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 nine 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 are down about 44% this year through Dec. 18. The silver lining is the pullback has pushed Vale’s dividend yield up to 16.8%, the highest on this list and a rarity among stocks priced under $10. Analyst Matthew Miller says it’s understandable for investors to be concerned about Vale’s role in the deadly Brumadinho and Samarco dam disasters, but Vale has taken significant measures to improve safety. CFRA has a “buy” rating and $13 price target for VALE stock, which closed at $8.74 on Dec. 18.
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, reduce debt and focus its business on core markets. Those moves include acquiring E-Plus in Germany and GVT in Brazil and exiting the Central American market. 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 Telefonica’s growing focus on stable markets should unlock long-term value. CFRA has a “buy” rating and $5 price target for TEF stock, which closed at $4.08 on Dec. 18.
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 28.3% this year, the best performance of any stock on this list. Analyst Firdaus Ibrahim says momentum is building for the 5G infrastructure investment cycle in North America and China. In fact, Ibrahim predicts the 5G network cycle will be larger and longer-lasting than previous cycles, supporting Nokia’s demand. He says Nokia has executed well in a difficult environment and has improved earnings visibility. CFRA has a “buy” rating and $5 price target for NOK stock, which closed at $4.39 on Dec. 18.
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 an impressive management team that is prioritizing extracting capital from the company’s non-core assets and focusing on strategic investments that reduce capital ratio volatility and generate an attractive return on capital. Lye says Aegon’s decision to ramp up its share buybacks reflects positively on management’s financial outlook. Finally, Aegon trades at less than 10 times Lye’s 2025 earnings estimate, an attractive valuation. CFRA has a “buy” rating and $7.50 price target for AEG stock, which closed at $5.68 on Dec. 18.
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 slowdown in the Korean economy. Korea Electric has reported four consecutive quarters of operating profits, which Halim says is a positive sign for investors. In the longer term, Korea Electric will also benefit from the fact that the South Korean government is a majority owner of the company, likely ensuring favorable government policies. CFRA has a “buy” rating and $9 price target for KEP stock, which closed at $7.26 on Dec. 18.
Telecom Italia S.p.A. (OTC: TIIAY)
Telecom Italia is the leading fixed-line and wireless telecommunications provider in Italy. The company sold off its network operations to KKR & Co. Inc. (KKR) in 2024. Ng says the network sale is in line with his expectations that Telecom Italia is aiming to divest assets to reduce debt and focus its business more on high-margin service revenues. He says Telecom Italia’s core markets remain highly competitive, but the company is generating modest service revenue growth in steadily improving average revenue per user in both Italy and Brazil. CFRA has a “buy” rating and $3 price target for TIIAY stock, which closed at $2.77 on Dec. 18.
Topgolf Callaway Brands Corp. (MODG)
Topgolf Callaway Brands operates golf entertainment venues and produces premium golf equipment and apparel. Analyst Zachary Warring says the stock’s steep sell-off in 2024 reflects an overly pessimistic view of Topgolf’s outlook. Callaway has secured valuable partnerships with top golfers, including Olympic gold medalist Xander Schauffele and two-time major championship winner Jon Rahm. Warring says the company’s golf equipment segment generates the cash flow needed to invest in opening new TopGolf locations. He projects Topgolf Callaway will return to positive revenue and earnings growth in 2025. CFRA has a “buy” rating and $18 price target for MODG stock, which closed at $7.52 on Dec. 18.
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 in recent months. Wolfspeed shares are down 83.2% year to date, the worst performance of any stock on this list. Nevertheless, analyst Brooks Idlet says Wolfspeed has enough liquidity to navigate the downturn and ultimately emerge as a leader in a secular growth market. Idlet projects 2% revenue growth in fiscal 2025 and 61% in 2026. CFRA has a “buy” rating and $15 price target for WOLF stock, which closed at $7.27 on Dec. 18.
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 re-design is showing signs of success, and Bumble should benefit from the addition of artificial intelligence features. While the company will continue to face challenges, Gheewala says the stock is significantly undervalued given Bumble’s 13.5% free cash flow yield. Gheewala says Bumble can improve platform monetization by introducing new subscription tiers, such as a lower-priced option aimed at Gen Z users. CFRA has a “buy” rating and $9.50 price target for BMBL stock, which closed at $7.64 on Dec. 18.