Are you looking to find the best stocks on the market under $10 that have great upside potential? Take a look as we have chosen 7 stock picks under $10 that investors should consider to buy into in 2021.
As 2021 is officially underway and has kicked off to a challenging yet somewhat rewarding start, many investors are looking to change up their portfolio collection if not already done so, by looking to add to the mix one or more of the cheaper stocks that can offer great upside potential.
The market has hit new highs already in 2021 with the Dow Jones Industrial Average who is home to 30 of the top U.S companies reached over 33,000 in March 2021 for the first time ever. The leading S&P 500 Index has also witnessed new highs as it rose up by 1.7% at the end of March bringing its gains to 5.8% in 2021 so far.
Even the smaller indexes such as the Russell 2000 Index rose by 1.3% over the year.
Although many investors believe that cheap stocks or penny stocks which these companies are more commonly referred to as if they priced $5 or under are risky business, they wouldn’t be wrong. But there are exceptions to every rule and these stocks offer great growth prospects alongside other additional benefits if these stocks perform, and especially when you buy in on these stocks at the right time.
It all comes down to knowing the ins and outs and using both your time and knowledge wisely when looking to invest in these stocks to ultimately become successful.
If penny stocks are of interest be sure to read What Are The Top Stocks To Buy Under $5 here you will be able to find the best penny stocks priced at $5 and under that have the potential to grow over the coming years and can seek to add good value to your collection.
Having said that, now let’s take a look at 7 of the best stocks under $10 on the market today that are looking like great buys for 2021 as the world edges closer to post-pandemic operations.
7 Best Stock Picks Under $10:
- Five star senior living (FVE)
- Annaly Capital Management (NLY)
- Kinross Gold Corporation (KGC)
- Sirius XM (SIRI)
- Zynga (ZNGA)
- Amarin Corporation (AMRN)
- FAT Brands (FAT)
Stocks under $10 often show more volatility when compared to stocks with higher market cap. If you’re looking to take advantage of the market fluctuation, stocks under $10 can provide you with a great balance of volatility and stability in the long term.
Here are 7 of the best stocks under $10 that investors should consider buying into today.
1. Five star senior living (FVE)
Five star senior living Inc (FVE) is an American company that operates and manages senior living communities within the United States.
The effective lifestyle community that has a market capitalisation of $203.70 million offers a healthy, comfortable and enjoyable lifestyle and is spread across 33 states with over 260 homes to date. This stock is vastly becoming a small cap stock that many investors are keeping an eye on or potentially looking to invest into looking to a post-covid-19 world.
Within the company's latest annual report ending on 31st December 2020, the home stock managed to deliver a reasonable revenue result of $1,167 million, a slight decline from 2019 of $1,415 million due to the ongoing COVID-19 pandemic. But on a positive note the stock confirmed a net loss of $7.5 million, a great result in comparison to 2019’s net loss of $20 million.
This news is positive for the stock as it confirms that although the company has been hit hard due to a hold off on move-ins across all homes within the US, the stock has confirmed improvement within its March report advising that as of February 2021 sales for the rolling four weeks have increased by 87% at the start of Q4.
The companies reconstructing with Diversified Healthcare Trust also had a great positive effect on the stocks financial position giving it stability to focus on new growth projects looking ahead.
As the rollout of the Covid-19 vaccine has exceeded expectations with almost 90% of team members and clients vaccinated with second doses, this is pushing the stock to grow closer into positive territory by enabling transactions to take place as healthcare analysts are predicting the stock to break even over the course of 2021.
The stock currently holds a ‘Strong Buy’ rating given by one Wall Street analyst who is covering the stock with a 12-month price forecast target of $8.50, also being its high target and a low target of $3.00. From where the stock sits on the market today at $6.53 this is a potential 30.16% upside from its forecast high price target given.
As the stock has appreciated just under 20% over the past year and currently holds a P/E ratio of 2.25, the stock is pulling through these challenging times with showing clear signs of moving forward. This confirms that this medical stock is a stock that investors may wish to strongly consider in 2021.
2. Annaly Capital Management (NLY)
One of the largest mortgage real estate investment funds in the world comes in as almost one of the cheapest real estate investment funds to purchase on the market today.
The company seeks to borrow money via short-term repurchase agreements and looks to reinvest in asset-backed securities which mainly consist of mortgage-back securities.
Within recent days this stock like many other real estate stocks on the market have had to divert or come up with additional ways to look to adapt to change and continue their growth plans, as the U.S government have recently reduced their footprint of limiting guarantees for investment properties.
NLY issued their progress report on March 25th confirming that the stock has announced an agreement to sell its commercial real estate business which heavily entails loan assets, equity interests and commercial mortgage-backed securities to Slate Asset Management for $2.33 billion. The sale of this large side of the business is designed to deliver execution for shareholders along with enabling NLY to expand operational capabilities across all avenues of the residential mortgage finance market.
