10 Worst Affordable Stocks to Buy Under $10

Page 9 of 9

1. Telefônica Brasil S.A. (NYSE:VIV)

Price: $8.60

Forward P/E Ratio: 12.64

Earnings Growth This Year: 15.95%

Number of Hedge Fund Holders: 13

Telefônica Brasil S.A. (NYSE:VIV), which operates under the Vivo brand, is a leading telecommunications company in Brazil. The company offers a range of services including fixed-line and mobile telephony, broadband services, pay TV, and other digital solutions.

On March 3, Barclays analyst Mathieu Robilliard upgraded from an Equal Weight to an Overweight rating, however, decreased the price target from $11.80 to $11.50. The upgrade is based on strong revenue and commercial dynamics observed in Telefônica Brasil S.A.’s (NYSE:VIV) results, which are expected to continue into 2025. The analyst noted that the Brazilian market remains very healthy, as evidenced by the company’s Q4 results. He thinks that the company is well-positioned for growth, driven by robust market conditions and solid operational performance.

Moreover, during the fiscal fourth quarter of 2024, Telefônica Brasil S.A. (NYSE:VIV) reached a record 116.1 million accesses, marking a 2.7% year-over-year increase. The mobile segment also grew and ended with 102.3 million accesses, up 3.3% year-over-year. Notably, 5G coverage expanded to 504 cities, nearly tripling from the previous year. However, it still ranks as one of the worst affordable stocks to buy under $10 as it was only held by 13 hedge funds in Q4 2024.

While we acknowledge the potential of VIV to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VIV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 9 of 9