10 Worst Affordable Stocks to Buy Under $10

5. Ambev S.A. (NYSE:ABEV)

Price: $2.33

Forward P/E Ratio: 12.82

Earnings Growth This Year: 13.72%

Number of Hedge Fund Holders: 22

Ambev S.A. (NYSE:ABEV) is an international beverage company engaged in the production, distribution, and sale of beer, carbonated soft drinks, and other non-alcoholic and non-carbonated beverages across the Americas.

The company faced significant challenges in 2024, including tax headwinds in Brazil and economic difficulties in Argentina. However, it managed to deliver better-than-expected financial results through disciplined cost management, strategic pricing, and operational efficiency. Ambev S.A. (NYSE:ABEV) grew its organic EBITDA by 11.4% (12.1% excluding Argentina), reflecting strong operational performance despite tax pressures. However, the normalized profits declined by 2.3%, primarily due to a nearly R$3.5 billion impact from reduced tax deductibility in Brazil, which increased the effective tax rate.

On the other hand, if we look at the 5-year performance of the company. It has grown its consolidated EBITDA by 37%, with double-digit growth and margin expansion across all business units for two consecutive years. Ambev S.A. (NYSE:ABEV) ranks as one of the worst affordable stocks to buy under $10 and was held by 22 hedge funds in Q4 2024.