5 Stocks Rated Buy Under $10 With Massive Upside Potential

By Lee Jackson Updated Jan 11, 10:15PM EST · Published Jun 16, 10:02AM EDT

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While most of Wall Street focuses on large and mega-cap stocks, as they provide a degree of safety and liquidity, many investors are limited in the number of shares they can buy. Many of the biggest public companies, especially the technology giants, trade in the low to mid hundreds and all the way up to over $1,000 per share. At those steep prices, it’s pretty hard to get any decent share count leverage.

Many investors, especially more aggressive traders, look at lower-priced stocks as a way to not only make some good money, but to get a higher share count. That can really help make decisions, especially when you are on to a winner, as you can always sell half, and keep half.

We screened our 24/7 Wall St. research database and found five stocks trading under the $10 level that could provide investors with some solid upside potential. While much better suited for aggressive accounts, they could prove exciting additions to portfolios looking for solid alpha potential.

AK Steel

This company has rallied recently but still offers investors a solid entry point at current levels. AK Steel Holding Corporation (NYSE: AKS) is the sixth-largest U.S. steelmaker and has the capacity to produce nearly 7 million tons of a total 110 million tons of U.S. steel capacity. The company produces flat-rolled carbon, stainless and electrical steel, and tubular products in the United States and internationally. It produces flat-rolled value-added carbon steels, including coated, cold-rolled, and hot-rolled carbon steel products; and specialty stainless and electrical steels in sheet and strip forms.

AK Steel also produces carbon and stainless steel that is finished into welded steel tubing, which is used in the automotive, large-truck, industrial, and construction markets; buys and sells steel and steel products, and other materials; and produces metallurgical coal from reserves in Pennsylvania.

Deutsche Bank rates the stock a Buy with a $7 price target. The Wall Street consensus target is posted at $5.57. The shares were trading at $4.64 on Friday.

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Kosmos Energy

This stock was just raised to a Buy at Jefferies and is a solid energy exploration and production play. Kosmos Energy Ltd. (NYSE: KOS) is a conventional oil and gas E&P company focused on the Atlantic margin. The company focus is on unlocking new hydrocarbon systems and growing and maturing discovered basins through follow-on exploration success, development and production.

Although many companies in the sector have scaled back exploration, Kosmos believes this is the best route to generating value, by seeking to replicate its discovery and development of the Jubilee field in Ghana.

Jefferies has a $9.50 price objective for the company, while the Wall Street consensus is posted at $8.78. The shares closed trading on Friday at $7.96.

Superior Energy Services

Superior Energy Services Inc. (NYSE: SPN) provides a range of services and products to the energy industry related to the exploration, development and production of oil and natural gas. The company’s segments include Drilling Products and Services, which rents and sells bottom hole assemblies, drill pipe, tubulars and specialized equipment for use with onshore and offshore oil and gas well drilling, production and workover activities.

The Onshore Completion and Workover Services provides pressure pumping services used to complete and stimulate production in new oil and gas wells, fluid handling services and well-servicing rigs that provide a range of well completion and maintenance services.

Lastly, Production Services provides intervention services, such as coiled tubing, cased hole and mechanical wireline, hydraulic workover and snubbing, and remedial pumping services, and Technical Solutions, which provides services requiring specialized engineering, manufacturing or project planning.

SunTrust rates the stock Buy, and they have a price target for the stock at $13. The consensus is at $12.89. The shares closed Friday at $9.42.

Sprint

Once again, this wireless provider is in merger talks with T-Mobile US, and this time the deal may actually get done. Sprint Corporation (NYSE: S) provides various wireless and wireline communications products and services to consumers, businesses, government subscribers, and resellers in the United States, Puerto Rico, and the United States Virgin Islands. It operates in two segments — Wireless and Wireline.

The Wireless segment offers wireless data communication services, including mobile productivity applications, such as Internet access, messaging, and email services; wireless photo and video offerings; location-based capabilities comprising asset and fleet management, dispatch services, and navigation tools; and mobile entertainment applications.

The Wireline segment provides wireline voice and data communications, which comprises domestic and international data communications using various protocols, including multiprotocol label switching technologies, internet protocol (IP), managed network services, Voice over IP, session initiated protocol, and traditional voice services to other communications companies and targeted business subscribers.

Raymond James rates the stock Outperform and has a $7.50 price target. That compares with the consensus target that is much lower at $5.19. The shares closed Friday at $5.45.

Turkcell

This company offers a way for investors to play wireless service outside the U.S. Turkcell Iletisim Hizmetleri A.S. (NASDAQ: TKC) ) provides mobile telecommunication services for consumer, corporate, and wholesale customers. The company operates in two segments — Turkcell Turkey and Turkcell International. It offers mobile communication and fixed voice services; and broadband services that consist of mobile broadband, fiber to the home/building, and ADSL.

The company also provides BiP, an integrated IP-based communication platform; Turkcell TV+, which enables its subscribers to watch live television channels and on-demand video content; fizy, a digital music platform; Lifebox, a cloud service for data storage; Dergilik, a digital publishing platform; Yaani, a search engine application; My Account, an application for customers to track their bills and usage; Goals on Your Mobile, an application that allows fans to follow their sports team, and more.

Merrill Lynch rates the stock a Buy and the firm has a sizable $9.40 price target. The consensus target across Wall Street is set even higher at $10.94, The stock closed trading on Friday at $6.23.

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Five stocks for aggressive accounts that look to get shares count leverage on companies that have sizable upside potential. While not suited for all investors, these are not penny stocks with absolutely no track record or liquidity, and major Wall Street firms have research coverage.

About the Author Lee Jackson →

Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad and diverse career, which included a stint as the creative services director at the NBC affiliate in Austin, Texas, gives him unique insight into the financial industry and world.

Lee Jackson's journey in the financial industry spans over 30 years, with nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career was marked by his presence on the sell side during pivotal Wall Street events, from the dot.com rise and bubble to the Long Term Capital Management debacle, 9/11, and the Great Recession of 2008. This is a testament to his resilience and adaptability in the face of market volatility.

Lee Jackson’s practical financial industry experience, acquired from a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing on various platforms. This unique combination allows him to shed light on the intricacies and workings of Wall Street in a way that only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.

Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.