Investors with a small amount of funds to allocate to equities often look for stocks that have a relatively lower price. As an example, a diversified sub-portfolio of stocks under $10 can be created with limited funds.

It’s also obvious that most of these stocks under $10 would be high-risk growth stocks. However, careful selection can help in boosting portfolio returns.

In the bull market, I have seen stocks under $10 double or triple in a matter of days. That’s unlikely right now, though, as broad market sentiments are bearish.

However, there are low-priced stocks that are worth considering for the next 12 months. Over this time, these stocks can potentially double.

Of course, I must add here that macroeconomic conditions remain uncertain. It’s best to be overweight on low-beta stocks, but a small part of the portfolio can be allocated to these small-cap stocks.

With all of this in mind, let’s dive in and look at these seven stocks that have sound business fundamentals and can be potential multi-baggers.

Stocks Under $10: Palantir Technologies

In bearish market conditions, Palantir Technologies (NYSE:PLTR) seems to have been a victim of over-reaction. After a correction of more than 40% in the last six months, PLTR stock looks attractive at under $10.

Recently, Bank of America analysts-initiated coverage on the stock with a price target of $13. A key rationale being “rapid growth in demand for artificial intelligence platforms.”

It’s also worth noting that the company reported revenue growth of 31% for the first quarter of 2022 to $446 million. Furthermore, Palantir has guided for annual revenue growth in excess of 30% through 2025.

Another point to note is that for Q1 2022, the company’s commercial revenue growth was 54% year-over-year (or YOY). It was the fifth consecutive quarter of commercial segment revenue acceleration. With healthy growth in the customer base, the outlook is not as pessimistic as the stock price suggests.

Therefore, I believe that PLTR stock is poised for a sustained reversal rally. As a matter of fact, the stock is already higher by more than 13% in the last month — and I will not be surprised if this momentum sustains.

Transocean

With global growth concerns, there has been some correction in oil prices as of late. However, considering the geopolitical risk premium on energy prices, it’s unlikely that there will be a deep correction. Additionally, the supply scenario is also likely to remain tight and is another reason to believe that a big correction is unlikely.

In turn, I believe that Transocean (NYSE:RIG) is a quality stock to play the tailwinds in the energy sector. After touching recent highs of nearly $5.60 per share, RIG stock has corrected to current levels of $2.70 per share. The deep correction seems like a good accumulation opportunity.

One reason to like Transocean is the fact that the company has a modern fleet of deep-water and ultra-deep-water rigs. In positive industry conditions, these rigs are likely to be contracted at attractive day rates. This will translate into EBITDA margin expansion and cash flow upside.

Transocean also has a strong order backlog of $6.1 billion. This provides clear revenue visibility for the medium-term. And from a revenue upside perspective, Transocean still has 12 cold stacked rigs.

With all of this in mind, I believe RIG stock is one of the best stocks under $10 you can buy right now.

Stocks Under $10: Riot Blockchain

It almost seems that the cryptocurrency story is over. For risk-taking investors, this is the best time to consider exposure to quality coins and crypto stocks.

I believe that Riot Blockchain (NASDAQ:RIOT) is among the quality names to consider. If sentiments reverse for Bitcoin (BTC-USD), the stock can potentially deliver multi-fold returns.

For May 2022, Riot mined 466 Bitcoin at a hash rate capacity of 4.6EH/s. For the same period, Riot also held 6,536 Bitcoin in the balance sheet.

The key point to note is that the company targets increasing mining capacity to 12.6 EH/s by January 2023. With capacity almost likely to triple, Riot will be positioned to mine more than 1,000 Bitcoin on a monthly basis.

The growth story will look bullish if Bitcoin is back to $40,000 or $50,000. It’s also worth noting that Riot has a strong balance sheet with cash and digital assets. The company can navigate this period of downturn and EBITDA margin compression.

