7 Cheap Stocks to Buy If You Only Have $100 to Spend
At times like this, it’s important for retail investors to get the most bang for their buck. So in this article, I’m going to direct investors to several cheap stocks that are trading for less than $10. These are good picks for investors who may not have a lot of money to put into the market.
The attraction of cheap stocks is easy to understand. A stock that is trading under $10 can offer you the ability to make huge gains. And, stocks under $10 give investors several great options for building a diversified portfolio.
Yes, many stocks that trade under $10 because the company may have a fundamentally problematic issue that is suppressing its growth. So if you’re going to buy cheap stocks make sure you do your due diligence.
However, the reality is that you can find many good stocks to buy for under $10. And here are seven cheap stocks that are good buys even if you only have $100 to spend.
- fuboTV (NYSE:FUBO)
- Just Eat Takeway.com (NYSE:GRUB)
- Coty (NYSE:COTY)
- Hims and Hers Health (NYSE:HIMS)
- AppHarvest (NASDAQ:APPH)
- SoFi Technologies (NASDAQ:SOFI)
- PureCycle Technologies (NASDAQ:PCT)
Cheap Stocks: fuboTV (FUBO)
The first of my cheap stocks to buy is fuboTV, which competes in two sectors: streaming and sports betting. I don’t believe the company is going to be a dominant player in either sector. But FUBO stock looks like a solid sum-of-its-parts stock. And that seems to be getting overlooked when looking at the fuboTV stock price.
As a streaming stock, fuboTV is targeting the live sports niche. It’s certainly not the only streaming service to offer live sports, but it’s the audience that fuboTV is targeting. And because the company will have its own sports book, that makes sense. Once you have customers streaming its programming, it’s not a leap to believe they will use the sports betting app.
This crossover appeal may also make FUBO a takeover target. This is an opinion that Dana Blankenhorn expounded on in a November 2021 article for InvestorPlace.
Analysts give FUBO stock a consensus price target of $25.38, which is a whopping 236% gain from its current price.
Just Eat Takeaway.com (GRUB)
Investors may be more familiar with Grubhub, which is one of the brands owned by Just Eat Takeaway.com. Events like the Covid-19 pandemic have ripple effects that may last for years. And frequently they fundamentally change behaviors.
Right now that appears to be happening in terms of how Americans choose to eat at restaurants. At the end of 2019, one study found that 62% of Americans expressed a preference for dining in rather than carryout or delivery. However, by early 2021, 53% of adults said that purchasing carryout or having food delivered was “essential to the way they live.”
It’s still an open question as to whether this will assist food delivery services. GRUB stock is following the bearish pattern of DoorDash (NYSE:DASH). However, like DASH, Just Eat Takeaway.com stock is seeing a higher consensus price target from analysts. One reason may be the company’s plans to expand their services in the United Kingdom to encompass home grocery delivery.
High inflation and the possibility of an economic downturn is a reason for investors to look at defensive stocks. Coty is beauty products company that has been an uneven recovery play. The company develops, manufacturers, markets and distributes over 77 brands.
COTY stock is down 3% in the last 12 months, but is trading at the bottom end of its 52-week range. The stock is also showing consistent interest from institutional investors in the last 12 months with buyers outnumbering sellers by about 2 to 1. The company has ambitious plans to grow revenue at a faster pace than the overall beauty market. The company is projecting 20% to 25% net revenue CAGR through its 2025 fiscal year.
Analysts have a consensus price target of $12.50, which gives investors a potential 52% upside to consider. Investors looking to initiate a position may want to look at the short interest which spiked significantly in the last quarter.
Cheap Stocks: Hims and Hers Health (HIMS)
Hims and Hers Health is a growing company in the telehealth sector. The company connects its customers to licensed health professionals a service that is continuing to grow even as the pandemic wanes. The company also has its own line of health and wellness products.
HIMS is still in the early stages of its growth. As evidence of this are two partnerships. One is with Goodpath, which will give the company access to a broader range of educational content and programming. The other is with GNC Holdings (NYSE:GNC) that will allow the company to offer its products in select GNC stores as well as via the company’s website.
This push to expand its distribution channels is drawing the attention of analysts who give the stock a $10.40 price target, which would be a 119% gain.
I’ll admit that my bullish premise for AppHarvest is a bit uncomfortable. The applied agricultural technology company develops and operates indoor farms that grow non-GMO produce free of chemical pesticide residues.
My uncomfortable premise is that our supply chain difficulties may get worse. The sanctions against Russia are likely to trigger a response that could impact the input side of the supply chain. This means it may be difficult, and expensive, for farmers to get the chemicals and fertilizer they need. This could work to the benefit of a company like AppHarvest.
Of course, there’s a less bullish premise that relies on the idea that consumers will continue to actively seek out non-GMO produce. That could be true. But, AppHarvest generated just over $3 billion in sales in the prior quarter. And the company is not yet profitable. Investors will need to see improvement on both counts.
SoFi Technologies (SOFI)
SoFi is one of the leading stocks in the fintech sector. However, investors have been souring on technology stocks in general and the fintech sector in particular. The company had a double beat in its March 1 earnings report, but the beats were not significant enough to change investor sentiment.
That being said, SOFI stock is trading at the lower end of its 52-week range and is showing signs, at least from a technical standpoint, of being oversold. And if you dig into the earnings report, you can see why that may be the case. The company reported a 54% year-over-year gain in adjusted revenue and continues to bring in new customers.
The concern is with earnings. The company reported a net GAAP loss of $111 million that was higher than the prior year. And the company is not forecasted to be profitable until the second half of 2023. Speculative investors will like the consensus price target that, at $18.29, would give the stock an 87% upside.
Cheap Stocks: PureCycle Technologies (PCT)
If you’re looking for a high-risk, high-reward stock, then you may want to consider PureCycle Technologies. PCT stock is trading around $9.61 as of this writing. But analysts have a $30.83 consensus price target for PCT stock. That’s an eye-popping gain of over 200%.
PureCycle is a play on the circular economy. The company is addressing the reality that consumers are prioritizing sustainability more in where they shop and what they buy. They are more sensitive to “greenwashing” and are now demanding more from companies. To that end, PureCycle has several initiatives in the pursuit of making plastic that can be “infinitely sustainable.”
PureCycle is a pre-revenue company and it’s unlikely that it will start generating revenue until late in 2022. On the company’s most recent earnings call, it said it was still on target to have its initial manufacturing facility in Ironton, Ohio online in the fourth quarter of 2022. The company is also planning to break ground on its polypropylene recycling facility in Augusta, Georgia in March 2022.
On the date of publication, Chris Markoch did not have (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.