Sunday, February 25, 2024
Dividend Stocks

3 Stocks Under $10 Poised to Double by the End of 2024

Attractive businesses that are likely to witnness healthy growth supporting stock upside

Source: rafastockbr /

Low-price stocks are the source of some adrenalin rush for investors. The movement in these stocks tends to be sharp, providing a good trading opportunity.

However, I do not like intraday or very short-term trades. I look for interesting oversold opportunities that I can hold for a few quarters for decent gains. This column focuses on stocks under $10 to double before the end of the year.

As a basic scanner, I also avoid stocks with weak fundamentals. Therefore, the names discussed have good business and reasonably good fundamentals. Further, these stocks under $10 are undervalued, and one catalyst can quickly translate into a big rally.

If business developments remain positive, these stocks under $10 are worth holding beyond the year. Let’s discuss the reasons to be bullish on these ideas.

Kinross Gold (KGC)

Kinross Gold (NYSE:KGC) stock has trended higher by 24% in the last 12 months. The stock, however, remains undervalued at a forward price-earnings ratio of 12.9. Further, KGC stock offers an attractive dividend yield of 2.18%.

It’s worth noting that gold trades above $2,000 an ounce, and I remain optimistic about further upside during the year. Potential expansionary monetary policies and geopolitical tensions are the key catalysts. Kinross is positioned to benefit through higher free cash flows, implying healthy dividend growth.

I like that Kinross has an investment-grade balance sheet. As of Q3 2023, the company reported a liquidity buffer of $2 billion. Further, with gold above $2,000 an ounce, the annual operating cash flow visibility will likely be $2 billion. Therefore, financial flexibility is high for organic and acquisition-driven production growth. With Q4 2023 results around the corner, it’s a good time to accumulate KGC stock.

Archer Aviation (ACHR)

Archer Aviation (NYSE:ACHR) stock has witnessed a significant correction from highs of $7.5. I believe this is a good accumulation opportunity. I would not be surprised if ACHR stock trades in double digits by the end of the year.

Regarding positive developments, Archer has completed phase one of flight test program in three months. The company remains on track to begin piloted “for credit” testing with the U.S. Federal Aviation Authority this year. This will set the stage for commercial operations in 2025.  

In another important development, the company has partnered with NASA to focus on “achieving the highest levels of battery cell safety and systems for Advanced Air Mobility (AAM) and space applications.”

It’s also worth mentioning here that Archer has announced plans to launch electric air taxi services in UAE and India in 2026. This will be through local partnerships, providing a significant addressable market for expansion.

Riot Platforms (RIOT)

Riot Platforms (NASDAQ:RIOT) trades a few cents above $10 and is an attractive bet for robust returns during the year. The Bitcoin (BTC-USD) miner can benefit from higher cryptocurrency prices. Further, Riot Platforms has ambitious mining capacity expansion plans that will translate into stellar growth.

To put things into perspective, Riot reported a deployed hash rate of 12.4EH/s in January. By the end of the year, the company expects hash rate capacity to increase to 28.8EH/s and further to 38.1EH/s by the end of 2025. Riot will deliver robust free cash flows if this is associated with Bitcoin surging to new highs.

An important point to note is that Riot has a zero-debt balance sheet. Further, with cash and digital assets of $599 million, there is ample flexibility to finance the massive expansion plans. Therefore, the near-term weakness in the stock is a good buying opportunity.

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 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.

Source link

Share with your friends!

Products You May Like

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the latest stocks updates
straight to your inbox

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.

x  Powerful Protection for WordPress, from Shield Security
This Site Is Protected By
Shield Security