You get what you pay for. So, where does that leave the best stocks under $10 to buy? Generally speaking, single-digit securities should be met with greater skepticism. However, with so many publicly traded opportunities available, there are bound to be a few hidden gems.
To be clear, the nominal price of a stock doesn’t inherently dictate its quality. Still, strong enterprises with robust fundamentals tend to rise above the single-digit muck as the public catches on. So, if you do see “cheap” securities, chances are, they’re just not great businesses.
But as I said earlier, thousands of securities trade daily in the market. It’s impossible to give adequate coverage to each one. While it’s risky, these ideas just might beat the odds. With that, here are best stocks under $10 to buy.
VAALCO Energy (EGY)
In my opinion, VAALCO Energy (NYSE:EGY) sells itself. Falling under the oil and gas exploration and production category, Vaalco specializes in what’s known as upstream endeavors. It focuses on crude oil, natural gas and natural gas liquids in projects located in Gabon, Egypt, Equatorial Guinea and Canada.
Now, the tricky aspect of EGY as one of the best stocks under $10 to buy is the expert forecast. It doesn’t look good. In fiscal 2024, earnings per share may land at 60 cents on revenue of $455.07 million. That’s down from last year’s results of 62 cents EPS on sales of $455.07 million. Further, fiscal 2025’s top line might slip to $375.13 million, another disappointing projection.
However, EGY stock – which is priced below $7 at time of writing – arguably requires a rethink. With the geopolitical theater heating up, armed conflicts and seething tensions will likely force hydrocarbon exploration in jurisdictionally friendly areas. Cynically, that’s good for EGY.
It’s also fair to point out that VAALCO enjoys a unanimous strong buy rating.
iQIYI (IQ)
Based in Beijing, China, iQIYI (NASDAQ:IQ) makes an intriguing case for the best stocks under $10 to buy. Falling under the communication services sector, iQIYI specializes in entertainment. Per its public profile, iQIYI offers various products and services, including online video, online games, online literature and animations.
These are relevant offerings. The problem of course centers on the viability of China’s economy, particularly its consumer economy. Some of the latest data suggests that retail spending may only have expanded by 3.1% in March on a year-over-year basis. That’s below expectations. At the same time, analysts anticipate improvement in iQIYI’s top and bottom lines over the next two years.
For fiscal 2024, EPS could hit 41 cents on revenue of $4.78 billion. By the following year, EPS could rise to 52 cents on sales of $5.09 billion. In 2023, the company posted earnings of 28 cents on sales of $4.48 billion.
And while it’s not a brilliant discount, IQ trades at a very reasonable 1.07X trailing-year revenue. It might be worth a gamble for best stocks under $10 to buy.
Taboola.com (TBLA)
Also operating in the communication services space, Taboola.com (NASDAQ:TBLA) focuses on internet content and information. It’s possible that most of you don’t know the Taboola brand. However, it’s almost certain that you’ve come across its products (if you’ve ever used the internet). Leveraging artificial intelligence, the company partners with various websites and apps to promote recommended content and advertisements.
Now, ads may be annoying but it’s the lifeblood of digital content services. And considering that so many people consume content voraciously online, Taboola theoretically enjoys a gargantuan total addressable market. That doesn’t guarantee that TBLA stock – which is priced below $5 – will rocket higher. However, the underlying enterprise enjoys a foothold that it can continue to build upon.
Not only that, analysts seem to be reading between the lines. For fiscal 2024, they’re looking for EPS of 29 cents on revenue of $1.92 billion. For fiscal 2025, they’re seeking earnings of 44 cents on sales of $2.28 billion. That’s a huge improvement over 2023’s results of 9 cents EPS with a top line of $1.44 billion.
Analysts rate shares a consensus strong buy with a $6 price target.
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.
