3 Top Stocks Under $10

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Stocks with low share prices can seem like bargains. Even though a low share price only indicates that the company has a relatively large number of shares outstanding, many stocks that fall into single-digit territory have good reasons for doing so. Some of those reasons lend themselves to a potential comeback, while others suggest longer-term problems that are more difficult to solve.

Amid the current bear market, large numbers of stocks have experienced major declines from their recent highs. Now, shares of NIO, Goldcorp,and General Electric trade for less than $10 each, and some investors want to know whether they're smart buys at current prices. Below, we'll take a closer look.

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Can NIO drive higher?

NIO has experienced some big moves since its September initial public offering. After the Chinese electric vehicle maker opened at just over $6 per share, its stock price more than doubled within a few days. Those gains quickly evaporated, though, and the stock has flirted with dropping below its IPO price.

Investors have been pleased at how well NIO's been able to ramp up production. During the third quarter, it produced more than 4,200 of its electric SUVs, up from just 500 in the second quarter. Moreover, the company forecast it would deliver about twice the number of vehicles in the fourth quarter that it did in the third quarter, and shareholders are hopeful that NIO can become profitable in the near future. Given that it produces electric vehicles at far lower prices than American manufacturers, NIO has the potential to become the leading player in what will soon become the largest consumer market in the world.

Goldcorp looks to shine itself up

Gold mining stocks have had a tough time of it lately. They largely missed out on the last few years of the recently ended bull market due to gold bullion prices being locked in a fairly tight range. Even the current period of market turbulence hasn't done much for Goldcorp's share price, and broader market conditions are only partially to blame. Goldcorp's fundamental performance has been poor, with its most recent quarterly report indicating a 20% drop in production due largely to plunging output at its key Penasquito mine. Moreover, the miner's all-in sustaining costs rose to nearly $1,000 per ounce, up more than 20% from where they were a year earlier.

Goldcorp has an ambitious long-range recovery plan, which includes seeking to boost production levels and gold reserves by 20% each, while cutting all-in sustaining costs to 20% lower than they were in early 2017. Yet getting to 3 million ounces of annual production, 60 million ounces of reserves, and costs of $700 per ounce will be even more of a challenge now. It'll take a sustained strengthening of gold prices, and that's far from a sure thing given current economic conditions.

Bringing good things to life

Finally, General Electric has been infamous in its fall from glory. The venerable conglomerate's share price has suffered huge declines in recent years, and the company endured the indignity of getting booted out of the Dow Jones Industrial Average. Those following GE have been quick to play the blame game, criticizing moves like overemphasizing the GE Finance unit in advance of the financial crisis, as well as poor timing in the ramp-up of its energy business. Now, the company's considering dramatic measures such as spinning off some of its most successful divisions.

General Electric still has plenty of long-term promise. High demand for new aircraft is driving sales of its aerospace division's engines and systems, and even the struggling power segment could rebound from the current poor conditions. GE's turnaround won't come quickly, but concerns that the company could cease to exist are overblown at this point.

Take care with your stocks

Low-priced stocks involve risk, but they do offer the potential of big rewards. Among these three stocks, NIO is the best-positioned to produce strong growth, but both Goldcorp and General Electric also have the potential to climb back out of the single-digit share price range in the long run.

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Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.