A spike in coronavirus infections worldwide due to the rapid spread of the Delta variant, and rising consumer prices, could lead to a broader market sell-off in the near term. Amid this volatile environment, because overpriced mega players are more likely to witness a correction, we believe it would be prudent to bet on relatively lesser-known stocks, such as H & M Hennes & Mauritz (HNNMY), CEMEX (CX), and Mazda Motor (OTC:MZDAY). They are each currently trading below $10 and have the potential to generate substantial returns. Let’s take a close look at these names.Many investors expect the stock market to experience a sell-off in the near term due to rising concerns surrounding the spread of the highly contagious COVID-19 Delta variant. Also, because the consumer price index rose 5.4% year-over-year in June, representing its biggest jump since 2008, investors are concerned about inflation’s potential impact on the stock market.
Although Fed Chairman Jerome Powell said the Fed is nowhere near considering a rate hike, investor jitters around the aforementioned factors could lead to several overpriced stocks suffering corrections in the near term.
In these uncertain times, fundamentally sound low-priced stocks could be safer bets. H & M Hennes & Mauritz AB (HNNMY), CEMEX S.A.B de C.V (CX), and Mazda Motor Corporation (MZDAY) are currently trading below $10 and exhibit strong fundamentals. So, we think it could be wise to bet on these under-the-radar stocks now.