Affordable Allstars: 3 Stocks Under $10 That Can Double in 2024

Stocks to buy

Low-price stocks are the favorite of retail investors. It’s understandable, as there is scope for diversification even with a small corpus. However, in general, low-price stocks come with big risks. The exposure, therefore, must be limited to avoid potential capital losses.

Fortunately, stocks under $10 represent companies with good fundamentals. Investors will not lose sleep by owning these stocks. Further, this column focuses specifically on three high-conviction stocks under $10 likely to double next year.

Before talking about these stocks, I would like to mention that rate cuts are possible in the second half of 2024. This is a key catalyst for the broader markets trending higher. It’s, therefore, a good time to consider equal portfolio allocation to growth stocks and blue-chip dividend stocks. Even if a few stories fire, the portfolio will look bright.

Let’s discuss the best stocks to buy under $10.

Kinross Gold (KGC)

Source: T. Schneider /

As gold trends higher, I am bullish on gold mining stocks for 2024. I must add at the onset that multiple rate cuts next year will ensure that the bullish momentum sustains for gold. Among stocks under $10, Kinross Gold (NYSE:KGC) is a high conviction pick that will surge higher.

First, KGC stock trades at a forward price-earnings ratio of 14.6, and valuations point to a meaningful impending rally. Further, Kinross Gold has an investment-grade balance sheet, and as gold trends higher, the Company is likely to make aggressive growth investments. I expect production visibility for the coming years to swell through organic and acquisition-driven growth.

Coming to the balance sheet, Kinross reported a liquidity buffer of $2 billion as of Q3 2023. Kinross has guided for an all-in-sustaining-cost of $1,320 an ounce for the year. If the AISC remains the same and gold is trending higher, Kinross is positioned to deliver an operating cash flow of $1.8 to $2 billion in 2024. This will also translate into healthy dividend growth.

Transocean (RIG)

Source: Postmodern Studio / Shutterstock

Transocean (NYSE:RIG) stock has been sideways for the last six months. I believe that a breakout on the upside is likely for this potential multibagger stock under $10. As an overview, Transocean provides contract offshore drilling services for oil and gas companies globally. The Company has a modern fleet of deep-water and ultra-deep-water rigs.

As of October, Transocean reported an order backlog of $9.4 billion. The front-end loaded backlog provides clear revenue and cash flow visibility. With a strong backlog, the Company expects to deleverage in the next few years. As credit metrics improve, RIG stock is likely to trend higher.

I must add that with the possibility of rate cuts in 2024, the outlook for oil is bullish. Production cuts by OPEC and allies continue to support oil at around $80 to $90 per barrel. The key point is that industry sentiments will likely remain positive, and order intake will be healthy for Transocean. This will boost growth visibility beyond the next year.

Lithium Americas (LAC)

Source: Wirestock Creators /

Lithium Americas (NYSE:LAC) stock has been depressed after the company split into two separate entities. For the benefit of readers, Lithium Americas (Argentina) (NYSE:LAAC) is the other entity that owns lithium assets in Argentina. The reason for LAC stock remaining weak is the correction in lithium prices. However, business developments have been positive, and LAC stock is deeply undervalued.

The company’s Thacker Pass project has an after-tax net present value of $5.7 billion. With a life of 40 years and an average annual EBITDA expectation of $1.1 billion, the asset is a cash flow machine. It’s important to note that General Motors (NYSE:GM) is a strategic partner in the project and has an off-take agreement. I don’t see any financing concerns for Lithium Americas.

The correction in LAC stock is, therefore, a good opportunity to accumulate. Once sentiments reverse for lithium, it will not be long before the stock doubles from current levels.

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 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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