7 Stocks Under $10 That Analysts Love

Generally speaking, you get what you pay for, which on paper doesn’t bode well for these bargain stocks under $10. Nevertheless, with thousands upon thousands of tradable securities available to public investors, at least a few will go unnoticed. That’s a shame for those missing out because some of these enterprises also command positive analyst ratings.

Indeed, Wall Street’s top experts don’t just focus on blue chips with big price tags. Rather, cheap stocks to buy occasionally tickle the suits’ fancy. Moreover, some analysts’ top picks center on bargain market ideas because they want to make serious noise. You’re not going to do that by just following the crowd. So, if you’re looking for substantive profits at a great price, take a look at these bargain stocks under $10.

ABEV Ambev $2.82
NVTS Navitas Semiconductor $6.44
GGB Gerdau $4.95
SGHC SGHC. Limited $3.63
MOMO Hello Group $8.22
ARHS Arhaus $7.98
ABCL AbCellera Biologics $7.17

Stocks Under $10: Ambev (ABEV)

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Brazilian brewing company Ambev (NYSE:ABEV) trades at one of the lowest levels possible before entering the too-cheap zone. At $2.83 a pop at the time of writing, it’s what most people would consider a penny stock. However, investors also need to consider one not-so-small detail: Ambev features a market capitalization of nearly $46 billion. Since the beginning of this year, ABEV gained over 9% of its equity value.

While it’s easily one of the stocks under $10, ABEV also ranks among analysts’ top picks for foreign, non-China public enterprises. At the time of writing, covering experts peg ABEV as a consensus moderate buy. Moreover, their average price target lands at $3.30, implying nearly 17% upside potential.

Financially, Ambev provides investors with plenty to appreciate. Perhaps most importantly at this juncture, the company hosts a relatively cash-rich balance sheet. Operationally, Ambev’s three-year revenue growth rate pings at 15.3%, which is quite impressive. Also, its net margin is equally impressive at 18.14%. Therefore, it’s one of the cheap stocks to buy.

Stocks Under $10: Navitas (NVTS)

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Headquartered in Torrance, California, Navitas (NASDAQ:NVTS) is a pure-play, next-generation power semiconductor firm. Featuring proprietary technologies, Navitas offers relevancies across multiple industries, including mobile communications, data centers, solar energy infrastructures, and electric vehicles, among many others. Presently, Navitas carries a market cap of just over $1 billion. Thanks to its enormous relevancies, NVTS gained almost 91% of its equity value since the start of the year.

Not surprisingly, those in the know appreciate Navitas. One of the high-flying stocks under $10, Navitas without qualifiers ranks among analysts’ top picks. According to TipRanks, covering experts peg NVTS as a unanimous strong buy. Their average price target comes out to $8.70, implying over 26% upside potential.

Attractively, the market prices NVTS at a trailing multiple of 11.66. As a discount to earnings, Navitas ranks better than 74.05% of companies listed in the semiconductor space. Also, it enjoys a cash-rich balance sheet. Notably, its Altman Z-Score pings at 16.45, indicating high fiscal stability and low bankruptcy risk. Thus, it’s one of the bargain stocks to consider.

Stocks Under $10: Gerdau (GGB)

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Standing as the largest producer of long steel in the Americas, Gerdau (NYSE:GGB) commands an enviable footprint, with steel mills in Brazil, Argentina, Canada, Colombia, Dominican Republic, Mexico, Peru, the U.S., Uruguay, and Venezuela. Per its public profile, Gerdau offers steel for the civil construction, automobile, industrial and agricultural sectors, among others. Presently, the company carries a market cap of $8.54 billion.

Trading hands at a few cents shy of five bucks, GGB naturally makes for one of the bargain stocks under $10. As well, Wall Street analysts like the opportunity, pegging shares a consensus moderate buy. Right now, their average price target stands at $6.26, implying nearly 27% upside potential.

Another factor that makes Gerdau one of the cheap stocks to buy centers on its financial performance. In 2022, despite the pressures impacting the global economy, the company posted revenue of $15.71 billion. That’s up over 13% against the prior year’s tally of $13.85 billion. As well, it posted a net income of $2.18 billion last year.

