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Investing in smaller, inexpensive stocks is risky — but sometimes, risk uncovers opportunity. If you’re willing to allocate a speculative slice of your portfolio, here are seven cheap stocks that are flying under the radar — and why some investors think they might move upward.
1. Deswell Industries, Inc. (DSWL)
What they do: Manufacturer of injection-molded plastics, electronic components, and molds.
Why it could rally: Shares trade under $5 and some analysts see significant upside if industrial demand strengthens.
Risks: Tiny market cap, thin trading volume, and sensitivity to global manufacturing cycles.
2. Zynex Inc. (ZYXI)
What they do: Medical device maker specializing in pain management and neurostimulation technologies.
Why it could rally: It’s very cheap (sub-$2), and any positive regulatory or insurance coverage news could move it higher.
Risks: Regulatory approval hurdles, uncertain revenue growth, and volatility.
3. Clearfield, Inc. (CLFD)
What they do: Provides fiber-optic distribution and protection devices for telecom infrastructure.
Why it could rally: With 5G, broadband, and fiber network buildouts expanding, Clearfield is well-positioned.
Risks: Relies heavily on telecom capital spending and faces strong competition.
4. Opendoor Technologies (OPEN)
What they do: Online platform for buying and selling homes.
Why it could rally: If housing markets stabilize and mortgage activity picks up, OPEN could rebound.
Risks: Very sensitive to interest rates and housing cycles.
5. BioVie, Inc. (BIVI)
What they do: Clinical-stage biotech working on therapies in neurology and liver disease.
Why it could rally: A single positive trial result could send shares surging.
Risks: High binary risk — trial failures could tank the stock.
6. Amylyx Pharmaceuticals (AMLX)
What they do: Biopharma focused on treatments for ALS and other neurodegenerative diseases.
Why it could rally: Breakthroughs in trials or FDA approvals would be a game-changer.
Risks: Like most small-cap biotechs, very high risk of failure before profitability.
7. Gerdau S.A. (GGB)
What they do: Global steel producer based in Brazil.
Why it could rally: Traded under $5, considered undervalued in the metals sector.
Risks: Exposure to commodity price swings, currency fluctuations, and global demand cycles.
🚨 Key Takeaways
These are speculative picks — treat them as high-risk, high-reward plays. Diversify — don’t go all-in on one; spread across sectors. Use position sizing — keep allocations small. Watch catalysts — earnings, trials, or policy changes can swing them dramatically.