7 Smart Stocks to Buy Now Under $10

  • Arcos Dorados (ARCO): A fast food franchisee serving Latin America.
  • Catalyst Pharmaceuticals (CPRX): This biopharmaceutical firm focuses on rare debilitating neuromuscular and neurodegenerative diseases.
  • Gran Tierra Energy (GTE): This Canada-based exploration and production (E&P) company works out of Ecuador and Colombia.
  • Kosmos Energy (KOS): Another E&P, this time the focus is offshore production around Africa and other frontier basins.
  • BrasilAgro-Companhia Brasileira de Propriedades Agricolas (LND): This diversified agricultural company raises everything from cotton to cattle.
  • Obsidian Energy (OBE): Around since 1979, this Canada-based E&P that focuses on Western Canada resources.
  • Target Hospitality (TH): You have to drill for oil where you find it. This company offers rental accommodations and other amenities to crews.
A folded ten dollar bill sits on a wooden surface.

Source: MD_Photography / Shutterstock.com

As this market continues to gyrate between ecstasy and agony, sometimes it’s easy to just buy the big names and be done. But there are some smart stocks out there worth your time, and they’re low-priced gems.

They don’t have the massive market capitalizations of the more headline-grabbing stocks, but in this kind of market, it’s to their advantage to keep a low profile. Small stocks with a lot of interest tend to be more affected by that interest.

Low profile stocks that are in good strategic sectors and have plenty of headroom from here are what these seven all deliver. And given their size, they’re in great position to grow faster than their larger cap contemporaries.

These are all small cap stocks, which means they are in their element when the economy is hot, especially in their given sectors. This is their time to shine.

Now that we’re out of the slow-growth, low interest environment we have been in for more than a decade, small caps in strategic growth sectors have the opportunity to grow in their niches and expand rapidly.

ARCO Arcos Dorados $7.91
CPRX Catalyst Pharmaceuticals $8.61
GTE Gran Tierra Energy $1.64
KOS Kosmos Energy $7.75
LND BrasilAgro-Companhia Brasileira de Propriedades Agricolas $7.12
OBE Obsidian Energy $9.04
TH Target Hospitality $5.89

Arcos Dorados (ARCO)

Source: Ratana21 / Shutterstock.com

There are few things more important when the world gets wild than comfort food. And Arcos Dorados (NYSE:ARCO) dominates in an interesting niche when it comes to that.

ARC owns a master franchise for McDonald’s (NYSE:MCD) and operates in 20 countries in Latin America and the Caribbean. It employs more than 100,000 people and is one of the largest franchisees for the restaurant in the world.

Its name in Spanish translates to Golden Arches, so it’s pretty clear its operation is closely tied to the company’s headquarters. This is an interesting way to play the growth going on in Latin America with a rock-solid U.S.-based money machine.

ARC stock has gained 35% year to date and it has a dependable dividend around 1.5%.

This stock has an “A” rating in my Portfolio Grader.

Catalyst Pharmaceuticals (CPRX)

A variety of pills, pill bottles, and droppers arranged on a table in multiple bright colors.

Source: Shutterstock

One sector that remains somewhat disconnected from the economic cycle is the biotech industry. Because the life cycle of getting a drug from “lab to fab” is so long, its funding isn’t as dependent on the vagaries of the market.

If a company has a strategic niche and has solid researchers, it offers a good opportunity for investors. Usually the one big challenge is finding a solid management team that understands how to transition a research-oriented organization to a profitable business.

Catalyst Pharmaceuticals (NASDAQ:CPRX) focuses on rare neurological diseases and has been at it for two decades now. One drug is already in the market, one is in phase-3 trials and another in following just behind. Working with rare diseases and orphan drugs means there’s less competition and pricing for the drugs can offer big margins, since there’s a much smaller market for them.

CPRX stock has gained 26% year to date, 90% in the past 12 months, yet trades at a P/E (price-to-earnings ratio) just over 23.

This stock has an “A” rating in my Portfolio Grader.

Gran Terra Energy (GTE)

miniature oil barrel and oil well figures on top of stack of money

Source: Shutterstock

The Russian invasion of Ukraine and the subsequent challenges to supply chains and commodity supply from Russia have sent many countries scrambling for more supply. The U.S. just announced it was releasing 1 million barrels a day from its strategic reserve and Europe is looking for long-term solutions to cut its dependency on Russian oil and natural gas.

That presents a huge opportunity to E&P firms like Gran Tierra Energy (NYSEAMERICAN:GTE). While it focuses its operations in Colombia and Ecuador, it’s important to remember these are oil rich countries. Ecuador was part of OPEC (Organization of the Petroleum Exporting Countries) for a very long time.

Also, both countries are in the U.S. sphere of influence, unlike Venezuela. That means we don’t have to worry about issues with China or OPEC getting in the way of accessing these resources.

