The stock market sell-off in 2022 has thrown up multiple opportunities for investors to buy quality stocks at depressed valuations. Several stocks across sectors have seen share prices fall below $10 in recent months. Investors with a high-risk profile can look to buy the best cheap stocks at a discount right now.
Before gaining exposure to these cheap stocks, investors should note that buying lower-priced shares carries significant risks. The macro-environment remains challenging, and these companies might have unproven business models. But these cheap stocks can also help you generate outsized gains if markets stage a comeback.
Let’s take a look at the 11 best cheap stocks to buy under $10 right now.
Valued at a market cap of $2.63 billion, Opendoor Technologies operates a digital platform for residential real estate in the United States. It allows customers to buy or sell a home online while providing insurance and escrow services.
In Q2 of 2022, Opendoor helped 14,000 sellers move and reported revenue of $4.2 billion, an increase of 250% year-over-year. Its gross profits stood at $486 million while contribution profit was $422 million.
It expanded its footprint in six new markets in the June quarter for home sellers and is now available in 50 markets. Opendoor also entered into a multi-year partnership with Zillow. Now sellers on Zillow’s platform can request a direct offer from Opendoor, combining the capabilities of two market leaders.
Market Cap: $2.63 billion
Share Price: $4.19
Target Price: $8.71
A popular meme stock that is trading 90% below all-time highs, Clover Health, is a new-age insurance provider. It is a low priced stock available at an attractive valuation. In the last year, Clover Health’s net loss more than tripled to $588 million, up from $136.4 million in the year-ago period. However, its revenue also rose 2x to $1.5 billion.
This strong momentum is forecast to continue in 2022 as well, as Clover forecasts sales between $3 billion and $3.4 billion in 2022, indicating an increase of 100% year-over-year.
Market Cap: $1.06 billion
Share Price: $2.23
Target Price: $3.58
Trading 93% below all-time highs, fuboTV is another cheap stock to buy right now. However, in its most recent quarter, the company grew sales by 70% year-over-year to $222 million. Its net losses also widened to $0.63 per share, up from a loss of $0.38 per share in the year-ago period. fuboTV’s ad sales rose despite lower ad spending by enterprises this year. Its global subscriber count surged 57% to 1.57 million at the end of the June quarter.
fuboTV is an online streaming platform for live sports, news, and entertainment content in the United States and other international markets.
Market Cap: $826 million
Share Price: $4.46
Target Price: $6.20
A large-cap stock operating in the data analytics space, Palantir stock is down 80% from all-time highs. It leverages big data to help its ever-expanding client base fight terror or even monitor supply chains.
Palantir serves both government and commercial customers. In the June quarter, this low priced tech stock increased sales by 26% to $290 million. Revenue from its commercial customer base surged 46% year-over-year. Additionally, sales from U.S.-based commercial customers rose by 120% year-over-year in Q2.
Palantir ended Q2 with a net retention rate of 119%, indicating that existing customers increased spending by 19% on its platform in the last year.
Palantir is among the best low price shares to buy today.
Market Cap: $16 billion
Share Price: $7.78
Target Price: $10.55
A legacy telecom equipment manufacturer, Ericsson also offers investors a tasty dividend yield of 3.2%. So, an investment of $10,000 in Ericsson stock would allow you to generate $320 in annual dividend payments.
While the 4G deployments continue to drive revenue for Ericsson, the worldwide shift to 5G technology should positively impact the top line in the upcoming decade. Ericsson already enjoys a 50% share in the 5G radio access networks market if we exclude China.
If you are looking to buy the best low price value shares, Ericsson should be on top of your shopping list.
Market Cap: $22.8 billion
Share Price: $6.75
Target Price: $10.71
LG Display is among the world’s largest manufacturers of LCD panels and OLED (organic light-emitting diode) screens.
LD Display is wrestling with tepid unit sales of end-user products, including smartphones and TVs. Due to rising commodity prices and supply chain disruptions, shipments of electronic goods might fall off a cliff in the next year.
But consumer demand remains robust in the OLED TV vertical. So, when the economy stages a comeback, LG Display is well poised to increase investor wealth multifold.
