3 Stocks under $10 to Buy

Ten Dollar Bill - $10 - Large Pic

Mastery reviews 3 stocks that have come under the $10 level. We are going for quality names with bargain price-to-earnings ratios.

Three stocks trading under $10 and worth your attention are Petrobras Argentina SA ADR (NYSE:PZE), Xerox Corporation (NYSE:XRX), and IAMGOLD Corporation (USA) (NYSE:IAG).  These 3 stocks are a diverse line-up to invest while their share prices are low and reap the benefits of a comeback story.



Gold prices have fallen like a rock in 2012 but that trend will not last forever.  Along with the decline in gold IAMGOLD Corp (IAG) has dropped to within 7% from its 12 month low.  IAG is now trading just under $10 with a a P/E Ratio of 9.4 and EPS of 2.14.  IAG pays out a 2.5 annual dividend yield while you wait for gold prices to comeback. We also like that IAG is a mining company, not completely reliant on just gold. Besides IAMGOLD's  5 gold mines they also have a niobium mine, a diamond royalty, and exploration and development projects located in Africa and the Americas.


Petrobras Argentina (PZE) shares are just under $10 and trade with a P/E Ratio of 5.1 and EPS of 1.89. PZE shares are 4.09% from its 52-week low and pay a 4.6% annual dividend yield. This year has not been kind to Latin America's oil majors.  Brazil's Petrobras (PBR) has fallen by 18% and Petrobras' Argentine subsidiary Petrobras Argentina (PZE) is also down by 18%.  Petrobras is not going out of business anytime soon and we believe its the right time to get while these stocks trade near their record lows.


Last but not least is our favorite of three mentioned -- that would be good ol' Xerox Corp (XRX).  XRX shares have traded between $6.55 and $10.83 over the past 12 months.  XRX shares are now trading with a P/E Ratio of 8, EPS of 0.89 and pay a 2.35% annual dividend yield.  Xerox shares are trading at $7.23 and its shares are 9.41% from its 52-week low.  Xerox has been changing its game getting in to outsourcing and consulting which now accounts for almost one-third of its revenue (taking a page from the IBM handbook).  The stock has been thrown in the trash by Wall Street and it has that familiar feel of Microsoft (MSFT) and Cisco Systems (CSCO) before their late 2011 and 2012 comeback.  Forget what we have to say, review Vitaliy Katsenelson's article Investor Alert: Xerox is a Cash Machine


MASTERY Bottom Line (Master Po Style)


MASTERY Bottom line:


PZE, XRX, IAG are all 3 quality name companies trading under $10 that pay a dividend.


We like the odds of getting in under $10 and ride out the volatility of the market for 2012.


3 STOCKS UNDER $10


PZE


 


XRX


 


IAG


 

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