I was analyzing the stock market yesterday and noticed something interesting: there are still a lot of people who think a cheap stock is only one with a low ticker price. But it doesn’t work that way, you know? A stock at R$ 2 can be too expensive if the company is going bankrupt, while a stock at R$ 100 can be pure gold if it has solid fundamentals.

The real secret is to look at valuation, not just the price. P/E ratio, fair value, expected growth — these things make a difference. And that’s why I’ve selected some opportunities in the stock market that cost less than R$ 10 but have the potential to rise more than 40% in the next 12 months.

I’ll be honest: most of these stocks are cheap because they went through real problems. Azul, for example, is around R$ 0.70 — the company faced heavy debt and pandemic impacts. But if it manages to restructure, it could explode. Raízen is also under pressure, but it has exposure to the biofuels market, which tends to grow. Qualicorp lost clients, but if it stabilizes its customer base, it could boom.

In retail, Casas Bahia and Lojas Quero-Quero are discounted because of high interest rates. CVC Brasil suffered from tourism, but sector recovery could boost results. Cogna, in the educational segment, is implementing restructuring — the education sector is resilient in the long run.

There’s also Mitre Realty in real estate (R$ 4) and Marcopolo in manufacturing (R$ 6-7). Mitre is very sensitive to the Selic rate — if it falls, it skyrockets. Marcopolo has more solid fundamentals, generates consistent cash flow, and benefits from the global mobility recovery.

But I’ll be straight about the risks: these stocks are too volatile. Liquidity can be a problem during stressful times. And there’s the value trap — a stock seems cheap but keeps falling for years. Small companies suffer a lot from high interest, inflation, and exchange rate fluctuations.

If you want to get into this, the step-by-step is simple: choose a reliable platform, define your risk profile (because volatility here is heavy), diversify well — don’t put everything into one stock — and set a stop loss before buying.

Investing in cheaper stocks on the stock exchange only works if you’re willing to handle strong fluctuations. It’s not for those who want to sleep peacefully. But for those seeking high potential with little initial capital? There are opportunities indeed. Just don’t fall for the illusion that low price = good deal. Do your homework, analyze the fundamentals, and then you might find some pearls.