Investors seeking strong buy stocks under $10 offering a potential future of large returns can be difficult. Inexpensive companies tend to have a small market cap and are typically riskier investments compared to stocks that trade for a higher market cap. This is because they are more susceptible to swings in their share price following a market downturn or upswing, press releases and earnings reports.
A great way to choose companies that trade cheaply and have the potential for a promising future is to find analyst reports from different sources regarding a particular company. If there seems a consensus on the stock being a strong buy, definitely consider adding it to your portfolio.
Below are a few companies within multiple sectors that trade under $10 per share and have received a strong buy rating. Investors should consider picking up these solid stocks trading for cheap.
Kinross Gold (KGC)
Kinross Gold (NYSE:KGC) explores, acquires and develops mining properties in South America, North America and Africa.
Over the past year, its share price has grown 18% due to solid earnings results. For the third quarter of 2023, Kinross reported results on Nov. 8. It stated that revenue grew 29% and rose 68% compared to the prior year. Its total gold sold in the third quarter increased by 16%, and the operating cash flow of $407 more than doubled within the same period. Q4 full-year earnings are expected to be released on Feb. 14.
The price of gold remained practically unchanged over this last year. And Kinross has seen consistent growth in its share price due to factors I have previously mentioned while also offering a decent dividend yield of 2.17% annually. It is considered a strong buy company that investors, especially ones looking for greater exposure to commodities, should consider.
OraSure Technologies (OSUR)
OraSure Technologies (NASDAQ:OSUR) provides customers with at-home diagnostic solutions such as rapid COVID-19, HCV, HIV and Ebola antigen tests. It also provides medical analysis services as well as collection devices.
On Nov. 7, OraSure reported earnings results for the third quarter in which it stated that revenue fell 23%, net income nearly doubled, total sales in Covid-19 test dropped fairly dramatically by 37% and other diagnostics products’ revenue jumped 59% compared to the year before.
OraSure experienced specific earnings results that may seem worrying, such as the overall drop in total sales for its COVID-19 products and a drop in revenue from Q3 2022. Its core business continues to see growth, product expansion primarily regarding substance abuse testing, and a beat on revenue of over $14 million, even though it declined overall year-over-year.
OraSure has seen its share price rise 32% over the past year, and with its planned product expansion, its future shows positive signs, making it a strong buy for investors to evaluate.
Nordic American Tankers (NAT)
Marine shipping company, Nordic American Tankers (NYSE:NAT), operates a fleet of 22 vessels and transports chemical and crude oil products globally.
Nordic American reported earnings for the third quarter on Nov. 29, stating that net income dropped by 25% and total revenue slightly increased year-over-year. Its Time Charter Equivalent (TCE) represents a vessel’s daily revenue generation average, which grew by 11% within the same period.
Despite a somewhat lackluster earnings report, NAT is still a strong buy company due to several factors. It had a share price growth of 46% in the past year and a strong dividend yield of 5.44% annually. There is greater investor interest following airstrikes against the Houthi rebels in Yemen. This also caused shipping rates to skyrocket and could influence the future earning potential of Nordic American.
As of this writing, Noah Bolton 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.
