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Ian Belousov
Ian Belousov

Good Stock To Buy Under 10

But with the S&P 500 Index suffering its biggest annual loss since 2008 last year, many investors have seen their portfolios decline in value. And one opportunity that comes from a less favorable environment on Wall Street is the presence of more cheap stocks.

good stock to buy under 10


If you are interested in cheap stocks, it's vital to do your research beyond just looking at the latest print for prices. You need to take a hard look at risk metrics, recent performance and future outlook in order to invest responsibly.

With that in mind, here are nine cheap stocks under $10 to consider. The following picks all have something to offer: Some are stable low-priced stocks with healthy dividends, while others are tech companies with growth potential in a digital age. And some are simply bargains after recent declines.

But ADT has evolved, too, partnering with Alphabet's (GOOGL (opens in new tab)) Google Nest technology instead of trying to outdo its high-tech competitors. In fact, the ADT/Google deal announced in 2020 was backed by a $450 million ownership stake that equates to just under 7% of the company.

That's in part because the company turned around from a 25 cents per share loss in fiscal 2021 to a 24 cents per share profit in fiscal 2022. Furthermore, ADT's full-year report showed annual revenue growth of 21%, as well as a fourth consecutive quarter of record-high customer retention and recurring monthly revenue balances. This fundamental strength is why ADT is on this list of the best cheap stocks to buy now.

Semiconductor stocks took it on the chin a few years back amid supply-chain disruptions. Headwinds remain after a 2022 U.S. Department of Commerce ruling restricted exports to China and could spark a long-term trade war on chips. However, it's important to understand that recent troubles are coming after significant long-term growth for the semiconductor industry.

It's a lower-margin business, but that means ASE doesn't have to sweat the research side or the marketing of patented semiconductors and therefore offers more stability. Many of the cheap stocks out there in the tech sector can be risky, so ASE's unique business model makes it stand out.

Equitrans Midstream (ETRN (opens in new tab), $5.73) is an energy infrastructure stock valued at just around $2.5 billion at present. Its natural gas pipeline and storage assets are located mainly in the Appalachian Basin, but it also has a modest water and wastewater utility operation that provides potable water to parts of Ohio.

In fact, the dividend is a hefty 9.9% based on its 15 cents per share quarterly payout and current pricing. Even if shares continue to move sideways, that big-time payday could make Equitrans one of the best cheap stocks for income investors to consider.

But what makes NYCB really interesting is that in 2021, it acquired Flagstar, one of the largest mortgage brokerages in the nation. This gives it the ability to be much more than just a regional bank, particularly since 30-year mortgage rates have more than doubled from their lows of under 3% during 2021.

The icing on the cake for one of Wall Street's best cheap stocks is a 17 cents per share quarterly dividend that is only about 60% of total profits, but adds up to a generous annualized yield of 8.7%. This is more than five times the current S&P 500 yield.

You may think a cheap stock like NL Industries, tied to cyclical manufacturing trends and with a modest market cap of just $315 million in market value, might be a risky bet right now. However, shares are down about 4% in the last 12 months, compared with a nearly 10% loss for the S&P 500 in the same period. It's also up about 130% in the last 36 months, more than doubling the return for the broad market.

Payment and e-commerce platform provider Payoneer Global (PAYO (opens in new tab), $6.18) is a mid-cap stock in the tech sector valued at about $2 billion. It's currently running at break-even on its bottom line as it invests heavily in growth. However, that's to be expected for a company that didn't exist until 2005 and only became publicly traded in 2021.

Shares of PAYO stock are up more than 40% in the last year thanks in part to its growing business. There's assuredly risk here if we hit a widespread downturn in global spending, and thus reduced transaction volume. But PAYO, one of Wall Street's best cheap stocks to buy, could have a very bright future in a digital age. In 2022, it hired former (BABA (opens in new tab)) executive John Caplan as its CEO, and it is looking to expand even further in the years ahead.

In November, Payoneer reported strong growth of 30% on a year-over-year basis. And at the end of February, it hit the same mark as it reported record fourth-quarter and full-year revenue, generating more than 30% year-over-year growth for both periods. Looking forward, PAYO expects growth to continue in the 25% to 30% range, which bodes well for investors in this cheap stock.