LG Display stock is priced at 0.2x forward sales and 10x free cash flow. Down almost 50% year-to-date, it also offers a yield of 5%.
Market Cap: $3.70 billion
Share Price: $5.24
Target Price: $4.70
Olo offers order-digitization services to restaurants, and the company has increased its sales from $31.7 million in 2018 to almost $150 million in 2021, indicating annual growth rates of 67% in this period.
Most restaurants globally lack the required tech infrastructure to scale online operations, which in turn results in lower customer engagement. Olo has onboarded 82,000 locations on its platform and expects its business to expand 100x in the future.
Olo stock is down 83% from all-time highs, and the company’s management believes its shares to be undervalued. It authorized a stock buyback program worth $100 million, which is 8% of its total outstanding shares.
Olo is a low price share trading at a massive discount to Wall Street price target estimates.
Market Cap: $1.27 billion
Olo stock price: $7.87
Olo stock price target: $12.60
A fintech company, SoFi Technologies started off as a platform that helped students refinance student loans at lower interest rates. It has since expanded into verticals such as lending and home loans as well as credit cards, investment brokerage, and cash management accounts.
In the first six months of 2022, SoFi increased its net interest income by 111% to $218 million. Due to its stellar revenue growth, its net losses narrowed to $206 million from $343 million in this period.
SoFi offers customers an annual yield of 1.8% on deposits allowing the company to increase its customer count by 69% year over year in Q2.
Market Cap: $4.83 billion
SoFi stock price: $6.05
SoFi stock price target: $8.63
Hims & Hers Health
Hims & Hers Health operates a telehealth platform connecting customers to licensed healthcare professionals. HIMS stock price is down 76% from all-time highs, despite rising 100% since July 2022.
In Q2, it increased revenue by a stellar 87% year-over-year, and analysts now forecast sales to touch $634 million in 2023, up from $272 million in 2021.
Hims & Hers increased its subscriber base to 817,000 in Q2, indicating it has enough room to gain traction in the United States over time.
HIMS is a low price share with massive upside potential in the next 12 months.
Market Cap: $1.21 billion
HIMS stock price: $5.88
HIMS stock price target: $8.15
A leader in the flexible workspace segment, WeWork stockis down 74% from all-time highs. WeWork offers workstations, private offices, and customized floor solutions in addition to other amenities, including internet, printers, mail, and package handling, among others.
In Q2 of 2022, WeWork reported revenue of $815 million, an increase of 37% year-over-year. The company is forecast to report revenue of $4.21 billion in 2023, up from $2.57 billion in 2021. It ended Q2 with a 72% consolidated physical occupancy that includes committed memberships.
Sandeep Mathrani, the CEO and Chairman of WeWork stated, “From our core dedicated space offerings, to our access products and newly launched software solution, WeWork Workplace, our second quarter results demonstrate how the versatility of our offerings provide companies of all sizes with the ultimate adaptability.
Mathrani added, “As we head into the second half of the year, we remain confident in our proven ability to execute against our goals of growing revenue, increasing occupancy and continuing to drive towards profitability.”
Market Cap: $2.87 billion
WeWork stock price: $3.63
WeWork stock price target: $9.13
The final low priced stock on my list is EVgo, one of the fastest-growing charging network companies in the United States. EVgo is also the first EV charging entity to be powered by renewable energy.
It has 950 charging stations in 60 cities and 30 states, allowing EVgo to service around 375,000 customer accounts. The global shift towards renewable energy solutions makes EVgo stock a top long-term bet.
Transportation in the United States accounts for a third of total carbon emissions. Moreover, the U.S. government and EV manufacturers are expected to allocate $500 billion toward developing EVs in the next five years.
In the next two years, original equipment manufacturers are expected to launch 50 new EV models, driving demand for EVgo’s charging network higher.
EVgo has increased sales from $13 million in 2020 to $22.2 million in 2021. Wall Street expects sales to more than double to $50.17 million in 2022 and touch $144 million in 2023.
Market Cap: $2.4 billion
EVgo stock price: $9.05
EVgo stock price target: $12.11