Investing

5 More Stocks to Buy Trading Under $10 With Huge Upside Potential

Lee Jackson

Published: September 29, 2018 7:10 am

Last Updated: January 11, 2020 5:08 pm

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, 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 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 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.

Also be sure to check out last week’s look at stocks under $10 with big upside potential.

Ceragon Networks

This small-cap company could be a beneficiary of the move to 5G. Ceragon Networks Inc. (NASDAQ: CRNT) offers wireless backhaul solutions. Its products include FibeAir IP-20 Platform, FibeAir IP-20 Assured Platform and Network Management. The company provides its services to wireless service providers, public safety organizations, government agencies and utility companies, among others. Its solutions are deployed by over 460 service providers, as well as a range of private network owners, in over 130 countries.

Ceragon’s FibeAir IP-20 platform offers flexibility in choosing all-outdoor, split-mount and all-indoor configurations to suit any deployment scenario. The FibeAir IP-20 platform includes product categories, such as short-haul-access and short haul-aggregation. The FibeAir IP-20 Assured platform includes product categories, such as short-haul-access, short-haul-aggregation, small cells, long-haul and enterprise access.

Oppenheimer recently upgraded the stock to Outperform from Perform with a $4.50 price objective. The Wall Street consensus target price is $4.40, and the stock traded Friday at $3.35 a share.

GoPro

This stock has taken a beating over the past year but could be ready for a big move higher. GoPro Inc. (NASDAQ: GPRO) is the worldwide leader in action cameras, with over 25 million cameras sold and 21% U.S. digital camera market share, according to NPD. GoPro sells a series of cameras at various price points, from the GoPro Hero to the GoPro Hero6 Black, and multiple accessories.

The company recently announced a product portfolio refresh with HERO7 Black ($399), HERO7 Silver ($299) and HERO7 White ($199). Flagship feature upgrades include better image stabilization and live streaming. The company also reported second-quarter revenue that was above Wall Street and management’s outlook range, and channel down to a healthy 10 weeks exiting the quarter. Optimism is building, but some remain cautious, given component supply constraints, product differentiation uncertainty and execution risk.

Oppenheimer rates the stock Outperform with a $9 price target, and the posted consensus target is $6.09. The stock traded at $7.20 on Friday.

Melinta Therapeutics

This small-cap play could be a hot pick for super-aggressive accounts. Melinta Therapeutics Inc. (NASDAQ: MLNT) develops and commercializes novel antibiotics designed to provide therapeutic solutions. The company’s lead product is Baxdela, an antibiotic approved by the United States Food and Drug Administration (FDA) for use in the treatment of acute bacterial skin and skin structure infections.

The company also has an extensive pipeline of preclinical and clinical stage products This pipeline includes many important classes of antibiotics, each targeted at a different segment of the anti-infective market.

The Jefferies team recently started coverage with a Buy rating and noted this:

The Company operates as a pure play antibiotics business, with 4 marketed products and an expanded sales force. The benefit from the salesforce expansion should be seen in the third quarter, but we see further catalysts as a Phase 3 readout for Baxdela is due by the end of 2018 as well as potential EU approvals for Baxdela and Vabomere by the end of the year or in 2019. We see peak sales estimates of ~$240 million and ~$270 million for Baxdela and Vabomere respectively.

The huge $15 Jefferies price target compares with a $13.20 consensus target. The shares were trading at $3.95.

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 unit 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 a Buy and has a $13 price target. The consensus target is $11.60. Shares traded at $9.85.

Verastem

This smaller cap biotech stock has huge upside to the consensus price target. Verastem Inc. (NASDAQ: VSTM) is focused on discovering and developing drugs to improve outcomes for patients with cancer. Its advanced product candidates are VS 6063, VS 4718 and VS 5584.

The company’s programs target the focal adhesion kinase (FAK) and the PI3K/mTOR signaling pathways. FAK is a non-receptor tyrosine kinase encoded by the PTK-2 gene that is involved in cellular adhesion and, in cancer, metastatic capability.

Oppenheimer’s Outperform rating comes with a massive $16 price target, which compares with a $15.79 consensus target. The stock traded at $7.30.

Five stocks for aggressive accounts that look to get share 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.