SPECIAL REPORT The Top 7 Stocks for 2024

The 7 Most Undervalued Stocks Under $10 to Buy Now: August 2023

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  • FinVolution (FINV): FinVolution features strong revenue but at a discount price.
  • Southwestern Energy (SWN): Southwestern Energy offers a very relevant business.
  • Playtika (PLTK): Playtika carries risks but also a lowly forward earnings multiple.
  • Read more about these top stocks to buy under $10 a share.
Stocks to Buy Under $10 - The 7 Most Undervalued Stocks Under $10 to Buy Now: August 2023

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If you’re hurting from inflation – and there’s a good chance you are – these stocks to buy under $10 might offer what you’re looking for. To start, these “cheap” investment ideas offer perceived affordability, which goes a long way. Indeed, too high a price might prevent people from participating in the markets altogether, which may be the biggest mistake of all.

Second, undervalued stocks to buy under $10 offer significant upside potential. Generally speaking, single-digit securities tend to be small-capitalization plays. As a result, when they swing higher, the percentage gains can be incredibly robust. Of course, the opposite is also true so investors must conduct their own due diligence before proceeding.

Finally, undervalued stocks priced below a “Hamilton” may allow contrarians to acquire emerging growth companies. Again, generally speaking, cheapo securities tend to undergird growth-oriented enterprises. These ideas could blossom robustly if the stars align just right.

On that note, below are compelling stocks to buy under $10.

Stocks to Buy Under $10: FinVolution (FINV)

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Starting off with a risky but enticing opportunity, FinVolution (NYSE:FINV) is a leading financial technology (fintech) platform with strong brand recognition in China and the international markets. The company’s main goal centers on connecting borrowers of the younger generation with financial institutions. Since the start of the year, FINV gained a bit over 6%, which doesn’t sound immediately remarkable.

However, when FinVolution wants to run, it absolutely soars. Since the end of May, FINV gained nearly 39% of its equity value. At the same time, it can be quite wild. In the trailing five sessions, FINV slipped almost 12%. Thus, it’s important to catch it on a solid outing.

Operationally, FinVolution prints a three-year revenue growth rate (per-share basis) of 26.7%, beating out 82.49% of its peers. Nevertheless, FINV trades at only 0.92x trailing sales, below the sector median of 3.21x, thus making a case for undervalued stocks to buy under $10. Finally, analysts peg shares as a consensus moderate buy. The high-side price target comes in at $6.70, implying over 25% growth.

Southwestern Energy (SWN)

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A relevant idea among the top stocks to buy under $10, Southwestern Energy (NYSE:SWN) is an exploration and production company focusing on natural gas. Presently, SWN benefits from the resurgence in the broader hydrocarbon sector. Since the beginning of the year, SWN gained almost 18% of its equity value. Just in the past month, it swung up nearly 8%.

Two factors may help undergird positive sentiment. First, social normalization trends may increase the consumption of energy products. Second, geopolitical flashpoints may pressure energy supplies, which may then boost demand. In addition, SWN ranks among the undervalued stocks because of its price-to-sales multiple of 0.64x, landing below the sector median of 1.02x. It’s not a cheap metric either, with Southwestern posting a three-year revenue growth rate of 33.8%.

Lastly, analysts peg SWN as a consensus moderate buy with a $7.78 average price target, implying over 20% growth. Thus, it’s a solid idea for undervalued stocks.

Stocks to Buy Under $10: Playtika (PLTK)

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A pioneer in the gaming industry per its website, Playtika (NASDAQ:PLTK) ranked among the first enterprises to offer free-to-play social games on social networks. Soon after, Playtika evolved into a mobile platform offering. Right now, the company commands over 34 million monthly active users. It’s a volatile idea among stocks to buy under $10 but may hold promise for speculators.

Since the January opener, PLTK returned shareholders over 15% of equity value. Just keep in mind that in the trailing month, shares tanked nearly 21%. You don’t want to lose focus despite its solid market cap of $3.65 billion.

On the financial front, Playtika makes a case for undervalued stocks to buy because of their cheap multiples. Specifically, the company trades at 12.3x forward earnings. In contrast, the sector median stat clocks in at 20.88x. To close, analysts remain overall optimistic about Playtika, pegging shares a moderate buy. Further, their average price target lands at $12.65, implying over 27% upside potential.

