Investing in undervalued stocks that have the potential to derive high returns is a solid strategy. Here, the focus is on three dirt-cheap stocks that could make one a millionaire by 2026. These companies have been selected based on their impressive financial metrics and growth indicators, which make them standout choices for those seeking high-return investments.
The first company has demonstrated remarkable improvement in its gross margin, which points to its effective cost management and operational efficiency. The second boasts an exceptional gross margin, which highlights its strong position in the competitive blockchain sector. Finally, the third company has shown outstanding profitability metrics, with considerable increases in net income and returns on equity and assets.
Understanding these companies’ fundamentals is vital to capitalize on potentially high-reward opportunities in the stock market. In short, these stocks hold solid financial health and reflect strategic initiatives and market positioning that could lead to high gains.
Airgain (AIRG)
Airgain (NASDAQ:AIRG) specializes in antenna and connectivity solutions for wireless communications. The company’s gross margin has improved. The gross margin uplifted to 40.2% in Q1 2024 (from 39.1% in Q1 2023). This annual increase demonstrates the company’s fundamental ability to maintain and boost its margin despite market adversities. The higher gross margin reflects better product mix, cost control, and improved operational performance. The ability to attain a gross margin of over 40% highlights Airgain’s strategic focus on high-margin products and solutions.
Moreover, Airgain has led in managing its operating expenses. This is alongside continuing to invest in areas for growth. The operating expenses for Q1 were $6.6 million, which is relatively stable against $6.5 million in Q4 2023. This stability in operating expenses amidst increased sales indicates sharp cost management. Additionally, against $7.3 million in Q1 2023, the reduction in operating expenses reflects the company’s efforts to boost its operational edge. There is a focus on high-priority investments.
Overall, Airgain’s improved gross margins and sharp cost management make it a top mark among millionaire-making cheap stocks.
BTCS (BTCS)
The block builder BTCS (NASDAQ:BTCS) operates in the blockchain sector and provides cryptocurrency mining and investment services. BTCS had a gross margin of 75% for Q1 2024, indicating its operational edge and solidity of bottom line. The company’s gross margin has a substantial percentage of revenue that exceeds the cost of goods sold. This reflects the company’s fundamental ability to manage production costs and derive profit from its core operations. This high gross margin demonstrates BTCS’s ability to derive considerable revenue relative to its direct costs.
Moreover, in the blockchain sector, where competition can be intense and costs variable, a gross margin of 75% is notably high. This suggests that BTCS is well-positioned against its peers, likely benefiting from economies of scale, optimized processes, or high-margin products and services. The substantial gross margin supports BTCS’s sharp ability to invest in growth while maintaining solid financials. It also highlights the company’s edge in leveraging its blockchain technology and infrastructure to maximize the bottom line.
Overall, BTCS’s solid gross margin highlights its operational edge and profitability, solidifying its position among millionaire-making cheap stocks.
Grupo Supervielle (SUPV)
Grupo Supervielle (NYSE:SUPV) leads as a major Argentine financial services provider. The company had a net income of AR$46.5 billion, a solid boost from AR$2.2 billion in Q1 2023 and AR$34.1 billion in the previous quarter (Q4 2023). The considerable annual and quarter-over-quarter (QoQ) growth points to the edge of Grupo Supervielle’s strategic initiatives. They were implemented in 2022 and 2023. These moves include operational optimization, business consolidation, and boosted cross-selling.
Additionally, in Q1, Grupo Supervielle attained a return on equity (ROE) of 33.8%. This is a decisive improvement from 2% in Q1 2023 and 26.9% in Q4 2023. This sharp increase in ROE indicates a sharp use of equity with high strategic management that may continue to derive superior performance. The Return on Average Assets (ROAA) for Q1 2024 was 7.4%, increasing from 0.3% in 1Q23 to 5.3% in Q4 2023. This increase in ROAA points to the company’s improved asset utilization and the ability to derive higher returns from its asset base.
To sum up, Grupo Supervielle’s big improvements in profitability and returns justify its inclusion as a top pick among millionaire-making cheap stocks.
On the date of publication, Yiannis Zourmpanos did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.