These cheap stocks offer incredible long-term value for under $10. Cheap stocks are usually high-risk, high-reward plays belonging to companies whose share prices are divorced from their fundamentals. It could also be that the market isn’t valuing the long-term potential of such stocks. Nevertheless, cheap stocks offer a way for risk-taking investors to scale their portfolios quickly.
However, a lot of stocks are cheap for a reason. Their underlying businesses haven’t been firing in a while, which is why investors abandoned ship. Moreover, the future outlooks of these businesses may be unattractive, which is why their stocks have failed to get going.
On the flip side, plenty of beaten-down stocks have been unfairly thrashed by the market. These cheap stocks can add long-term value to your portfolio without breaking the bank. Let’s look at three cheap stocks trading under $10, which offer substantial upside potential.
Assertio Holdings (ASRT)
Assertio Holdings (NASDAQ:ASRT) is an Illinois-based specialty pharma business specializing in treating neurology and diseases of the nervous system. After years of struggling to grow revenues, the company’s financials are back in the green. This year it expects to generate revenues in the $126 million to $136 million range, representing 15% to 24% top-line expansion. Moreover, it forecasts an adjusted EBITDA of $64 million to $72 million this year, growing from 31% to 47%.
The company’s restructuring plan has paid off, as its transition to a digital sales model had a remarkably positive impact on earnings and sales. It sold off its opioid business Nucynta and believes it has enough cash to pursue new acquisition targets with its stronger balance sheet. Moreover, the firm boasts an impeccable profitability profile with double-digit growth across key metrics. ASRT stock trades at just 0.8x forward sales to further sweeten the deal.
Nokia (NYSE:NOK), the once-famed smartphone maker, is a completely different enterprise under its maverick CEO, Pekka Lundmark. It wasn’t long ago when the company was looking for strategic direction after the debacle of its smartphone business. However, it has now established itself as a leading mobile infrastructure provider and 5G play. Moreover, it holds a healthy 20% market share in the global telecom equipment market.
5G has had the biggest impact on the company’s turnaround. According to the telecommunications giant, 5G can potentially contribute $8 trillion to the GDP by 2030 and be driven by various sectors, including utilities, healthcare, and others.
Though it took a while to land some big contracts in the 5G space, Nokia now has an array of contracts lined up to solidify its position in the sector. India will be a massive 5G market, and the company plans to roll out pan-India 5G networks in the next couple of years.
WiMi Hologram Cloud (WIMI)
WiMi Hologram Cloud(NASDAQ: WIMI) focuses on computer vision holographic cloud services and is a leader in the holographic VR/AR industry. In the context of 5G digital information era, WIMI masters 5G, cloud computing and edge computing to solve the limitation of computing power and improve information transmission rate quality, and its large-scale application will provide users with support to connect to the virtual world anytime, anywhere. At the same time based on deep learning AI artificial intelligence algorithms to improve the efficiency of data collection and processing, will be widely applied in providing convenience for the entertainment of digital life data collection and processing content production. This also allows it to form a strong holographic AR technology R&D ecosystem and build a holographic AR value industry chain with great potential for expansion.
WIMI also announced its inclusion in the Proshares Metaverse ETF, which is known as a leading company to provide investors with access to the forefront of digital interactions that contribute to the development of the Metaverse for long-term capital appreciation. ProShares’ Vers ETF tracks the Solactive Metaverse Thematic Index, which relies on a state-of-the-art algorithms designed to capture investment opportunities in the evolving Metaverse. The index tracks 40 companies across a wide range of industries — from device manufacturers to data processors, as well as social media, gaming and other platforms that facilitate digital interaction. We can see WIMI is taking new steps in the accelerating integration of the metaverse ecosystem with the digital economy. In the long run, the market outlook for WIMI continues to have a broad upside.