Even though a large number of well-established companies with large market caps tend to be fairly expensive, it is important for investors to consider stocks under $10 to maintain a balanced and diversified portfolio. These inexpensive stocks can make a good option for many investors. Below are the three best under $10 stocks to buy in June 2024.
Uranium Energy (UEC)
Uranium Energy (NYSEMKT:UEC) is an American uranium mining company based in Corpus Christi, Texas. The naturally occurring radioactive element is primarily used to fuel nuclear power plants and power naval ships and submarines. The company has In-Situ Recovery (ISR) mining uranium projects in the U.S. as well as high-grade conventional projects in Canada. The two production platforms Uranium Energy has in the U.S. are South Texas and Wyoming.
On May 13, 2024, President Joe Biden signed into law H.R.1042, the Prohibiting Russian Uranium Imports Act. This means that the U.S. will no longer be able to import $1 billion worth of annual uranium from Russia, opening up more opportunities for domestic nuclear fuel production companies like Uranium Energy. The U.S. Congress will ask companies to bid on government contracts for developing nuclear reactor fuel, which could be as much as $3.4 billion. Uranium Energy has a great opportunity to take advantage of this market imperfection and expand.
Lithium Americas (LAC)
Lithium Americas (NYSE:LAC) is a North American based lithium company. Known as the owner of the Thacker Pass Lithium Mine that started in March of last year, Lithium America is in charge of a lithium mining development project located in Humboldt County, Nevada, the largest lithium deposit in the country. It is also one of the largest lithium mines globally.
Specifically, Lithium America received a conditional $2.26 billion loan from the U.S. Department of Energy for the construction of the Thacker Pass project. As part of the Biden Administration’s effort to strengthen domestic lithium mines in order to improve battery supply chains, Lithium Americas will greatly benefit from this initiative by having the opportunity to work on the largest lithium project in the country.
Lithium Americas is one of the most undervalued lithium stocks, and investors should seriously consider buying this stock. Once the metal trends bounce back, lithium stocks such as Lithium Americas have a great potential.
SoFi (SOFI)
SoFi (NASDAQ:SOFI) is an U.S. online personal finance company that provides online banking services based in San Francisco. It provides important financial services and products such as student loans, mortgages, personal loans, investing, credit card and refinancing through both the mobile application and desktops.
While the stock itself has not performed well recently with a 25% year-to-date decline, investors should feel confident that the stock will bounce back.
In terms of actual financials, SoFi’s recent earnings report indicates that this Bay area based fintech company is doing well. In the first quarter of 2024, SoFi reported a total revenue of $645 million, a sharp 26% year over year increase. The company saw a 33% increase in its financial services segment. Despite the remaining high interest rate, SoFi had seen solid sales and revenue growth. While it has only been two quarters since the company first made profit, SoFi will continue to perform better as revenue from diverse segments of its business continues to increase.
On the date of publication, Andy Kim 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.