Investing in the stock market often involves seeking out undervalued gems. For savvy investors, underrated stocks under $10 to buy can present an attractive opportunity.
In June 2024, there are several candidates in this category that are poised to outperform. The current market environment, characterized by a resilient economy, slowing inflation and shifts in commodity markets presents a unique set of opportunities. Factors such as improving financials, strategic business models and favorable market trends also contribute to their potential.
Additionally, many of their market capitalizations are relatively small and are underfollowed by market analysts. By identifying the stocks with solid fundamentals, investors can position themselves to outperform the market.
Now, let’s unpack the top three most underrated stocks under $10 to buy in June 2024!
Payoneer Global (PAYO)
Payoneer Global (NASDAQ:PAYO) is a financial services company that is a leader in cross-border payments. Trading around $5 a share with a relatively small market capitalization, Payoneer offers robust long-term growth prospects.
Payoneer is relatively new to the stock market, despite being founded nearly two decades ago. The company’s initial public offering back in June 2021 was extremely bad timing, as the U.S. economy’s inflation was just taking off. While an argument could be made that the timing wasn’t right, it may be a blessing in disguise. Despite recent headwinds in the broader economy, Payoneer’s gross profit and cash flows have trended in the right direction. However, the major inflection point for the business began at the end of 2023.
In fiscal year 2023, Payoneer achieved its first full year of GAAP profitability as a public company. This is a huge milestone for the small fintech company and it doesn’t plan to be a ‘’one and done’’ event as well. Given these factors, PAYO stock is a top contender among underrated stocks under $10 to buy in June.
Kinross Gold (KGC)
Canada-based gold mining company Kinross Gold (NYSE:KGC) offers investors exposure to the precious metals market. With a diversified portfolio of mines across the Americas and West Africa, Kinross is well-positioned to capitalize on the growing demand for gold as a safe-haven asset.
Kinross Gold is a well-established player in the gold mining sector that is often undervalued compared to its peers. The company’s strong operational performance, coupled with its commitment to sustainable mining practices, make it a compelling investment choice. Its focus on cost management and operational efficiency has also enabled it to consistently deliver strong earnings and cash flows in dynamic market environments.
The miner also has several high-profile assets in its portfolio. The acquisition of Great Bear Resources back in 2022 was a strategic move while the long-term cash flow and profit potential of the Dixie Project significantly enhanced shareholder value. This makes KGC stock one of the top underrated stocks under $10 to buy in 2024 and beyond.
Fortuna Silver Mines (FSM)
Fortuna Silver Mines (NYSE:FSM) is another Canadian precious metals mining company with operations primarily focused on the production of gold and silver. As investors worry about the declining value of the dollar, hard assets will continue to be in the spotlight.
While the stock market remains bullish as inflation continues to subside, global debt and currency depreciation will remain constant. Hard assets like gold and silver will garner more appeal, making the case for precious metal mining companies as a way to outperform.
Fortuna has an extensive portfolio of mines with operations in Mexico, Peru, Argentina, Burkina Faso and Cote d’Ivoire. On June 20, Fortuna reported high-grade gold finds at its Seguela mine. Its focus on expanding its production capacity and exploring new opportunities positions it well for future growth. Moreover, rising gold and silver prices further support its long-term revenue, cash flow and profitability goals. With strong exploration potential, FSM stock is one of the best stocks under $10 to buy now.
On the date of publication, Terel Miles 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.
