Are you on the lookout for one or two cheap stocks under $10 that are looking to show good upside potential? Then there is no need for endless searching as we have picked 9 of the best cheap stocks that look to be the best buys under $10 in 2021.
9 Best Cheap Stocks Under $10
Over the course of 2021 so far stocks have been performing beautifully with the S&P 500 index being a fraction away from its all-time high of just under 1%, and currently is up over 85% from its lows in 2020.
Having said that, in normal times volatility is no stranger when it comes to the stock market. But when you look at the new normal markets, all have been extremely erratic over recent months with some high-growth stocks taking huge downward turns declining significantly within a single trading day. Take the leading electronic car company Tesla Inc (TSLA) as a prime example. TSLA is currently down by approximately 20% so far this year and has witnessed huge swings within its share price led on by numerous contributing factors, so much so that the EV company even took a hit in one of its biggest weekly declines by 12%.
Despite strong volatility being the main point of reasonings as to why investors may not have considered looking into cheaper stocks, many investors may have also come to the conclusion that these smaller stocks are not likely to offer the same value or growth prospects compared to mid-large companies on the market. But here we are happy to say that this is not the case.
In fact, there are more than a few lower-priced attractive investment opportunities that are sitting at bargain prices for the potential growth that these stocks can and are looking to achieve, making investing into these lower-priced stocks under $10 a smart investment option.
- Are Stocks Under $10 Worth Investing In?
- Features To Look For In Stocks Under $10
- 9 Best Cheap Stocks To Look For Under $10
- Overview: 9 Of The Best Cheap Stocks To Buy Under $10
Are Stocks Under $10 Worth Investing In?
Before we take a look into 9 of the best cheap stocks under $10, first it's worth answering the question if these stocks are a good investment.
The short and sweet answer to this question is of course YES. A company that has visible products and services that are in steady demand, sporting good and healthy financials hand-in-hand with a liquid market should inevitably provide investors with what most are on the lookout to achieve - wealth. Both in the short-term and the long-term outlook.
One of the major points, if not the most vital factor to keep in mind, is that investors have to be smart and carefully choose stocks under $10. Even though these stocks hold cheaper prices it doesn't necessarily mean to say it is for a good reason, as a good majority of these cheap stocks will be facing strong challenges of some kind.
Having said that, these prices can be too good to be true. If you conduct the right level of research and factor into the equation the risk elements that these stocks hold, more so than larger growth stocks, then investing in stocks under $10 can be great additions as they look to establish and deliver rewarding returns.
It's also worth noting to sound out any confusion that stocks under $10 are not necessarily classified as penny stocks. Typically, penny stocks are companies that trade at or under $5 per share that are still able to trade on public exchanges as well as more notably traded on over-the-counter (OTC) exchanges through the electronic OTC Bulletin Board (OTCBB) and other forms. Penny stocks do hold stronger risk elements than stocks under $10 as they are more prone to fraudulent behaviour and come with a lack of public information which can almost be an impossible task to determine if these stocks are a good investment.
Lastly, a key gentle reminder when looking to invest in stocks under $10 is that you should only make a small proportion of your portfolio suited for these stocks due to higher risk of uncertainty. Adding one or two would be perfect to give your portfolio that diversity it requires as well as adding to the rewards pot.
Features To Look For In Stocks Under $10
Now that we have established that stocks under $10 are worth investing in, now comes the part of looking into specific features that investors should look closer into when looking at stocks under $10. These include:
- Looking into a company's financials.
Looking into any company’s financials is always a good move to make as it will determine if it is a good company to invest in. But when it comes to lower-priced stocks, this is an almost essential part of the researching process. You will see that companies offer investors updated financial statements both quarterly giving investors a closer look at where the stock is and looks to be heading or if it is facing any challenges, as well as annually where investors can obtain all the relevant financial information over the course of a 12 month period. Alongside other standout features, looking at a company’s earnings per share (EPS) is a good metric to look into when looking at value and is calculated by net profit dividend by the total of common shares that are outstanding.
