Investing

5 Stocks Under $10 With Huge Upside Potential to Buy for 2019

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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, 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 more suited for aggressive accounts, they could prove exciting additions to portfolios looking for solid alpha potential. Plus, after the huge 2018 and early 2019 sell-offs, these five look even better now.

Goldcorp

This top company with a solid balance sheet makes sense for investors to consider now. Goldcorp Inc. (NYSE: GG) engages in the acquisition, exploration, development and operation of precious metal properties in Canada, the United States, Mexico and Central and South America. It primarily explores for gold, silver, copper, lead and zinc deposits.

Goldcorp’s principal mining properties include the Red Lake, Éléonore, Porcupine and Musselwhite gold mines in Canada; the Peñasquito and Los Filos mines in Mexico; the Marlin property in Guatemala; the Cerro Negro and Alumbrera mines in Argentina; and the Pueblo Viejo mine in the Dominican Republic.

Some Wall Street analysts feel that the company deserves a premium valuation to its peers due to its excellent balance sheet, growth profile with lower cost new mines, longer average mine life and a solid dividend yield. Over the past few years, Goldcorp has been altering its mine plans, cutting spending and disposing assets in order to reduce costs and focus on the most profitable production.

Shareholders are paid just a 0.57% dividend. The Merrill Lynch price target for the shares is $13, and the Wall Street consensus target is $13.88. The stock traded at Friday’s close at $9.71 a share.

PermRock Royalty Trust

This is a great bet for investors looking for Permian Basin energy exposure and income. PermRock Royalty Trust (NYSE: PRT) was formed to own a perpetual interest in oil and gas producing properties. The company was established in 2017 through a Trust Agreement between Boaz Energy II and Simmons Bank.

Owning PermRock Royalty’s units gives investors direct exposure to the Permian Basin with a monthly distribution and a 1099 status for taxes, but without the risk of dilution to unitholders, additional leverage and acquisition of additional acreage. Boaz Energy’s interests are directly aligned with unitholders through a retention of 5.9 million units and a 20% direct interest in net profits of the underlying properties.

Investors are paid a massive 18% distribution monthly. Stifel has a $12 price target, while the posted consensus target is $16. The shares closed at $9.11 on Friday.

Taiwan Liposome

This clinical-stage specialty pharmaceutical company recently released positive clinical data and could be ready to move higher. Taiwan Liposome Co. Ltd. (NASDAQ: TLC) engages in the development and commercialization of nanomedicines that combine its proprietary lipid-assembled drug delivery platform with approved active pharmaceutical ingredients (APIs).

The company’s BioSeizer lipid formulation technology enables pharmacokinetic (PK) control and local sustained release of APIs at the site of disease or injury, and NanoX targeted delivery technology enables prolonged PK profiles and enhanced distribution of liposome-encapsulated APIs at the desired site.

Cantor Fitzgerald recently started coverage, noting that the company’s expertise and experience with liposome science has yielded the BioSeizer and NanoX formulation technologies that have the potential to improve the pharmacologic and therapeutic potential of approved pharmacophores to treat various medical disorders.

Cantor Fitzgerald’s price target is set at $11. The consensus price objective is also $11, and the stock closed on Friday at $5.95 a share.

Pandora Media

This company faces more and more competition, but it soon will merge with a big satellite provider. 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.

Late in December, Sirius XM announced that a definitive proxy statement/prospectus has been filed with the U.S. Securities and Exchange Commission in connection with its pending merger with Pandora Media. Pandora’s special meeting of stockholders to vote on the transaction is scheduled to be held on January 29, 2019. Stockholders of record as of the close of business on November 30, 2018, will be entitled to vote at the special meeting in person or by proxy.

B. Riley FBR has a Buy rating on the shares with an $11.50 price target. The consensus target is $9.41, and the stock ended last week at $8.76.

Verra Mobility

This off-the-radar company has seen a ton of fourth-quarter volatility but has big upside potential. Verra Mobility Corp. (NASDAQ: VRRM) engages in the development of transportation solutions. It focuses on safety camera enforcement, safety and data analysis, parking solutions, rental fleet toll management and red light enforcement.

Verra Mobility maintains its leadership position in the marketplace through meaningful scale and has demonstrated consistent revenue growth underscored by its differentiated transaction processing model.

Until recently, Verra Mobility was known as American Traffic Solutions. It was rebranded following the acquisitions of Highway Toll Administration and Euro Parking Collection, transactions that helped transform the business into a global enterprise with a broad range of transportation technology solutions. Verra Mobility is headquartered in Mesa, Arizona, and currently operates in 15 countries.

The $14 Deutsche Bank price target comes with a Buy rating and is the same as the consensus target. The shares were last seen trading at $9.45.

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 on them.

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