“The #1 Tech Opportunity of the Decade”

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Wed, February 8 at 8:00PM ET
 
 
 
 

7 Stocks Under $10 That Can Double in One Year

  • These are the stocks under $10 to double your money in one year
  • Polestar Automotive (PSNY): Strong deliveries growth and line-up of new models.
  • Nio (NIO): Five new model launches and international expansion will boost deliveries growth.
  • Solid Power (SLDP): Validation testing of solid-state batteries by automotive partners in 2023.
  • Transocean (RIG): Order backlog in excess of $8 billion provides cash flow visibility.
  • Kinross Gold (KGC): Strong liquidity buffer and visibility for free cash flows through 2025.
  • Riot Blockchain (RIOT): Strong financial flexibility and continued growth in hashing capacity.
  • Tilray (TLRY): Positive free cash flow from key business units in the current financial year.
stocks under $10 to double your money - 7 Stocks Under $10 That Can Double in One Year

Source: VERSUSstudio / Shutterstock

When it comes to finding stocks under $10 to double your money, it’s important not to overlook stocks that have taken a recent beating.

While blue-chip stock investing will remain the dominant theme for 2023 (particularly with fears of recession and the uncertainties related to a renewed surge in covid cases) certain growth stocks under $10 trade at seriously undervalued levels. These stocks can potentially double at the blink of an eye.

A small part of the portfolio can therefore be allocated to these stocks under $10 to double your money. The impact on overall portfolio returns will be meaningful if these seven stocks double through 2023.

PSNY Polestar Automotive $5.30
NIO Nio $9.63
SLDP Solid Power $2.35
RIG Transocean $4.27
KGC Kinross Gold $4.26
RIOT Riot Blockchain $3.32
TLRY Tilray Brands $2.73

Polestar Automotive (PSNY)

Close up Polestar logo with electric car in store. Polestar (PSNY) is a Swedish automotive brand owned by Volvo Cars and Geely
Source: Robert Way / Shutterstock.com

Like many other electric vehicle stocks, Polestar Automotive (NASDAQ:PSNY) underperformed in 2022. Business progress has however been encouraging and PSNY stock is among the top stocks under $10 to double your money.

Besides supply chain headwinds and economic concerns, widening operating level losses is the key reason for PSNY stock trending lower. However, it’s worth noting that Polestar is fully funded through 2023. With the company still at an early growth stage, cash burn is unlikely to be a concern. With operating leverage, EBITDA level losses are likely to narrow in 2023.

I also believe that strong deliveries growth is likely to sustain for Polestar. With Polestar 4 and Polestar 5 due for launch in 2023 and 2024, deliveries growth can potentially accelerate. Geographical expansion will also support growth.

Nio (NIO)

NIO logo, sign atop of North American headquarters and global software development center in Silicon Valley. NIO is Chinese electric autonomous vehicles manufacturer
Source: Michael Vi / Shutterstock.com

Nio (NYSE:NIO) is another stock under $10 that’s likely to double your money in 2023. Amidst a surge in covid cases in China, Nio set a record with monthly delivery of 15,815 vehicles in December 2022. On a year-on-year basis, deliveries surged by 50.8%. With several positive catalysts for the current year, Nio stock is poised to double from current levels.

First and foremost, Nio plans to launch five new models in 2023. This will ensure that deliveries growth remains robust. It’s also worth noting that the company has aggressive expansion plans in Europe. This is another factor that’s likely to support deliveries growth.

Another reason to be bullish is operating leverage. As vehicle deliveries accelerate, Nio is positioned for EBITDA margin expansion. The company has already guided for break-even in its core business by Q4 2023.

Nio reported cash and equivalents of $7.2 billion as of Q3 2022. This provides ample flexibility for international expansion and investment in product development.

Solid Power (SLDP)

Smartphone with logo of American battery company Solid Power Inc. on screen in front of business website. Focus on center-left of phone display.
Source: T. Schneider / Shutterstock.com

Solid Power (NASDAQ:SLDP) has been in correction mode through 2022. However, it seems that the worst is over for the stock.