Despite the challenges that the stock has already had to face over the past year, this step forward to sell its commercial side of the business should prove to be a strong push for the company to innovate into the residential world stronger than ever before.
Over 2020 one clear area where NLY stock did deliver well was with its dividends. The stock confirmed that it delivered $1.4 billion dividends to its shareholders reflecting a positive return.
Other positives taken from the stocks Fourth Quarter and Full Year 2020 Results include Total assets calculating to $101.6 billion, increased hedge credit ratio up to 61% and credit business performed well despite the challenges over 2020. The stock also confirmed record-low financing costs with a declining 166 basis points to 0.51% coming from the back of the company repurchasing $209 million of common stock in 2020.
Analysts are being generous on NLY stock giving a consensus ‘Strong Buy’ rating based on 4 recommendations which include JP Morgan Secur and Jefferies & Co. A 12-month price target forecast has also been given with an average price target of $9 with a high price target of $9.5 and a low price target being $8.5 from where the stock currently sits at $8.66 today.
As for the future of NLY, capital management remains the stocks main focus as the company aims to keep a glowing outlook with creating value and continuing to maintain stability as confirmed by CEO and Chief Investment Officer David Finkelstein.
“We will continue to create value for our shareholders wherever possible and believe our stable and attractive yield and current valuation discount provide a compelling investment opportunity.”
With a strong $2.3 billion free cash flow position, the stocks innovating plans moving forward and its strong double-digit dividend yield, leads to confirmation that this real estate stock is a good buy today. If you are an investor who is looking to add a new challenge and potential value to their portfolio, this stock could be a great addition.
3. Kinross Gold Corporation (KGC)
In challenging times many investors look to seek to invest in the timeless product of gold.
The Canadian-based gold and silver mining company has been on investors radar for many years as it currently operates eight active gold mines located across the U.S, South America, Russia and the Middle East.
Today the company is a ‘Hot stock pick’ for investors based on how well the company has been performing over recent months and the full-year outlook. Not only that, interest rates are sitting at historic lows and other added effects could potentially see a decrease within the U.S dollar, which will inevitably potentially see gold increase in demand and an intern increase the price of gold.
With a market capitalisation of $8.96 billion to date, this stock also met its guidance for its ninth year in a row and topped it off with a delivered new record free cash flow of over $1 billion from its diverse portfolio, as confirmed in the company’s excellent Fourth Quarter and Full Year Fiscal 2020 results.
The company delivered 2.37 million gold ounces in 2020 slightly down from 2019, with a confirmed figure of 2.51 million gold ounces. The stocks largest operational mines produced the most of the total ounces with Tasiast being the biggest performer yet held the lowest costs for the second year running.
Due to the stock's performance over 2020, KGC’s balance sheet is sitting strong as the stock confirmed a record all-time high of $1.04 billion in free cash flow. Whilst the stock more than doubled its Adjusted net earnings to more than $970 million and increased margins by 53% to $1,051 per ounce. The stock also introduced a dividend to return to shareholders overall strengthening the stocks financial position.
On the subject of the stock's financial positioning, it is also worth noting that the company does hold a high level of debt currently standing at $1.9 billion in 2020. But the company aims to push down that debt significantly as it was confirmed that the stock is looking to pay $500 million off the total debt bill at the end of 2021.
With all these positives coming to light and debt levels being reduced significantly as the stock continues to build cash and cash equivalents, this stock is in line to be in the positive by the end of 2021.
The company’s production plans are also strong as KGC confirmed the construction on Fort Knox has now been completed adding to the mix creating a stronger outlook for this mining stock.
All of the positive outcomes have enabled KGC to give a 2021 forecast guidance of a 5% growth which includes 2.4 million ounces in gold and 4.0 million ounces in silver. Over the coming years outlook the stock is looking at a 20% growth increase of 2.9 million ounces leading to 2023 and on average produce 2.5 million ounces in gold continually leading to 2029.
This stock holds a ‘Strong Buy’ rating given by 8 analysts covering the stock. With a 12-month average price target of $10.34 with a high price target of $12.73 and a low price target of $6.67.
The stock holds a forward price-to-earnings ratio of 9 giving it a slight overvalued outlook, nonetheless this P/E confirms that this stock has the potential to deliver in value as we look to 2021 and beyond.
At $7.05 this gold stock under $10 is one of the best stock to consider adding to your collection.
