Low-priced high-potential stocks are incredibly risky and yet people continue to buy them. Why? Really, it comes down to their tremendous upside potential.

In sports gambling terms, these ideas are the equivalent of plus-money bets or plus odds. These wagers are associated with underdogs. The opposite situation is minus-money bets. They’re tied to favorites or to use equity market terms, blue-chip stocks. These ideas will win more but they’ll be less profitable.

Of course, plus-money bets attract the spotlight because of leverage. For a little bit down, you can extract a lot of return – if you win. That’s a massive “if,” making low-priced high-potential stocks incredibly treacherous. Still, if you must speculate, these enterprises seem relatively promising.

Vuzix (VUZI)

Based in West Henrietta, New York, Vuzix (NASDAQ:VUZI) falls under the consumer electronics space. Per its public profile, the company designs, manufactures, markets and sells augmented reality (AR) wearable display and computing devices. Notably, Vuzix provides monocular smart glasses for enterprise, industrial and commercial clients. In addition, these glasses also feature relevancies for the defense and security sectors.

Part of what makes VUZI one of the compelling low-priced high-potential stocks is the analyst support. Currently, experts rate shares a consensus moderate buy with a $3 average price target. That implies almost 88% upside potential. Even more enticing, insiders – the folks that know the business the best – have been buying shares.

Indeed, over the past three years, the inside transactions have been all one way: buys. That doesn’t guarantee anything but it lends tremendous credibility.

On a trailing 12-month (TTM) basis, Vuzix prints sales of $9.94 million. For fiscal 2024, analysts believe that the high-side target cold land at $13.88 million, above last year’s result of $12.13 million.

Rekor Systems (REKR)

Headquartered in Columbia, Maryland, Rekor Systems (NASDAQ:REKR) operates in the infrastructure software space. Per its corporate profile, Rekor provides infrastructure solutions for transportation, public safety and urban mobility markets in the U.S. and other international sectors. Its main platform is Rekor One, an artificial intelligence-powered roadway intelligence solution. As well, Rekor offers systems that enhance traffic management.

Given rising global population trends along with the increased flow of commerce, it’s more imperative than ever to foster quick and efficient transport solutions. Rekor could shift the paradigm in this regard, making REKR one of the top low-priced high-potential stocks to consider.

Analysts peg shares a consensus moderate buy with an average price target of $4.50. That implies 198% upside potential. On a TTM basis, the company posted revenue of $34.93 million.

Here’s where it gets interesting. For fiscal 2024, experts believe that the top line could rise to $55.94 million. We’re talking about a 60.1% sales growth rate. Further, fiscal 2025 revenue could hit $86.43 million. REKR is a name to watch closely.

Ondas (ONDS)

Hailing from Waltham, Massachusetts, Ondas (NASDAQ:ONDS) works in the communication equipment field. According to its corporate profile, Ondas through its subsidiaries provides private wireless, drone and automated data solutions. Notably, the enterprise carries AI-related implications. Its Optimus drone features digital intelligence with imaging payloads. Ondas’ services cover multiple key industries, including rail, energy, mining, agriculture and public safety, among many others.

Again, with the increased volume of commercial activities, it’s critical to keep track of everything. Ondas provides eyes in the sky with its drone network, making it a valuable resource for myriad organizations. Since November of last year, three analysts have covered ONDS stock, all of them rating shares a buy. Further, the average price target stands at $2, implying 178% upside potential.

Over the past 12 months, Ondas posted sales of $15.69 million. For fiscal 2024, analysts are looking for a top line of $26.03 million. That would be up 65.9% from last year. Also, in fiscal 2025, experts project revenue of $71.15 million, up 173.3% (assuming 2024’s forecast holds true). If so, ONDS would be one of the low-priced high-potential stocks.

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More: Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Josh Enomoto did not have (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.