10 Stocks Under $10 With High Potential

6. Cosan S.A.  (NYSE:CSAN)

Share Price: $9.56

Analyst Upside Potential: 74.81% 

Cosan S.A.  (NYSE:CSAN) is a holding company that operates in several key sectors primarily focusing on bioenergy and fuel distribution. There are 5 main key business segments of the company. The Raízen Energia segment produces and distributes products derived from sugarcane, such as raw sugar and ethanol. It also generates energy using the leftover sugarcane material. On the other hand, the Raízen Combustíveis deals with fuel distribution operations. Moreover, the Comgás segment focuses on the distribution of natural gas and the Radar segment manages buying and selling of agricultural lands.

The company not only operates as one of the largest lubricants companies in Brazil but it is also the country’s largest individual sugar exporter globally. Management has been focused on developing capital discipline and is paying attention to leverage the interest rates.

During the quarter Cosan S.A.  (NYSE:CSAN) was able to improve its EBITDA by BRL 6.2 billion ($1.14 billion) in Q2 2023 to BRL 7.1 billion ($1.31 billion) in Q2 2024. This was mainly due to higher transported volumes in its Rumo segment, where transported volumes were up 3% year-over-year. Moreover, management’s strategy of executing its commercial strategy and procurement intelligence is also coming in handy in improving the earnings.