Are you looking for 7 great stocks under $10 to buy? The stock market has something for everyone. There are companies you can buy for less than $10/share, but be aware that they aren’t cheap. These stocks trade at a lower price because they carry higher risks and are very volatile. The trick to investing in them is to look for future growth prospects rather than depend on fundamentals. Here I have identified seven stocks with growth potential to buy under $10!
Stocks Under $10 List:
- NextGen Energy
- Crescent Point Energy
- CEMEX
- Bird Construction
- WELL Health Technologies
- Blackberry
- ICL Group
NexGen Energy
Canada-based NexGen Energy develops uranium projects and has some large uranium deposits like Rook I in its arsenal. The United States produces 20% of its power from nuclear and buys most of its uranium from Russia. Since the war broke out between two of the largest uranium miners, Ukraine and Russia, the United States and Europe have announced sanctions on Russia. The EU announced a 10-point plan to reduce reliance on Russian natural gas, and nuclear energy is among the alternatives.
These sanctions sent Canadian uranium stocks on a hyperdrive, with NexGen stock up 27% to around $7 since February 24. The sanctions plus the U.S clean energy bill will accelerate the move to clean energy. Uranium could be a preferred choice for it is not affected by the weather.
Crescent Point Energy
Crescent Point Energy is the non-green variant of NextGen. It develops and produces crude oil and natural gas properties in Western Canada and the United States. The stock moves in tandem with the oil price. It reached its lifetime peak of over $46 in 2014, but the oil crisis pulled the stock below $10 by 2017. However, the United States sanctions on Russian oil have opened an opportunity for Canada to supply more oil to America.
The crude oil is already trading above US$110 amid geopolitical tensions. If the uncertainty continues, the oil price could surge up to US$175/barrel, JP Morgan warns. All this is driving oil stocks. Crescent stock surged 28% year to date and doubled its dividend last year. It could continue to surge in 2022 as the oil supply remains uncertain.
CEMEX
Mexico-based Cemex produces and sells building materials in 600 cities across the globe. The stock reached its lifetime peak of over $26 in 2007 during the housing boom. After the bubble burst, the stock has been trading around $10.
The prospects are bright for Cemex as the US infrastructure bill has allocated US$110 billion for roads, bridges and other major projects. However, global economic weakness has pulled the stock down more than 30% to below $5.
In the longer term, when the Russia-Ukraine war is over, rebuilding Ukraine would drive demand for building materials. This could bode well for Cemex.
Bird Construction
There is another infrastructure stock Bird Construction. It is a general contractor in Canada that focuses on the industrial, commercial, and institutional sectors. Canada’s construction sector is projected to grow 16.4% in 2022, and Bird Construction would be one of the beneficiaries.
Bird has strong fundamentals and offers a 4.26% dividend yield. At the end of 2021, it had an order backlog of $3 billion. Its revenue and Adjusted EBITDA grew 47.6% and 32%, respectively. The economic weakness has pulled the stock down 14.5% since November 2021. It is trading around $9 and can grow when infrastructure spending boosts. As a result, Bird Construction remains among the top stocks under $10 to watch going into the second half of the year.
WELL Health Technologies
Moving from energy and infrastructure to the tech space, WELL Health Technologies is a good stock available under $5. This omnichannel platform provides electronic medical records (EMR) software services; and telehealth services. Like all tech stocks, it rose to fame during the pandemic as it made healthcare accessible to even remote areas.
The stock corrected after surging past $8 during the pandemic peak. All pandemic-induced tech stocks saw a sell-off after the restrictions eased in September 2021. WELL Health stock fell more than 40%, but its revenue and patient visits continued to rise post-pandemic. It continues to grow through acquisitions. This is a good opportunity to buy the dip as it has significant growth potential.
Blackberry
Blackberry is another victim of the tech sell-off triggered by rising inflation and food prices. The company has moved from hardware to software. Its cybersecurity solutions are used by governments and enterprises. The war has put all governments on alert of cyberattacks. Cybersecurity demand could grow at a 13.4% CAGR in the next five years.
Blackberry stock has taken a plunge due to weakness in the automotive software business. The pandemic and the war have slowed the recovery of chip supply shortage. But the prospect is bright as all major automakers have invested a significant amount in electric vehicles. Blackberry’s stock is trading below $10 and could rally significantly when auto sales and cybersecurity jumps. But the management has to demonstrate its ability to generate consistent revenues from its technology.
ICL Group
Rising inflation and the demand recovery to the pre-pandemic level is driving commodity prices. Israel Chemicals Limited develops and sells fertilizers, metals and other specialty chemicals used in agriculture, food and engineered materials. Increased demand and higher prices pushed ICL’s fourth-quarter revenue and net income up 55% and 335%, respectively. As the war escalates, commodity prices could see strong fluctuations. That might present a buy the dip opportunity and lock in a 2.89% dividend yield.
Stocks Under $10 Key Investor Takeaway
The above stocks have strong growth prospects in the short and long term. You can also checkout the best stocks under $5 to buy for 2022. They provide you with a mix of growth and dividend stocks, safeguarding your portfolio returns. However, be aware of the risks and never invest more than one can afford to lose.
Disclosure: The author holds no position mentioned in this article. Freedom Stocks has a disclosure policy.
