The downturn in stock prices so far in 2022 has led to several bargains for investors who know where to look. A number of high-quality stocks with great long-term prospects are now trading at discounted prices. And it is not just high-flying technology stocks that are cheap.
There are many quality stocks trading for less than $10, making them affordable to buy for investors no matter how much capital they have in their brokerage account. Some leading global companies are even trading in penny stock territory, defined as less than $5 per share.
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These are great stocks to pick-up now before markets rebound and move higher again. Here are three cheap stocks to buy under $10 for March 2022.
- Sirius XM Holdings (NASDAQ:SIRI)
- Nokia (NYSE:NOK)
- TrueCar (NASDAQ:TRUE)
Cheap Stocks To Buy: Sirius XM Holdings (SIRI)
Sirius XM Holdings satellite radio service is familiar to consumers who’ve rented a vehicle or bought a new car in recent years. However, less well-known, is that the New York City-based company also provides streaming audio services and competes directly with streaming platforms such as Pandora and Spotify Technology (NYSE:SPOT).
Sirius XM is also branching out to offer a variety of two-way wireless connectivity for vehicles, including roadside safety assistance, vehicle location services, real-time traffic alerts, even satellite television services.
Many investors like Sirius XM has a de facto monopoly on satellite radio services. While the company’s revenue growth is averaging about 4% a year, its earnings per share (EPS) is expanding at a faster rate than sales, which shows that Sirius XM has very strong margins and pricing power.
As the dominant player in the satellite space, particularly in the automotive market, SIRI stock has a big competitive moat around it, and remain relatively cheap at $6 a share. In the last 12 months, the stock is essentially flat, up a slight 0.17%.
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When investors think of Finnish telecommunications company Nokia, they tend to think of a legacy technology company that was known for making flip open cell phones back in the late 1990s and early 2000s.
Many investors might not even be aware that Nokia is still a going concern. However, the company is still around and has reinvented itself as a network equipment manufacturer focused on fifth generation (5G) wireless services. Originally founded in 1865 as a pulp mill, Nokia today employs nearly 100,000 people in 130 countries and had annual revenues of more than $20 billion.
Nokia’s transition away from making cell phones and focus on wireless networks has not been entirely smooth, but the company appears to be on its way now. The company has signed lucrative contracts for the installation of 5G wireless networks around the world, including in the U.S.
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The company has also sought to reward shareholders who have stuck with them, recently announcing that it is buying back 275 million of its own shares, equivalent to 5% of the total number of shares in Nokia. NOK stock currently trades at $5.22, up 36% in the last year. Investors seem to be rediscovering Nokia’s shares after years of neglect.
Cheap Stocks To Buy: TrueCar (TRUE)
Santa Monica, California-based TrueCar is at the forefront of the online automotive sales industry. The company operates an automotive pricing website for consumers in the market for a new or used car.
The site enables people to see what others paid for any new or used vehicle in their local area and receive prices from more than 15,000 car dealers across the U.S. Like most companies associated with the auto industry, TrueCar has seen a drop in business over the last year due to supply chain issues that have led to a slowdown in vehicle sales.
TrueCar reported $55 million in revenue for the third quarter ended Sept. 30, down nearly 29% year-over-year. The company also reported a $6.8 million net loss compared to net income of $11.6 million in the third quarter of 2020. TrueCar attributed the loss to the ongoing global shortage of semiconductors.
The slowdown and losses have hurt TRUE stock, which has fallen 34% in the past 12 months to $3.17 a share. However, there is optimism the share price will turn around soon. The median forecast on TrueCar’s stock is currently $5.13, which would be 45% higher than where it is today.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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