Some people seem to believe that “the market” is all-knowing. But that’s far from the case. In fact, “the market” often greatly overestimates and underestimates companies. Because of the latter phenomenon, it’s quite possible to identify stocks under $2 that can, in a few years, rocket to $20 or even higher.
If you’re looking for a recent example, consider Plug Power (NASDAQ:PLUG). Or take Luckin Coffee (OTC:LKNCY), which was trading for well under $2 in May 2020 and closed today at $16.52.
This post appeared first on InvestorPlace.