If you are a bargain hunter like me, you will always be on the lookout for stocks to buy at a lower price and make the most of their upside.
While all under-$10 stocks may not be worth your money, a few stocks have the potential to hit double digits. But, they may be trading below $10 due to several macroeconomic factors. These stocks are solid buy-and-hold and could double your money if you have the patience. Once the economy improves and a rate cut materializes, you might not get an opportunity to buy these stocks below $10.
If you are on the lookout for stocks under $10 and want solid companies to invest in, here are my three picks. These are industry stalwarts with strong fundamentals, impressive annual earnings guidance and the potential to double your money. Let’s dive into them.
SoFi Technologies (SOFI)
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Fintech company SoFi Technologies (NASDAQ:SOFI) could become a multi-bagger in the next five years. Trading at $7.49 today, the stock is down 26% year-to-date (YTD). In fact, it hasn’t been able to touch double digits since the beginning of the year. Despite reporting impressive fundamentals in the last two quarters and raising the annual earnings guidance, the stock hasn’t been able to pick up pace.
In the recent earnings report, the net sales stood at $581 million, up 26% year-over-year (YOY), and the financial services segment saw a 33% jump. It has seen a strong top line despite the concerns about high interest rates. The financial services segment reported net sales of $151 million. Also, the tech platform reported net sales of $91 million, up 21% YOY.
Since SoFi Technologies relies on lending, this is a concern when it comes to the current macroeconomic environment. Investors are worried about defaults in the long term. However, the management is taking a conservative approach and has said that the lending segment revenue will drop 5% to 8% from the past year.
As revenue from the other segments continue to grow, SOFI will see a solid improvement in the top and bottom lines. The company reported its first-ever profit in the fourth quarter and has been attracting new users at a steady rate. It ended the first quarter with 8.1 million users. For the past two quarters, it has seen a 44% jump in member growth.
Thus, SoFi Technologies is set to have a transitional year ahead and a rate cut could boost its business. The long-term picture looks highly attractive and this is one stock that can double your money by 2025. Buying SOFI stock under $10 is a smart move.
Lithium Americas (LAC)
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Amidst several reasons to bet on Lithium Americas (NYSE:LAC), you will need patience.
Exchanging hands for $4.50 today, the stock has lost 30% value since the beginning of the year. It is trading much lower than the 52-week high of $23. But, expect strong upside potential once the Thacker Pass project commences. It is the largest lithium project in history, and the company aims to achieve full production by 2028.
As the electric vehicle (EV) industry recovers, the demand for lithium will be on the rise. So this becomes the key moment for Lithium Americas to strike. The construction of the project began last year. It has a mine life of 40 years and an after-tax net present value of $5.7 billion. Besides Thacker Pass, Lithium Americas has received a $650 million investment from General Motors (NYSE:GM) for the Thacker Pass mine.
Also, the company has received a $2.26 billion loan from the U.S. Department of Energy to help finance the construction of a Nevada processing plant. LAC stock is beaten down today. But it owns the hottest asset right now and the long-term picture looks attractive.
If you have the patience to hold the stock until the Thacker Pass Project commences production, this is one stock to buy and hold. The dip is the perfect time to load up on the stock which can double your money.
Kinross Gold Corporation (KGC)
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Expect gold mining companies to report stellar quarterly numbers driven by the high gold prices. Gold has been hitting all-time highs. So companies like Kinross Gold (NYSE:KGC) are set to hit the jackpot.
Recently, the gold miner reported results and beat expectations. It reported a revenue of $1.08 billion, and the EPS stood at 10 cents. The company saw a 23% YOY increase in the production of gold, and the operating income came in at $259 million.
It ended March with a cash balance of $471.0 million. Many anticipate gold prices to continue the upward rally, and this will benefit Kinross significantly. Trading at $7.59, KGC stock is up 28% YTD and 40% in the last 12 months. Also, it has a dividend yield of 1.58%. Considering the liquidity, the company has the potential to increase dividends in the coming years.
Finally, Kinross Gold Corporation expects the gold production to hit 2.1 million ounces in the year. Scotiabank has a price target of $8 for the stock with a buy rating, while Cormark has a market outperform rating, and National Bank has a buy rating.
On the date of publication, Vandita Jadeja 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.
Battery, Commodities, Consumer Staples, Energy, Financial, Fintech, Industrial, Lithium, Precious Metals, Renewable Energy, Technology
