At a time when many stocks are objectively and historically overvalued, many investors are wondering where they should put their investable capital in 2025. Some stocks that should attract your attention are trading for less than $10. These stocks allow investors to accumulate a significant number of shares for a nominal amount.
However, as is the case with any stock, you have to be careful not to confuse price with value. Some stocks under $10 are cheap for a reason. And if the stock is overvalued, investors may face an unnecessary downside risk. As you look to rebalance your portfolio in 2025, here are three stocks trading for under $10 per share to consider buying.
Coty Offers Compelling Value in the Growing Beauty Sector
Coty Today
(As of 12/19/2024 05:31 PM ET)
- 52-Week Range
- $6.93
▼
$13.30
- P/E Ratio
- 41.18
- Price Target
- $11.41
Coty Inc. NYSE: COTYis a mid-cap company in the expanding beauty and skincare market. The company is particularly strong in the fragrance category. And since the company’s earnings report in November 2024, Coty announced a partnership with the world-renowned crystal house Swarovski. The agreement is for a long-term beauty license, which will create an opportunity for the two companies “to develop, produce, and distribute a new vision of fragrances.”
That partnership won’t commence until 2026. Still, the announcement gave COTY stock a lift of about 3%. However, it’s down about 40% in 2024. This comes even though the company was able to deliver a 200 basis-point gross margin expansion and 20% year-over-year EPS growth. The company is also taking steps to deleverage and increase its savings target from $75 million to $120 million.
COTY stock is trading at a premium to its forward price-to-earnings (P/E) ratio of around 13x. However, even as they lower their price targets, analysts are maintaining a consensus price of $11.41. That would provide investors with a 55% upside from its level on December 17, 2024.
IAMGOLD: A Best-in-Class Miner as Investors Move to Hard Assets
IAMGOLD Today
(As of 12/19/2024 05:31 PM ET)
- 52-Week Range
- $2.23
▼
$6.37
- P/E Ratio
- 3.98
- Price Target
- $6.68
Lost in the obvious hype around the surge in Bitcoin, investors shouldn’t ignore that gold has been one of the best-performing asset classes in 2024. The spot price of gold has climbed approximately 35% in the 12 months ending December 17.
The flight to hard assets is due to a number of factors. These include the accumulation by global central banks, the Federal Reserve beginning its campaign to lower interest rates, and investors looking for safe-haven assets with growth potential.
That hasn’t translated to the price of many gold mining stocks. However, IAMGOLD Corp. (NYSE: IAG) has been an exception in that regard. IAG stock is up a whopping 107% in 2024, and based on its consensus price, analysts believe there will be at least a 27% additional upside in the next 12 months.
IAMGOLD owns and operates gold mines on several continents. Its two largest projects are the Westwood mine in Canada and the Essakane mine in Burkina Faso. The company also has royalty interests in its Cote Gold project. The Essakane mine delivers the majority of the company’s revenue, which is up 68% year-over-year through the first three quarters of 2024.
Transocean May Become Essential in the Move Toward Energy Independence
Transocean Today
(As of 12/19/2024 05:31 PM ET)
- 52-Week Range
- $3.53
▼
$6.88
- Price Target
- $6.25
In terms of promises made and promises kept, the Trump administration assuredly is going to look to re-enact the policies that made the United States energy independent in the latter half of Trump’s first administration. “Drill, baby, drill” is the bumper sticker for this effort, but energy stocks like Transocean Ltd. NYSE: RIGwill be essential for this to happen.
Transocean provides offshore contract drilling services for oil and gas wells worldwide. The company’s fleet of drilling rigs is young and meets the highest specifications among floating drilling rigs in the industry. In its December 2024 investor presentation, Transocean highlighted that these rigs typically secure the highest day rates during market upcycles.
Not surprisingly, the company’s revenue and earnings are up sharply this year as the United States has increased its drilling activity. The difference between a Trump administration and an oil company is its ability to target new drilling sites. That’s where the Swiss-based Transocean’s products will be necessary.
Despite the year-over-year revenue increase, RIG stock is down more than 41% in 2024. But analysts are becoming more bullish on the stock. The consensus price target of $6.25 would be approximately 70% higher than the RIG stock price on December 14.
Before you consider Transocean, you’ll want to hear this.
MarketBeat keeps track of Wall Street’s top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on… and Transocean wasn’t on the list.
While Transocean currently has a “Hold” rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
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