The 3 Best Under-$10 Stocks to Buy in January 2024
Investors tend to be attracted to stocks that trade at a cheap price due to the fact that they offer the possibility of great returns for not a large amount of capital invested. Small-cap companies typically trade at a lower price compared to larger companies. Investors should be aware that stocks that trade at a cheap rate, such as below $10 per share, are inherently riskier than stocks with a strong financial position and great reputation. Cheap companies have a much higher chance of wild swings in their share price due to overall investor uncertainty regarding a company and that a simple news story could make or break a company.
Cheap stocks do have their place if investors focus on preventing overexposure to risky companies. These stocks can offer outstanding returns under the correct circumstances. And there is always a possibility that investors could find a small and cheap company that later on grows into a mid-cap or even a large-cap stock.
Below, I discuss three stocks under $10 that would be a good addition to a small-scale investment portfolio.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Mizuho Financial Group
Source: TK Kurikawa / Shutterstock
Mizuho Financial Group (NYSE:MFG), located in Tokyo, Japan, is a banking and financial services company. They provide their customers with various banking products such as payroll services, asset management, underwriting services, currency transactions, and online services.
Over the past year, Mizuho Financial Group has seen its share price rise by 21%. This improvement is due to the company being in more of an advantageous position financially, their proposed share buybacks within their most recent financial report, and the increase in their dividend payout to investors.
Their reported earnings for the first half of fiscal year 2023 stated that total revenue increased by more than three fold. They also offer a decent dividend yield, which is 3.57% on an annual basis, and are distributed semi-annually for $0.07 per share.
On December 1, Mizuho announced that it acquired Greenhill & Co. (NYSE:GHL), a financial services company, to add to its banking and advisory services segment.
Crexendo
Source: Shutterstock
Crexendo (NASDAQ:CXDO) is located in Tempe, Arizona, and operates a cloud platform. They provide communication services through their cloud platform, broadband internet services, and a wide range of devices. They also provide customers with the software and hardware related to their products, technical support, and maintenance.
On November 9, Crexendo reported earnings for the third quarter of 2023, which stated that their total revenue increased by 52% compared to the previous year. And they also reported that their earnings per share was $0.07. Their product revenue increased by 21%, service revenue grew by 68%, and product revenue increased by 119% within the same time period mentioned above.
On December 19, the company announced that its cloud platform user base had increased to over 4 million in the U.S. and internationally. And over the past year, their share price increased by 157% due to an increase in their overall customer base and the positive earnings results for the third quarter.
Ardelyx
Source: Billion Photos / Shutterstock
Ardelyx (NASDAQ:ARDX), headquartered in Waltham, Massachusetts, is a biotech company that produces medicine to treat cardiorenal and gastrointestinal diseases. Their flagship products include Xphozah, an oral medication that helps treat chronic kidney disease. And Ibsrela, which treats irritable bowel syndrome with constipation.
On October 31, Ardelyx announced its third-quarter earnings results, which stated that total revenue increased by over 11-fold compared to the previous year. They reported a net loss of $23 million in Q3 2022; in the third quarter of 2023, they stated a net income of $7 million. On January 8, Ardelyx reported that its IBS-C treatment, Ibsrela, has the potential of reaching more than $1 billion in revenue in terms of peak annual sales. Following this news, Ardelyx’s stock price surged by nearly 50%.
Throughout this last year, their share price has more than tripled due to positive results regarding their flagship therapies, Ibsrela and Xphozah. And the company’s strong financial position to close out 2023.
As of this writing, Noah Bolton did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Noah has about a year of freelance writing experience. He’s worked with Investopedia dealing with topics such as the stock market and financial news.
More From InvestorPlace
ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors
The post The 3 Best Under-$10 Stocks to Buy in January 2024 appeared first on InvestorPlace.
