Cheap stocks with high price targets always are tempting but require due diligence.

As any investor knows, stock prices are constantly fluctuating. Stocks in a portfolio have varying degrees of volatility, but considering that there are many others to choose from, it is important to do your research.

For example, cheap stocks with high price targets are more likely to experience price swings than low-price target ones. Investors are constantly trying to determine if the stock is undervalued or overvalued.

For many investors, cheap stocks can be very enticing. After all, who doesn’t want to get a great deal on a potentially profitable investment? However, stocks that are cheap for a reason can often be poor performers. This is why it’s important to look at cheap stocks not only in terms of price but also in terms of future potential.

A common way to invest would be to look closely at cheap stocks with high price targets that show promising growth potential. As the company’s potential is realized, the stock could become a great bargain for savvy investors.

Of course, it’s important to do your research before investing in any stock, but stocks with high price targets from analysts can be a great place to start your search for bargains.

These three stocks have high potential and high price targets. Investing is complicated, but you don’t need to be a master at it. As long as you have a plan, your portfolio will grow.

Matterport (MTTR)

Metaverse companies are attracting more and more investment, and analysts are predicting that the metaverse will be worth trillions of dollars in the next decade. The technology is still in its early stages. Metaverse companies are working on various applications, from online gaming to social networking to virtual shopping.

Matterport (NASDAQ:MTTR) offers a unique solution to go along with this revolution. The company debuted via the wildly popular SPAC route last year and has something that differentiates them in the digital world: a scalable virtual reality platform.

Matterport is a company that specializes in spatial data. Matterport helps users create 3D models of real locations that companies can use for several purposes.

For example, Matterport’s models have created virtual reality experiences and mapped out buildings’ interiors. You can use the company’s technology to create digital twins, replicas of real-world objects, or locations for testing and simulations.

The company does not rely on a single source of income but hardware sales upfront, in addition to utilizing subscriptions, which gives them some much-needed diversification. It is just the operating model needed when discussing cheap stocks with high price targets.

Unfortunately, trends in the market have caused a decrease of over 70% in the share price this year. However, the company recently raised its forward guidance, causing optimism in the markets that it will make up for lost ground sooner rather than later. According to TipRanks, the average price target for the stock is $7.67 a pop, implying more than 60% upside.

Rigetti Computing (RGTI)

Rigetti Computing (NASDAQ:RGTI) is a quantum computing company working on developing several use cases for its technology across multiple fields.

One potential use case is in machine learning, where Rigetti is working on developing algorithms that can run on its quantum computers to improve the accuracy of predictions.

Another potential use case is drug discovery. Rigetti is working on developing quantum computers that can simulate complex molecules and help identify new potential drugs. The company is also developing quantum computers that can be used for financial analysis, as they can simulate complex financial models much faster than classical computers.

The U.S. Department of Energy inked an agreement with the company last year to develop solutions in the fusion energy space. In addition, DARPA is partnering with Rigetti Computing to develop quantum computers capable of handling complex optimization problems.

Rigetti Computing has made a lot of progress in a short period. These contracts with major state institutions are evidence of that. Very young companies usually have a hard time landing major clients, so having such success is an impressive accomplishment.

RGTI holds a Strong Buy consensus rating based on four Buys. Shares have an average price target of $10.33 per share, representing about 161% upside.

SoFi Technologies (SOFI)

SoFi Technologies (NASDAQ:SOFI) is a leading financial services and technology solutions provider.

Millions of people worldwide use its products and service. SoFi is changing how people bank, borrow, invest, and more.

Though the business has experienced some headwinds, SoFi Technologies is still seeing growth this year. Its latest earnings report revealed adjusted EBITDA of $20 million, representing 80% growth versus the year-ago period.

SoFi recently obtained a national bank charter, allowing it greater liquidity to extend loans to its clients. The company added 450,000 new members in the second quarter bringing its total to over 1.1 million customers on its platform.

The company, however, has room for improvement concerning operating costs. In particular, management needs to limit stock-based compensation and invest more in other areas. The online personal finance company has already doled out $157 million in the first half of the year. That would lead to better financial performance in the long run.

Plus, SoFi has been aggressive in terms of M&A activity, even though many companies have reduced spending in the present economy. Galileo, Technisys, and other acquisitions show that the company is not afraid to take bold steps in a tricky economy. However, these acquisitions also end up weighing down the bottom line.

Management’s execution and ability to control costs will be critical for improving profitability. If the company can do this, SoFi will see its shares record double-digit growth in the next couple of years. Per TipRanks data, the average price target for this one is $7.83 per share, translating into a healthy upside of 32.36%.

On the publication date, Faizan Farooque did not have (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.