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5 Stocks Under $10 With 'Strong Buy' Ratings
Investing in low-priced stocks can help you benefit from game-changing returns over time. Generally, lower-priced stocks are small-cap companies that grow at a much higher pace compared to the broader market, which can result in outsized gains for long-term shareholders.
Here are five stocks under $10 with strong “buy” ratings you can consider buying now.
1. TeraWulf Stock
Valued at $489 million by market cap, TeraWulf (WULF) is a Bitcoin mining company. The stock price of WULF is tied to the digital asset it mines - in this case, Bitcoin (BTCUSD), which is the world’s largest cryptocurrency.
BTC prices have more than doubled in the last 12 months, while WULF stock has returned 231%. The widespread adoption of Bitcoin could accelerate further in the near term, given the launch of multiple spot Bitcoin ETFs, or exchange-traded funds.
Further, historically, the Bitcoin halving event has acted as a massive tailwind for BTC prices. The next halving event is scheduled in April 2024, which should drive crypto prices higher.
Out of the five analysts covering WULF stock, four recommend “strong buy,” and one recommends “moderate buy.” The average target price for WULF stock is $3.40, 54.5% higher than the current trading price.
2. Iovance Biotherapeutics Stock
Valued at $2.2 billion by market cap, Iovance (IOVA) stock is priced at just over $9 per share, having more than doubled over the past few months. A clinical-stage biotechnology company, Iovance focuses on developing and commercializing cancer immunotherapy products and eradicating cancer cells.
Its flagship product is lifileucel, which is in Phase II clinical trial for the treatment of cervical cancer and metastatic melanoma. In fact, the U.S. Food and Drug Administration will issue a decision by the end of this month for the commercialized use of lifileucel.
In the last three years, shares of Iovance have fallen by 81%. But Wall Street remains bullish on IOVA stock, as 13 analysts recommend a “strong buy,” and only one recommends a “hold.” The average target price for IOVA stock is $20.42, about 122% higher than the current price.
3. Pagaya Technologies Stock
Valued at $779.8 million by market cap, Pagaya Technologies (PGY) stock is priced right around $1. An Israel-based financial technology company, Pagaya aims to disrupt the legacy lending sector. Its artificial intelligence (AI)-powered software solutions help the company’s lending partners originate loans and other assets at a faster pace.
Pagaya’s customer base includes fintech companies, banks, and other financial institutions. Rising interest rates have led to a tepid lending environment in the past year, and Pagaya is forecast to increase revenue by just 9% year over year to $816 million in 2023. However, the top line should accelerate by 23% in 2024.
Out of the six analysts covering PGY stock, five recommend “strong buy,” and one recommends “hold.” The average target price for PGY stock is $3.21, 191% higher than the current trading price.
4. Rocket Lab Stock
Trading below $5 per share, Rocket Lab (RKLB) is valued at a market cap of $2.09 billion. Rocket Lab provides launch services and space systems solutions for space and defense industries, serving commercial and government customers.
Shares of the company remain under pressure following its preliminary Q4 results. Rocket Lab expects sales in Q4 to increase by 16% year over year. However, its adjusted EBITDA loss is forecast to widen between $28 million and $30 million in Q4, higher than its loss of $14.5 million in the year-ago period.
Rocket Lab ended Q3 with $288 million in cash, and it plans to raise another $275 million via convertible senior rates, resulting in shareholder dilution.
Out of the 10 analysts covering RKLB stock, eight recommend “strong buy,” and two recommend “hold.” The average target price for RKLB stock is $8.43, 94% higher than the current trading price.
5. Payoneer Global Stock
The final under-$10 stock on my list is Payoneer Global (PAYO). Valued at $1.79 billion by market cap, the company operates a commerce and payments platform for businesses globally.
In its Q3 earnings report, PAYO missed on both EPS and revenue, but the company raised its forecast for adjusted EBITDA and backed its revenue guidance. Payoneer is set to report earnings again later this month, on Feb. 28.
Looking ahead, Wall Street is expecting annual revenue at Payoneer to keep growing in the double digits, and top the $1 billion level by fiscal 2025.
Out of the nine analysts covering PAYO stock, seven recommend “strong buy,” and two recommend “moderate buy.” The mean price target of $7.88 implies expected upside of 56.6%
On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
