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 significant number of shares for a nominal amount.
However, as 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 a stock is overpriced, investors may face unnecessary downside risk. If you’re planning to rebalance your portfolio in 2025, take a look at three stocks that are trading under $10 per share.
Coty offers a compelling advantage in the growing beauty sector
Kochi today
(As of 5:31 p.m. ET)
- 52 week range
- $6.93
▼
$13.30
- P/E ratio
- 41.18
- Target price
- $11.41
Coty Inc. New York Stock Exchange: COTYis a mid-cap company in the growing cosmetics and skin care 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 famous crystal house Swarovski. The agreement includes a long-term cosmetics license that will give the two companies the ability to “develop, manufacture and distribute a new vision of fragrance.”
This partnership will not begin until 2026. However, the announcement sent COTY shares up about 3%. However, in 2024 it will decrease by about 40%. This is despite the company being able to deliver gross margin expansion of 200 basis points and EPS growth of 20% year over year. The company is also taking steps to deleverage and increase its savings target from $75 million to $120 million.
COTY shares trade at a premium to its forward price-to-earnings (P/E) ratio of about 13x. However, even with the price target cut, analysts are keeping the consensus price at $11.41. This will provide investors with upside potential of 55% compared to December 17, 2024 levels.
IAMGOLD: Best-in-class miner as investors move into hard assets
IAMGOLD today
(As of 5:31 p.m. ET)
- 52 week range
- US$2.23
▼
$6.37
- P/E ratio
- 3.98
- Target price
- $6.68
Lost in the apparent hype surrounding Bitcoin’s rise, investors shouldn’t ignore the fact that gold was one of the best-performing asset classes in 2024. The spot price of gold rose about 35% in the 12 months ended December 17.
The flight into hard assets is driven by a number of factors. These include global central bank savings, the Federal Reserve embarking on a campaign to cut interest rates and investors seeking safe-haven assets with growth potential.
This did not affect the price of many gold mining stocks. However, IAMGOLD Corp. (NYSE:IAG) was an exception in this regard. IAG shares are up as much as 107% in 2024, and based on consensus pricing, analysts believe there is at least 27% upside potential over the next 12 months.
IAMGOLD owns and operates gold mines on several continents. The company’s two largest projects are the Westwood mine in Canada and the Essakane mine in Burkina Faso. The company also has a royalty interest in its Cote Gold project. The Essakane mine accounts for the majority of the company’s revenue, which grew 68% year-on-year in the first three quarters of 2024.
Transocean can play an important role on the path to energy independence
Transoceanic today
(As of 5:31 p.m. ET)
- 52 week range
- $3.53
▼
$6.88
- Target price
- $6.25
In terms of making and keeping promises, the Trump administration will undoubtedly seek to renew the policies that made the United States energy independent in the second half of the first Trump administration. “Storm, baby, storm” is the bumper sticker of this effort, but energy stocks like Transocean LLC. NYSE: INSTALLATIONwill be critical to making this happen.
Transocean provides contract drilling services for oil and gas wells around the world. The company’s fleet of drilling rigs is young and meets the highest requirements among floating drilling rigs in the industry. In its December 2024 investor presentation, Transocean highlighted that these rigs typically provide the highest day rates during market upturns.
Not surprisingly, the company’s revenue and earnings have surged this year as the United States ramped up drilling activity. The difference between the Trump administration and the oil company is its ability to target new drilling sites. This is where the products of the Swiss company Transocean will be needed.
Despite year-over-year revenue growth, RIG shares are 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 RIG’s December 14 share price.
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