3 Stock Christmas Stockings You Can Buy For Under $ 10 Each

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Everyone loves to check their stockings over the holidays to see if any little gifts have ended up inside. They naturally have to be compact gifts to fit in a Christmas stocking, but sometimes the best things come from the smallest of packaging. It could be the same with stocks.

Sirius XM Fund (NASDAQ: SIRI), Latch (NASDAQ: LTCH), and Engineering sports (NYSE: GENI) all of them are trading in single digits, but they have the potential to make outsized gains over the coming year. Stocks of socks? Let’s take a look at why these three stocks under $ 10 would make ideal stocking stuffers for your wallet this season.

Image source: Getty Images.

Sirius XM Fund

The satellite radio provider has come a long way since it was on the verge of bankruptcy a dozen years ago. Sirius XM has grown into a slow but steady producer that is still profitable because it generates a ton of free cash flow. Closing its final quarter with 32 million paid subscribers on its platform, Sirius XM challenged skeptics who thought people would drop satellite radio subscriptions as connected cars now have access to cheaper audio solutions. .

Revenue increased 9%, better than expected, to $ 2.2 billion in the third quarter. A 32% increase in advertising revenue from its streaming service Pandora helped boost its original satellite radio business’s 5% increase, but it all fits the “slow but steady” story. Net income is growing even faster and Sirius XM now expects to generate $ 1.8 billion in free cash flow this year.

Sirius XM isn’t afraid to give back money to its shareholders. He aggressively bought back stocks. It has also increased its dividend since the launch of a payout policy in 2016, including a 50% increase in its quarterly rate two months ago.

Latch

One of this year’s most interesting debutants is Latch, a company that is revolutionizing the way apartment owners and renters access their digs. LatchOS is an operating system that allows users to open and close their front doors remotely. It’s simple, in theory, but don’t think of it as a limited studio without a lot of room to grow.

Cloud-based access solutions make it easy for owners or real estate agents to show an available property without having to be physically there. The high-tech keyless platform also helps building owners get tenants in and out without having to collect physical keys and hire a locksmith to change locks. Tenants also benefit from the possibility of welcoming guests, cleaning service, and even delivery when they are not at home. More than one in 10 new apartment buildings are under construction incorporating LatchOS into its high-end designs.

It’s not a one-bolt pony. Latch and owners can also sell the platform to work with intercom systems and smart home hubs. The growth is quite impressive, with revenues up 120% in its most recent quarter. The pipeline is even more exciting, with total bookings up 181%.

The latch is small. Its forecast calls for around $ 40 million in revenue this year, and its market cap is only $ 1.1 billion. Growth is expected to be explosive over the next several years, making it a bargain that trades less than its debut earlier this year as a specialty acquisition company.

Engineering sports

A lot of money is spent to ensure that sports statistics are accurate and delivered quickly, and Genius Sports is a leader in this niche. It provides data and software solutions for the sports betting and media industries because gamers and journalists need timely official scores and statistics. Leagues and individual teams are also looking to Genius to help them collect, analyze and monetize data and live video.

Genius has established over 700 long-term partnerships, including the NFL. Over 97% of the US market uses NFL data provided by Genius Sports.

It is not the only player in this market, but it is growing rapidly. Turnover increased by 70% in its last quarter. The end result will take some time, but for now it scores more than enough points to win the Wall Street game in 2022.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

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