- Standout products and services.
One of the most vital points for any company and one of the first key factors any investor should look into is if a company has enticing products and services on offer. When looking at lower-priced stocks this should be analysed in-depth to see whether a company’s products and services are currently in demand and if they are, are they sustainable for a promising future ahead as ultimately this is what is going to build both the company’s and investor's earnings.
- Liquidity - Look for the high trading volume.
When specifically looking into stocks under $10 liquidity becomes another main focus. Typically, when an investor looks at a stock they look at its share price and volume. By looking at a stock's daily volume this represents how many shares have been traded within a 24 hour period. Naturally, if a stock holds a high volume this indicates a strong interest from investors along with making it easier to buy and sell shares, as opposed to thinly-traded stocks (stocks with little investor attention). If you are new to investing in stocks under $10 it's strongly advised to look at companies that trade an average daily volume of around 1 million shares.
9 Best Cheap Stocks To Look For Under $10
Having looked at the positives for investing in stocks under $10 and their features, now it's time to take a look at 9 of the best cheap stocks under $10 to invest in for 2021.
- Jushi Holdings (JUSHF)
- Telefonica SA (TEF)
- Sirius XM (SIRI)
- Kinross Gold (KGC)
- Nokia (NOK)
- Scynexis (SCYX)
- Enthusiast Gaming (EGLX)
- Hexo (HEXO)
- Aegon (AEG)
1. Jushi Holdings (JUSHF)
Share price: $7.26
Kicking off the list is one of the many promising cannabis companies that looks set to potentially double over the coming year is Jushi Holdings Inc (JUSHF).
To begin with a brief look at this stock's background, JUSHF is a Florida-based cannabis company that aims to focus on building a multi-state portfolio of branded cannabis products across the US.
Currently, the company holds the number one spot in Pennsylvania dominating with its medical marijuana segment, its presence in Virginia is also expanding with its grower-processor assets, as well as having its presence witnessed in various other states including New York, Illinois, Massachusetts, California, Nevada and Ohio. But even though JUSHF is dominating in Pennsylvania, the state has not yet legalised recreational marijuana use which if approved would strengthen the stocks position in this location based on market share.
When you take a look at how well the stock has performed over the past year, gaining by almost 700% over the past 12 months bringing in total revenue of $80.8 million with gross profit reaching a staggering $41.5 million, a rise by 760% YoY. It comes as no surprise as to why both analysts and investors are jumping on board with this hidden gem.
Looking into 2021 JUSHF is continuing its growth. The stock rose by 29% in revenue to $41.6 million in Q1, along with adding $168 million of cash, cash equivalents and short-term investments.
The stock currently holds an average volume of around 433,200 alongside a 52-week range of between $1.07 at its lowest and $9.06 at its highest. On a similar note analysts covering the stock are looking for the cannabis company to almost double in the coming year giving the stock an average price target of $10.00 with a high price target as high as $12.00, showing a potential upside of 65%.
2. Telefonica (TEF)
Share price: EUR 3.91
The Spanish telecommunications company Telefonica SA (TEF) may have been on the back foot thanks to the pandemic but it looks as though change is starting as the stock is now showing signs of improvement.
Within the stock’s Q1 report TEF reported a 118.3% rise in net income to EUR 886 million from the same period in 2020. Alongside, the company reported an earnings per share (EPS) of 0.15 cents per share from 0.06 cents within the first three months in 2020, more than doubling over the year.
The positive results for TEF come off the back of a new strategic plan that the company has set in motion which aims to push down debt levels including looking into its own portfolio.
As it stands the company confirmed that the group has lowered their debt levels by 6.4% YoY and debt is looking to be further reduced to EUR 9 million within Q2.
On the same note, TEF recently sold its Telxius European Tower division in a deal that has been reported to be the company's biggest ever sale in order to strengthen and capture more value within its current business units.
