Searching for under $10 stocks could be a great way to profit from potential rate cuts, U.S.-China trade tensions, and the upcoming presidential election.

President Biden’s additional tariffs on $18 billion of Chinese imports, notably electric automobiles, once again heated the trade war between the two nations. On the other side of the aisle, Republican candidate, Donald Trump, has said he will impose a 60% or higher tariff on Chinese products if re-elected to office.

In addition, the geopolitical tensions in the Middle East mean one has to keep an eye on the energy sector, which is key to the future of global and U.S. trade. Because of these challenges, picking under $10 stocks is a good move, as they are light on the wallet and could lead to massive returns in 2024 if the Federal Reserve turns dovish. Thus, investors should keep an eye on the following three stocks for strong potential upside swings.

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ARC Document Solutions (ARC)

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ARC Document Solutions (NYSE:ARC), offering printing and document management services, is a no-frills performer among under $10 stocks. The company recently reported a 50% YOY increase in earnings-per-share (EPS) for Q1, 2024. This easily outpaced Wall Street estimates by 20%, indicating a strong comeback after the COVID-19 pandemic slowed down its momentum.

For ARC, digital color picture printing from new and returning customers earned $42.7 million. Meanwhile, scanning and digital picture sales reached $5.7 million as more clients shifted to digital. The firm’s capital expenditures and equipment and material sales were also constrained to $3.8 million by high U.S. financing rates.

ARC forecasts high-demand services and artificial intelligence will improve scans and back-office tasks. The number of documents scanned and stored increased by 23% year-over-year in Q1, and this trend is likely to continue. ARC thinks that its focus on new business lines, such as color printing for trade shows, sports stadiums, and events, is paying off, even though sales of on-site print services and tools have dropped by 3%.

Last year, ARC spent $12 million on shareholder returns. In 2024, it plans to give back 75% of its adjusted free cash flows to its owners.

ARC’s forward dividend yield is 7.27%, more than the consumer discretionary industry average of 1.89%. The future payout ratio of this corporation is 65%, implying most earnings are distributed.

Kinross Gold (KGC)

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Kinross Gold (NYSE:KGC) started 2024 well financially, earning 10 cents per share, above the average expectation of six cents. Quarterly sales exceeded $987.95 million at $1.08 billion, beating projections by around 9%, helping the stock to a 36% bull run this year; despite this pricing increase, analysts still rate it a strong buy, based on 10 projections.