9 Best Cheap Stocks to Buy Under $10 in 2025

Introduction:

Investing in stocks priced under $10 can be a compelling opportunity for investors seeking affordability and high potential returns. While stocks in this price range often raise concerns due to potential underlying business challenges, some gems could offer substantial growth. CFRA analysts have identified nine high-quality, affordable stocks with promising prospects for 2025. These companies span various industries, providing diverse opportunities for frugal investors.

Below is a detailed look at these stocks and their potential for growth in the coming year.

*As of Nov. 19 close, based on CFRA's 12-month price targets.

Summary 

1. Nokia Corp. (Ticker: NOK)

2. Telefonica SA (Ticker: TEF)

3. Kinross Gold Corp. (Ticker: KGC)

4. Aegon Ltd. (Ticker: AEG)

5. Korea Electric Power Corp. (Ticker: KEP)

6. Telecom Italia S.p.A. (Ticker: TIIAY)

7. Wolfspeed Inc. (Ticker: WOLF)

8. Bumble Inc. (Ticker: BMBL)

9. Stratasys Ltd. (Ticker: SSYS)

1. Nokia Corp. (Ticker: NOK)

• Upside Potential: 20.4%
• Overview: Nokia specializes in telecom equipment and digital mapping, also licensing intellectual property. The global 5G network upgrade is driving demand, particularly in North America and China. Nokia is optimistic about regaining lost market share and navigating inflation challenges effectively.
• CFRA Price Target: $5 (Current Price: $4.15 as of Nov. 19)

2. Telefonica SA (Ticker: TEF)

• Upside Potential: 10.1%
• Overview: As Spain's leading telecommunications company, Telefonica boasts a 7.1% dividend yield. Recent strategic moves, including divestments and acquisitions, have bolstered its core markets and balance sheet.
• CFRA Price Target: $5 (Current Price: $4.54 as of Nov. 19)

3. Kinross Gold Corp. (Ticker: KGC)

• Upside Potential: 21.5%
• Overview: This Canadian gold miner has a diversified global portfolio. Its growth projects and a bullish outlook for gold prices make it an attractive investment.
• CFRA Price Target: 17 Canadian dollars ($12.15, Current Price: $10 as of Nov. 19)

4. Aegon Ltd. (Ticker: AEG)

• Upside Potential: 18.4%
• Overview: This Dutch insurance company focuses on strategic assets to reduce capital volatility. Its robust share buyback program reflects management's confidence, with earnings expected to double by 2025.
• CFRA Price Target: $7.50 (Current Price: $6.33 as of Nov. 19)

5. Korea Electric Power Corp. (Ticker: KEP)

• Upside Potential: -7.9%
• Overview: An integrated utility provider in South Korea, Korea Electric benefits from higher tariffs and cost-cutting initiatives. While its price may appear limited, the company enjoys government backing and consistent profits.
• CFRA Price Target: $8 (Current Price: $8.69 as of Nov. 19)

6. Telecom Italia S.p.A. (Ticker: TIIAY)

• Upside Potential: 25%
• Overview: Telecom Italia is restructuring to reduce debt and improve financial stability. A $20 billion network sale will allow the company to focus on high-margin services.
• CFRA Price Target: $3 (Current Price: $2.40 as of Nov. 19)

7. Wolfspeed Inc. (Ticker: WOLF)

• Upside Potential: 132.9%
• Overview: Wolfspeed specializes in silicon carbide semiconductors, a key component for electric vehicles. Despite market setbacks, it remains positioned for long-term growth, with significant revenue projections for fiscal 2026.
• CFRA Price Target: $15 (Current Price: $6.44 as of Nov. 19)

8. Bumble Inc. (Ticker: BMBL)

• Upside Potential: 21.4%
• Overview: Bumble operates leading online dating platforms. While facing revenue challenges, its user base has grown significantly. Analysts see the stock as undervalued with promising free cash flow and growth opportunities.
• CFRA Price Target: $9.50 (Current Price: $7.82 as of Nov. 19)

9. Stratasys Ltd. (Ticker: SSYS)

• Upside Potential: -18.3%
• Overview: Stratasys, a 3D printing leader, serves industries like healthcare and aerospace. With recurring revenue from printer production and consumables, it is poised for long-term growth.
• CFRA Price Target: $7.50 (Current Price: $9.19 as of Nov. 19)

FAQs

1. Why are stocks under $10 considered risky?

Stocks in this price range often reflect companies facing financial or operational challenges, making them higher-risk investments.

2. How do analysts identify promising cheap stocks?

Analysts evaluate fundamentals such as growth potential, financial stability, industry trends, and company strategies to identify undervalued opportunities.

3. Are dividends common among stocks under $10?

Dividends are rare in this category, but some exceptions, like Telefonica (7.1% yield), offer attractive payouts.

4. Should I diversify my portfolio with cheap stocks?

Yes, but ensure your portfolio includes a mix of risk levels and industries to balance potential gains with stability.

5. How can I evaluate a stock's potential?

Review financial reports, analyst ratings, and industry outlooks while considering your investment goals and risk tolerance.

Conclusion

Cheap stocks under $10 can present exciting opportunities for investors willing to navigate higher risks. These nine stocks, identified by CFRA analysts, offer unique value propositions across industries, from telecom and gold mining to technology and insurance. While some may carry short-term challenges, their long-term growth potential makes them worth considering for 2025. As always, conduct thorough research and consider professional advice before investing.

Important Note: Please Read Before You Invest

We’re just sharing some helpful tips, but remember, investing comes with risks. We can’t promise that these tips will always work or that you’ll make money. Everyone’s financial situation is different, so it’s smart to do your research or talk to a financial advisor before you invest. Using these tips, you agree that you’re responsible for your investment decisions and results.