The company is still in the development stage for solid-state batteries. There are however few potential catalysts for the year that can translate into a big rally.

Recently, Solid Power licensed cell design and manufacturing process to BMW (OTCMKTS:BMWYY). This will allow parallel research and development on solid-state batteries.

As Solid Power deepens its partnership with BMW, financing expansion in the future is unlikely to be a concern. BMW has already agreed to pay $20 million to Solid Power through June 2024 as certain milestones are achieved. It’s worth noting that Solid Power also has Ford (NYSE:F) as its validation partner.

Solid Power has already commenced trial production of battery cells. The cells will be delivered in Q1 2023 to automotive partners for validation testing. Positive results from the initial tests will be a key stock upside catalyst.

Transocean (RIG)

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

In the last 12 months, Transocean (NYSE:RIG) stock has trended higher by 60%. I believe that RIG stock is poised for bigger gains in 2023.

As an overview, Transocean is a provider of modern rigs for the offshore drilling industry. As oil remains firm around $80 levels, offshore drilling activity has significantly accelerated. This is reflected in the strong growth in order book.

Just to put things into perspective, Transocean reported an order backlog of $7.3 billion as of October 2022. Recently, the company won new orders worth $1 billion. With the order intake remaining robust, revenue visibility has increased.

At the same time, the new orders are at a higher day rate. This is likely to translate into EBITDA margin expansion through 2023. Transocean also believes that the company can reduce debt by $3 billion over the next few years. As credit metrics improve, RIG stock is positioned to trend higher.

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

Among the smaller names in the gold mining industry, Kinross Gold (NYSE:KGC) looks attractive. Last year, the company suffered as it had to sell Russian assets at a discounted valuation. The asset sale also impacted the production guidance for 2023 and beyond.

The negatives are however discounted in the stock and as gold trends higher, KGC stock is poised for a meaningful rally. In terms of positives, Kinross expects steady gold production of two million ounces annually through 2025. At current gold price, free cash flows will remain positive. This ensures stable dividends and the company’s financial flexibility will improve.

Kinross reported a total liquidity buffer of $2 billion as of Q3 2022. I will not be surprised if the company pursues acquisitions in 2023 after forced sale of Russian asset in the prior year.

Riot Blockchain (RIOT)

An image of a hand holding a cell phone with several visualizations of digital building blocks floating above it. representing sto platforms
Source: Marko Aliaksandr/ShutterStock.com

Riot Blockchain (NASDAQ:RIOT) is possibly the best pick among Bitcoin miners. There are two important reasons for this view. First and foremost, Riot reported hashing capacity of 7.7EH/s in November 2022.

The company expects to reach a capacity of 12.5EH/s by Q1 2023. With growth in capacity, digital assets in the balance sheet will continue to swell.

Furthermore, Riot reported a cash balance of $255 million as of Q3 2022. As of November, the company had 6,897 Bitcoin in its balance sheet. It’s also worth noting that Riot has a debt free balance sheet. The key point is that the company’s financial flexibility is robust to navigate an extended crypto winter.

Tilray Brands (TLRY)

Close view of Tilray (TLRY) logo on a smart phone. Tilray specializes in cannabis research, cultivation, processing and distribution
Source: Lori Butcher / Shutterstock.com

Considering a legalization scenario at the federal level in the United States, Tilray Brands (NASDAQ:TLRY) can easily double in the next one year after a meaningful correction last year.

From a fundamental perspective, there are several reasons to like Tilray. The company has continued to report positive adjusted EBITDA. Further, Tilray has also guided for positive free cash flows from all key business units in the current financial year.

In terms of market presence, Tilray is a leader in recreational cannabis in Canada. In medicinal cannabis, the company has a 20% market share in Germany.

In the United States, Tilray has acquired two brewing companies. This has allowed Tilray to create a strong strategic infrastructure in anticipation of legalization. With these positives, TLRY is among the top stocks under $10 to double your money in 2023.

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.

Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.


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