Because the stock market is expected to remain volatile in the near term on concerns over rising inflation, we think it could be wise to add low-priced stocks GlobalStar (GSAT), OPKO Health (OPK), and Energous Corporation (NASDAQ:WATT) to one’s watch list now. Wall Street analysts expect these stocks to deliver solid returns in the near term. Read on.The consumer price index surged 6.2% year-over-year last month, its highest gain since 1990, driving investors’ inflation concerns. While other, positive, economic data should power the stock market, concerns over rising inflation could foster significant volatility in the near term.
However, according to Suze Orman, a popular personal finance expert, “Over the long-term, stocks have produced the best gains after factoring in inflation. Bonds and cash struggle to keep pace with inflation; only stocks have a track record of earning more than inflation.” Furthermore, Fed officials have reiterated that the rally in commodity prices is temporary, owing to production and delivery bottlenecks caused by the COVID-19 pandemic. Since the gridlock-driven inflation is expected to abate in the near term, we think investing in low-priced stocks gradually could churn out greater returns.
Therefore, it could be wise to add Globalstar, Inc. (NYSE:GSAT), OPKO Health, Inc. (OPK), and Energous Corporation (WATT) to one’s watch list now. These stocks are trading at less than $5, and Wall Street analysts expect them to deliver significant returns in the near term.