Investors are often on the lookout for hidden gems and untapped potential in the stock market. There is an inherent thrill in unearthing the next big thing, especially when it comes to portfolio-altering growth stories. In this quest for the next multibagger, some believe that the under $10 category holds the key to unlocking substantial returns. This discussion focuses on three stocks under $10 surging with potential to provide 10-bagger returns by 2030, and perhaps even exceed this relatively conservative estimate by a wide margin.
High-Potential Cannabis Play: Cronos Group (CRON)
Cannabis stocks have weathered a long period of depression, but signs of a strong rally are maturing. With positive regulatory prospects on the horizon, the stage is set for healthy growth in select cannabis companies. One such company is Cronos (NASDAQ:CRON), which is positioned as a potential 10-bagger by 2030, and this estimate may be modest.
As of Q3 2023, Cronos boasted a cash reserve of $840 million – a figure almost equivalent to the company’s current market valuation. This robust financial position provides ample room for aggressive organic and acquisition-driven expansion. Furthermore, Cronos is actively bolstering its medicinal cannabis footprint with shipments to key international markets, underlining its commitment to strategic global growth.
Revolutionizing Urban Air Mobility: Archer Aviation (ACHR)
Amidst the nascent stage of the flying car market, it’s prime time to identify and embrace potential multibaggers in the burgeoning eVTOL segment. Archer Aviation (NYSE:ACHR) emerges as a standout name, poised for exponential growth in the coming years.
Archer has already achieved a significant milestone with the completion of phase one of its flight-testing program. Regulatory clearances for piloted testing are on the horizon, paving the way for commercial flights in the U.S. by the following year. Moreover, the company’s strategic partnerships in international markets are setting the stage for a robust global expansion strategy beyond 2026.
Unearthing the Lithium Revolution: Standard Lithium (SLI)
Standard Lithium (NYSEMKT:SLI) stands out as one of the most undervalued penny stocks with immense growth potential. While the stock has witnessed a significant correction over the past year due to broader market dynamics, savvy investors see this as a golden opportunity.
With a market valuation of $226 million against assets boasting a combined after-tax net present value of $5.2 billion, Standard Lithium presents a compelling case for extraordinary returns. Factors such as the anticipated upswing in lithium prices and strategic financing partnerships are poised to trigger a substantial upward momentum, propelling SLI to new heights.
It is important to note that successful investing in penny stocks requires diligent research and risk management. In the case of low-volume stocks like these, it is vital to exercise caution and thorough due diligence.
As with any investment, the decision to consider these stocks should be informed, prudent, and aligned with individual risk appetite.
Reference: Penny Stocks — How to Profit Without Getting Scammed
Writer’s disclosure: 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 are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research, and financial modeling. He has authored over 1,500 stock specific articles with a focus on the technology, energy, and commodities sector.
