Young TFSA Investors: 3 Stocks Under $10 to Make Your First $100K

Looking for big upside? This group of explosive penny stocks, including Kinross Gold (TSX:K)(NYSE:KGC), might provide the pop you’re looking for.

| More on:
Top view of mixed race business team sitting at the table at loft office and working. Woman manager brings the document

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

Hello again, Fools. I’m back to highlight three stocks under $9. While low-priced stocks carry plenty of risks, they can be a source of ideas when looking for small, obscure, and underfollowed companies; dirt-cheap bargains; or intriguing turnaround situations.

If you have big dreams of turning an average $27K TFSA into $100,000 in a few years, you’ll need explosive returns to do it. Although low-priced stocks are on the volatile side, the upside return potential might be well worth the risk.

Let’s get to it.

Golden opportunity

Leading off our list is gold producer Kinross Gold (TSX:K)(NYSE:KGC), which currently sports a stock price of $6.73 per share.

The stock sank more than 3% yesterday as the price of gold saw its largest one-day loss in three years, but now might be an opportunity to pounce. In the most recent quarter, Kinross’ EPS of $0.63 topped estimates by $0.03 as revenue improved 8% to $839 million.

Looking ahead, management says it remains on pace to meet its full-year production guidance of 2.5 million gold equivalent ounces.

“In the second quarter, we delivered excellent operating and financial results, as our portfolio of mines increased production and lowered costs compared with the previous quarter and year,” said CEO J. Paul Rollinson.

Kinross remains up 53% in 2019.

Making a point

With a lowly stock price of $4.83 per share, oil and gas explorer Crescent Point Energy (TSX:CPG) is next on our list.

The stock has slumped over the past year on debt concerns and weak energy prices, but a bit of recent news is giving Bay Street some turnaround hope. Earlier this week, Crescent Point agreed to sell $912 million in wells and properties in Utah’s Uinta Basin and Saskatchewan in order to mend its balance sheet.

According to Raymond James analyst Chris Cox, the move should “resonate with investors in today’s environment, with the potential for additional sales bringing the company’s leverage position much closer to what investors are looking for in E&P companies today.”

Crescent Point shares remain off 38% over the past year.

Quantum leap

Rounding out our list is copper miner First Quantum Minerals (TSX:FM), whose shares sport a price tag of $9.30.

The stock has slumped over the past year on operational concerns and volatile copper prices, but yesterday’s 7% spike might be a sign of good things to come.

While the company’s sales declined 11% to $939 million in the most recent quarter, EPS managed to top estimates by $0.01, suggesting that much of the downside risk might be baked into the price.

“With operational milestones and timelines being achieved and exceeded, we are well positioned to meet our own high expectations for the year and for the years to come,” said project director Zenon Wozniak.

First Quantum shares are down 16% so far in 2019.

The bottom line

There you have it, Fools: three amazing stocks under $10 worth checking out.

As always, don’t see them as formal recommendations. Instead, view them as a starting point for more research. Low-priced stocks are particularly fickle beasts, so plenty of homework is still required.

Fool on.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned.   

More on Energy Stocks

Super sized rock trucks take a load of platinum rich rock into the crusher.
Energy Stocks

3 Top Commodity Stocks for Passive Dividend Income

Commodity stocks like Cameco Corp (TSX:CCO)(NYSE:CCJ) offer dividend income.

Read more »

Group of industrial workers in a refinery - oil processing equipment and machinery
Energy Stocks

2 Oil Stocks Under $11 With 90-110% Gains So Far This Year

Two small-cap oil stocks with enormous gains year to date are likely to deliver far superior returns in 2022 versus…

Read more »

Group of industrial workers in a refinery - oil processing equipment and machinery
Energy Stocks

Suncor Energy (TSX:SU) Could Power Your Portfolio to New Highs

Suncor Energy (TSX:SU)(NYSE:SU) is a cheap stock that could unlock value for its longer-term shareholders.

Read more »

TSX Today
Energy Stocks

TSX Today: What to Watch for in Stocks on Thursday, August 11

Rising commodity prices could take energy and mining shares on the TSX higher at the open today.

Read more »

Oil pumps against sunset
Energy Stocks

2 Top Canadian Energy Stocks to Buy Offering Dividend Yields Above 6%

These two top Canadian energy stocks are excellent long-term investments and offer unbelievable dividend yields if you buy them today.

Read more »

energy industry
Energy Stocks

Oil Price: Should You Buy Suncor (TSX:SU) or Canadian Natural Resources (TSX:CNQ) Stock?

Energy stocks are down from the 2022 highs. Investors can now get high dividend yields for Suncor and Canadian Natural…

Read more »

Illustration of bull and bear
Energy Stocks

What’s Next for TSX Energy Stocks as Bears Dominate?

Since June, TSX energy stocks have lost 25% on average, notably underperforming broad market indices.

Read more »

Oil pumps against sunset
Energy Stocks

For the 7th Time in Under 2 Years, Freehold Royalties Stock Increases its Dividend

After another record quarter generating funds from operations, Freehold Royalties stock just increased its dividend again!

Read more »