10 Worst Affordable Stocks to Buy Under $10

8. Coty Inc. (NYSE:COTY)

Price: $5.48

Forward P/E Ratio: 12.89

Earnings Growth This Year: 17.37%

Number of Hedge Fund Holders: 28

Coty Inc. (NYSE:COTY) is a global beauty company specializing in fragrances, color cosmetics, and skin and body care products. It operates through two main segments including Consumer Beauty and Prestige segments.

On February 20, Analyst Susan Anderson from Canaccord Genuity maintained a Buy rating on the stock with a price target of $8. Moreover, Meridian Hedged Equity Fund highlighted Coty Inc.’s (NYSE:COTY) transformation potential in its Q4 2024 investor letter, emphasizing the company’s strategic investments and resilience despite recent challenges. The fund noted that the company is recognized for its efforts in brand development and expansion into high-growth beauty markets, particularly within its prestige and consumer segments. However, the performance was affected by broader retail headwinds, including cautious inventory management by distributors in the US, Australia, and Asia, as well as weak sales in China.

To mitigate these pressures, Coty Inc. (NYSE:COTY) has implemented cost-saving initiatives aimed at protecting profit margins while continuing to invest in strategic growth areas. Meridian Hedged Equity Fund anticipates a reacceleration of sales momentum, driven by holiday season performance and the ongoing expansion of the company’s prestige portfolio. It is one of the worst affordable stocks to buy under $10.

Meridian Hedged Equity Fund stated the following regarding Coty Inc. (NYSE:COTY) in its Q4 2024 investor letter:

“Coty Inc. (NYSE:COTY) is a global beauty company with a growing portfolio of prestige and consumer brands. We hold Coty for its transformation potential through strategic investments in brand development and expansion within high-growth beauty markets. Performance this quarter was impacted by broader retail headwinds, as distributors in the U.S., Australia, and Asian retail channels maintained cautious inventory positions. Weak sales in China further pressured results. Despite these challenges, management implemented cost-saving measures to protect margins while maintaining strategic growth initiatives. We anticipate sales momentum to reaccelerate, supported by holiday season performance and continued expansion of the prestige portfolio.”