Finding future blue-chip stocks while their share price is still below $10 is, in many ways, akin to the holy grail of investing. The issue, however, is that while many winners started with a very low valuation, the number of stocks that never took off is immeasurably higher.
In an effort to find the best candidates for those seeking to engage in high-risk, high-reward growth investing, Finbold analyzed some of the most promising companies whose stock is still under $10.
Tencent Music Entertainment Group (TME)
Tencent Music Entertainment Group (NYSE: TME) is the parent company of WeSing, QQ Music, and Kugou Music and a leading Chinese online music platform. While it has recently been under pressure due to various factors, including the slower-than-expected recovery of China’s economy and U.S. crackdowns on Chinese stocks, it is generally viewed as well-positioned for significant future growth.
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Wall Street analysts’ consensus is that TME is currently a strong buy, with the upper estimate for its valuation in 12 months being $10 and the lowest being $7, according to TipRanks data retrieved by Finbold.
At the time of publication, TME’s stock stood at $8.41, and the company, while struggling through much of 2023, had entered into a significant upturn in the previous 30 days. In the last month, its stock was up 17.95%.
Champion Iron (CIAFF)
Champion Iron (OTCMKTS: CIAFF) is a company with a strong presence in the mining industry and a focus on Canadian iron ore deposits. What sets it apart as a promising stock under $10 is its global network of sales, which includes crucial markets like China. This means that Champion Iron has the potential for significant growth as a company.
Champion Iron has a strong buy rating from Wall Street analysts, with the highest target price for the next 12 months being $5.86 and the lowest $4.74, per the data retrieved from TipRanks by Finbold.
At the time of publication. Champion Iron is trading at $5.04 per share. While it was struggling during the summer months, it has started surging in the approach to winter and is up 24.84% in the last 6 months. Year-to-date, it is 4.23% in the green.
Nerdy Inc. (NRDY)
Nerdy Inc. (NYSE: NRDY) is a platform that matches students, parents, and other users to various education professionals. It is an online learning platform powered by artificial intelligence (AI) technology, which it uses to give learners the best courses, teachers, and tutors it possibly can.
Nerdy Inc. is estimated to be a strong buy, according to the Wall Street analyst consensus compiled by TipRank and retrieved by Finbold. It is also unique among the stocks on this list as the lowest projection for its value in 12 months – $4 – is higher than its current price.
The platform is on a steady rise, as is made evident by its 2023 YTD growth of 20.76%. The company’s shares also experienced a noticeable decline after September but are, as of November, once again on an upward trajectory, and, at the time of writing, they stand at $2.70.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
