雅虎香港財經 7 Stocks Under $10 That Can Double in One Year
Low-priced stocks provide a good opportunity for small investors to create a diversified portfolio with limited funds. With a deep correction in growth and penny stocks, there are several stocks under $10 to double your money.
The markets continue to face headwinds of inflation and slow economic growth. However, there are investment themes that have outperformed even in sideways to lower market conditions. As an example, Canopy Growth (NASDAQ:CGC) has trended higher by 20% in one month as the company plans entry into the U.S. cannabis market.
My focus, therefore, is largely on deeply undervalued stocks under $10 to double your money with positive tailwinds. Depending on business developments, the investment time horizon can be expanded.
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Let’s look at the catalysts that will enable these stocks under $10 to double your money in one year.
Polestar Automotive | $4.64 | |
Riot Blockchain | $6.45 | |
Transocean | $3.66 | |
AppHarvest | $2.12 | |
Tilray Brands | $3.83 | |
Nio | $9.96 | |
Solid Power | $5.64 |
Polestar Automotive (PSNY)
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Amidst a broad correction in electric vehicle stocks, Polestar Automotive (NASDAQ:PSNY) has plunged. Widening losses at the operating level have also contributed to the correction. However, Polestar seems positioned for robust delivery growth and looks undervalued.
For the first nine months of 2022, Polestar has delivered 30,400 cars, which is 100% year over year. The company expects delivery of 50,000 cars for the year.
Polestar also unveiled Polestar 3, the company’s first electric performance SUV. Besides this, Polestar 4 is expected to be launched in 2023. The pipeline extends through 2026 when Polestar 6 will be launched. The key point to note is that new models will continue to boost vehicle deliveries.
At the same time, with economies of scale, operating level losses are likely to narrow, making this one of the stocks under $10 to double your money. In the coming quarters, equity dilution seems likely to fund growth. However, that factor is discounted after a deep correction.
Riot Blockchain (RIOT)
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Crypto stocks have remained depressed, but business developments remain positive for some of the large crypto miners. I would include Riot Blockchain (NASDAQ:RIOT) in the list of stocks under $10 to double your money.
Amidst volatility, RIOT stock is largely sideways since June. It’s an indication of the point that the stock is undervalued. A reversal in Bitcoin (BTC-USD) should translate into a meaningful rally.
For September, Riot reported a hashing capacity of 5.6EH/s. For the same period, the company mined 355 Bitcoin. The important point to note is that the company is targeting capacity expansion to 12.5EH/s by Q1 2023.
With a doubling of capacity likely in the next few months, Riot stock looks attractive. Multibagger returns seem likely if the Bitcoin bull market is back.
Riot also reported $270.5 million in cash as of Q2 2022. This provides ample financial flexibility for growth beyond Q1 2022.
Transocean (RIG)
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Transocean (NYSE:RIG) seems to be significantly undervalued, I would not be surprised if the stock touched double-digits in the next one year.
Transocean is a provider of deep-water and harsh-environment oil rigs. With market conditions improving, the company’s order backlog has swelled to $7.4 billion, providing clear cash flow visibility.
Further, recent orders for Transocean have been at a higher day rate. This is likely to translate into EBITDA margin expansion in 2023 and beyond. The company is also targeting to deleverage in the next few years. As the credit profile improves, RIG stock is likely to trend higher.
The company still has 12 cold-stacked rigs. With sustained improvement in market conditions, these rigs will be operational and further boost revenue and EBITDA.
AppHarvest (APPH)
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AppHarvest (NASDAQ:APPH) stock is already higher by 10% this month. I believe that the upside momentum is likely to sustain as the company expands operations.
As an overview, AppHarvest is building some of the world’s largest indoor farms. The company claims to be using 90% less water and generating 30 times more yield than conventional farming.
Recently, the company opened a 15-acre high-tech salad greens farm. It’s important to note that with ongoing expansion, the company will have 165-acres in farm area by the end of 2022. This will translate into robust revenue growth in 2023 and beyond.
From a financial perspective, AppHarvest secured a $50 million USDA-backed loan. Considering water and food shortages globally, financing vertical farming units is unlikely to be a challenge.
For 2022, AppHarvest expects revenue in the range of $20 to $25 million. If 165-acres are operational through 2023, investors can expect manifold growth in revenue.
Tilray Brands (TLRY)
Source: Lori Butcher / Shutterstock.com
Tilray Brands (NASDAQ:TLRY) stock has trended higher by 33% in the last month. With expectations of federal-level legalization of cannabis, the positive momentum is likely to sustain for TLRY stock.
Germany also legalized possession of up to 30 grams of cannabis for recreational use. This might set the stage for legalization in other European countries. As the addressable market expands, it makes sense to remain invested in cannabis stocks.
Among company-specific positives, Tilray expects to be free cash flow positive in all operating business units for fiscal 2023. With a strong market position in recreational and medicinal cannabis, cash flows will continue to swell in the coming years.
As of Q1 2022, Tilray reported cash and equivalents of $500 million. Strong financial flexibility provides headroom for aggressive organic and acquisition-driven growth.
Nio (NIO)
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Chinese electric vehicle stocks have plunged on growth concerns. A third term for President Xi and potential policy uncertainties have contributed to the decline. However, even with these uncertainties, Nio (NYSE:NIO) seems deeply oversold below $10.
Amidst economic uncertainty and supply chain concerns, Nio has reported healthy numbers. For Q3 2022, the company reported a 29.3% increase in deliveries year over year to 31,607 vehicles.
With an attractive product portfolio and a pipeline of new models, deliveries growth is likely to sustain. Additionally, Nio has aggressive expansion plans for Europe. This will also contribute to growth.
While GDP growth concerns have impacted the stock, there is a positive. If industrial commodity prices correct, key margins are likely to expand. Raw material price inflation has also been a concern for the EV industry.
Nio is also well-positioned from a financial perspective. I don’t see any dilution concerns in the next 24 months. If vehicle margin expands in 2023, NIO stock is poised for a meaningful rally.
Solid Power (SLDP)
Source: T. Schneider / Shutterstock.com
Solid Power (NASDAQ:SLDP) is also among the attractive stocks under 10 to double your money. It’s yet another name in the electric vehicle industry that has positive tailwinds beyond the decade.
As an overview, Solid Power is in the development stage for solid-state batteries. These batteries are likely to offer several advantages over conventional lithium batteries. With a potentially big addressable market, SLDP stock is worth holding.
It’s worth noting that in July, the company announced the installation of an EV cell pilot line. Solid Power expects to deliver these silicon EV cells to automotive partners for validation testing by the end of the year.
The company’s automotive partners include Ford (NYSE:F) and BMW (OTCMKTS:BMWYY). If the validation testing yields positive results, SLDP stock is likely to go ballistic. It’s therefore a good time to buy for potential multi-bagger returns.
On the date of publication, Faisal Humayun 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.
Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.
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