3 Budget-Friendly Stocks With Millionaire-Making Potential

Stocks to buy

Investors with a high tolerance for risk looking for huge returns often find budget-friendly stocks to be a great option. While low-valued stocks often have a bad reputation due to their accompanying risk, it’s important to find some gems with enough research.

This way, you will be able to make informed decisions. These discounted stocks could potentially deliver huge returns within a short period of months.

While betting on discounted stocks does have some inherent risk, the prospects of huge returns often outweigh the downside. If you choose carefully, these companies could offer an opportunity for solid growth. 

Here is a closer look at three of these promising stocks.

Cronos Group (CRON)

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Cronos Group Inc (NASDAQ:CRON) is a Canadian cannabinoid company that aims to advance cannabis research and product development. It is working on creating intellectual property in this sector to drive revenue growth.

The stock is valued at just above $2 per share, making it a great bargain for investors. Revenue could potentially spike as cannabis-friendly legislation continues to be passed in North America and Europe.

Based on the potential target market in these regions, the company could see substantial returns in the near future.

Cronos is moving in the right direction toward its objective. According to its first quarter fiscal 2024 results, the company reported $855 million in liquidity, which provides it with the financial muscle to execute its plan. Cronos has been quite prudent in expenditures, which has allowed it to get the best returns possible.

In the first quarter, Cronos reported a 30% year-over-year increase in revenue to $25.3 million, while the gross margin expanded three percentage points to 18%. For the full year, the company expects savings in operating expenses of up to $10 million. It also anticipates growth in its liquidity, placing it in a great position for future growth.

In recent quarters, the company has expanded into Germany, the UK and Australia, which has driven revenue growth. As the company inches nearer the adjusted EBITDA breakeven point, the stock will undoubtedly rally.

Spire Global (SPIR)

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Spire Global Inc (NYSE:SPIR) is a satellite-focused data analytics firm that collates and analyzes critical data such as weather patterns, trade flows, pirate movements and more. Its data is crucial to the numerous organizations that use it to increase the speed and accuracy of their operations.

In its first quarter fiscal 2024 results, Spire Global reported an improvement in its margins, reporting a net operation loss margin of 46% compared to 60% the previous year.

Revenue saw a 6% increase to $25.7 million compared to the previous year, with $195.7 million in remaining performance obligations under contract. The company expects to fulfill 42% of these commitments in the upcoming 12 months.

For the upcoming quarter, Spire Global expects revenue to grow by up to 25% year-over-year, based on the top end of the forecast of $33 million. It expects full-year revenue to grow by up to 25% at the high end of the range to $132 million.

Besides its existing contracts, the company is working to acquire new contracts. In June, it announced a plan to develop a satellite constellation comprising over 100 satellites to provide real-time air traffic surveillance.

Its defense contracts are its most promising source of revenue. With rising geopolitical tensions, its services are likely to see an uptick in demand. That could signal that SPIR is massively undervalued and poised for major growth.

Century Casinos (CNTY)

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Century Casinos, Inc. (NASDAQ:CNTY) is a global entertainment company focused on casinos. It currently has 111 casinos located in Nevada, Maryland, Colorado, West Virginia, Missouri and Alberta. The company also operates seven casinos in Poland. Additionally, it has casinos on four cruise ships operated by TUI Cruises.

CNTY is currently valued at just under $2.50 per share, from the steep decline during the pandemic. It incurred nearly a billion dollars in debt during the pandemic as travel restrictions limited revenue sources.

According to its first quarter fiscal 2024 results, it has $136.5 million in liquidity, and its debt has been cut down to $342 million compared to $346.8 million in Q423. The strong liquidity position means the company can endure until interest rates drop and it returns to profitability.

If management can pull the company out of the current financial situation, it should return to growth soon after. Thus far, the numbers point to steady revenue growth in the upcoming quarters.

On the date of publication, Joel Lim 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.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Joel Lim is a contributor at InvestorPlace.com and a finance content contractor who creates content for several companies like LTSE and Realtor, along with financial publications, including Business Insider, Yahoo Finance, Mises Institution and Foundation for Economic Education.

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