Looking at another standout feature TEF managed to gain a significant rise in cash generation proving that the company can achieve a good level of cash income as it rose by 200% in Q1 to EUR 727 million. Despite this, the majority was paid out to fund payments made following spectrum auctions in various countries.
TEF is also a dividend payer which is another benefit for the investors who are looking to earn a passive income stream. And what's more attractive is the fact that the stock holds a dividend yield of 7.19%.
Analysts covering the stock have given TEF an average ‘Hold’ rating with 3 out of 13 analysts rating the stock a ‘Buy’ based on recent figures. Alongside, the stock has been given an average price target of $5.00 showing an almost 11% upside from $4.82 where the stock translates into US dollars.
Zacks Investment research has also given their verdict for the telecom stock giving an A grade across the board for growth, momentum and value.
TEF currently holds an average volume of 1.69 million shares and holds a 52-week range of between $3.22 at its lowest and $5.69 at its highest.
3. Sirius XM (SIRI)
Share price: $6.74
The only satellite radio operator on the market that looks to hold all the power is Sirius XM Holdings (SIRI). And to show you how much of interest SIRI stock is, billionaire Warren Buffett is one of many notable shareholders and it takes little understanding to see as to why.
Firstly, SIRI compared to other online radio stations is split between advertisements and user subscriptions, and impressively it was its user subscriptions that pushed this stock to new highs in 2020. In 2020 SIRI reached 34.7 million self-pay subscribers, only 1% down YoY which helped push SiriusXM’s revenue to increase by 2% over the year to $6.35 billion, despite advertising revenue declining.
Fast-forwarding into 2021, the stock announced it reached $2.06 billion in revenue in Q1, a rise by 5% YoY. Breaking that sum down it was confirmed that $1.61 billion came from the company’s net subscribers with $354 million actually coming from advertisements.
Looking to the future the company has reinstated its predictions for 2021 with SiriusXM self-pay net subscriber additions to reach approximately 800,000 by the end of the year and total revenue to increase to $8.35 billion.
Based on the stock's recent performance analysts have given a consensus ‘Buy’ rating for the stock, alongside an average medium price target of $7.50, representing an increase of over 10% from where the stock currently sits on the market today.
With an expected EPS growth of approximately 12.69% over the coming 3-5 years, and no doubt the company will continue to add new faces to the brand, shows only greenlights for this radio operator making SIRI a no-brainer lower-priced stock to consider to add to your portfolio in 2021.
4. Kinross Gold (KGC)
Share Price: $7.88
According to a recent Reuters article gold is looking to be on the rise by at least 5% in 2021 making it another reason why Kinross Gold Corporation (KGC) comes in on the list as one of the best cheap stocks under $10.
Over the course of 2020 as the pandemic seized the majority of operations worldwide, mines also temporarily halted operations causing a decline within that section of the industry. However, gold has always been a safe haven for investors in challenging times and within 2020 prices reached new record highs of over $2,000 per ounce for gold.
WIthin the stocks recent reported results on May 11th the company confirmed that the demand is still as strong as KGC reported an increase of 51% year-over-year in net earnings to $192.8 million. Alongside, attributable margins increased by 25% to $1,031 per ounce sold.
Additionally, KGC sits in an incredibly healthy cash flow spot with $75.6 million in free cash flow and holds $279.8 million in operating cash flow, and the company looks set to increase their position further in 2021.
KGC looks to be dripping in value for investors especially as the company holds a 70% stake in The Peak Gold Project, another strong attribute for further solid growth.
When it comes to being a popular gold stock under $10, Kinross Gold sure does hold that title. Currently trading at $7.88 upon writing this report with an average volume of over 12 million shares traded, there is no wonder analysts are being bullish on the stock giving KGC an average price target of $11.16 confirming an upside of over 40%.
And one additional benefit investing in gold has over other stocks is that gold is timeless.
