We recently compiled a list of the 10 Best Affordable Stocks Under $10 to Buy. In this article, we are going to take a look at where B2Gold Corp. (NYSE:BTG) stands against the other affordable stocks under $10 to buy.

The Rate Cut Debate Continues

The Fed commenced its easing cycle, however, the debate stands. Investors and analysts alike are fixated on what the Fed’s path will look like before the year comes to a close. On October 16, Seema Shah, Principal Asset Management’s chief global strategist, appeared in an interview on Yahoo Finance to discuss her rate cut expectations and thesis on the equity market.

Shah emphasizes that while the jobs report was strong, the data upholds an element of seasonality and volatility. She adds that it’s important that these numbers alone are not blown out of proportion or extrapolated to predict the Fed’s cycle. While she acknowledges that labor demand has been sluggish, she believes that the trends have not been as concerning so far.

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In addition to that, while the US economy has been sluggish, it is not showing signs of decline, indicative of the fact that a normalization process is underway. Shah believes a 25 basis point cut in November and December would be the most ideal situation. She adds that the Fed’s path is pretty clear for now and uncertainty will start to come in by mid-2025.

Strong Fundamentals are Key to Equities

People have kept aside cash for quite a while now, and like other investors and analysts, Seema Shah also sheds light on the situation and hints at risk assets becoming popular. Shah shares that there is approximately $6.6 trillion sitting in money market funds right now and she does not expect all of it to move to equities. In fact, part of the money sitting in cash will be used by people to create safety nets for themselves.

She adds that investors who had moved their investments into safe spaces during a period of high interest rates are more likely to move out their cash to other investment places as interest rates start to go down. With a soft landing in sight, Shah shares stocks are in a sweet spot, especially because the upside to equities is growing.

Overall, equities boast a continued upside, not as high as 2023, but solid regardless. The upside to equities is going to be primarily driven by fundamentals, especially earnings. Moreover, during growth periods, the market broadening out to other sectors is key, which has been the case for 2024. Since fundamentals are crucial at the moment, we have compiled a list of cheap stocks with strong fundamentals and solid earnings growth expectations. Let’s take a look at the 10 best affordable stocks under $10 to buy.

Our Methodology

To come up with the 10 best affordable stocks under $10, we studied stocks on the Finviz Stock Screener with a Forward P/E of under 15 and a share price of less than $10. We then examined the hedge fund sentiment of each stock and picked the most popular ones. Our list is in ascending order of the number of hedge fund holders as of Q2 2024.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Aerial view of a gold mine, revealing its vast size.

B2Gold Corp. (NYSE:BTG)

Number of Hedge Fund Holders: 22

Share Price as of October 18, 2024: $3.33

Forward P/E as of October 18, 2024: 13.29

B2Gold Corp. (NYSE:BTG) is a mining company headquartered in Canada. The company is a gold producer that has mines in Mali, Namibia, and the Philippines with exploration capabilities in Finland, Mali, Namibia, Colombia, and the Philippines.

In the second quarter of 2024, total gold production for B2Gold Corp. (NYSE:BTG) reached 212,508 ounces. While the company experienced some availability issues at a mine in the second quarter, the situation is expected to improve by the end of the fiscal third quarter of 2024. During Q2, the company generated $492.57 million from gold revenue, up by 4.61% year-over-year.

The company has a vast network, contributing to its position on our list. For the fiscal year 2024, B2Gold Corp. (NYSE:BTG) expects total gold production to reach between 800,000 and 870,000 ounces. The company also upholds its corporate social responsibility by supporting locals and integrating the environmental impact into every decision they make.

BTG is not just a cheap stock, but it is also a dividend payer with a payout ratio of 66.67%. By the end of Q2 2024, BTG had cash and cash equivalents worth $467 million, allowing it to pay generous dividends. Overall, BTG is one of the best affordable stocks under $10 to buy now.

Overall BTG ranks 9th among the 10 best affordable stocks under $10 to buy. While we acknowledge the potential of BTG as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BTG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.