While there are several concerns, factors such as an expectation of solid third-quarter earnings and the continuation of near-zero interest rate policy should support the stock market in the coming months. Therefore, we think it could be wise to add fundamentally sound low-priced stocks Arcos Dorados (ARCO), Adecoagro (AGRO), and Cidara Therapeutics (NASDAQ:CDTX) to one’s portfolio. Wall Street analysts expect these stocks to rally by 50% or more in price in the near term. Read on.Last Friday’s U.S. jobs report showed that just 194,000 nonfarm payrolls were created in September, compared to 500,000 estimated by Dow Jones. Nevertheless, the S&P 500 managed to advance during the week as optimism about the U.S. debt ceiling increased, with Washington reaching a deal to raise the debt ceiling through December.
In addition, promising results from Merck & Co., Inc.’s (MRK) oral COVID-19 treatment have provided some support. Furthermore, according to a Factset report, more S&P 500 companies have issued positive EPS guidance for the third quarter. Given this backdrop, several low-priced stocks with strong growth potential could be solid bets now.
Wall Street analysts expect shares of Arcos Dorados Holdings Inc . (NYSE:ARCO), Adecoagro S.A. (AGRO), and Cidara Therapeutics, Inc. (CDTX), which are trading at less than $10 but have solid growth potential, to rally 50% or more in price in the near term.