- These cheap stocks offer incredible long-term value for under $10.
- Assertio Holdings (ASRT): New-look business post-restructuring which is poised for healthy top and bottom-line expansion this year
- Nokia (NOK): Top non-Chinese 5G play after Ericcson’s recent woes
- Hudson Technologies (HDSN): Record sales on the back of robust refrigerant prices last year and is in for another strong showing in 2022
Cheap stocks are usually high-risk, high-reward plays belonging to companies whose share prices are divorced from their fundamentals. It could also be that the market isn’t valuing the long-term potential of such stocks. Nevertheless, cheap stocks offer a way for risk-taking investors to scale their portfolios quickly.
However, a lot of stocks are cheap for a reason. Their underlying businesses haven’t been firing in a while, which is why investors abandoned ship. Moreover, the future outlooks of these businesses may be unattractive, which is why their stocks have failed to get going.
On the flip side, plenty of beaten-down stocks have been unfairly thrashed by the market. These cheap stocks can add long-term value to your portfolio without breaking the bank. Let’s look at three cheap stocks trading under $10, which offer substantial upside potential.
|HDSN||Hudson Technologies, Inc.||$6.40|
Cheap Stocks: Assertio Holdings (ASRT)
Assertio Holdings (NASDAQ:ASRT) is an Illinois-based specialty pharma business specializing in treating neurology and diseases of the nervous system. After years of struggling to grow revenues, the company’s financials are back in the green. This year it expects to generate revenues in the $126 million to $136 million range, representing 15% to 24% top-line expansion. Moreover, it forecasts an adjusted EBITDA of $64 million to $72 million this year, growing from 31% to 47%.
The company’s restructuring plan has paid off, as its transition to a digital sales model had a remarkably positive impact on earnings and sales. It sold off its opioid business Nucynta and believes it has enough cash to pursue new acquisition targets with its stronger balance sheet. Moreover, the firm boasts an impeccable profitability profile with double-digit growth across key metrics. ASRT stock trades at just 0.8x forward sales to further sweeten the deal.
Nokia (NYSE:NOK), the once-famed smartphone maker, is a completely different enterprise under its maverick CEO, Pekka Lundmark. It wasn’t long ago when the company was looking for strategic direction after the debacle of its smartphone business. However, it has now established itself as a leading mobile infrastructure provider and 5G play. Moreover, it holds a healthy 20% market share in the global telecom equipment market.
5G has had the biggest impact on the company’s turnaround. According to the telecommunications giant, 5G can potentially contribute $8 trillion to the GDP by 2030 and be driven by various sectors, including utilities, healthcare, and others.
Though it took a while to land some big contracts in the 5G space, Nokia now has an array of contracts lined up to solidify its position in the sector. India will be a massive 5G market, and the company plans to roll out pan-India 5G networks in the next couple of years.
Nokia has over 200 5G commercial contracts and continues to ink more deals every quarter. These contracts will contribute tons of revenue in the coming years. Moreover, it is perhaps the most viable non-Chinese 5G play after the recent allegations on Ericcson (NASDAQ:ERIC) levied by the Department of Justice.
Cheap Stocks: Hudson Technologies (HDSN)
Hudson Technologies (NASDAQ:HDSN) provides sustainable refrigerant products and services in the U.S. It has over 7,000 customers and 40 facilities across the country. The company’s top and bottom lines have grown healthy over the past several years. After a slump in 2020, the company closed out last year with record sales of $192.7 million, backed by robust refrigerant prices. The healthy bump in margins resulted in Hudson Technologies now being profitable.
Furthermore, with the government’s efforts to reduce climate-damaging hydrofluorocarbons (HFCs), Hudson may be looking at a healthy source of revenue. There are over 100 million HFC units installed now, and with an HFC target of 15% by 2026, a large-scale transition will be in order. Reclamation will be a key feature during the transition, and Hudson may play a critical role in ensuring that the country has enough HFC supply during the transition.
On the date of publication, Muslim Farooque 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.