5 Best Stocks Under $10 in 2022

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1. Coty Inc. (NYSE:COTY)

Number of Hedge Funds: 40

Stock Price as of February 8: $9.27

Coty Inc. (NYSE:COTY) is one of the biggest beauty and fragrance corporations in the world that develops, manufactures, markets, and distributes cosmetics, fragrance, nail care, skincare, along with professional and retail hair care products. The New York-based company was founded in 1904 by François Coty and currently sells its products across 130 countries around the globe.

On January 21, Linda Bolton Weiser at DA Davidson upgraded Coty Inc. (NYSE:COTY) from a Neutral to a Buy rating and maintained a target price of $11.50. This reflects a potential upside of more than 35% from the current stock price. The analyst thinks that the Chief Transformation Officer (CTO) Gordon von Bretten is expanding the gross margin by focusing on commercial, supply chain, portfolio, and material costs. Coty Inc.’s (NYSE:COTY) gross margin expanded by 190 bps YoY in FY21 and 480 bps YoY in Q1 2022. Weiser added that the recent pullback of over 20% in stock price since November 2021 provides an attractive entry point for investors with Coty Inc. (NYSE:COTY) growing in market share due to CoverGirl and Sally Hansen.

You can also take a peek at the Top 10 Stock Picks of Prescott Group Capital Management and 15 Worst Stock Picks of Cathie Wood.

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