SPECIAL REPORT The Top 7 Stocks for 2024

3 Under-$10 Stocks That Can Double Next Year


  • These are the under-$10 stocks poised to double next year.
  • Transocean (RIG): An order backlog of $9.4 billion provides clear cash flow visibility.
  • Plug Power (PLUG): Revenue target of $1.2 billion for the year and $20 billion by 2030.
  • Kinross Gold (KGC): Gold is poised for a breakout rally and Kinross has robust fundamentals.
under-$10 stocks - 3 Under-$10 Stocks That Can Double Next Year

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The new year will begin with revised targets and resolutions. Of course, we are still months away from 2024, but portfolio targets need earlier planning. The coming year may remain challenging. However, sectors and stocks will deliver robust returns. These are under-$10 stocks to buy that are positioned to surge higher.

I have focused exclusively on growth stocks using the top-down approach for stock selection. Oil is an attractive investment theme, given the production cuts and geopolitical tensions. As the hydrogen economy grows, the correction in hydrogen stocks is a good accumulation opportunity. I also believe gold is poised for a breakout rally next year.

Of course, these sectors have quality blue-chip stocks. However, these under-$10 stocks have immense potential and strong fundamentals back the growth story. Let’s discuss the reasons to be bullish on these stocks for 2024.

Transocean (RIG)

Transocean logo on a laptop screen. RIG stock.
Source: Postmodern Studio / Shutterstock

Transocean (NYSE:RIG) is among the under-$10 stocks that look attractive for a big rally. With oil around $90 per barrel, the outlook is bullish for this offshore contract drilling service.

It’s worth noting that as of Oct. 18, Transocean reported an order backlog of $9.4 billion. The backlog is front-end loaded, providing clear revenue and cash flow visibility for 2024 and 2025. If industry conditions remain favorable, fresh order intake will ensure robust cash flow visibility for the next few years.

Transocean expects to close in 2023 with a total liquidity buffer of $1.3 billion. With strong cash flows, the company has also guided for a debt reduction of $3 billion by 2025. As credit metrics improve and financial flexibility increases, RIG stock is positioned to trend higher.

I must add that a strong balance sheet strengthens the case for fleet expansion. Transocean already has a modern fleet with an average age of 10 years. With these positives, RIG stock is poised to be a value creator.

Plug Power (PLUG)

3d render image of hydrogen energy fuel cell from Plug Power
Source: Shutterstock

Plug Power (NASDAQ:PLUG) stock has plunged by almost 50% year-to-date. PLUG is among the best hydrogen stocks to buy for multibagger returns. After a deep correction, a sharp reversal rally might be in the cards in 2024.

Plug Power has chalked out an ambitious growth plan through 2030. For the current year, the company expects revenue of $1.2 billion. The guidance is for revenue of $6 billion by 2027 and $20 billion by 2030. Further, by the end of the decade, the company expects a gross margin of 35%.

I believe the target is realistic, focusing on investments related to the global hydrogen economy. For example, the company deployed the first large-scale stationary unit in Q2 2023. With demand for this product for EV charging, prime power and data center backup, the company expects an addressable market of $1 trillion.

Kinross Gold (KGC)

Cellphone with business logo of Canadian mining company Kinross Gold Corp. on screen in front of webpage.
Source: T. Schneider / Shutterstock.com

Gold has bounced back strongly, and even with tight monetary policies, the precious metal is near $2,000 an ounce. Considering geopolitical tensions and global GDP growth deceleration, I am bullish on a breakout for gold. Kinross Gold (NYSE:KGC) is among the under-$10 stocks to buy from the gold mining sector for a big rally.

KGC stock looks undervalued at a forward price-earnings ratio of 13.5. Further, the stock offers an attractive dividend yield of 2.25%. Assuming a scenario where gold trades at $2,100 or $2,200 an ounce, KGC stock will double from current levels.

Kinross is attractive from a fundamental perspective. First, it has stable gold production visibility through 2025. Further, as of Q2 2023, Kinross reported cash and equivalents of $1.9 billion. If gold is $2,000 an ounce, the annual operating cash flow visibility is $2 billion.

A strong balance sheet and robust cash flows allow Kinross to pursue organic and potential acquisition-driven growth.

On the date of publication, Faisal Humayun did not hold (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/2023/10/3-under-10-stocks-that-can-double-next-year/.

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