PSEC is a business development company. BDCs function more like a private equity firm or hedge fund than your typical financial stock, taking in cash and then redeploying it wherever it thinks it can get the best return. All told, the company commands about $8 billion in assets. That cash is primarily invested in mid-sized corporations with less than $150 million in annual profits. This means they are "goldilocks" operations: not so big they require very deep pockets, but not so small a single executive departure or outside disruption can ruin things.

Last but not least, SIRI has a commitment to shareholder value that includes a solid capital-return program. It's doling out a 2.6% regular yield on top of a special 2022 distribution and consistent stock buybacks on top of that.

In an age where market participants are looking for investments that are hedges against inflation or low-risk alternatives to the typical tech stocks of yesteryear, there's a lot to be said about a miner like Yamana. The company's most recent reserves report shows more than 380 million metric tonnes of gold and more than 330 million tonnes of silver. As AUY brings those goods to market, it will cash in. And considering the massive reserves it owns underground, there's little risk of this top gold stock going under anytime soon.

As proof, shares are up roughly flat over the last year while the S&P 500 has lost about 10% or so in the same period. Yamana pays a healthy 2.3% dividend yield on top of that to provide a decent stream of income along with an inflation hedge via one of Wall Street's best cheap stocks.

Growth stocks are out of fashion, and the SPACs and IPOs of 2020 and 2021 have been beaten down to unfathomable levels. With so many stocks on sale, which stocks should you buy now? Here are five growth stocks to buy now under $10.

A cheap stock is a term that means different things to different people. For some, a cheap stock has a share price in the low single digits, like penny stocks under $1. While for others, an affordable stock trades below its intrinsic value through valuation methodologies.

But however you choose to slice it, a reasonable assumption to make about what makes a stock cheap comes down to the expectation of its share price rising in the future. As logical investors, we'd only buy shares in a stock if we believe we will ultimately receive a yield on our investment. This also means that a share can be valued as low as one cent and still not a cheap stock buy if its prospects are bankruptcy.

A problem investors run into when trying to find cheap stocks is that the market tends to price things efficiently and factor in all available information, known as the efficient market hypothesis (EMH). Said differently, a company's share price reflects its current and future prospects.

Whatever thesis you may have about a stock rising in the future has already been considered by others and "priced in" to the stock today, according to this hypothesis. Of course, the market also routinely gets things wrong, which is where the opportunities lay for investors to buy the cheapest stocks.

"Cheap" means different things to different investors, but in this case, we will assume that the stock has a low share price in the single digits and is trading at a bargain compared to its fundamentals. A "bargain" means that the market understates its value and prospects of the company, primarily through its ability to generate cash flow and after-tax profits.

Although our first assumption should be that the market is pricing a company reasonably, the market is also routinely led by the nose via greed, fear and cognitive biases that distort its accuracy to price companies. Many investors will buy a stock near its overextended peak and sell on the rumors of bad news. Others will selectively filter through a company's filings for reasons to buy and dismiss obvious red flags left by auditors.

While on a more systemic level, once a company becomes a "sure thing, can't lose," investors should panic as the market is no longer pricing the stock efficiently. Challenges in opinion between the bulls and bears allow investors to agree on a fair price through each side evaluating and then reevaluating their positions as an emergent process. But when only bulls or bears talk, confirmation bias seeps in, herd behavior emerges and only one order type is desirable on exchanges. These delusions are sustainable only in the short term and underline why you cannot trust the market absolutely.

Part of finding cheap stocks is looking for a downside catalyst that briefly disconnects a company's share price from its underlying fundamentals. We then take a contrarian approach to what the rest of the market is thinking by performing further due diligence.

In the stock market, bad news can make for attractive entry points for investors to buy into cheap stocks to buy now. But there needs to be an overreaction by the market of how the event will fundamentally alter the company's ability to generate earnings in the future. An example of this overreaction could be Alphabet's (NASDAQ: GOOG) recent botched unveiling of its Bard chatbot that erased 9% of its share price value, caused by a minor technical error that its competitor product also shares. 041b061a72


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