Amid concerns over the resurgence of COVID-19 cases and rising market volatility, overpriced stocks will likely experience a correction in the near term. So, we think it would be wise to bet on relatively lesser-known stocks, such as Celestica Inc . (NYSE:CLS) and Alliance Resource (NASDAQ:ARLP), which are currently trading below $10 in price and have the potential to generate substantial returns in the coming months. Read on for more details on these names.With the United States now experiencing a surge in average COVID-19 cases per day, the stock market has been volatile of late. Also, 10-year Treasury yields have fallen to 1.17%, putting them near their recent lows from mid-July as investors move to safer alternative investment. Concerns surrounding the spread of the COVID-19 Delta variant have kept investors on edge, which could lead to several overpriced stocks suffering corrections in the near term.
Amid this market uncertainty, quality stocks that are trading at affordable prices can be better bets. For example, low-priced stocks Celestica Inc. (CLS) and Alliance Resource Partner L.P (ARLP) possess robust balance sheets and exhibit strong fundamentals. So, we think it could be wise to bet on these stocks now.
Celestica Inc. (CLS)