10 Most Undervalued Stocks to Buy for Under $10

1. Kinross Gold (NYSE:KGC) 

Number of Hedge Fund Investors: 37  

Forward P/E Ratio as of October 8: 14.90  

Stock Price as of October 8: $9.40

Kinross Gold (NYSE:KGC) is a Canadian-based gold mining company with operations across the Americas, West Africa, and Russia. The company focuses on high-quality, low-cost gold development projects, with a promising pipeline that includes the Great Bear project in Ontario, the Manh Choh project in Alaska, and the Lobo-Marte project in Chile, all driving its future growth and expansion.

In Q2, Kinross Gold (NYSE:KGC) reported a 4% decline in gold production to 535,300 ounces, largely due to reduced output at the Tasiast, Paracatu, and La Coipa mines. However, production at its U.S. operations, including Fort Knox and Round Mountain, increased. Despite the production drop, Kinross Gold’s revenue rose 10% year-over-year to $1.43 billion, benefiting from higher gold prices. Although all-in-sustaining costs (AISC) climbed 7% to $1,387 per ounce, the elevated gold price boosted AISC margins by 40% to $955 per ounce.

Kinross Gold’s (NYSE:KGC) focus on cost-effective and high-quality gold production allows the company to generate strong cash flows. With a realized gold price of $2,342 per ounce, the company’s annual operating cash flow potential exceeds $2 billion. Moreover, with gold prices hovering above $2,500 per ounce, its free cash flow projection is between $1.5 billion to $2 billion annually. This cash flow will support growth initiatives and potentially lead to higher dividend payouts.

Kinross Gold (NYSE:KGC) is currently trading at a forward P/E of 14.90, which represents an 11.27% discount to the sector median of 16.79. Analysts expect the company to increase earnings by 32.38% this year.

While we acknowledge the potential of Kinross Gold (NYSE:KGC) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than KGC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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