The Top 9 Cheap Shares You Can Invest for Less Than $10

These $10 or fewer investments will not break the bank.

2022 saw the S&P 500 struggle, which presented opportunities to purchase premium equities. Unfortunately, only some high-quality equities trade for less than $10 per share. Stocks priced at this level may be a warning sign for investors that a firm is experiencing significant problems. Several of these stocks have negative near-term outlooks or problematic underlying business strategies. For thrifty investors, however, the Morningstar analysis team has selected nine inexpensive, high-quality stocks that may present good purchasing opportunities in 2023. According to Morningstar, these are nine of the finest cheap stocks to purchase for less than $10.

1. PLC Lloyds Banking Group (ticker: LYG)

The UK-based Lloyds Banking Group is a multifaceted bank and insurer. Following a significant reorganisation in 2011, analyst Niklas Kammer claims Lloyds is now a low-risk bet on British commercial and retail banking. According to Kammer, the future for the British economy is uncertain going into 2023, but benefits to Lloyds’ net margin from higher rates exceed the dangers posed by a potential downturn. He believes Lloyds will gain more than its competitors from rising rates. LYG stock, which ended at $2.41 on January 18, has a “buy” rating from Morningstar and a $3.80 fair value estimate.

2. PLC Barclays (BCS)

One of the most prominent financial services organisations in the U.K. is Barclays. According to Kammer, all of Barclays’ business units helped the bank have a robust third quarter, which saw a 9% rise in overall revenue and a significant decrease in lawsuit and conduct charges. Barclays’ expenditures have increased due to inflation, a depreciating pound, and an increase in investment spending, but according to Kammer, the bank’s credit metrics are still vital. Additionally, he is optimistic about the bank’s dominant position in the U.K. credit card industry. BCS stock, which closed on January 18 at $9.01, has a “buy” rating and a fair value estimate of $10.10 from Morningstar.

3. Bradesco Banco SA (BBD)

One of the biggest banks in Brazil is Banco Bradesco. According to analyst Michael Miller, higher credit costs have put pressure on Banco Bradesco’s earnings and slowed the bank’s fee-based revenue development. Miller claims that the bank has a solid balance sheet and that its mortgage and commercial loans divisions have excelled for most of the last two years. According to him, aggressive rate increases keep Brazil’s inflation under control, which might eventually put pressure on Banco Bradesco’s net margins of interest but strengthen the company’s credit quality. BBD stock, which closed at $2.87 on January 18, has a “buy” rating and a $4 fair value estimate from Morningstar.

4. Nokia Inc. (NOK)

Nokia sells digital map data and communications equipment globally and grants intellectual property licensing to other companies. According to analyst Matthew Dolgin, licensing conflicts hindered Nokia’s revenue growth in 2022. These licensing issues have also had a detrimental effect on the company’s overall operating profits due to the high profits of the intellectual property division. Dolgin asserts that Nokia shares are cheap and should continue to profit from a significant, still-emerging 5G wireless communication upgrade cycle. The NOK stock, which ended on January 18 at $4.78, has a “buy” rating from Morningstar and a $5.60 fair value estimate.

5. Wipro Ltd. (WIT)

Wipro is a leading global provider of information technology services, including consulting for digital transformation, software implementation support, and other I.T. services. However, there is fierce rivalry; according to analyst Julie Bhusal Sharma, Wipro advantages from high switching fees. According to Sharma, Wipro has a technical understanding of the industry verticals of its clients, making it difficult for them to migrate to other providers. Sharma adds that Wipro’s labor arbitrage approach gives them a cost edge over rivals. She predicts that automated solutions and higher-value services will be earnings headwinds in the long run. WIT stock, which closed on January 18 at $4.97, has a “buy” rating and a $5.50 fair value estimate from Morningstar.

6. Inc. Sirius XM Holdings (SIRI)

Sirius XM Holdings primarily serves the automotive sector as a major supplier of satellite and online radio services. With the dismal advertising market, analyst Neil Macker claims that Sirius XM had its most substantial quarterly net subscriber increases since 2020 in the third quarter as long as the effects of inflation are contained; according to Macker, SiriusXM’s total profit per user acceleration and low churn position the business for success in 2023. Additionally, 37% of those who purchase new cars switch from free SiriusXM trials to paying subscriptions. SIRI stock, which closed at $5.84 on January 18, has a “buy” rating and a fair value estimate of $8.25 from Morningstar.

7. Telefonica S.A. (TEF)

The most prominent Spanish telecommunications firm is Telefonica S.A. (TEF). According to analyst Javier Correonero, Telefonica fared relatively well in 2022 despite a challenging inflation climate, even showing a 3.8% organic revenue increase in the third quarter. According to Correonero, the substantial success is astonishing, given that telecoms businesses sometimes find it challenging to pass on increasing customer costs. By 2023, Telefonica will already have over 60% of its energy expenses covered, and according to Correonero, the company’s operations in Germany and Brazil have been critical drivers of recent development. TEF stock, which closed on January 18 at $3.84, has a “buy” rating and a fair value estimate of $4.90 from Morningstar.

8. Swift Inc. (SNAP)

More than 363 million people use Snap’s Snapchat app for social media daily. According to analyst Ali Mogharabi, Snap has a sizeable user base that was still expanding by 19% as of the third quarter. The most recent quarter saw Snap post a $360 million net loss, and according to Mogharabi, there is no assurance that the company would ever consistently and successfully monetize its customers. After losing 81% of its value in 2022 alone, he claims Snap is facing “overwhelming” competitors, but its unique growth profile makes it appealing. The SNAP stock, which ended on January 18 at $9.41, has a “buy” rating from Morningstar and a $27 fair value estimate.

9. Credit Suisse Group AG (CS)

Credit Suisse is a Swiss provider of financial services focusing on wealth management and investment banking. According to analyst Johann Scholtz, recent client withdrawals from Credit Suisse are “concerning,” and S&P recently lowered the firm’s credit rating to BBB-just one rung above non-investment grade status. According to Scholtz, the recent decline in Credit Suisse’s financial advisory division is disheartening because the sector has historically been a reliable source of profitable revenue. After plunging 83% over the last ten years, he claims that Credit Suisse stocks are still inexpensively valued despite the concerns. The C.S. stock, which ended on January 18 at $3.49, has a “buy” rating from Morningstar and a $4.50 fair value estimate.