4. Sirius XM Holdings (SIRI)
The American broadcasting company Sirius XM Holdings Inc (SIRI) is the U.S market leader within the satellite world and also offers online radio services that operate within the U.S. This stock has also been given the nod from billionaire investor Warren Buffett, who has owned shares within this stock for many years and reportedly currently owns 50,000,00 shares, making Buffett one of the largest owners of SIRI stock to date.
The stocks merger in 2008 is where the company’s success story officially began, along with its merger with streaming music service Pandora in 2018. This led Sirius XM to be confirmed as one of the largest audio entertainment companies within North America.
Despite the challenges that the pandemic brought to the entertaining stock as the company witnessed a decline at the start of 2020 it still managed to deliver as the year moved on. It was confirmed that the combination of SiriusXM, Pandora, Stitcher and its participation with SoundCloud combined reached an audience of over 150 million people in 2020. In addition, SiriusXM self-pay net subscriber additions hit 909,000 over 2020 adding to the stocks $8.04 billion revenue in 2020 a 3.3% increase from 2019.
The company also confirmed that Adjusted EBITDA grew to a new high of $2.58 billion in 2020 a 6% increase from 2019.
When you compare SIRI stock to the likes of its bigger competitors such as Spotify Technologies SA (SPOT), SIRI stock sits at a more affordable price of $6.30 holding a 52-week range high of $8.14 and a low of $4.41 and holds potential high value and growth prospects. Especially as we move on and the world slowly seeks to open up and more vehicles start hitting the roads, the stocks new generation in-car entertainment platform 360L is set to increase by 80% over the year adding to the stocks the 2021 guidance Total Revenue of $8.35 billion.
Based on 5 analysts who are covering the stock have issued a consensus ‘Strong Buy’ rating for the broadcasting company, as its forecast that earnings are expected to grow over 20% over the year. The average price target given for the stock is $6.96 with a high price target of $8 and a low price target of $5.
The world is drawn into streaming more so than ever before which will no doubt continue to be the case looking moving forward. The stock is also a solid investment for billionaire investor Warren Buffett, which alone makes this stock one that has the cutting-edge over other streaming stocks providing it to be a good buy for investors in 2021.
Read Also: Top 7 Performing Telecommunications Stocks to Buy
5. Zynga (ZNGA)
Although this stock is slightly priced above the $10 price mark Zynga Inc (ZNGA) had to make the list as a stock to buy at $10 in 2021.
The American game developer that is best known for its game Farmville operational on the social media platform Facebook, reached impressive highs in its early operational days to almost 10 million active daily users per day.
Since the stock's success story over Farmville, ZNGA has now moved its attention to develop other games primarily designed for mobile devices and Nintendo Switch, leading the stock to hold the title as the largest mobile gaming company based on market share.
The news of the stocks recent plans came as the stock acquired Peak a Turkish gaming developer in the company's biggest ever deal of $1.8 billion in 2020 to expand the stocks growth and development aspects.
The stocks impressive Fourth Quarter and Full Year 2020 Results benefitted impressively from the unpredicted year. As ZNGA reached new quarterly highs in revenue reaching $616 million, a 52% increase YoY and quarterly bookings reached $699 million, a 61% increase YoY. This was pushed on heavily from the stocks Words with friends and helped surpass the stocks expected guidance.
Other games such as Harry Potter: Puzzles and Spells has also been a hit over the course of the year as the game enables interaction amongst players, pushing the stock to achieving its record highest quarterly operating cash flow operations of $206 million, an impressive 119% YoY increase.
The news of the company’s strong Q4 went hand-in-hand with the stocks record year in 2020 as revenue hit a new all-time high of $1.97 billion, a rise of 49% YoY. And a new high for the stocks bookings performances with an increase of 45% rise to $2.27 billion.
User pay revenue, Advertising revenue and International revenue all hit new record highs.
After a record-beating year for the gaming developer, the stock has issued their guidance for 2021 who are seeking to maintain their good runnings. ZGNA expects to deliver $2.6 billion in revenue, a 32% increase YoY with bookings expected to reach $2.8 billion, a 23% increase YoY. Along with the solid focus of double-digit growth over 2021 and progress on their long-term operating margin goals, these remain the stocks main focus points over the coming years.
7 analysts who are covering the stock are also strongly optimistic that the company has great potential and has given a consensus ‘Strong Buy’ rating with an average price target of $13.3 with a high price target of $15 and a low price target of $9.
The stock currently holds a forward P/E ratio of 46.35, currently holding up on the high side with a share price of $10.66. But if you jump in on this stock when the price is right, this stock is certainly one that is expected to grow significantly well over the coming years.
6. Amarin Corporation (AMRN)
The Irish-American pharmaceutical stock Amarin Corp Inc (AMRN) made the list as a stock that has a potential strong upside looking ahead.
