Budget conscious investors and people with not a lot of capital need not worry. There are plenty of low priced stocks available to buy that have the potential for exponential growth. A lot of analysts give their highest ratings to under-$10 stocks. Many penny stocks, which are securities trading for under $5 a share, also have top marks from analysts despite their low price.
Finding cheaply priced and attractively valued stocks of well-run companies can be the key to an investor’s long-term success. Often times, it is these stocks that have the most growth potential and earn the biggest returns over the long run. The analysts ratings placed on these stocks can help investors determine if they are worth an allocation of capital and the right price at which to take a position.
Here is Wall Street favorites: Three under-$10 stocks with strong buy ratings for May 2024.
Under-$10 Stocks: TeraWulf (WULF)
TeraWulf (NASDAQ:WULF) might be familiar to cryptocurrency bulls. The company is an environmentally friendly Bitcoin (BTC-USD) miner that says its aim is to accelerate “the transition to a zero-carbon future.” Currently, TeraWulf trades right around $2 per share, making it a penny stock. Over the last 12 months, WULF stock has risen 24%. However, the share price today is 74% lower than where it traded five years ago.
Despite its penny stock status and uneven performance, six Wall Street analysts rate WULF stock a strong buy. The median price target on the shares is $3.62, implying nearly 80% upside from current levels. Clearly, analysts like that TeraWulf is focused on responsible Bitcoin mining and making the process better for the environment. One of the biggest knocks on crypto miners is that they consume an excessive amounts of power.
Kinross Gold Corp. (KGC)
Kinross Gold Corp. (NYSE:KGC) is another stock under $10 that analysts rate highly. Currently trading at just under $8 per share, Kinross has been riding the bull rally in gold’s price to new heights. KGC stock has increased nearly 50% in the past 12 months, including a 32% gain this year. Analysts see more growth ahead for the Canadian gold miner, especially as the price of bullion marches higher.
A total of 10 Wall Street analysts rate KGC stock a strong buy with a median price target that is 6% above current levels. That’s impressive coming after a big rally in the stock price. Kinross has been doing its best to make hay while the sun shines, and as the price of gold hit an all-time high of $2,431.55 an ounce in April of this year. While gold’s price has pulled back a bit in recent weeks, its price is still trading close to the $2,400.00 mark.
Kosmos Energy (KOS)
Kosmos Energy (NYSE:KOS) is an upstream oil company based in Dallas, Texas. Among oil concerns, Kosmos is pretty small. KOS stock currently trades at less than $6 a share, giving the company a market capitalization of less than $3 billion. The stock hasn’t been setting the world on fire lately. Year to date, the share price is down 13%. Over five years, the stock is down 9%. Yet analysts remain bullish on this oil producer.
Currently, six Wall Street analysts rate KOS stock a strong buy and have a median price target of $8.12, which is 38% above where the shares are changing hands at present. Analysts seems to like the opportunity Kosmos Energy has with the development of several mine sites around the world, including in Ghana, Equatorial Guinea, and the Gulf of Mexico. In time, the share price should catch-up to the company’s growth plans. If you are looking for under-$10 stocks, start here.
On the date of publication, Joel Baglole 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.
