Given considerable uncertainty regarding the market’s momentum in the coming weeks, and as investors have grown more cautious ahead of the Fed’s annual summit that begins today, we think it could be wise to bet on relatively lower-priced stocks ICL Group (ICL) and LSI Industries (LSI). These two names are currently trading at less than $10 but have the potential to generate substantial returns in the coming months. Let's discuss.Impressive corporate earnings, a strengthening job market, and steady bond yields have recently propelled key benchmark indices to record highs. However, the market is expected to witness significant volatility as investors await more details from the central bank’s annual symposium and its plan to pull back on monetary stimulus. Consequently, many analysts expect a broader market correction in the near term. Moreover, the personal consumption expenditures price index rose 4.2% year-over-year in June, so rising inflationary pressure continues to spook investors.
Since a market correction could lead highly priced stocks to lose considerable value, we believe it may be prudent to bet on stocks that are currently trading at affordable prices and have adequate fundamental strength to generate returns.
ICL Group Ltd (ICL) and LSI Industries Inc. (LYTS) possess strong balance sheets and are currently trading at less than $10. So, it could be wise to bet on these stocks now.