Stocks trading under $10 can be attractive for investors looking to scoop up some cheap shares. Unfortunately, quality stocks trading for less than $10 are few and far between. Stocks priced at this level can be a red flag for investors that something serious is wrong with a company. Many of these stocks have challenged underlying business models or difficult near-term outlooks.
However, the CFRA analyst team has identified some cheap, high-quality stocks that could be excellent buying opportunities for frugal investors in 2025. Here are nine of the best stocks to buy under $10, according to CFRA:
Vale SA (VALE)
Vale is a Brazilian miner and is one of the world’s largest iron ore and nickel producers. Vale shares lagged in 2024 and are down about 34% in the past year. The silver lining is the pullback has pushed Vale’s dividend yield up to 16.4%, the highest on this list and a rarity among stocks priced under $10. Analyst Matthew Miller says Vale generates impressive free cash flow and has taken meaningful steps to improve safety following the deadly Brumadinho and Samarco dam disasters. CFRA has a “buy” rating and $13 price target for VALE stock, which closed at $8.98 on Jan. 21.
Nokia Corp. (NOK)
Nokia is a telecom equipment and digital map data vendor that also licenses intellectual property to third parties. Nokia shares are up about 35% in the past 12 months, the best performance of any stock on this list. Analyst Firdaus Ibrahim says the 5G investment cycle in North America and China has gained momentum and will likely be larger and longer-lasting than previous cycles, supporting Nokia’s demand. Ibrahim says Nokia’s track record of solid execution and its improved financial visibility suggest additional upside ahead. CFRA has a “buy” rating and $5 price target for NOK stock, which closed at $4.61 on Jan. 21.
Telefonica SA (TEF)
Telefonica is the leading telecommunications company in Spain. Analyst Adrian Ng says Telefonica has made several major moves in recent years to divest underperforming assets, improve its balance sheet and focus its business on core markets. The company exited Central America but acquired GVT in Brazil and E-Plus in Germany. Telefonica also combined its U.K. telecom assets in a joint venture deal with Liberty Global Ltd. (LBTYK) that included a major cash infusion for Telefonica. Ng says Brazil and Germany have been key growth markets for Telefonica. CFRA has a “buy” rating and $5 price target for TEF stock, which closed at $3.98 on Jan. 21.
Aegon Ltd. (AEG)
Aegon is a Dutch insurance company that offers insurance, savings, pension, and investment products and services around the world. Analyst Jeff Lye says Aegon has achievable financial targets and an impressive management team. Lye is bullish on the company’s strategy of extracting capital from non-core financial assets and focusing on strategic assets that reduce capital ratio volatility and generate an attractive return on capital. In addition, the company’s aggressive share buyback program indicates management is optimistic about Aegon’s financial outlook in 2025 and beyond. CFRA has a “buy” rating and $7.50 price target for AEG stock, which closed at $6.48 on Jan. 21.
Korea Electric Power Corp. (KEP)
Korea Electric Power is an integrated electric utility company that transmits and distributes electricity in South Korea. Analyst Ahmad Halim says higher tariffs should help offset the negative impacts of a slowing Korean economy. Halim says four consecutive quarters of operating profits is an encouraging trend, and the company’s cost restructuring plan could boost margins in the coming years. Finally, Halim says the Korean government’s majority ownership stake in Korea Electric likely ensures the company will get favorable policy treatment and continue to grow earnings and revenue. CFRA has a “buy” rating and $9 price target for KEP stock, which closed at $7.42 on Jan. 21.
Telecom Italia S.p.A. (OTC: TIIAY)
Telecom Italia is the leading fixed-line and wireless telecommunications provider in Italy. The company sold its network operations to KKR & Co. Inc. (KKR) in 2024. Ng says the network operations divestment is in line with his expectations that Telecom is prioritizing asset sales and debt reduction. He says the post-deal company will be more focused on high-margin service revenue. Nevertheless, Ng says Telecom is facing an intensely competitive market in Italy. Fortunately, Telecom Italia’s Brazil business has generated solid revenue growth and increased its average revenue per user. CFRA has a “buy” rating and $3 price target for TIIAY stock, which closed at $2.62 on Jan. 21.
Topgolf Callaway Brands Corp. (MODG)
Topgolf Callaway Brands operates golf entertainment venues and produces premium golf equipment and apparel. Analyst Zachary Warring says the 2024 weakness in Topgolf’s stock price gives long-term investors an attractive entry point. Warring says Callaway has successfully secured branding deals with some of the world’s top golfers, including John Rahm and Xander Schauffele. The company is steadily expanding its Topgolf footprint by opening new locations, and Warring says its golf equipment segment generates significant internal cash flow that the company can reinvest in growth initiatives. CFRA has a “buy” rating and $18 price target for MODG stock, which closed at $8.58 on Jan. 21.
Wolfspeed Inc. (WOLF)
Wolfspeed develops and produces silicon carbide (SiC) semiconductor materials and other advanced materials and devices. The SiC market is closely tied to the electric vehicle market, which has been a disappointment for investors lately. Wolfspeed shares are down about 80% in the past year, the worst performance of any stock on this list. Nevertheless, analyst Brooks Idlet says Wolfspeed has plenty of liquidity to navigate the cyclical SiC downturn and emerge by fiscal 2027 as a more efficient leader in a secular growth market. CFRA has a “buy” rating and $7 price target for WOLF stock, which closed at $6.28 on Jan. 21.
Bumble Inc. (BMBL)
Bumble is a leading online dating services provider and is the parent company of the Bumble and Badoo mobile apps. Analyst Shreya Gheewala says Badoo’s recent redesign has been a success, and the company’s new artificial intelligence features show promise. Management is aiming to better capture high-intent users, which is key to Gheewala’s long-term investment thesis. She says Bumble could better monetize its platform if it introduces a lower-priced subscription tier aimed at Gen Z users and optimizes its AI features to provide better recommendations. CFRA has a “buy” rating and $9.50 price target for BMBL stock, which closed at $7.66 on Jan. 21.