Best stocks to buy under $10
Best stocks to buy under $10

Best stocks to buy under $10 || Best 5 Stocks

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  • Post last modified:June 8, 2022

Best stocks to buy under $10

In this article, we aim to help our readers in getting their eyes on the best stocks to buy under $10 and help them in realizing good returns from investment in the stock market.

Do you wonder how Warren Buffet was able to build such a huge amount of wealth through investment in the stock market?

Well even if you may not think about warren Buffet the fact that you are currently reading this article indicates your affinity towards investing in the stock market and you are looking to gather as much knowledge as possible to ace your decisions and make money online through stock market investments.

In this article, we will be covering all the relevant topics you need to know for picking the best stocks to buy under $10.

Stock Market Investment Fundamentals

Before we move forward to our recommended list of best stocks to buy under $10, we would like to give a brief introduction to the stock market and the fundamentals of investment.

One of the first things our readers should know is the investment option you have:

  • Savings Deposits
  • Fixed Deposits
  • Pension Funds and Special Govt. saving schemes
  • Govt. Bonds
  • Private Bonds
  • Fixed asset investment
  • Mutual Fund
  • Stock or Equity
  • Cryptocurrency and NFT

The order of investment options we have arranged above is by no means nonsensical.

If you carefully observe we have arranged them in the order of increasing risk and higher return possibility one gets by selecting each of the investment options.

We prepared this list keeping in mind novice traders who start investing in the stock market or riskier options without fully understanding the pros and cons.

How to select the best stock

Best stocks to buy under $10

Before we move forward with the list of best stocks to buy under $10 we would like to help our investors know more about how one can look to select the list, or the investment rationale involved:

  • Make a decision on the investment criteria for example if you are looking to buy the best stocks under $10 first make a list of stocks that costs less than $10.
  • Divide the stocks based on various sectors like banks, automobiles, Information technology, etc.
  • Calculate financial ratios of each company like PE ratio, market cap, profitability ratios, etc.
  • Try to find out about the management of the company and whether the management Is strong enough to fuel growth, and has no records of malpractice or mismanagement. One tip is always to stay away from companies with reports of mismanagement
  • Carry out research and analysis about the business of the companies try to understand which countries they carry out their business and whether the country in which the company is carrying out its business has a growing economy, key revenue segments, product portfolio, and demand of its products.
  • Always do a competitor analysis to estimate the future of the company. Analyze the macroeconomic factors and decide on the best time and sector to invest in.
  • Analyze the industry or sectors your list of stocks is divided into to take a call on which sectors have a better growth prospect.
  • Compare the stocks from the list in the selected sector to pick the stocks with the best probability to have higher returns on your investment.
  • Make an assessment of the net investment you can put in the stock market.
  • Based on the investable amount select a portfolio of stocks and make sure to diversify your portfolio.
  • We recommend selecting the best stocks of each sector to reduce risk.

Factors to look at before selecting the Best stocks to buy under $10

Some of the key factors an investor should consider before selecting a portfolio of stocks under $10 are

  • Macroeconomic stability in terms of inflation, employment rate, and interest rates
  • The financial growth of the company in terms of net asset
  • Quality of the management in handling challenging situations
  • Profitability of the company in the last 5 to 10 years
  • The physical presence of the bank
  • Future outlook of the company and its plans to grow in future

List of Best Stocks to buy under $10

  1. Banco Santander SA 

Business Overview: Banco Santander is a Spanish bank with a global presence across multiple countries which including North and South America and continental Asia.

It provides a diversity of business dimensions being part of the Santander Group. It is the 16th largest financial institution in the world.

Market Cap52.874B
HeadquartersBoadiilla del Monte, Spain
RecommendationModerate Buy
CEOJose Antonio Alvarez since 1st Jan 2015
PE Ratio (TTM)6.09
Dividend & Yield3.43%

The financial services provided by Banco Santander are Retail, corporate, investment and private banking, insurance, asset management, and private equity.

