Stocks under $10 always seem attractive. These stocks allow investors to create a diversified portfolio even with limited funds. Fortunately, there are many quality stocks under $10 to buy at current levels.

When I say quality stocks, I mean stocks of companies that are non-speculative. Low-price stocks are often associated with pure speculation. However, some low-price stocks represent companies with solid fundamentals and an attractive business model. Depending on the business development, I would not hesitate to hold these stocks for the long term.

Even in challenging market conditions, I believe that these stocks under $10 are poised to double in the next 12 months. The reason is that these stocks are oversold and have positive business catalysts. The balance sheet of these companies also looks good.

Let’s discuss the reasons to be bullish on these stocks under $10.

Kinross Gold (KGC)

Gold trades at $1,830 an ounce, and the precious metal has trended higher by 7.5% in the last six months. If my view on a meaningful slowdown and a weak dollar are correct, gold is poised for a breakout rally. Assuming this scenario, I expect Kinross Gold (NYSE:KGC) to double in one year.

From a valuation perspective, KGC stock trades at an attractive forward price-earnings ratio of 14.2. The stock also offers a dividend yield of 3.2% and dividends are sustainable.

I also like the fact that Kinross has a strong balance sheet. The company ended 2022 with a total liquidity buffer of $1.8 billion. This provides flexibility for share repurchasing and pursuing potential inorganic growth.

It’s also worth noting that for Q4 2022, Kinross reported a free cash flow of $157.5 million. With gold trending higher, the company is positioned to deliver annualized FCF in excess of $650 million. Strong cash flow would further support improvement in credit metrics.

Riot Platforms (RIOT)

Riot Platforms (NASDAQ:RIOT) is an opportunity to benefit from another asset class reversal story. Bitcoin (BTC-USD) has trended higher by 34% for year-to-date 2023. With a weak dollar and Bitcoin halving due in 2024, the outlook is bullish for cryptocurrencies. With a likely end to crypto winter, several crypto stocks are poised for multibagger returns.

As a Bitcoin miner, Riot Platforms looks attractive among stocks under $10 to buy. As a matter of fact, RIOT stock has already surged by 80% in the first two months of 2023. The stock however remains undervalued.

One reason to like Riot is that the company has navigated challenging times with a strong balance sheet. As of Q3 2022, Riot reported $255 million in cash and equivalents and zero debt. If Bitcoin’s recovery sustains, the company will aggressively pursue its next leg of mining capacity expansion.

Last year, Riot increased mining capacity by 213% on a year-on-year basis to 9.7EH/s. Further expansion in 2023 will translate into swelling digital assets and value creation if Bitcoin surges. The company already has expansion plans to 12.5EH/s by 1H 2023.

Polestar Automotive (PSNY)

Polestar Automotive (NASDAQ:PSNY) stock is another potential multibagger that trades under $10. After a deep correction in 2022, the stock is in a consolidation mode and has been sideways in the first two months of the year. A breakout rally seems imminent, considering the company’s growth outlook.

For 2022, Polestar delivered 51,500 cars, which was higher by 80% on a year-on-year basis. The company expects to sustain healthy delivery growth of 60% for the year. Higher sales volume will likely translate into operating leverage and EBITDA margin improvement. This is a key catalyst for PSNY stock.

It’s worth noting that Polestar has a strong pipeline of new models. Delivery of Polestar 3 and the launch of Polestar 4 is due in 2023. Additionally, Polestar 5 will be launched next year. The company has also expanded its presence in 27 markets globally. The growth outlook is, therefore, bright.

Polestar ended 2022 with a cash buffer of $1 billion. Fundraising seems likely through debt or equity in the coming quarters. However, a robust growth trajectory will offset any potential dilution impact.

On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.