Some stocks under $10 are cheap for a reason, but there are other stocks under $10 that make solid long-term investments.
There are all kinds of stocks to choose from when building your portfolio. While there are undoubtedly big names at high prices, it’s important that investors don’t overlook quality stocks to buy for less than $10.
Some of these names don’t carry the cachet or prominence of a blue chip stock, but the returns they offer can be attractive.
On top of that, each of the names on this list carries an “A” grade in my Portfolio Grader, which is my free tool for grading stocks based on earnings, momentum, and fundamentals.
Here are seven stocks under $10 that you shouldn’t overlook the next time you consider your portfolio.
|GIC||Crescent Point Energy||$5.89|
|ARCO||Arcos Dorados Holdings||$6.86|
|ITUB||Itau Unibanco Holding||$5.35|
Crescent Point Energy (CPG)
Crescent Point Energy (NYSE:GIC) is an oil producer with operations in central Alberta and southern Saskatchewan in Canada, as well as North Dakota in the United States. It produces between 130,000 and 134,000 barrels of oil per day.
CPG stock is up more than 43% in the past 12 months, although it has fallen in recent weeks due to lower oil prices. But with a barrel of oil still priced over $80, there’s plenty of profit to be had with Crescent Point.
The company also does a respectable job of returning value to shareholders. It recently announced an increase in its quarterly dividend to 8 cents per share, and the company has repurchased 7 million CPG shares since July.
The CPG stock has an “A” rating in the Portfolio Grader.
Arcos Dorados Holdings (ARCO)
If you are in Latin America and want to McDonald’s (NYSE:MCD) grub, you turn to Arcos Dorados Holdings (NYSE:ARCO). The Uruguay-based company holds the master franchise rights for McDonalds in Latin America and the Caribbean. (Arcos Dorados is Spanish for “golden bows”.)
The company is the world’s largest independent McDonald’s franchisee, with more than 2,250 restaurants in 20 countries.
So far in 2022, business has been good. While the big stock market is in the red, ARCO stock is up more than 29% for the year. Second-quarter earnings were mixed, with revenue of $887.9 million beating analysts’ expectations of $808.95 million.
The company only reported earnings per share of 7 cents while the Street expected earnings of 13 cents per share. Numbers like these are what put ARCO on track to be one of the best sub-$10 stocks on the market.
ARCO is well positioned to roll the burgers (and the profits). It has an “A” grade in the Portfolio Grader.
Vaalco Energy (EGY)
Based in Houston Vaalco Energy (NYSE:EGY) is a company in transition. The oil exploration and production company plans to merge with TransGlobe Energy (NYSE:TGA) in an all-stock transaction.
Vaalco says the merger will enable the companies to create “a world-class E&P company focused on Africa, supporting sustainable growth and shareholder returns.”
While EGY stock is down slightly since the July announcement, I think the market is not appreciating the value of the soon to be merged company. Vaalco says it will increase its annual dividend payout to 25 cents per share — and a bigger dividend is always a welcome thing.
For the second quarter, EGY stock posted a profit of $110.98 million, beating analysts’ estimates of $107.09 million. The stock has also risen more than 60% in the past year, making it one of the most popular stocks under $10 to buy.
Vaalco Energy stock has an “A” rating in the Portfolio Grader.
Itau Unibanco Holding (ITUB)
Itau Unibanco Holding (NYSE:ITUB) is not a household name. But if you like bank stocks – and if you like solid returns – then you should check out this Brazil-based bank.
Itau Unibanco is the second largest bank in Latin America, with branches in North America, Europe and Asia. It sports a market cap of over $50 billion and enjoys a broad global reach.
Second-quarter earnings were more than strong, with revenue of $35.25 billion, beating analysts’ estimates of $33.47 billion. EPS of 78 cents was 2 cents per share higher than expected.
On top of that, ITUB stock is up nearly 50% so far in 2022, much better than any of the major US-based banking stocks. ITUB has an “A” rating in the Portfolio Grader.
Kosmos Energy (KOS)
Cosmos Energy (NYSE:KOS) is another active exploration and production company in the Gulf of Mexico. But it is also present in offshore fields off Ghana, Equatorial Guinea, Mauritania and Senegal.
The stock price is down 30% since June, matching the drop in oil prices. But for the year, Kosmos is still posting a 64% return, and earnings should continue to roll with the price of oil at this point.
Quarterly earnings have always been good for Kosmos. In the second quarter, revenue of $620.88 million was higher than the $578.54 million forecast. EPS of 28 cents per share also beat EPS expectations of 17 cents. Following the revenue report, Barclays raised its price target for KOS shares from $10.40 to $11.60.
The KOS stock has an “A” rating in the Portfolio Grader.
NL Industries (NL)
When you think of the concept of the sum greater than its parts, then NL Industries (NYSE:NL) comes to mind. The holding owns a 30% stake in a chemical company Chronos in the world (NYSE:KRO). It also holds an 87% stake in CompX International (NYSEAMERICAN:CIX), which has a manufacturer of technical components.
NL Industries has a market capitalization of $390 million, roughly the same value as its stake in Kronos. Then factor in that his stake in CompX is worth $193.8 million, and you see there’s a lot of value to be had in NL’s stock.
NL Industries is up 8% so far this year and has an “A” rating in the Portfolio Grader.
ADMA Biologics (ADMA)
With offices in New Jersey and Florida, ADMA Biologics (NASDAQ:AMDA) is an end-to-end biopharmaceutical company. It is known for plasma-derived treatments for patients with weakened immune systems. It also won FDA approval last year for an expanded manufacturing process to scale up production of its intravenous immunoglobulin (IVIG).
For the second quarter, revenue of $33.91 million beat analysts’ expectations of $31.81 million. Earnings were a loss of 7 cents per share, but that was better than the anticipated loss of 8 cents per share.
The ADMA share is up 81% since the beginning of the year and obtains an “A” rating in the Portfolio Grader.
At the date of publication, Louis Navellier holds a position within ARCO and KOS. Louis Navellier has held (neither directly nor indirectly) any other position in the securities mentioned in this article.
As of the date of publication, the InvestorPlace Research staff member primarily responsible for this article held (neither directly nor indirectly) any position in the securities mentioned in this article.