Cronos Group

Cannabis stocks have continued to struggle and Cronos Group (NASDAQ:CRON)  is no exception. However, CRON stock has trended higher by 17% from recent lows of above $3 per share. The rally from oversold levels is likely to sustain and CRON stock is among the top stocks under $10 to consider.

One reason to be bullish on Cronos is its focus on research and development. As an example, the company has partnered with Ginkgo Bioworks (NYSE:DNA). The partnership is exploring the production of cultured cannabinoids at an industrial scale.

Overall, the company’s wellness brand is focused on GMP-certified medicinal cannabis. With that in mind, this is another high-growth segment for the long term.

Cronos also has a presence in the U.S. through a 10.5% ownership stake in Pharmacann. The latter has a broad geographic footprint in the U.S. With the impending Federal level legalization of cannabis, Cronos is expected to benefit from this stake.

As of March 2022, Cronos had cash and short-term investments of $980 million. With the company trading at a valuation of $1.2 billion, there seems to be ample scope for upside. Further, Altria’s (NYSE:MO) stake in the company ensures a strong financial backing.

Stocks Under $10: Polestar Automotive

Polestar Automotive (NASDAQ:PSNY) stock is a new listing and the stock trades just below $10. It’s worth talking about, though, because the company looks attractive from a long-term perspective.

The electric vehicle (or EV) company currently has two models, Polestar 1 and 2 that were launched in 2019 and 2020 respectively. The company has already sold 29,000 vehicles for these two models in 2021.

With increased financial flexibility after the special purpose acquisition company (or SPAC) business combination, Polestar has an attractive launch pipeline. The company plans to launch Polestar 3,4, and 5 through 2024. Polestar has also guided for 290,000 vehicles sales by 2025.

In terms of having an innovative edge, Polestar claims to be developing one of the most powerful motors in the world. The company also has state-of-art battery technology based on Volvo Cars and Lotus technology.

Collectively, though, PSNY stock still seems to be flying under the radar. I believe that some exposure can be considered with the company having ambitious growth plans.

JetBlue Airways

JetBlue (NASDAQ:JBLU) stock has trended lower considering macro-economic headwinds. However, JBLU stock is among the top picks from the airline sector. The stock traded at a 52-week high of $16.65, and I would not be surprised if these levels are re-tested in the next 12 months. That would imply upside potential of more than 100% from current levels.

Furthermore, one reason to like JetBlue is the company’s credit strength. As of Q1 2022, the airline reported $2.9 billion in liquidity. Furthermore, the airline has a low adjusted debt-to-capital ratio of 54%. This is at a time when most big airlines are facing immense credit stress.

With the financial flexibility, JetBlue is also positioned to pursue organic and acquisition-driven growth. The outcome of the bid to acquire Spirit Airlines (NYSE:SAVE) is uncertain. However, it indicates that the airline is pushing for growth. JBLU stock, therefore, looks attractive after a correction of more than 40% year-to-date (or YTD).

Stocks Under $10: Kinross Gold Corp.

Gold is likely to be a key investment theme in the coming years. Why? Factors of recession, inflation and geopolitical tensions are likely to support the upside in gold.

With this in mind, Kinross Gold Corp. (NYSE:KGC) stock has been trending lower with a negative new inflow. The company decided to sell Russian assets because of geopolitical factors. That has resulted in a lowering of production guidance for 2022 and 2023.

Additionally, the Russian assets were expected to be sold for $680 million. However, the transaction was completed at just $340 million.

It finally seems that a string of bad news is over. Kinross currently has a strong liquidity buffer of $1.7 billion. This will help the company close the Great Bear acquisition. Also, Kinross will declare initial mineral resources from the Great Bear asset towards the end of 2022. That’s a potential stock upside trigger.

Another point to note is that even with lowered production guidance, Kinross is positioned to deliver positive free cash flows. This will allow the company to sustain dividends.

On the date of publication, Faisal Humayun 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.