This bull market has been quite selective, with a bifurcation building in the market. Mega-cap technology stocks have outperformed, with many cheap stocks still seeing relative underperformance in terms of the proportionate share of market gains seen in recent months.

It’s my view that many of the beaten-down mid-cap companies are bound to catch up. This will create potential opportunities for bargain-hunting investors. That’s why I’ve compiled a list of seven cheap stocks trading under $10 per share with significant upside potential in the years ahead.

As the economy continues its steady expansion, investors are growing increasingly confident. The S&P 500 recently hit fresh all-time highs after GDP grew 3.3% in Q4, exceeding expectations. With the Federal Reserve likely to cut rates in the coming months to sustain this growth, the backdrop for stocks looks favorable. This rising tide could lift cheap, overlooked stocks much higher in the coming months.

Rather than chasing many large caps that may have overextended valuations, now is the time to start building positions in these forgotten names before the rest of the market notices. Here are seven cheap stocks to consider that trade under $10 per share.

Despegar.com (DESP)

Despegar.com (NYSE:DESP) is an Argentina-based company, which generates most of its revenue in neighboring Brazil. This company acts as an Expedia for the region – offering discounted rates on flights, hotels, vacation packages, rental cars, and more.

After plunging since 2018 amidst industry-wide disruptions and macro turmoil, the coronavirus seemingly dashed any hopes of a comeback. But Despegar.com’s dominant market position and demographic tailwinds can fuel an eventual rebound. This forgotten stock has arisen from half a decade of limbo, with its fundamentals now surging back to life.

For the first three quarters of 2023, Despegar reported $503 million in total revenue and $75 million in EBITDA. Those are noteworthy improvements from full-year 2019, in which the company brought in $525 million in sales and $6 million in profits. The company did lose $69 million in 2022 as the travel sector remained depressed. However, losses narrowed significantly by Q2 2023 before a slight backslide on exchange rate fluctuations last quarter.

Importantly, management recently raised full-year guidance on accelerating momentum, now expecting 2023 revenue of $690-$700 million versus $670-$700 million previously. The company’s EBITDA outlook saw an even more drastic boost to $105-$110 million. With Latin American markets reopening and travel demand likely to inflect higher, Despegar appears poised to reclaim its former growth trajectory over the next five years. Analysts concur, forecasting the company’s earnings per share to quadruple by 2029 alongside a near-doubling of sales.

So, while most investors fixate on richly-valued tech stocks, this left-for-dead travel play offers far more intriguing risk/reward upside at just over $9 per share. When you read this, DESP stock may have already broken out into double-digit territory. But even at more than $10 per share, I think significant upside remains on the horizon for this travel stock.

SurgePays (SURG)

Rarely do you encounter a stock with SurgePays’ (NASDAQ:SURG) explosive upside that’s discounted to this degree. This Brazilian fintech player has languished in obscurity for too long amidst Wall Street’s obsession with flashy software IPOs. SurgePays appears to be enormously under-priced at the moment. In fact, I’d call it the single best fintech stock to buy right now based purely on its bargain valuation metrics.

Consider that the company’s forward price-to-earnings ratio stands at just 4.5-times, far better than 97% of software stocks. Typically, such a low multiple signals balance sheet distress or existential threats. But that’s not evident here. SurgePays currently holds 2.3-times more cash than debt, while the company’s Altman Z-Score of 8.41 indicates minimal bankruptcy prospects.

So why the drastic undervaluation? The likely explanation lies in SurgePays repeatedly falling short of quarterly revenue estimates over the past year. The company’s Q3 sales missed by nearly 10%, continuing the expectations disconnect investors have grown accustomed to. There’s also expected dilution on the horizon, via $15 million in equity offerings at $5.60 per share.

Yet, focusing excessively on these temporary setbacks puts investors at risk of losing sight of the bigger picture. By all accounts, SurgePays continues executing well from an operational standpoint, with sustained profitability and little leverage-related risk. Assigning a forward earnings multiple under 5-times makes no sense for a steadily-growing fintech company, even assuming a slightly slower future growth rate.

That’s especially true when considering how the CEO owns 30% of shares outstanding. With that much skin in the game, further value-destroying dilution appears unlikely. Instead, newly-raised capital can fuel acquisitions to supplement the company’s already strong organic growth.

Ceragon Networks (CRNT)

As wireless technology permeates most facets of modern life, few companies hold more long-term potential than Ceragon Networks (NASDAQ:CRNT). This innovator designs cutting-edge solutions enabling speedy data transfers between cellular towers using high-frequency microwave links. Its global leadership position across 130 countries gives Ceragon immense exposure to multiple secular tailwinds.

Ceragon’s recent results and dealmaking activity provide reasons for optimism after years of mediocre performance. In Q4 2023, the company completed its acquisition of Siklu, a provider of multi-gigabit capacity radios, to expand Ceragon’s presence in North America. Ceragon’s Q3 revenues grew 11% annually to $87.3 million, and the company returned to GAAP profitability, with this number coming in at $3.4 million.

