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3 Stocks Under $10 to Buy Right Now

One way for investors to maximize their potential returns is to look at stocks that are priced low with a lot of room to rise in value. Below are three stocks trading at less than $10 a share that could be cheap buys today.

Seven Generations Energy Ltd (TSX:VII) is an exciting growth stock in the oil and gas industry. Not only is the company focused on being environmentally friendly, but it’s achieved significant growth as well.

Sales of more than $3.3 billion in 2018 have more than doubled from the $1.2 billion that the company generated in 2016.

What’s encouraging is that the company has been able to grow while improving its bottom line as well, with Seven Generations incurring a loss just once in its last 10 quarters. It’s not often that you see profitability accompany growth, which is why the stock is a special one.

Unfortunately, it hasn’t been able to generate much excitement from investors, as it has fallen by more than 30% since the start of the year.

With a price-to-earnings ratio of less than four and trading well below its book value, the stock is a bargain buy — one that could have tremendous upside.

Yamana Gold Inc (TSX:YRI)(NYSE:AUY) has been doing much better than Seven Generations this year, as the stock has benefited from a rising price of gold.

With geopolitical concerns on the rise, investors have been turning to gold this year as a way to help hedge their bets, which has resulted in a lot of momentum for Yamana.

The company recently posted its quarterly results, which showed good revenue growth of more than 7% from the prior year.

It was also the second time in the past five quarters that the stock has been able to stay in the black. However, stronger gold prices will make it easier for that to become a reality. That’s why Yamana and other gold stocks could remain good buys for the foreseeable future.

If for no other reason than to help diversify your portfolio, Yamana could be a great pick-up at a decent price.

Roots Corp (TSX:ROOT) hasn’t done well since listing on the TSX nearly two years ago. Losing more than 60% of its value in just the past year, the good news for investors is that things have somewhat stabilized this year, with the stock up around 6% since January.

It may take the stock some time before investors start to rally behind it, however, with Roots currently trading well below book value and the company recording a profit in four of its past seven quarterly results, it’s not all doom and gloom for the stock.

As expectations come down and the company is able to continue building off its recent results, there could be a lot more upside for the stock, especially given how low it is today.

While I wouldn’t expect the stock to double overnight, all it could take is one good quarter to send the share price onto a strong rally.

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Fool contributor David Jagielski has no position in any of the stocks mentioned.

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