While making investments, identifying solid opportunities can feel like looking for a needle in a haystack. While daunting, with enough time and patience it is possible. This article aims to point you towards three stocks that stand out as potential goldmines. They are all currently priced under $10 and the stocks are forecast to quadruple by 2028. These stocks under $10 each capitalize on a different sector from consumer electronics, to finance and automobile manufacturing. Let’s explore the strategic triumphs of these stocks.
GoPro (GPRO)
Diversified product portfolios and market expansion are core fundamentals of GoPro (NASDAQ:GPRO). For instance, in Q3 2023, there is 31% sequential growth and 16% year-over-year growth in camera unit sales. Fundamentally, total camera unit sales growth suggests effective market penetration and consumer adoption.
Additionally, GoPro’s successful addition of retail stores demonstrates an effective expansion strategy and increased market presence. GoPro’s addition of 2,500 new retail stores by the end of Q3 2023 signifies a successful expansion strategy. The company’s focus on adding more retail stores aligns with its goal of reaching a broader customer base and enhancing the accessibility of its products.
Looking forward, GoPro has a strategic plan to open over 3,000 additional locations globally in 2024. This further highlights the company’s confidence in the retail channel as an edge. As retail remains a critical touchpoint for consumer engagement, GoPro’s expansion initiatives position the company as one of the best stocks under $10.
SoFi (SOFI)
SoFi’s (NASDAQ:SOFI) segment performance is its core fundamental edge. For instance, in Q3 2023, the lending segment had a solid performance, with adjusted net revenue growing by 15% year-over-year. This reflects effective portfolio management and revenue generation within the lending business. There is nearly a 3% sequential improvement in segment contribution margin to 60%. This demonstrates the efficiency gains achieved within the lending operations.
Notably, more than 77% of adjusted net revenue in the lending segment is net interest income. This grew 90% year-over-year to $265 million, which is a positive indicator of the profitability of SoFi’s lending activities. The segment’s contribution margin improvement is particularly notable. Thus, it signals that SoFi successfully balances interest income and operating expenses in its lending operations.
On the other hand, the Financial Services segment has solid net revenue growth of 142% year-over-year and 21% sequentially to $118 million. This positions the segment as a significant contributor to SoFi’s overall lead. This growth is driven by solid monetization within the segment, showcasing the effectiveness of revenue-generating strategies.
Nio (NIO)
Nio’s (NYSE:NIO) focus on building a robust network for sales and service plays a crucial role in its growth strategy. As of Q3 2023, Nio has established a significant presence with 468 new stores in 152 cities. This extensive physical presence indicates Nio’s focus on providing accessible points for users to experience and purchase their vehicles.
Fundamentally, Nio holds a solid charging infrastructure. It has installed 2,200 power swap stations, over 9,400 power chargers, and over 11,000 destination chargers worldwide. This extensive charging network is integral to supporting the convenience and usability of Nio’s EVs. Therefore, focusing on charging infrastructure contributes to Nio’s competitive edge of providing a seamless and user-friendly EV ownership experience.
Additionally, Nio’s collaboration with industry partners reflects a strategic approach to advancing key components of its business model. The partnerships with Changan Automobile and Geely Holdings (OTCMKTS:GELYF) on battery swapping highlight Nio’s willingness to collaborate on critical elements of EV technology.
As of this writing, Yiannis Zourmpanos held long positions in GPRO and SOFI. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