Why we recommend buying stocks of Banco Santander SA

  • Strong international presence in North & South America and Continental Asia
  • A strong and robust fundamental with a combination of high-growth emerging market banking exposure and relatively stable, high-visibility developed market banking exposure.
  • Good future outlook with the bank looking to expand its business in the Retail banking sector to improve profitability.
  • A number of research analysts maintain a buy call in this stock
  • Low price value of approximately $3 which satisfies our criteria of selecting the best stocks under $10 mark
  1. Lloyds Banking Group plc (LYG)

Business Overview: Lloyd’s banking group is a United Kingdom-based financial institution that provides banking and insurance services to its customers.

The bank was formed through an acquisition of the HBOs by Lloyds and has since been one of the UK’s largest financial institutions. It has over 30 million customers served by 65000 employees.

Market Cap40.31B
HeadquartersLondon, United Kingdom
RecommendationModerate Buy
Founded2009
PE Ratio (TTM)6.36
Dividend & Yield4.74%

Why we recommend buying stocks of Lloyd’s banking group

  • Robust financial performance in this year’s April quarter with a 10% Net interest Income growth and 11% growth in other income
  • Research analysts maintain a buy rating due to the strong growth outlook
  1. Banco Bradesco SA (BBD)

Business Overview:: Banco Bradesco is one of the largest Brazilian banks. It operates as a bank and provides financial services like internet banking, insurance, pension plans, annuities, credit card services (including football club affinity cards for soccer fans) for clients, and savings bonds

Market Cap42.95B
HeadquartersOsasco Brazil
RecommendationModerate Buy
Founded1943 in Brazil
PE Ratio (TTM)8.56
Dividend & Yield1.85%
Profit Margin25.17

Why we recommend buying stocks of Banco Bradesco

  • Strong 2022 first-quarter earnings driven by good cost management and strong loan growth.
  • Analysts predict a strong surge in its stock prices due to improvement in business activities post covid curbs being lifted
  1. ING Groep NV (ING)

Business Overview: ING Groep is a Dutch bank that provides financial services like banking, insurance, and asset management services. The stock prices took a big hit with a fall of 27% in May 2018, however recently its profitability has started to rise.

It’s the Dutch representative of the Inter Alpha Group of Banks which is a cooperative group of 11 European banks.

Market Cap42.24B
HeadquartersAmsterdam, Netherlands
RecommendationModerate Buy
Founded1991
PE Ratio (TTM)9.66
Dividend & Yield8.76
Profit Margin24.65

Why we recommend buying stocks of East ING Groep NV

  • Despite a major fall in profitability leading to a 27% decline in its stock prices the bank has been able to become profitable due to growth in major clients and higher payment package prices.
  • Has a competitive advantage of strong deposit in core markets?
  1. Banco Bilbao Vizcaya Argentaria (BBVA)

Business Overview: Banco Bilbao Vizcaya is a Spanish bank that has a diversified global presence in countries like Spain, South America, North America, Turkey, and Romania

The second-largest Spanish bank possesses 7,963 offices, 125,627 employees, and 74.5 million customers, and is present in more than 30 countries, some of the key countries it provides financial services are listed above.

Market Cap35.44B
HeadquartersBilbao, Spain
CEOOnur Genc
RecommendationModerate Buy
Founded1999
PE Ratio (TTM)6.77
Dividend & Yield7.62
Profit Margin26.24

Why we recommend buying stocks of Banco Bilbao Vizcaya

  • Banco Bilbao Vizcaya focuses more on emerging economies that have the ability to push profitability higher in future
  • Improving business in Mexico and the Bank’s presence in Mexico indicates a strong future.

Final Words…

Best stocks to buy under $10

Kudos. We have come to an end of this article on the best stocks to buy under $10. Hopefully, you enjoyed your time reading it.

We ensured that even novice investors looking to make some money in the stock market first get acclimatized to the various aspects of the stock market before we discussed about the list of best stocks to buy under $10.

Since have reached the end of this article we feel it is important to reiterate a key point missed by many investors, every investment decision made needs to be balanced on 2 scales: return and risk, which means a stock with a higher return probability has greater associated risk which one needs to understand.

Feel free to visit our site at any point in time to refresh your knowledge about investing in the best stocks to buy under $10.

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