5 Best Stocks to Buy Under $10

4. Avantor, Inc. (NYSE:AVTR)

Share Price: $9.71

Number of Hedge Fund Holders: 47

Avantor, Inc. (NYSE:AVTR) is one of the best stocks to buy under $10. On June 1, Wolfe Research initiated coverage on Avantor, Inc. (NYSE:AVTR), giving the stock an Underperform rating and setting the price target at $7.

The research firm noted that the company has seen multiple years of growth and margin challenges. Revenue continues to fall in real terms and margins are declining.

Wolfe Research sees few signs that Q2 will bring improvement in either revenue or margins. The firm also noted that expectations for better performance in the second half of the year are already reflected in current market revenue and margin forecasts.

The research firm said Avantor, Inc.’s (NYSE:AVTR) VWR distribution business, which accounts for about half of the company’s earnings, is losing market share to major competitor Thermo Fisher Scientific. Wolfe Research also noted that Avantor, Inc.’s (NYSE:AVTR) product business lacks a cohesive vision.

The company’s new CEO has introduced plans to improve operations and stabilize the business, while delivering an upbeat message during the Q1 earnings call. Wolfe Research suggested that the company could create potential value through divestitures and highlighted NuSil as a strong brand that does not fit with the rest of the company’s portfolio.

Avantor, Inc. (NYSE:AVTR) is a leading life science tools company and global provider of mission-critical products and services to the life sciences and advanced technology industries. It serves as an important partner in research, development, and production in the medicine, healthcare, and technology markets.