Usually, a stock like GTE with a $600 million market cap doesn’t get that much attention when the energy patch is dealing with normal supply and demand issues. But we crossed that Rubicon a while ago.

Now, GTE is hot and will be for some time to come. The stock has gained 116% year to date, yet it’s still trading at a P/E of just 14.

This stock has an “A” rating in my Portfolio Grader.

Kosmos Energy (KOS)

Illustration of oil pump jacks on sunset sky background to represent oil and gas stocks

Source: Shutterstock

Another variation on the theme of far-flung E&P operations is Kosmos Energy (NYSE:KOS). It operates in offshore fields around Africa, where in recent decades deepwater oil has been found in significant amounts. But it also has operations in the Gulf of Mexico as well.

This Texas-based firm works off Ghana, Equatorial Guinea, Mauritania and Senegal. Those aren’t exactly in the U.S. sphere of influence, but with oil and natural gas resources under constraint, there are big opportunities here for KOS to scale up operations.

Another good thing about its offshore wells is that they’re somewhat insulated by any political upheaval in the countries. It’s much more difficult to raid the properties or disrupt operations when they’re offshore.

KOS stock has gained 125% year to date, and that has launched its market cap up to $3.5 billion. That means there’s plenty of money to expand operations while the market is strong.

This stock has an “A” rating in my Portfolio Grader.

BrasilAgro-Companhia Brasileira de Propriedades Agricolas (LND)

a tractor cultivating a farm from an aerial view

Source: Shutterstock

The other side of the commodity coin is agricultural commodities. Russia is also a significant fertilizer supplier. That means farmers are getting hit by high energy prices as well as higher fertilizer and chemical prices.

And the only real solution to this issue is more companies are seeing increased demand to fill the supply gap.

For a diversified agricultural player like BrasilAgro-Companhia Brasileira de Propriedades Agricolas (NYSE:LND), that’s a great opportunity. Also remember that a number of large companies are trying not to buy cotton from China because much of it comes from the region where ethnic Uyghurs are being mistreated by the Chinese government.

This is big opportunity for LND to fill some of that gap in the supply chain. There’s a similar story for beef, where energy prices have made large commercial cattle operations much more expensive.

LND stock has gained 32% year to date, yet still trades at a P/E below 5. And it has a nearly 7% dividend to boot. That’s impressive for a company with a $661 million market cap.

This stock has an “A” rating in my Portfolio Grader.

Obsidian Energy (OBE)

Pipelines in the desert

Source: bht2000 / Shutterstock.com

Obsidian Energy (NYSEAMERICAN:OBE) has a $731 million market cap and is an E&P that does all of its work in Canada. That may seem somewhat limited, but its story is similar to GTE’s. While the opportunities in the places they operate are small, relatively speaking, it isn’t as much their expansion that’s key, it’s the demand.

You see, if it costs $35 to get a barrel out of the ground, and it sells for more than a $100 a barrel, then you have some gigantic margins. And if a major producer is out of the game, it’s likely you can run as many shifts as you want and your oil and natural gas will have buyers at those margins.

What’s more, the prices we’re seeing right now aren’t going to drop anytime soon. This could be a multi-year top with the significant growth that’s underlying all the turmoil.

Obsidian Energy has been around since 1979, so it’s not a rookie in this sector and that’s important when you have to navigate the ups and downs of the energy patch. OBE stock has gained 120% year to date — 482% in the past 12 months — but its P/E is just 2.

This stock has an “A” rating in my Portfolio Grader.

Target Hospitality (TH)

A paper cutout of a house is attached to a tag reading "for rent."

Source: Pixelbliss / Shutterstock.com

If you’re interested in the energy patch, but you’re interested in more complementary picks with exposure beyond the industry, then Target Hospitality (NASDAQ:TH) may be the stock you’re looking for.

It specializes in rental accommodations and ancillary services in areas where there are few housing options. It also supplies its services for local, state and federal governments where there’s a need for these unique services. TH is the largest specialty rental and hospitality services company in the U.S.

At this point, E&P operations in a number of shale fields around the U.S. are a big part of its business. That should continue for quite a while as energy demand continues to rise and shows no sign diminishing. TH facilities can also be used for temporary housing for large natural disaster events as well, since they can be deployed and operational in a short period of time.

TH stock has gained 66% year to date and 172% in the past 12 months. It has a $600 million market cap now and has significant long-term potential.

This stock has an “A” rating in my Portfolio Grader.

On the date of publication, Louis Navellier has no positions in any of the stocks in this article. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.

The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.


Article printed from InvestorPlace Media, https://investorplace.com/2022/04/7-smart-stocks-to-buy-now-under-10/.

©2022 InvestorPlace Media, LLC