Investing

SunTrust Has 5 Incredible Stocks to Buy Priced Under $10

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Most firms on Wall Street focus on large and mega-cap stocks, as they provide a degree of safety and liquidity. Unfortunately, many investors are limited in the number of these shares they can buy. Many of the biggest public companies, especially the technology giants, trade in the low to mid hundreds of dollars — all the way up to over $1,000 per share. At those steep prices, it is 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 the decision-making process, 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 that SunTrust favors five stocks trading under the $10 level that could provide investors with some solid upside potential. While more suited for aggressive accounts, these plays could prove exciting additions to portfolios in search of solid alpha potential.

Pandora Media

This company faces more and more competition, and it is often mentioned as a takeover target. Pandora Media Inc. (NYSE: P) provides internet music streaming services in North America. It allows its listeners to create personalized stations to access free music and comedy catalogs, as well as a personalized playlist generating system.

The company also offers Pandora One, a paid subscription service to listeners. And it sells audio, display and video advertising to advertisers for delivery on computer, mobile and other connected device platforms.

While Pandora is clearly not the only company with a big desire to be in the music streaming business, it is the current leader in installation and use in the automotive world, and it has a decent collaboration deal with Comcast.

SunTrust has an $8.50 price target on the shares, and the Wall Street consensus target price was last seen at $8.83. The stock closed Friday’s trading at $7.94 a share.

Northern Oil and Gas

The SunTrust analysts are very positive on this small-cap energy play. Northern Oil and Gas Inc. (NYSE: NOG) is engaged in the acquisition, exploration, development and production of oil and natural gas properties, primarily in the Bakken and Three Forks formations within the Williston Basin in North Dakota and Montana.

The company holds working interests in over 2,630 gross (204.3 net) producing wells, including over 2,630 wells targeting the Bakken and Three Forks formations and over two wells targeting other formations. Northern Oil and Gas leases approximately 165,910 net acres, all located in the Williston Basin. The company engages in oil exploration and production through non-operated working interests in wells drilled and completed in spacing units that include its acreage.

SunTrust has set its price target at $5, which is essentially the same as the consensus figure of $5.05. The shares closed at $3.23 on Friday.

Earthstone Energy

This is another small-cap energy play on which the SunTrust team remains very positive. Earthstone Energy Inc. (NYSE: ESTE) is a growth-oriented independent oil and gas exploration and production company engaged in developing and acquiring oil and gas reserves through an active and diversified program that includes acquiring, drilling and developing undeveloped leases, asset and corporate acquisitions and exploration activities. Its primary assets are located in the Midland Basin of west Texas, the Eagle Ford trend of south Texas and the Williston Basin of North Dakota.

The $14 SunTrust price target for the stock is less than the $14.79 analysts’ consensus target. The stock ended the week changing hands at $8.40 a share.

Lonestar Resources

This is yet another small-cap energy play that has big upside potential. Lonestar Resources Ltd. (NASDAQ: LONE) is an independent oil and gas company. It is focused on the development, production and acquisition of unconventional oil, natural gas liquids and natural gas properties in the Eagle Ford Shale in Texas.

The company is conducting resource evaluation on approximately 44,084 gross acres in the West Poplar area of the Bakken-Three Forks trend in Roosevelt County, Montana. Its properties in Eagle Ford Shale Trend-Western Region include Asherton, Beall Ranch, Burns Ranch Area and Horned Frog.

Lonestar also operates Southern Gonzales County property in Eagle Ford Shale Trend-Central Region, as well as Brazos and Robertson Counties in Eagle Ford Shale Trend-Eastern Region. It has leased approximately 1,450 gross acres in its Cyclone project area.

The SunTrust price target is a whopping $17. The posted consensus target is much lower at $6.50, while the shares closed way above that on Friday at $8.70.

Lilis Energy

Lastly, another small-cap energy play that has huge upside potential. Lilis Energy Inc. (NYSE: LLEX) is an upstream independent oil and gas company that is engaged in the acquisition, drilling and production of oil and natural gas properties and prospects. The company drills for, operates and produces oil and natural gas wells through its land holdings located in Wyoming, Colorado and Nebraska.

The company’s vertical well produces approximately 690 net million cubic feet per day. The well holds the lease to all depths, from the surface down to approximately 22,000 feet, including the Wolfcamp, Bone Springs and Avalon formations.

The SunTrust price target is $7 a share. The consensus target is $7.67, and the stock ended trading on Friday at $4.12 per share.

These five stocks for aggressive accounts looking to get share-count leverage on companies all have sizable upside potential. While they are 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 of them.

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