One of the smaller pharmaceutical companies on the market today who holds a market capitalisation of $2.55 billion, has only one major product on the market at present. VASCEPA is the stocks leading product that came to the market in 2013 and has since been FDA approved and approved by the European Commission as of 2021. The drug is designed to reduce the risk of stroke and heart attacks from current medication used to treat cardiovascular disease.
Following the news that the drug has passed approval to be distributed within the European Union, this witnessed the stock jump up by 5% confirming this news as a huge positive for the stock. And the good news doesn't end there as evidenced within the companies Fourth Quarter and Full Year 2020 Results the stock hit a new record high within the US led by increased demand of Vascepa led to a 43% rise in revenue to $614.1 million in 2020, with Q4 revenue increasing by 17% to $167.3 million YoY.
Additionally this stock is not just sticking to the US and European markets, AMRN is also aiming for approval to be granted within Asia in 2021 broadening this stocks horizons for great growth worldwide.
The company sits in one of the healthiest financial positions than most of the stocks on this list as the company has zero debt and was sitting on a total cash and investments sum of $563.4 million at the end of 2020.
Both analysts and investors are being bullish on the stock as forecasts are set that could see the stock having a potential upside of almost 225% within its shares, with Wall Street analysts giving the stock a price target of $21.00 up from $6.50 today.
The stock currently holds a 52-week range of $3.36 at its lowest and $9.25 at its highest.
There are many positives to take away from this pharmaceutical company. But the main one factor being the approval of the stocks leading drug Vascepa into Europe. Europe has confirmed that the market opportunity for this product is not only needed but it is huge, as there are currently around 80 million people who are suffering from cardiovascular disease within the EU.
If you are an investor that is looking for a cheaper long-term stock with an attractive P/S ratio of just above 3, along with offering fantastic growth prospects spanning over many years, then you don't want to miss this opportunity to invest in AMRN stock as it could be the glowing long-term stock that you have been waiting for.
7. FAT Brands (FAT)
The American restaurant franchising company comes in last on the list of stocks to buy under $10.
As all companies big and small have felt some impact brought on due to the ongoing pandemic over the past year, FAT Brands Inc (FAT) was no exception yet still proved it has what it takes to survive during challenging times as it bounced back from its March 2020 low of 1.91 to where it sits today at 8.27.
In 2020 FAT took the time to reflect and assess how to grow and place the stock in a good position looking ahead by continuing construction on new restaurant premises worldwide and continuing their equestrian plans. On this note, it was confirmed in August 2020 FAT acquired the popular worldwide American food franchise Johnny Rockets for $25 million. This is a huge avenue to pump up the company's sales and revenue figures and shown by almost doubling the stocks financials back in September 2020.
The stock currently franchises over 679 units worldwide and is growing with the opening of 29 new franchise restaurants in Q4 adding to the company's previous achievements. Yet it doesn't look like FAT stock is stopping there, as the company have confirmed that moving forward they are looking to further acquire brands of interest to create strong organic growth.
Despite restaurant closures and limited capacity restrictions set across all restaurants worldwide, FAT managed to gain improvement within the Fourth Quarter. Revenue increased to $6.5 million an increase of 24% from 2019. System-wide sales growth was also strong for the company despite challenges as they confirmed good results and showed clear signs of improvement pushing ahead into the post-lockdown world.
Realistically mid-to late 2021 leading to 2022 and beyond is when this stock will benefit hugely from consumer demand. As tourism and international travel once again becomes the norm, increasing sales worldwide along with the stock's firm growth plans makes FAT stock a good stock that could continue to appreciate nicely looking ahead.
As you can see despite the stock market having a successful run over the past year with stocks reaching new highs, there are plenty of hidden gem penny stocks that are sitting at attractive prices that investors should not overlook.
Whether it be for the long-term or the short-term outlook you opt to choose from, all of these chosen 7 stocks under $10 are great additions. Although you will benefit more by holding these stocks for a longer duration (more than one year) as they are able to continue to establish their growth plans.
If you are a new investor looking to enter the stock trading world Zynga Inc (ZYNA) could be a great addition as this stock has the potential to deliver an upside of 22% and is looking to grow well with new gaming adventures over 2021 and the coming years.
Alternatively, if you are an experienced investor perhaps gold is an avenue you may wish to add to your collection. Kinross Gold Corporation (KGC) is one of the largest and one of the most attractive gold stocks on the market today with its delivered results, its attractive dividend and solid construction plans ahead.
A gentle reminder before you seek to invest in any investment is to conduct additional research into your chosen stocks before jumping straight in.
Take the time to look over each stock's key fundamentals along with sounding out any risk elements that are present.
This is especially said for investors who are seeking to invest in smaller cap stocks as these investments hold stronger risk elements higher than any other form of investing available on the market today.
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