5. Nokia (NOK)
Share Price: $5.49
The Finland-based technology company Nokia Corporation (NOK) looks as though it has a promising future ahead.
In today’s reality, Nokia Corporation no longer holds its iconic mobile division but it does hold four strong segments that are looking to expand which include its Network Infrastructure, Mobile Networks, Nokia Technologies and Cloud and Network Services. But it's the company's 5G technology that looks to be the main focus and success for the brand moving ahead.
Within the stocks recent Q1 report NOK confirmed that it is having a strong start to 2021, outbeating its sluggish 2020 despite topping estimates in the past 3 quarters.
In all areas NOK rose in Q1 including net sales being up by 9% year-over-year brought on heavily due to the brands network infrastructure or in simple terms its 5G enrollment to $6.18 billion including its mobile networks which increased by 3%. NOK also witnessed a rise of 179% of net cash and current financial investments generating EUR 1.2 billion of free positive cash flow and ended Q1 with net cash of EUR 3.7 billion totalling a total cash outcome of EUR 8.8 billion, a good improvement from Q1 2020.
NOK is up roughly just below 13% over the past month following off the back of the stock's strong performance, and is looking to be on track to deliver its anticipated 7-10% rise within the brand’s Network Infrastructure segment.
Based on the company’s metrics NOK seems to be undervalued for its potential with analysts having rated the stock a ‘Buy’ with Zacks Investment Research also praising the tech stock giving the stock an A for growth, B for value and have also issued a grade 2 ‘Buy’ for Nokia.
6. Scynexis (SCYX)
Share price: $8.33
A pioneering biotechnology company that is seeking approval for further life-changing products is Scynexis Inc (SCYX).
One strong point to bring to investors attention is that it has been reported that the Global Yeast Market is set to grow significantly leading up to 2023. This lays nicely for SCYX’s new and FDA approved product BREXAFEMME, which SCYX teamed up with Amplity Health to support the launch of the first oral non-azole treatment for vaginal yeast infections.
Following the stock's news, SCYX gained by around 4% pushing the stock to where it sits roughly today at $8.33 upon writing this report. Over the year shares are up just above 11% for stock.
Additionally, SCYX is awaiting its final phases for its Ibrexafungerp drug to pass its final stages of approval that looks to treat multiple serious fungal infections.
Within the stock's recent financial report the stock slightly declined from its previous quarter, yet the company is in the process of pushing its new products out across the market which may cause the stock to dip slightly behind in order to pull back stronger.
Based on 8 analysts' predictions SCYX has been given an average price target of $23.75, showing a whopping 184% upside, alongside revenue being forecast to increase by 110% over the coming three-year outlook.
Based on these facts and the points mentioned above it looks clear that SCYX is undervalued for what could potentially come following the new product rollouts.
7. Enthusiast Gaming (EGLX)
Share price: $6.66
Just like the cannabis industry the eSports industry is one market on the rise and is vastly becoming the new hottest trend.
Enthusiast Gaming Holdings Inc (EGLX) a Canadian digital media company has its hands within multiple avenues including games, live streaming and much more.
According to CEO Adrian Montgomery, online gaming is the new social media that seems to have no boundaries and has been proven within the stock's recent Q1 results as the company blew above expectations.
Within Q1 the stock confirmed revenue rose by 321% increasing to $30 million compared to $7.1 million within the same period in 2020, gross profit increased by 80% to $5.9 million over the quarter and paid subscribers grew by almost 50% over a 12 month period totally to 137,000 as of March 31st 2021 including 9.9 billion content views.
EGLX is in the process of continuing to strengthen its positioning by collaborating with various artists in significant events on its Luminosity Gaming organisation including a live stream of Coldplay’s anticipated performance of their new single which is due to air on May 20th 2021, alongside other Twitch stars who are also set to perform.
The stock currently holds an average volume of 471,450 and looks to be good value based on visible various metrics.
