Under $10 Stocks with Strong Upside Potential and Catalyst in 2026


Technical analysis chart for Energy Recovery (ERII) showing a breakout above the 12.00 resistance level in 2026

Energy Recovery (ERII)

Current: 9.46

Price target: 13.00-16.00

Second PT: Unlock

Investors with a strong stomach and a timeline of about 12-24 months could find Energy Recovery a compelling company to buy while it trades at lows now seen in three years. Tepid revenue growth has driven the stock lower, but selling has ticked up in recent weeks following Iran’s attacks of Gulf countries like Dubai, Qatar, Saudi Arabia, Kuwait, and UAE. 

What do they do?

Energy Recovery builds devices that recycle energy that would normally be wasted, this cuts energy costs and reduces power usage. Their technology is primarily used in seawater desalination plants (plants that turn ocean water into drinking water), and this technology is seeing massive demand, especially in areas of the world where fresh drinking water is growing scarce. 

Future Outlook:

The company’s 2025-2026 results are impacted by large desalination project delays, but underlying demand remains strong and growth is expected to resume in 2027. This is why our timeline on this is closer to 24 months instead of a quick turnaround. This also means we’ll be “easing” into a position and scaling up or down depending on the company’s execution and the developments in the Middle East. 

Summary:

Paradoxically, the longer the war goes on, the more delays in projects, but the more likely for future projects as the Gulf countries rebuild. Right now, the sentiment around Energy Recovery (ERII) is very weak, but we’re adding it while it’s at these lows to take advantage of a “flash” sale price influenced by war. 

Ethos Technologies (LIFE)

Current: 9.85

Price target: 12.00-12.50

Second PT: Unlock

A lot of IPOs (new companies) are expected to hit the market this year, with names like Stripe, SpaceX, Anthropic being among the most popular. But there are other “lesser known” names that have already made their debut this year, Ethos Technologies is one of those names, disrupting a an old industry using AI. 

What do they do?

Ethos Technologies makes buying life insurance fast and simple through its online platform. You can get covered in about 10 minutes, often without a medical exam, and they offer products like term life, whole life, and estate planning tools.

Ethos Technologies makes buying life insurance fast and simple through its AI powered platform. People can get covered in about 10 minutes, often without a medical exam, using automated underwriting to speed up approvals. They offer products like term life, whole life, and estate planning tools. They connect consumers, agents, and major insurers all in one place, with over 10,000 agents using their system. Ethos isn’t the insurer, they’re the tech-driven middleman earning commissions on policies sold.

This business practice has proven to be successful. Ethos has scaled revenue significantly, more than doubling in the last two years and set to double again in the next two. The company is also already profitable, closing last year with an 18% net margin. Their CEO is emphasizing an AI and machine learning strategy for operational optimization, and the company is expanding its product portfolio amid digital insurance competition. 

Risks:

Heavy reliance on a small number of carrier partners is a concentration risk, losing one could be damaging. The company is still also small and young, so their early success isn’t yet a signal of full confidence. It’s not yet a “buy and forget” type stock, but a lesser known name that’s operating in a very heathy way already. Their first few weeks on the market have been rough, but the stock is at a better price now than it was before for investors eager to enter a young name on the market. 

 

Advanced technical analysis chart for showing support and resistance levels. Unlock for full price target data and entry points.Current: 106.00

Price target: 130.00-135.00

Second PT: 150+

 

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Advanced technical analysis chart for showing support and resistance levels. Unlock for full price target data and entry points.
Current: 33.53

Price target: 38.00

Second PT: 42.00

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Advanced technical analysis chart for showing support and resistance levels. Unlock for full price target data and entry points for stocks to buy during market crash.

Current: 46.00

Price target: 55.00-60.00

Second PT: TBD

There’s a high growth story happening in this health technology stock, one that could transform it from a mid-cap stock to a large cap leader in the sector. The company recently turned profitable as hitting their fifth year of commercial revenue by scaling their flagship therapy _________. This is the first and only FDA approved therapy for...unlock full analysis in Hyper Stocks Pro.

Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice. Investing involves risk, including the possible loss of capital. Always conduct your own research or consult with a licensed financial advisor before making investment decisions.

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