The S&P 500 seems to be off to a rough start in 2022, which gives you chances to buy good stocks. Unfortunately, there aren’t many good stocks that trade for less than $10 per share. When stocks are priced at this level, it can be a sign to investors that there is something very wrong with the company. 

Many of these stocks have business models or near-term outlooks that aren’t as good as they could be. But numerous analysts have found several cheap, high-quality stocks that investors who want to save money might want to buy.

In this article, we’ll be listing down nine cheap but high-quality stocks that you can invest in for less than $10 based on Morningstar Inc.’ buy ratings.

Lloyd’s Banking Group PLC (LYG)

Lloyd’s Banking Group is a bank and insurance company based in the U.K. that does a lot of different things. Niklas Kammer, an analyst, says that Lloyd’s first-quarter earnings in April were impressive, with net interest income up 10% and other income up 11%. Kammer says he was surprised by how quickly Lloyd’s grew when interest rates went up. The net interest margin went from 2.54% in the fourth quarter of 2021 to 2.684% in the first quarter of 2022, which was higher than the company’s full-year forecast of 2.64%. LYG stock has a “buy” rating from Morningstar and a fair value estimate of $3.70.

Banco Santander SA (ticker: SAN)

Banco Santander is a big Spanish bank with a significant presence around the world. Analyst Johann Scholtz says that Santander’s many businesses protect investors from losses. He says that the stock is an excellent way to get exposure to both high-growth banking in emerging markets and stable, high-visibility banking in developed markets. 

Scholtz says that Santander has chances to make more money and increase its value by reducing its exposure to areas where it doesn’t have a clear competitive advantage, like its lagging U.S. regional banking business. SAN stock has a “buy” rating from Morningstar and a fair value estimate of $4.70.

The ING Groep NV (ING)

ING is a Dutch bank that also provides insurance and asset management services. ING shares have dropped 27 percent year to date in 2022, according to data from May 18. In the first quarter, net attributable profit fell by 57%, net interest income fell by 3%, and loan-loss provisions tripled. 

However, Kammer claims that fee income increased by 9% as a result of increased significant client growth and higher payment package rates. He claims that ING has a competitive edge due to its strong deposit franchises in its key regions and that the company’s spare capital presents chances for shareholder rewards. ING stock has a “buy” rating from Morningstar and a fair value estimate of $15.60.

Bradesco Banco SA (BBD)

Banco Bradesco is one of the major financial institutions in Brazil. According to analyst Michael Miller, cost control and loan growth propelled Banco Bradesco’s remarkable first-quarter earnings beat. Miller claims that recurring net income increased by 4.7 percent in the third quarter, despite the bank’s efficiency ratio dropping to 43.5 percent. 

Macroeconomic uncertainties in Brazil may impact the stock in the short term. Still, Miller believes Banco Bradesco’s fundamental business is off to a great start to the year and will benefit from higher interest rates as well as loan growth. BBD stock has a “buy” rating from Morningstar and a fair value estimate of $4.30.

The Mizuho Financial Group, Inc. (MFG)

Mizuho Financial is one of Japan’s top three financial services firms. According to analyst Michael Makdad, Mizuho accounts for approximately 7.2 percent of domestic Japanese loans and 8.6 percent of deposits. According to him, the Japanese banking climate has been challenging for years. Still, Mizuho has possibilities to grow and gain market share in areas such as big consumer finance, credit cards, and leasing. 

Makdad also believes Mizuho may outperform its competition by digitizing its business and increasing profitability through cost-cutting initiatives. MFG stock has a “buy” rating from Morningstar and a fair value estimate of $2.85.

Barclays PLC (BCS)

Barclays is one of the largest financial services groups in the United Kingdom. Outside of “bizarre” litigation and conduct penalties connected to over-issuing securities in the US market, Kammer says Barclays’ first-quarter earnings report was good. 

Barclays’ investment banking arm helped boost first-quarter earnings by 10%. Fixed income, currency, and commodities revenue increased 37 percent in the quarter. Rising interest rates, according to Kammer, are improving Barclays’ NIM, but mortgage margin compression is impacting profitability. 

According to him, Barclays remains the market leader in credit cards in the United Kingdom. BCS stock has a “buy” rating from Morningstar and a fair value estimate of $10.20.

Vizcaya Argentaria Banco Bilbao (BBVA)

BBVA is Spain’s third-largest bank, with foreign operations in Mexico and Latin America. According to Scholtz, BBVA’s focus on emerging countries will enable it to generate more profits than its banking counterparts. He is particularly enthusiastic about BBVA Bancomer in Mexico, which he describes as BBVA’s “undoubted crown gem.” 

According to Scholtz, BBVA is the apparent leader in Mexico, where it has achieved exceptional returns on equity of more than 20%. According to him, BBVA’s geographical variety and balance between commercial and retail services help to mitigate its developing market risk. BBVA stock has a “buy” rating from Morningstar and a fair value estimate of $8.

Sirius XM Holdings Inc. (SIRI)

Sirius XM Holdings is a major supplier of satellite and online radio services, mainly to the automotive sector. According to analyst Neil Macker, Sirius XM posted good first-quarter earnings despite losing 25,000 self-pay consumers. Macker also mentioned that if supply chain concerns in the auto industry are resolved, the business should continue to pick up in the latter half of 2022. 

According to him, the vast majority of new Sirius XM subscribers are converted from new car buyers to paying customers after the first 12-month free trials. SIRI stock has a “buy” rating from Morningstar and a fair value estimate of $8.25.

Ericsson (ERIC)

Ericsson serves the telecommunications sector by providing network services and infrastructure. Ericsson reported in early March that the US Justice Department had tried to accuse the corporation of failing to comply with a 2019 settlement relating to claims of Ericsson’s misbehavior in Iraq from 2011 to 2019. 

Analyst Mark Cash believes Ericsson’s post-earnings sell-off is overblown, considering the company’s 11% first-quarter sales growth and “strong” 5G network demand. He believes Ericsson represents an attractive value for investors determined to bear the risk associated with the Justice Department claims. ERIC stock has a “buy” rating from Morningstar and a fair value estimate of $11.50.