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Investors' initial reaction to stocks with prices under $10 is that they are "penny stocks" or tiny companies. But low prices don't mean they're tiny companies (the real definition of a penny stock). These cheap stocks are companies with market caps of $1 billion or more.

These picks are small- and mid-cap companies that are respected names and real companies in their respective sectors. The price of these stocks gives us two advantages. First, small-caps and mid-cap stocks are usually the best picks for strong economic growth. Second, these low prices mean institutional investors aren't holding huge positions in them.

These cheap stocks do well in boom times because they're small enough and focused enough that when they grow, they grow much faster proportionately than their larger competitors. These are focused stocks in hot sectors.

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And without a lot of institutional support because of their low prices, it means there's plenty of room to grow before the big guys take an interest. Because when they do, these stocks will soar … if they're not bought out by a major competitor beforehand.

• Crescent Point Energy (NYSE:CPG)
• Denison Mines (NYSEAMERICAN:DNN)
• HIVE Blockchain Technologies (NASDAQ:HIVE)
• ICL Group (NYSE:ICL)
• Meta Materials (NASDAQ:MMAT)
• Prospect Capital (NASDAQ:PSEC)
• RPC Inc (NYSE:RES)

Cheap Stocks: Crescent Point Energy (CPG)

One sector that's hot right now is energy. And the best place to be when the oil patch is hot is the "upstream" or exploration and production (E&P) sector. There's a fixed cost for getting oil and natural gas out of the ground. And as prices rise, margins for these E&P companies rise.

CPG is a Canadian E&P with a $2.7 billion market cap. It has been around for about two decades now and drills predominantly in southern Saskatchewan province. With restricted supplies from the Organization of the Petroleum Exporting Countries (OPEC) nations, North America is encouraging more domestic drilling, which is great news for CPG.

CPG stock is also doing well with this rising energy demand. It's up 93% year-to-date (YTD) and 152% in the past 12 months. Yet the stock is still trading at a current price-to-earnings ratio (P/E) of just 1.5x and it still has a 2% dividend.

This stock has an 'A' rating in my Portfolio Grader.

Denison Mines (DNN)

In the crazy energy markets we're in, there has also been a big push to look for alternative energy sources to power utility-scale power demand. Solar and wind has been making news for a while. But new nuclear power stations are now coming to market.

The old nuclear power stations were very difficult to build and maintain. The new generation are smaller, safer and easier to site. They're also scalable, so you can power a small town with a small reactor instead of building a massive reactor and then shipping power all over the place. Bill Gates is funding a new generation reactor in Wyoming that will be up and running very soon.

DNN is a Canadian company and is one of a handful of uranium miners in North America. This is a strategic advantage because having this resource close to home means the U.S. doesn't need to depend on unstable nations or competitors for uranium.

The stock has a $1.2 billion market cap and it's profitable. But the recent run – it's up 147% YTD – means it's a bit expensive. However, earnings will quickly catch up as more next-gen reactors begin to launch.

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This stock has an 'A' rating in my Portfolio Grader.

Cheap Stocks: HIVE Blockchain Technologies (HIVE)

Few sectors have been hotter in the past few years than blockchain and cryptocurrencies. HIVE has been mining coins for many years at this point. And the business has been built with the capital markets in mind. That means it has a disciplined structure so mining costs are low and it can hold onto mined coins until it's advantageous to sell them at maximum profit.

Also, with operations in Iceland, Sweden and Canada, it has built out its mining operations from green resources, so it's well prepared for the rise in ESG investing. The interim CEO is Frank Holmes, who is long-time CEO and CIO of mutual fund company U.S. Global Investors, which has been a mainstay for many years.

HIVE stock has a $1.5 billion market cap and it has risen 102% YTD. But it's still trading at a current P/E of just 15x, which means there's still plenty of value here. That's particularly true as the crypto market continues to gain more credibility with financial institutions and their regulators.

This stock has an 'A' rating in my Portfolio Grader.

ICL Group (ICL)

This is the standout in this group of cheap stocks because it has the highest market cap of them all, at $12 billion. It's an Israel-based company that's one of the largest fertilizer companies in the country, yet almost all of its business comes from exports.

Potash and other fertilizers are in great demand as commodity prices, which include agricultural products, are on the rise. That means increasing yields for farmers means more profits. And fertilizers are crucial in increasing yields.

Certainly this isn't a sexy sector, but it's absolutely crucial to the global economy. And ICL still deserves its cheap stocks membership given the fact that it's up almost 90% YTD, yet has a P/E below 22x. And it still has a 1.6% dividend.

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This stock has an 'A' rating in my Portfolio Grader.

Cheap Stocks: Meta Materials (MMAT)

What's in a name? How about a next generation company solving problems for next generation challenges?

For example, 5G telecom technology is completely different than the 3G and 4G technologies that preceded it. In dense urban environments it's particularly challenging to get signals inside of buildings and down to the road. MMAT has developed a film for building glass that allows the 5G signal to penetrate while keeping the heat and glare from the sun at bay. Many conventional window treatments block the signal as well as the light.

It has similar applications that are similarly next level for aerospace and defense, automotive, consumer electronics, healthcare and other industries.

Perhaps some of the enthusiastic buying is due to the name change that Facebook has undergone, but it's also part of the meme stock buzz. But it isn't just a flash in the pan. It has some real tech to back its ambitions.

MMAT has risen 178% YTD and has a $1.2 billion market cap at this point. It's an aggressive stock but it has high hopes.

This stock has an 'A' rating in my Portfolio Grader.

Prospect Capital (PSEC)

Business development companies (BDCs) are structured to comply with the Investment Company Act of 1940. They're kind of a cross between a private equity fund and a real-estate investment trust (REIT).

Basically, BDCs have to have at least 70% of their assets invested in public or private companies with valuations of less than $250 million. BDCs were a way the federal government has encouraged private investment in smaller U.S. firms.

In this type of market, BDCs can be very attractive investments since they either loan money to the promising companies in their portfolios or they take equity stakes, or a combination of the two. This is also a great way for the average investor to access up and coming companies without having to come up with six-digit investments.

BDCs also have to pay out 90% of their profits to shareholders. Usually they do this in the form of a big dividend. PSEC has an 8% dividend. The stock is up 62% YTD, yet it has a P/E below 4x. The momentum is heading in the right direction for PSEC.

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This stock has an 'A' rating in my Portfolio Grader.

Cheap Stocks: RPC Inc (RES)

We end this list of cheap stocks where we started, with energy stocks. RES is a U.S.-based E&P services firm for major drillers. That means it supplies the equipment and services need to run wells and other equipment in and around drill sites.

Given the great demand for more drilling these days, RES is in perfect position to take advantage. It's the only stock here that is below a $1 billion market cap, but not by very much. And in this case it means any growth will have an even bigger effect to its bottom line, and stock price.

RES stock is up 22% YTD and should see significant growth in coming quarters.

On the date of publication, Louis Navellier has positions in PSEC in this article. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article. The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

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