According to Zacks Investment Rank EGLX is looking to expect EPS to grow by around 20% over the coming 3-5 year outlook, with 2 Wall Street analysts rating the stock a ‘Buy’ along with giving the company an average price target of $11.14, a rise of above 65% from the stock's price today.
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8. Hexo (HEXO)
Share price: $6.99
Another cannabis company to grace the list is the Canadian company Hexo Corp (HEXO).
Hexo Corp (HEXO) is an award-winning consumer package cannabis company that creates and distributes an array of cannabis products for both recreational and medical usage. HEXO is also one of the largest licensed cannabis companies in Canada operating in two 2 million sq ft facilities in two of Canada's biggest provinces.
One of the major standout points for this performing cannabis stock is that it is now looking to expand its business within the U.S. This move will be the company's first U.S facility and is based in North Colorado in a 50,000 sq. ft. operating facility where the company looks to create and produce a range of cannabis products.
Following this news the stock rose by 4% in a single trading day, blowing above the S&P’s 500 gain of 1.5% easily.
Within the stock's most recent quarterly results HEXO witnessed a rise in total net revenue in Q2 to $32.8 million due to the 11% growth in adult cannabis use and 11% in adult beverage use. When you look at this figure in a bigger image, total net revenue for the six months ending on January 31st 2021 grew by 98%.
Despite rising by almost 150% within its share price over the year, HEXO generally looks as though it is hitting all the right notes in building a strong future ahead. As the cannabis stock progresses strongly with its acquisition plans including looking to gain 45% profits from Molson Coors Brewing Company (TAP) partnership, all of these exciting adventures could make HEXO one of the best pot stocks on the market and one exciting one to own.
9. Aegon (AEG)
Share price: $4.56
The last cheap stock to come on the list is the Dutch international life insurance company Aegon N.V. (AEG).
One of the first points to say about AEG is that it looks to be undervalued based on its potential as the stock has delivered with its earnings over the past few quarters. When it comes to its operations, not only does Aegon N.V hold a strong presence within Europe and the U.K but it is also expanding within international markets.
Within the stocks most recent Q1 report AEG reported a net result of EUR 386 million with its operating result increasing by 20%. AEG also managed to obtain a rise of $14 million in free cash flow to EUR $75 million in Q1 2021 pushing the stock forward to being on track to expand its hedge to the US legacy variable annuity block.
Whilst on the subject of the US market, AEG’s new strategic plan in continuing to invest in new products, distribution and customer service showed that AEG grew its licensed agents by 18% and witnessed an increase in market share due to product introductions within the US Individual Solutions business.
Based on current data AEG currently holds an average volume of just under 2 million shares traded daily, whilst holding an earnings yield of 16.34%. Based on these metrics and looking at additional visible data it seems that AEG is looking to be a cheap under the radar stock that looks to set for more growth.
Overview: 9 Of The Best Cheap Stocks To Buy Under $10
And here you have our list of 9 of the best cheap stocks under $10 that look to be the perfect buys right now to add to your portfolio.
If you are a beginner investor looking to enter the stock trading world you want to try and keep your risk factors low at the start. That being said, potentially looking at a stock such as Nokia Corporation (NOK) could look to be a top pick based on its recent performances as well as factoring in the stock's past history, as NOK looks to offer good value as it grows within its 5G technology over the coming years.
Additionally, if you are an investor who is seeking a new challenge in the cannabis industry and Jushi Holdings Inc (JUSHF) in particular is looking to be a standout stock to buy under $10, especially as more U.S states give the green light for legalized marijuana usage. Secondly, for a biotechnology stock Scynexis Inc (SCYX) is predicted for big things over the coming year and as its new product BREXAFEMME is on the verge of starting its rollout, makes this stock a no-brainer investment.
Investing in any stock comes with elements of risks which is why it is highly recommended that all investors conduct additional research before placing any investment. For stocks under $10 specifically, these stocks can witness sharper and quicker downturns compared to large-cap stocks so it pays to use due diligence before investing in these exciting assets.
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