, which closed at $6.76 on Oct.
Telecom Italia (TIIAY)
Telecom Italia is the leading provider of fixed and wireless communications in Italy. The company plans to split its networking business into a separate company, and Eng says Telecom Italia essentially rejected a takeover offer from KKR & Co. Inc. (KKR) by not giving access to its books. Other private equity firms, including CVC Capital Partners, have also expressed interest in Telecom Italia, making a buyout or even a bidding war a potential bullish stimulus. Brazil’s Telecom Italia’s revenue grew 21.8% last quarter. CFRA has a “buy” rating and a target price of $3.80 for TIIAY stock, which closed at $1.67 on Oct.
Rocket Lab USA Inc. (RKLB)
Rocket Lab is an aerospace and defense company specializing in launch services, spacecraft engineering and design, component manufacturing and other spacecraft management solutions. Analyst Keith Snyder says Rocket Lab is one of the best launch services for clients with small payloads. The company has a better launch record than its smaller competitors, but it allows for more assignments than big competitors, such as SpaceX. Snyder says the missile could significantly reduce costs once the Electron missile becomes reusable, and projects revenue growth of 265.5% in 2022. The CFRA has a “buy” rating and a $10 target price for RKLB stock, which closed at $3.95 in October 14.
Oatly Group AB (OTLY)
Oatly is the largest producer of oat milk in the world. With the stock trading at less than $3 a share, analyst Arun Sundaram says Oatly’s valuation is attractive. Sundaram says Oatly is trading at a huge valuation discount to Beyond Meat Inc. (BYND) and other plant-based food competitors. He says Oatly’s sales slowdown came in large part from temporary capacity constraints and supply chain disruptions, and he expects sales growth to rebound from 26% in 2022 to 71% in 2023. The stock is down 71.7% year-to-date as of October 14 . However, Sundaram says weakness is a buying opportunity. CFRA has a “buy” rating and a $5 target price for OTLY stock, which closed at $2.25 on Oct.