5 Best Cheap Stocks To Buy Under $10

November 4, 2022, 4:55 PM

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Investing is a perfect option for those who are looking to put their money to work and build wealth over time. As first-time investors search for opportunities, they come across stocks like Apple, with price tags well over $100 — or more.

These high price tags can become a barrier for many. The good news is, there are plenty of stocks that cost under $10 to choose from.

Read: 5 Things You Must Do When Your Savings Reach $50,000

Best Stocks To Buy Under $10

Those who are looking for the best stocks under $10 must be willing to do their research. Stocks under $10 typically represent small companies, leading to a bias among investors against low-priced shares. Nonetheless, with a bit of research, it’s possible to find gems in this price range.

Company

Ticker

Price

Crescent Point Energy Corp

NYSE: CPG

$8.26

Nokia OYJ

NYSE: NOK

$4.37

Rocket Lab USA, Inc.

NASDAQ: RKLB

$5.18

Oatly Group AB

NASDAQ: OTLY

$2.04

Telefonaktiebolaget LM Ericsson ADR

NASDAQ: ERIC

$5.52

1. Crescent Point Energy Corp. (NYSE: CPG)

Crescent Point Energy is the only stock on this list that has experienced gains to date in 2022. The Canadian oil and gas exploration company has benefited from a boom in oil prices. The growth in the price of oil has significantly increased the company’s revenue, allowing it to pay down debt at a fast rate. The company paid off $270 million in debt in the third quarter alone.

The analysts that cover the ticker love it. All three of them rate the stock a “Buy,” and the average price target is $10.45. That means there’s room for a potential upside of about 26% ahead.

2. Nokia OYJ (NYSE: NOK)

Nokia was once known for its cell phones but, in 2014, it sold its mobile and devices division to Microsoft. Today, the company’s focus is the development of network processors, routers and other equipment that supports the telecommunications infrastructure. Like others on this list, the stock has experienced painful declines in 2022 as a result of macroeconomic concerns and bear market conditions.

Nonetheless, analysts are expecting a strong recovery. Five out of six of them rate the stock a “Buy,” with the last analyst rating it a “Hold.” The consensus price target is $6.37, more than 40% higher than today’s price.

3. Rocket Lab USA Inc. (NASDAQ: RKLB)

Space has always been an interesting topic, and Rocket Lab USA works to turn that topic into a profit. The company operates in the aerospace sector, offering launch services, satellite technology and other space-related products and services.

Five analysts rate the stock a “Buy,” while one rates it a “Sell.” There are no “Hold” ratings. The average price target sits at $10.00 per share, more than 90% higher than the current price.

4. Oatly Group AB – ADR (NASDAQ: OTLY)

Oatly Group is the largest oat drink company in the world. Like others on this list and in the market as a whole, the stock has had a tough time in 2022, falling more than 74% by late October largely due to macroeconomic headwinds and supply chain issues.

The good news is that analysts are expecting a significant bounceback. There are currently six analysts covering the stock, three of whom rate it a “Buy,” two who rate it a “Hold” and one who rates it a “Sell.” The average price target across all analysts is $4.74, about 130% higher than the current price.

5. Telefonaktiebolaget LM Ericsson ADR Class B (NASDAQ: ERIC)

For those who are willing to take on a bit of risk, Ericsson stock is a compelling opportunity. The company is a household brand in technology and telecommunication infrastructure and is playing a major role in the shift to 5G compatibility.

On the other hand, the SEC and DOJ are currently investigating the company concerning bribery and fraud, adding to the risk involved in investing in the stock.

Analysts don’t seem too concerned about the case. Three of them rate it a “Buy,” four rate it a “Hold” and none rate it a “Sell.” The average price target is over 47% higher than today’s price at $8.15.

Final Take

Although the stocks above are some of the best to buy under $10, today’s investors don’t need to look at stock prices as an entry barrier. Plenty of brokers offer fractional shares, making it possible to invest as little as $1 in stocks that cost hundreds of dollars. Consider buying fractional shares of larger, more established companies.

FAQ

Buying stocks can lead to plenty of questions, especially when investors look for the best stocks under $10. Here are the answers to some common questions.

  • What are the 10 best stocks right now?

    • Every investor is unique and every portfolio is different, so the 10 best stocks for one investor to buy are likely different from the 10 best stocks for another investor. Investors should do their research and determine which stocks are best for them based on fundamental data and how the stocks correlate to the rest of their portfolios.

  • What are the best dividend stocks under $10?

    • CPG is a compelling option. The company currently pays a dividend yield of 2.94%. In general, though, it may be difficult to find dividend stocks for under $10.

  • What is there to invest in with $10?

    • There are several options to choose from for under $10. Thanks to the introduction of fractional shares, investors can invest in just about any stock for $10 or less, regardless of that stock’s price. The possibilities are endless.

Information is accurate as of Nov. 4, 2022, and is subject to change.

This article originally appeared on GOBankingRates.com: 5 Best Cheap Stocks To Buy Under $10

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