Top 3 Stocks Trading Under $10
A little money can go a long way these days. Low-priced stocks are historically speculative, but not all stocks that trade in single digits are doomed penny stocks.
SiriusXM Radio ( SIRI -1.45% ), Latch ( LTCH 0.12% )and Bike3D (VLD -1.04% ), are three low priced stocks with high caps. Let’s see why these are the best stocks currently trading under $10.
Satellite radio took a hit in 2020 when we stopped driving. Arguably, 2022 is just as tough, as rising gas prices make driving – the way people primarily enjoy Sirius XM – more expensive. The good news is that the satellite radio monopoly is finding a way to keep growing.
Despite the ups and downs of the automotive industry and fears that smartphones and connected cars will mean the end of premium radio, Sirius XM is a survivor. It started this year with a record 32 million accounts. Sirius XM has grown its paying subscriber audience by at least one million in 10 of the past 11 years. Guidance calls for only half a million net additions in 2022, but it has historically underestimated its ultimate potential.
Sirius XM is a slot machine. It generated $1.83 billion in free cash flow last year and returns that money to its shareholders through buyouts and distributions. The stock is only earning 1.4%, but last month management announced a special payout of $0.25 per share. A quarter adds up for a stock trading at just over $6, translating into an additional 4% return.
Apartments may not seem like a hotbed for tech growth, but you can change your mind by digging deeper into Latch. This is the company behind LatchOS, a cloud-based platform that provides keyless access to apartments and more.
Having a way to remotely open a building has its advantages. Landlords can show off vacant apartments without being there, and they can easily plug in a new code when a unit changes hands instead of having to re-key a front door. Landlords also charge tenants a premium for Latch, as it also makes life easier for them. People can let in babysitters, relatives, cleaning services, or package deliveries when they’re not home. LatchOS also works with intercom systems and smart home hubs.
Latch is small right now, but 10% of all new apartment builds are built with Latch in place. Revenue grew 94% to $14.5 million in its latest quarter and 129% to $41.4 million for all of 2021. Bookings are growing even faster, up 118% last year. There are plenty of special purpose acquisition companies (or SPACs) that won’t bounce back from the frosty market reception. Latch has fallen out of favor, but he ticks all the boxes of a disruptive growth stock. He will have another chance for a homecoming on Wall Street.
A recent entry into the elephant graveyard of buzzwords is 3D printing. Investors aren’t too excited about the prospects for additive manufacturing, but in reality its future is brighter than ever. Velo3D isn’t a household name in this market, but that’s because it has a very specific niche.
Velo3D’s Sapphire platform is a metal 3D printing solution that helps companies create specialty parts. It serves the aerospace, aviation, industrial energy, and oil and gas industries that have detailed critical parts lists. Velo3D is small, having generated $27.4 million in revenue last year.
Things are about to speed up considerably. Velo3D finally began shipping Sapphire XC in its final quarter, an upgraded platform that manufactures parts for 75% less – with a fivefold increase in productivity – than the original system. Demand is strong, and Velo3D’s forecast of $89 million in revenue this year means revenue will more than triple in 2022. Even if 3D printing stocks aren’t cool, Velo3D is pretty cool for your printing portfolio. shares at low prices.
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