Here are 8 stocks that are priced under $10 and worth considering for investment. As a stock’s price is affected by both the company’s performance and the number of issued shares, it’s possible for successful companies to have lower-priced stocks. Additionally, cheaper stocks can be attractive to investors as it’s easier to buy a larger number of shares without significant losses.
However, it’s important to note that bargain-priced stocks may have questionable business strategies or a bleak near-term outlook. Therefore, it’s crucial to research and analyze each stock before investing.
CFRA Research has identified eight high-quality, low-priced companies that may provide exceptional value for investors. Let’s take a look at two of them:
New Oriental Education & Technology Group Inc. (EDU)
New Oriental Education & Technology Group Inc. (EDU) New Oriental Education & Technology Co., Ltd. is a leading education conglomerate in China. Despite the stock’s value plummeting in 2021 due to regulatory concerns, CFRA analyst Aaron Ho believes this sell-off presents a chance for long-term investors to purchase the stock.
Ho argues that New Oriental has the resources and capabilities to adjust its offerings for regulatory compliance and profitability. CFRA rates EDU stock as a “buy” with a $5 price objective.
Kinross Gold Corp. (KGC)
Kinross Gold Corp. (KGC) Kinross Gold recently fell over 10% following the announcement of its $1.42 billion takeover of Great Bear Resources Ltd. However, CFRA analyst Matthew Miller believes that Kinross has many growth initiatives and appealing value.
Miller expects Kinross’ free cash flow to more than double in 2022 and believes the stock will outperform as gold prices rise. CFRA rates KGC stock as a “strong-buy” with a $9.38 price objective.
Oatly Group AB (OTLY)
All images and videos on this page are the property of their respective owners. Oatly is the largest manufacturer of oat milk in the world. Analyst Arun Sundaram believes that Oatly’s stock price, currently trading below $9, is too attractive to resist. He predicts a compound annual revenue growth rate of 33% for Oatly over the next decade, compared to 26% for Beyond Meat Inc. (BYND). However, at present, Oatly trades at a substantially lower enterprise value-to-sales multiple than Beyond Meat.
Sundaram asserts that Oatly’s current capacity and production constraints are temporary. CFRA rates OTLY stock as a “buy” with a price objective of $15, up from $8.19 on December 13.
Pitney Bowes Inc. (PBI)
All images and videos on this page are the property of their respective owners. Pitney Bowes specializes in mailroom automation and provides other facility management services. According to analyst John Freeman, Pitney’s strong third-quarter earnings report, which included 11% year-over-year revenue growth, suggests that the company has reached a turning point in its efforts to bridge the gap between software-based ecosystems and physical goods shipping services.
CFRA predicts a 44.7% increase in profits per share in 2022. Although Freeman believes that Pitney Bowes offers significant price potential, he also suggests that it is best suited for investors with a higher risk tolerance. CFRA rates PBI stock as a “strong buy” with a price objective of $14, up from $6.41 on December 13.
TAL Education Group (TAL)
All images and videos on this page are the property of their respective owners. TAL Education is another Chinese education company that has been affected by government regulation. Although the stock has fallen by over 90% in 2021, Ho believes that TAL’s financial strength will enable it to adapt to changing regulatory environments while remaining profitable. Despite supply constraints imposed by the government, Ho anticipates continued strong demand for after-school tutoring services.
Ho expects that the sector leaders will eventually weather the storm despite the strict implementation of new limits by the government. He also predicts that TAL’s revenue growth will return in fiscal 2023. CFRA rates TAL stock as a “buy” with a price objective of $10, up from $4.65 on December 13.
Telecom Italia SPA (TIIAY)
All images and videos are copyrighted to their respective owners Telefonica is the largest telecommunications company in Spain. Analyst Adrian Ng reports that Telefonica has made several positive financial moves, including reducing its debt, acquiring E-Plus in Germany and GVT Holdings in Brazil, and exiting the Central American market.
In the third quarter, Telefonica purchased 700 megahertz of wireless spectrum in Spain and expanded its 5G network in Germany to over 100 towns. These moves should help the company unlock value as it refocuses on more stable areas, according to Ng. Telefonica also pays a significant dividend of 10.6%. TEF stock, which closed at $4.15 on December 13, has a “buy” rating and a $5.50 price target from CFRA.
Telecom Italia SPA (TIIAY)
Telecom Italia is the largest fixed-line and cellular telecommunications company in Italy, with operations in Brazil as well. According to Ng, the company’s “Beyond Connectivity” project, which will run until 2023, aims to shift Telecom Italia’s focus away from operational stability and towards development. The effort is focused on creating equity-free cash flow, reducing debt, and distributing 20% to 25% of equity-free cash flow to shareholders through dividend payments.
Ng also suggests that KKR & Co. Inc. (KKR), a US-based private equity group, may increase its previous $12 billion takeover proposal for Telecom Italia. CFRA rates TIIA.Y stock as a “buy” with a $5.70 price objective, up from $5.04 on December 13.
Tencent Music Entertainment Group (TME)
All images and videos are copyrighted to their respective owners Tencent Music is China’s largest online music platform, owning QQ Music, Kugou Music, and WeSing. Due to Chinese regulators tightening limits on technology stocks and US regulators threatening to delist Chinese companies that do not comply with new auditing criteria, Tencent Music shares are expected to drop by more than 65% in 2021.
According to analyst Ahmad Halim, advertising income should help Tencent Music increase its margins over time, and the stock’s decline has created an excellent purchasing opportunity for value investors. TME stock, which ended at $6.43 on December 13, has a “buy” rating and a $9 price target from CFRA.