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 catch your attention are trading for less than $10. These stocks allow investors to accumulate a large number of shares for a nominal amount.
However, as with any stock, you need to be careful not to confuse price with value. Some stocks under $10 are cheap for a reason. If a stock is overvalued, investors may face unnecessary downside risk. As you look to rebalance your portfolio in 2025, here are three stocks trading for less than $10 per share to consider buying.
Coty offers compelling value in the growing beauty sector
Kuti today
(As of 05:31 PM ET)
- 52 week range
- $6.93
▼
$13.30
- P/E ratio
- 41.18
- Price target
- $11.41
Coty company New York Stock Exchange: CotyIt is a mid-sized company in the expanding beauty and skin care market. The company is particularly strong in the fragrance category. Since the company’s earnings report in November 2024, Coty Announced a partnership With the world-famous Swarovski Crystal House. The agreement aims to obtain a long-term cosmetic license, which will create an opportunity for the two companies to “develop, produce and distribute a new vision of fragrances.”
This partnership will not begin until 2026. However, the announcement gave COTY shares a rise of about 3%. However, it is down nearly 40% in 2024. This comes even though the company was able to achieve a 200 basis points gross margin expansion and 20% year-over-year EPS growth. The company is also taking steps to deleverage and increasing its savings target from $75 million to $120 million.
COTY shares trade at a premium to a forward price-to-earnings (P/E) ratio of about 13x. However, even as they lower their price targets, analysts maintain a consensus price of $11.41. This would provide investors with 55% upside from its level on December 17, 2024.
IAMGOLD: Best-in-class miner as investors move into hard assets
IMG Gold today
(As of 05:31 PM ET)
- 52 week range
- $2.23
▼
$6.37
- P/E ratio
- 3.98
- Price target
- $6.68
Amidst the obvious hype around Bitcoin’s rise, investors should not ignore that gold was one of the best-performing asset classes in 2024. The spot price of gold rose almost 35% in the 12 months ending on December 17.
The flight into fixed assets is due to a number of factors. These include global central bank build-ups, the Federal Reserve beginning its campaign to cut interest rates, and investors looking for safe-haven assets with growth potential.
This has not translated into the price of many gold mining stocks. but, IAMGOLD Corporation (NYSE: IAG) He was an exception in this regard. IAG stock is up a whopping 107% in 2024, and based on the consensus price, analysts believe there will be at least a further 27% rise 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 Isakani mine in Burkina Faso. The company also has equity interests in its Cote Gold project. The Isakan mine generates the majority of the company’s revenues, which rose 68% year-on-year during the first three quarters of 2024.
Transocean may become essential in the move toward energy independence
Across the ocean today
(As of 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 will certainly look to reinstate the policies that made the United States energy independent in the latter half of the first Trump administration. “Drill, baby, drill” is the bumper sticker for this effort, but energy stocks love it TRANSOCEAN LIMITED New York Stock Exchange: Regwill be necessary to achieve this.
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 rates of the day during market cycles.
Not surprisingly, the company’s revenues and profits rose sharply this year as the United States ramps up drilling activity. The difference between the Trump administration and the oil company is their ability to target new drilling sites. This is where Switzerland-based Transocean Products will be essential.
Despite increasing revenue year-over-year, 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% above RIG’s stock price on December 14.
Before you consider Transocean, you’ll want to hear this.
MarketBeat tracks the highest-rated and best-performing research analysts on Wall Street and the stocks they recommend to their clients on a daily basis. MarketBeat identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches up… 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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