Been watching the market chop around lately, and honestly, there's still opportunity if you know where to look. Most people sleep on the cheap stock category, especially when we're talking about solid fundamentals underneath that low price tag.

So here's what caught my attention: while everyone's focused on mega-cap tech, there's this interesting play in the banking sector that's been quietly building momentum. We're talking about companies trading well under $10 a share that actually have improving earnings outlooks—not the speculative penny stocks or stocks under a dollar that most retail traders touch.

Let me break down why this matters. Cheap stocks in the $5-10 range carry less risk than the ultra-low penny stock territory, but they're still undervalued relative to their fundamentals. The key is finding ones where Wall Street is actually turning bullish on earnings, not just hoping for a bounce.

I came across Itaú Unibanco (ITUB) recently—one of the largest private banks in Brazil and a major player across Latin America. The numbers here are pretty compelling. ITUB is up 75% over the past year as earnings and revenue growth accelerated. What's interesting is the stock's been range-bound for about two decades, so it looks like it's finally breaking out.

The projections show adjusted earnings growth of 18% for this year and another 10% next year, backed by 7% sales growth in both periods. That's real growth, not speculation. The stock landed a Zacks Rank 2 (Buy) rating, and the entire Banks-Foreign sector is performing in the top 16% of industries right now.

Here's the thing about finding winners in the cheap stock space: you need earnings revisions moving in the right direction, solid analyst coverage, and enough trading volume that you're not stuck with wide spreads. ITUB checks all those boxes.

Obviously, cheap stocks are inherently more speculative than higher-priced names, but if you're selective and focus on improving fundamentals rather than just chasing price action, you can find real opportunities. The market's been resilient despite all the noise, and long-term investors who keep buying quality names tend to do well.

Worth taking a closer look at if you're building a portfolio with some exposure to emerging market banking plays.