We recently compiled a list of the 12 Stocks Under $10 With High Upside Potential. In this article, we are going to take a look at where Cosan S.A. (NYSE:CSAN) stands against the other stocks under $10 with high upside potential.
Small-cap stocks in the U.S. have suffered as the broader market is under pressure due to the ongoing tariff policy transition. The Russell 2000 small cap index fell over 15% from its November 2024 highs as of March 7. It has dropped by almost 9% year-to-date. In comparison, the S&P 500 index, which tracks large-cap stocks, has plunged over 3.50% so far in 2025.
However, things could change for small-cap stocks. President Trump’s focus on domestic economic growth could make them more attractive. The prospect of higher interest rates remains a major hurdle, as rising borrowing costs tend to impact smaller companies more than larger ones. Keith Lerner, co-chief investment officer at Truist Advisory Services, addressed this situation as a “tug of war”—where strong economic growth could benefit small caps, but higher rates pose a challenge to them.
Experts’ Take on Small-Cap Prospects in 2025
Experts have a mixed view of small caps. Some see potential growth opportunities due to better economic activity in the domestic market, while others have doubts due to fewer interest rate cuts expected in 2025. Those bullish on small-cap stocks expect reduced regulations and support for domestic industries from Trump’s policies.
Sameer Samana, senior global market strategist at Wells Fargo Investment Institute, noted that small companies are more US-focused than multinational corporations. However, a tariff increase can create disruption in supply chains, which may hurt smaller businesses too.
MJP Wealth Advisors chief investment officer Brian Vendig appeared on Yahoo! Finance’s Catalysts and addressed the potential outlook of small-cap stocks in 2025. Vendig sees a stable economy and policy that will positively impact the small-caps, creating business expansion and merger opportunities. He added that the market will remain choppy in the first few months of 2025, but things will improve as the policies become clearer.
According to RBC Wealth Management, small caps finally seem ready for a comeback after years of trailing behind large-cap stocks.
Our Methodology
We used the Finviz stock screener to compile a list of stocks under $10 with an upside of over 50%. Once we had an aggregated list, we ranked these stocks based on the analyst upside potential sourced from CNN. Please note that the share price is accurate as of March 7. We also mentioned hedge fund sentiment around each stock, as of Q4 2024. Finally, the 12 best stocks under $10 with high upside are ranked in ascending order of the upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A petrol tanker truck refueling a highway service station, highlighting the fuel distribution arm of the company.
Cosan S.A. (NYSE:CSAN)
Share Price: $4.71
No. of Hedge Fund Holders: 14
Analyst Upside Potential: 134.08%
Cosan S.A. (NYSE:CSAN) is a Brazilian company that operates in various sectors, including logistics, fuel distribution, natural gas, and lubricants. The company controls logistics firm Rumo, lubricants company Moove, and natural gas firm Compass and shares control of Raizen with Shell.
Cosan S.A. (NYSE:CSAN) posted mixed results during Q4 2024. The company reported an EBITDA of approximately BRL 30 billion or $5.1 billion. Despite the positive EBITDA, Cosan recorded a negative earnings of BRL 900 million for 2024. The company pointed out that the depreciation of the Brazilian Real and the devaluation of its shares were the main causes of the mixed financial performance. In January 2025, the company sold nearly 173 million shares of its stake in Vale, cutting the stake by 4.05%. The sale of Vale shares has reduced Cosan’s debt by 40%. The company’s aim behind this move was to optimize its capital structure.
Cosan S.A. (NYSE:CSAN) made some notable developments in 2024, with Rumo posting record-level transportation volume, indicating the quality of the asset and execution capabilities. Compass cited growth in distributed natural gas volumes and ramped up Edge operations, reflecting positive prospects. Moove also increased revenues despite lower volumes sold, showing effective supply management and operational efficiency.
Overall CSAN ranks 2nd on our list of the stocks under $10 with high upside potential. While we acknowledge the potential of CSAN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CSAN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks To Invest In According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
