Despite the fact that small-cap companies are more volatile than large-cap stocks, cheap stocks under $10 offer a significant return potential.
Small-cap stocks (IWM -7.1%) have outperformed Large-cap stocks (IWB +11.7%) over the last 52 weeks.
These under $10 stocks are solid investments that have outperformed both the Large and Small-cap indices.
The small-cap stocks highlighted here have strong fundamentals and could help diversify your portfolio.
Orange is France's largest telecommunications company. ORAN stock, which closed at $8.99 on October 14, gets a "buy" rating and a $12 price target from CFRA.
Ericsson provides network infrastructure to the telecommunications industry. ERIC stock, which closed at $6.20 on Oct. 14, has a "buy" rating and a $12 price target from CFRA.
Recently Telecom Italia Brazil sales climbed 21.8%. TIIAY stock, which closed Oct. 14 at $1.67, has a $3.80 price target from CFRA.
Rocket Lab provides launch services, spacecraft engineering, manufacture, and management. RKLB stock, which ended Oct. 14 at $3.95, has a $10 price target from CFRA.
Oatly is the world's largest manufacturer of oat milk. OTLY stock, which closed at $2.25 on Oct. 14, has a "buy" rating and a $5 price objective from CFRA.