In this article, we discuss the 5 best stocks under $10 in 2022. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Stocks Under $10 in 2022.
5. Nokia Corporation (NYSE:NOK)
Number of Hedge Funds: 22
Stock Price as of February 8: $5.69
Nokia Corporation (NYSE:NOK) is a global technology corporation founded in 1865. The company has a broad portfolio of network equipment, software, services, and licensing opportunities.
Nokia Corporation (NYSE:NOK) reported its Q4 2021 results on February 3. Revenue was posted at $7.33 billion and beat the consensus estimate by $54.89 million. Meanwhile, the GAAP EPS of $0.14 beat the consensus estimate of $0.11. In the last year, the stock price of Nokia Corporation (NYSE:NOK) has soared by over 35% and has outperformed the S&P 500 Index, which experienced an increase of under 16% during the same period. For FY22, Nokia Corporation (NYSE:NOK) provided an annual revenue forecast between €22.60 billion and €23.8 billion. Meanwhile, the operating margin is expected to remain around 11% to 13.5%. In addition to this, the Board of Directors approved a dividend per share of €0.08 per share and authorized a share buyback program of €600 million over the next two years.
On December 20, Dominik Olszewski at Morgan Stanley began coverage on Nokia Corporation (NYSE:NOK) with an Overweight rating and a price target of $7.50. The analyst observes that the stock offers a positive risk to reward and is “on the route to recovery” by next year.
4. Comstock Resources, Inc. (NYSE:CRK)
Number of Hedge Funds: 24
Stock Price as of February 8: $7.37
Comstock Resources, Inc. (NYSE:CRK) is a natural gas pure-play that operates in the Haynesville shale. The Frisco, Texas-based corporation has an eleven-year reserve life, which is one of the best in the industry. The fundamental of natural gas is strong, which has aided Comstock Resources, Inc. (NYSE:CRK) in focusing on generating strong free cash flow. Comstock Resources, Inc. (NYSE:CRK) is a little more leveraged than its competitors, making it a high-risk and reward option in the natural gas universe. In the last six months, the stock price of Comstock Resources, Inc. (NYSE:CRK) has risen by over 25% as of February 8.
On January 14, Neal Dingmann at Truist reiterated a Hold rating on Comstock Resources, Inc. (NYSE:CRK) stock with a $10 target price. The analyst thinks that companies focused on crude oil exploration and production (E&P) should have a higher target price as he revised his crude oil price estimates by 10% for 2022 and his 2023 estimates by 8%. Crude oil prices are at a seven-year high on the back of tensions between Russia and Ukraine. The commodity has closed the past seven consecutive weeks in the green.
3. GCM Grosvenor Inc. (NASDAQ:GCMG)
Number of Hedge Funds: 25
Stock Price as of February 8: $8.82
GCM Grosvenor Inc. (NASDAQ:GCMG) is an alternative asset management company based out of Chicago. The hedge fund has an asset under management (AUM) of roughly $70 billion and employs nearly 500 professionals. GCM Grosvenor Inc. (NASDAQ:GCMG) provides customized investment solutions according to the preference and risk profile of the client. Over 95% of the investors are institutional-like corporations, financial institutions, insurance companies, sovereign wealth entities, and pension funds.
On December 24, Adam Beatty at UBS commenced coverage of GCM Grosvenor Inc. (NASDAQ:GCMG) stock with a price target of $18 and a Neutral rating. Beatty has a positive stance on GCM Grosvenor Inc. (NASDAQ:GCMG) as the company has been able to scale its operations by employing extensive experience and relationships related to limited partner (LP) fundraising. However, the analyst also noted that the hedge fund-styled absolute return business has grown at half the pace as compared to the operations of the private asset. Beatty believes that at the current valuation, the risk and return profile of GCM Grosvenor Inc. (NASDAQ:GCMG) is “balanced.”
2. GrafTech International Ltd. (NYSE:EAF)
Number of Hedge Funds: 31
Stock Price as of February 8: $9.79
GrafTech International Ltd. (NYSE:EAF) develops, manufactures, markets, and distributes graphite and carbon-based products globally. The Brooklyn Heights, Ohio-based corporation has over 150 patents and published patent applications while collaborating with electric arc furnace (EAF) operators. GrafTech International Ltd. (NYSE:EAF) is considered one of the biggest producers of graphite electrodes. These electrodes are employed in steel production using a technology called Electric Arc Furnace (EAF).
GrafTech International Ltd. (NYSE:EAF) reported its Q4 2021 results on February 4. The revenue for the period was $363.29 million, increasing by 7.5% YoY and outperforming the analysts’ estimate of $356 million. Sales and production volume increased by 19% YoY and 28% YoY, respectively. Meanwhile, the adjusted EPS was 50 cents, eight cents higher than consensus estimates of 42 cents.
During FY21, GrafTech International Ltd. (NYSE:EAF) lowered its debt by $400 million. This seems like a shrewd move by the company, considering there have been constant talks of interest rate hikes by the Federal Reserve. GrafTech International Ltd. (NYSE:EAF) is now left with $1.2 billion of debt on its balance sheet.
1. Coty Inc. (NYSE:COTY)
Number of Hedge Funds: 40
Stock Price as of February 8: $9.27
Coty Inc. (NYSE:COTY) is one of the biggest beauty and fragrance corporations in the world that develops, manufactures, markets, and distributes cosmetics, fragrance, nail care, skincare, along with professional and retail hair care products. The New York-based company was founded in 1904 by François Coty and currently sells its products across 130 countries around the globe.
On January 21, Linda Bolton Weiser at DA Davidson upgraded Coty Inc. (NYSE:COTY) from a Neutral to a Buy rating and maintained a target price of $11.50. This reflects a potential upside of more than 35% from the current stock price. The analyst thinks that the Chief Transformation Officer (CTO) Gordon von Bretten is expanding the gross margin by focusing on commercial, supply chain, portfolio, and material costs. Coty Inc.’s (NYSE:COTY) gross margin expanded by 190 bps YoY in FY21 and 480 bps YoY in Q1 2022. Weiser added that the recent pullback of over 20% in stock price since November 2021 provides an attractive entry point for investors with Coty Inc. (NYSE:COTY) growing in market share due to CoverGirl and Sally Hansen.
You can also take a peek at the Top 10 Stock Picks of Prescott Group Capital Management and 15 Worst Stock Picks of Cathie Wood.