Himax Technologies (HIMX)

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Based in Taiwan, Himax Technologies (NASDAQ:HIMX) is a leading supplier and fabless semiconductor manufacturer. Obviously, Taiwan symbolizes a “hot” nation, geopolitically speaking. It’s probably no stretch to say that some investors may have been pensive about HIMX. Also, the computer chip space suffers from significant demand headwinds tied to disappointing smartphone and PC sales.

Since the beginning of this year, HIMX tread water, moving up nearly 8%. In the trailing year, it’s down almost 5%. Still, HIMX arguably makes a case for undervalued stocks to buy under $10. Basically, the aforementioned dual headwinds should fade as circumstances normalize.

Also, it’s hard to ignore the Himax discount, with shares trading at a forward multiple of 15.15x. As a discount to projected earnings, the company ranks better than 74.64% of the competition. Turning to Wall Street, analysts peg HIMX as a moderate buy. Their average price target comes in at $9, implying nearly 32% upside potential.

Stocks to Buy Under $10: Enel Chile (ENIC)

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Going abroad again for stocks to buy under $10, Enel Chile (NYSE:ENIC) bills itself as the most important electricity holding firm in the namesake nation. Further, the company features operations in the segments of generation and distribution, along with other businesses related to the transformation and extension of the electricity market.

Most notably, for those seeking undervalued stocks with substantial promise, ENIC posted a robust return of nearly 53% since the Jan. opener. To be clear, it can be volatile, with shares down 8% in the trailing month. Still, the pertinence of the business warrants a closer examination.

As for the topic at hand, ENIC trades at a sales multiple of 0.83x, below the sector median of 1.28x. However, it’s no slouch, with Enel posting a three-year revenue growth rate of 18.6%, outflanking 82.47% of its peers. Also, within the past month, Scotiabank’s Tomas Gonzalez pegged ENIC as a buy with a price target of $4.40. This estimate implies growth of nearly 36%.

Viemed Healthcare (VMD)

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A health services provider, Viemed Healthcare (NASDAQ:VMD) is the nation’s leader in home disease management, according to the company’s website. Specifically, Viemed commits to delivering best-in-class respiratory services inside the comforts of its patients’ homes. A relevant player considering the rapidly aging baby boomer demographic, VMD gained about 9% since the beginning of the year.

That said, it’s been suffering some sour trading recently. Over the trailing one-month period, VMD slipped 10%. Nevertheless, it’s possible that it could rank among the undervalued stocks to buy under $10. On a financial note, shares trade at a forward multiple of 19.85. As a discount to projected earnings, Viemed ranks better than 72.28% of the competition.

Also, the company posts a three-year revenue growth rate of 21.2%, outpacing 78% of sector rivals. VMD trades at 2.07x sales, below the sector median stat of 3.63x. Lastly, Lake Street’s Brooks O’Neil pegged VMD as a buy with a $15 price target. This forecast implies nearly 83% upside potential.

FutureFuel (FF)

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A developer and producer of chemicals and biofuels, FutureFuel (NYSE:FF) ranks among the stocks to buy under $10 for those interested in speculating on, well, fuels for the future. Based in Clayton, Missouri, FutureFuel features a current biofuel production capacity of 59 million gallons per year, per its website. Also, it commands multiple feedstock operations, including inedible corn oil and degummed/crude soy oil.

In the spirit of full disclosure, FF stock represents a volatile investment. Up until several days ago, FF was printing a decent return for the year. However, the company’s latest earnings report for the second quarter – where it posted revenue of $85.3 million – apparently disappointed investors. Subsequently, the bulls are playing damage control at the moment.

Unlike the other ideas for undervalued stocks, no analyst presently covers FutureFuel. However, shares could be intriguing thanks to being priced at only 0.83x trailing sales, below the sector median of 1.7x. Plus, the company prints a three-year revenue growth rate of 24.5%. Finally, FutureFuel also benefits from a strong balance sheet, particularly a cash-to-debt ratio of nearly 335X. So, if you want to gamble, FF could be an interesting idea.

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.


Article printed from InvestorPlace Media, https://investorplace.com/2023/08/the-7-most-undervalued-stocks-under-10-to-buy-now-august-2023/.

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