Investing

9 Cheap Stocks to Buy Now (Under $10)

Trey Thoelcke

Published: November 16, 2023 8:35 am

Here are nine cheap stocks to buy now in a variety of sectors. While large-cap and mega-cap stocks receive much of the attention on Wall Street due to their safety and liquidity, many investors are limited in the number of shares they can buy. Lower-priced stocks like those featured here can also offer patient investors some huge returns.

Skeptics of low-priced shares should remember that even Amazon, Apple and Netflix once traded in the single digits. Nvidia, which has exploded higher due to artificial intelligence enthusiasm, traded under $10 for years.

The following nine stocks trading under $10 may appeal to investors who are more aggressive and looking to get share count leverage on companies that have sizable upside potential. While not suited for all investors, they are not penny stocks lacking a track record or liquidity. Analysts on average recommend buying these shares, and their consensus price targets suggest gains of at least 12% in the next year. Share prices of these stocks have grown at least a little this year (some have soared). Most of these companies pay a dividend as well, offering better total return.

Arcos Dorados

Source: David McNew / Getty Images News via Getty Images

• Recent share price: $9.63
• Consensus price target: $12.67 (31.5%)
• YTD performance: 20.3%
• Dividend yield: 1.6%

Arcos Dorados Holdings Inc. (NYSE: ARCO) owns the master franchise of the fast-food restaurant chain McDonald’s in 20 countries within Latin America and the Caribbean. The stock is up about 176% since the pandemic low, while the S&P 500 is up about 71%. The return on capital employed has surged to about 15%, better than the industry average of less than 10%. That suggests the company has the potential to grow substantially. Moreover, analysts anticipate earnings growth in the teens in the upcoming years. (These are the 25 biggest restaurant chains in America.)

Barings BDC

new-goldman-sachs-building (CC BY 2.0) by Dan DeLuca

• Recent share price: $8.74
• Consensus price target: $9.86 (12.8%)
• YTD performance: 8.3%
• Dividend yield: 11.9%

Barings BDC Inc. (NYSE: BBDC) is based in Charlotte, North Carolina, and has been public since 2007. The business development company fell short of revenue estimates in its third quarter but declared a quarterly dividend and said it has repurchased 1.4 million shares under its current share purchase plan. The stock retreated afterward, and Wells Fargo downgraded it to Equal Weight. Is this a buy-the-dip opportunity?

Cemex

Source: 39955793@N07 / Flickr

• Recent share price: $6.84
• Consensus price target: $8.57 (25.3%)
• YTD performance: 76.1%
• Dividend yield: 1.8%

Earlier this year, global construction materials company Cemex SAB de CV (NYSE: CX) changed its logo for the first time in more than 30 years. The change was part of its effort to position itself as a more agile, innovative, and approachable company. Shares climbed from there to a 52-week high above $8 in late August, only to retreat into the third-quarter report, which fell short of analysts’ consensus estimates.

Coty

Source: Jun / iStock via Getty Images

• Recent share price: $9.87
• Consensus price target: $12.75 (29.23%)
• YTD performance: 22.1%
• Dividend yield: 11.6%

Coty Inc. (NYSE: COTY), one of the world’s largest purveyors of beauty products, was founded in 1904 and is based in New York City. The company has made recent secondary offerings of shares. As the share price has pulled back since September, some insiders, including beneficial owner JAB Holdings, have scooped up shares. JAB’s 3 million purchase in early October raised its stake to almost 452 million shares.

Equitrans Midstream

Source: MenzhiliyAnantoly / iStock via Getty Images

• Recent share price: $8.85
• Consensus price target: $10.50 (18.6%)
• YTD performance: 33.1%
• Dividend yield: 6.8%

Equitrans Midstream Corp. (NYSE: ETRN) provides midstream services in the Appalachian Basin. It has a solid history of beating earnings estimates and did so again in its most recent quarterly report. Revenue growth in its water-focused segment grew more than 50% year over year. The company is also optimistic about completion of its controversial Mountain Valley Pipeline in the first quarter of 2024, after regulatory delays.

GoodRx

Source: smartstock / Getty Images

• Recent share price: $4.71
• Consensus price target: $6.77 (43.7%)
• YTD performance: 7.9%
• Dividend yield: none

GoodRx Holdings Inc. (NASDAQ: GDRX) operates a consumer-focused digital health care platform. The share price plunged recently following a disappointing third-quarter report but is still in the black for the year, on last look, about the same as the gain in the Dow Jones industrial average. The stock jumped after the second-quarter report, and the company continues to launch new offerings, such as expanding prescription savings at Walgreens and a partnership with Sanofi to offer discount insulin. Note that the consensus Buy rating is a weak one. (These states have the fewest doctors per person.)

Kosmos Energy

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• Recent share price: $6.93
• Consensus price target: $10.15 (46.5%)
• YTD performance: 34.3%
• Dividend yield: 27.0%

The second energy company on this list is a Dallas-based exploration and production firm. Kosmos Energy Ltd. (NYSE: KOS) recently announced an oil discovery in the Gulf of Mexico, and its growth and free cash flow potential make it a possible buyout target. Shares are up almost 520% since the pandemic low, while the Dow Jones industrials are less than 50% higher in that time.

Navitas Semiconductor

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• Recent share price: $6.01
• Consensus price target: $10.54 (75.4%)
• YTD performance: 80.2%
• Dividend yield: none

Founded in 2014, Navitas Semiconductor Corp. (NASDAQ: NVTS) bills itself as the only pure-play, next-generation power-semiconductor company. The company recently posted record third-quarter results. Revenue more than doubled year over year, and the company announced the launch of four major new technology platforms. Despite a retreat in recent weeks, the share price is still up about 23% from a year ago, about the same as the Nasdaq.

Tetra Technologies

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• Recent share price: $4.82
• Consensus price target: $7.80 (61.8%)
• YTD performance: 36.4%
• Dividend yield: 21.6%

Texas-based oilfield services firm Tetra Technologies Inc. (NYSE: TTI) fell short of third-quarter consensus forecasts. The share price hit a multiyear high of $6.77 shortly before that report and tumbled afterward to a little over $4 apiece. However, the stock has popped almost 14% in the past week following news that Tetra is partnering with Exxon to start lithium production for electric vehicles.