Super Group (SGHC)

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An enticing idea among cheap stocks to buy, Super Group (NYSE:SGHC) is a global digital gaming company. Providing first-class entertainment to the worldwide betting and gaming community per its website, Super Group may see rising demand. Basically, as society enters a full normalization period, consumers may earnestly pick up activities they temporarily abandoned such as online sports betting.

Trading hands at $3.61, SGHC garnered conspicuous interest this year, popping up 15%. However, some Wall Street experts also got into the game over the past 11 months. Within the past 90 days, SGHC carries a consensus assessment of moderate buy. The average price target stands at $5, implying almost 39% upside potential. Therefore, Super Group legitimately ranks as one of the stocks under $10 that’s also among analysts’ top picks.

Financially, the gaming specialist will almost surely attract retail investors’ attention for its financial strengths. Specifically, Super Group features a cash-to-debt ratio of 13.68, above 83.89% of its peers. Further, the company enjoys a stout net margin of 20.53%.

Hello Group (MOMO)

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Arguably the most interesting idea on this list of bargain stocks under $10, China-based Hello Group (NASDAQ:MOMO) carries significant fundamental potential. Billed as a leading player in China’s online social networking space, Hello Group allows people to make meaningful interactions. Since Hello’s website mentions social dynamics as well as dating applications, you can read between the lines.

Without getting too mixed up in the details, the Chinese government imposed some of the strictest restrictions on personal mobility. With the nation gradually normalizing, the need for social interactions has become particularly acute. Almost surely, analysts have thought about this in the past year. Right now, the consensus pings as a moderate buy. Also, the average price target comes out to $12.50, implying over 49% upside potential.

To be fair, Hello Group presents significant risks, such as a negative three-year revenue growth rate. However, that’s explainable due to China’s draconian Covid-19 policies. Enticingly, shares trade at only 6.63 times forward earnings, which Gurufocus labels as undervalued.

Arhaus (ARHS)

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Based in Ohio, Arhaus (NASDAQ:ARHS) is a retail chain that designs and sells home furnishings online and through its retail stores and catalogs. Fundamentally, Arhaus represents one of the riskiest ideas among stocks under $10. Yes, ARHS is cheap at $8.16 a pop. However, with the residential real estate market presenting challenges, Arhaus may incur demand loss.

Not surprisingly (at least in my opinion), ARHS dipped over 13% since the start of the year. However, the suits on Wall Street peg ARHS as one of the cheap stocks to buy. According to data compiled by TipRanks, analysts peg ARHS as a consensus strong buy. Their average price target hits $13.08, implying over 60% upside potential. Thus, it easily justifies inclusion among analysts’ top picks.

Despite my personal hesitations, Arhaus offers solid financial metrics to ponder over. Operationally, the company features a three-year revenue growth rate of 35.6%, outpacing 91.32% of firms listed in the cyclical retail industry. Also, it trades at 8.33-times trailing earnings, which appears significantly undervalued.

AbCellera (ABCL)

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An enterprise that I’ve mentioned a few times now, AbCellera Biologics (NASDAQ:ABCL) presents significant risks. At the same time, if you’re looking for stocks under $10 that can blow the roof off your portfolio, ABCL could be it. Based in western Canada, AbCellera researches and develops human antibodies. Currently, the company commands a market cap of just over $2 billion.

Despite its relevance, ABCL hasn’t performed well so far this year, dropping 24% since the Jan. opener. In the past year, it’s down almost 10%. However, Wall Street experts simply do not care, assigning ABCL a unanimous strong buy rating. Moreover, their average price target stands at $29.60, implying almost 311% upside potential. That’s what you call one of the analysts’ top picks.

Plus, ABCL offers other strong points. For instance, the company commands a solid balance sheet, with an Altman Z-Score of 5.92 implying low bankruptcy risk. Also, it prints a very impressive net margin of nearly 33%. Just be careful if you decide to roll the dice.

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Read More: Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.



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