Management also secured record North American and Indian order backlogs during the quarter, with positive momentum continuing on this front. Ceragon also disclosed a $150 million agreement with a global integrator in January to support communication infrastructure projects in India.

Between strengthening demand dynamics in India’s booming cellular market and similar network investments planned across North America over the next decade, Ceragon finds itself favorably positioned to capitalize on strong secular tailwinds.

Alight (ALIT)

Alight (NYSE:ALIT) presents an intriguing post-pandemic recovery play in the enterprise cloud-based HR software sector. Strong Q3 results underscore this healthcare-focused disruptor’s potential, with sales rising 8.4% amidst 26% booking growth and nearly 19% growth in adjusted EBITDA.

Wall Street welcomed this recent earnings report, sending ALIT stock soaring 38% since early November. Yet, even after these recent gains, plenty of upside remains given the company’s favorable growth outlook. Consensus forecasts call for steady, high-single-digit revenue expansion over the next three years, powered by rising demand for Alight’s integrated digital platforms, helping enterprises streamline operations.

Earnings growth should outpace sales as margins expand. Analysts project adjusted earnings per share will climb nearly 20% next year. Trading around 10.6-times forward earnings while boasting a price/sales ratio barely above 1.5-times, ALIT stock still looks discounted relative to its high-growth SaaS peers.

As more corporations undertake digital transformation initiatives in the years ahead, Alight stands ready to capitalize on this trend, given its innovative solution portfolio and entrenched customer relationships. The market will soon recognize this software disruptor’s immense potential.

Taseko Mines (TGB)

Unlike most commodity producers at the mercy of external pricing factors, Taseko Mines (NYSEMKT:TGB) possesses differentiated operational capabilities pointing to sustainable growth regardless of copper market gyrations. Taseko offers intriguing value, given expected production increases at existing mines and its robust development pipeline.

The company’s Q3 results underscored management’s execution prowess. Revenues and EBITDA soared 60% and 73%, respectively, versus the year-ago period. Thanks to higher copper output and inflated prices, Taseko generated $20 million in adjusted net income in Q3 2023.

The company increased copper production by 26% in 2023, well above guidance. Analysts forecast strong earnings growth in the coming years, which should average around 40% from 2023 to 2026 as mining productivity improves. Yet, TGB stock still trades at just 10x-times forward 2025 earnings. This miner seems ready to buck the stereotypical boom-and-bust commodity cycle, and is a mining stock I think investors need to have on their radar right now.

Turkcell (TKC)

Turkish telecom operator Turkcell (NYSE:TKC) presents a classic turnaround opportunity as stubborn domestic inflation shows early signs of easing. Punishing consumer price increases stemming from unorthodox monetary policies have hampered discretionary spending over the past two years. But with interest rates now touching 45% in Turkey, a macroeconomic inflection point nears.

Turkcell continues posting steady subscriber growth despite this harsh operating climate. Consensus forecasts call for 7.4% revenue growth in 2023, followed by 57% and 35% jumps in 2024 and 2025, respectively, as Turkcell gains purchasing power. Earnings should outgrow sales, with the company’s earnings per share potentially doubling next year.

However, the stock trades at just 4.5-times forward estimated 2024 earnings. This indicates investors still don’t fully appreciate the scale of Turkcell’s growth prospects, or the coming tipping point in Turkey’s economic recovery. As inflation hopefully starts plateauing in 2024, crushed stocks like TKC have impressive upside potential.

High Tide (HITI)

Unlike most unprofitable cannabis producers burning cash amidst murky paths to profitability, High Tide (NASDAQ:HITI) continues blazing a trail toward sustainable earnings growth, regardless of the timing of federal cannabis legalization in the U.S. The company’s innovative discount club model and membership programs provide both differentiation and recurring revenue that promises eventual profits.

I first recommended HITI stock in November, given the company’s transparent roadmap balancing top-line growth and margin expansion. Since then, shares have surged more than 25%, while HITI stock has maintained attractive discounted valuation metrics. Consensus forecasts still point towards more than 12% average annual sales growth this decade as High Tide prudently expands its Canadian retail footprint.

More importantly, if the company does swing from losses to solid profitability in 2025, I think this company could be well-positioned to potentially double or triple over the next three years. Unlike other cannabis players, High Tide’s profits won’t rely on U.S. legalization updates or speculative financing activities. Instead, the current Canadian market opportunity alone can drive significant shareholder value creation going forward, if the company continues to execute.

Trading at just 0.25-times sales and 7-times 2027 earnings, this cannabis retailer still offers a highly-attractive risk/reward profile compared to both industry peers and high-multiple technology stocks dominating most portfolios.

On the date of publication, Omor Ibne Ehsan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.