Investing

SunTrust Has 5 Sizzling Stocks to Buy Now Trading Under $10

Wikimedia Commons

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. Often 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 additional stocks that are trading under the $10 level and could provide investors with some solid upside potential. These are rated Buy at SunTrust Robinson Humphrey as well. While much better suited for aggressive accounts, they could prove exciting additions to portfolios looking for solid alpha potential.

Endo

This stock is down a massive 60% since last fall and could hold incredible potential for patient investors. Endo International PLC (NASDAQ: ENDP) is an Irish-domiciled global specialty pharmaceutical company that develops, manufactures and commercializes branded and generic pharmaceutical products. The company has operations in the United States, Canada, Latin America, South Africa and India.

Endo redomiciled in Ireland following its 2014 acquisition of Paladin Labs, which significantly reduced the company’s tax rate. Endo has expanded through several M&A transactions, including Auxilium (brands) and Par (generics).

The company posted solid first-quarter results with earnings, excluding non-recurring items, that were better than the S&P Capital IQ Consensus estimate. Revenues rose 2.9% year over year to $720 million, which also topped analysts’ expectations.

First-quarter 2019 Sterile Injectables revenues increased 25% from the first quarter of 2018. Branded Pharmaceuticals — Specialty Products revenues increased 19% year over year. All in all, it was a very good report.

The SunTrust price objective for the shares is a lofty $13, though the Wall Street consensus target price is slightly higher at $13.75. The stock was last seen on Friday trading at $6.52.

Enerplus

This off-the-radar stock also has big upside to the SunTrust price target. Canada-based Enerplus Corp. (NYSE: ERF) engages in the exploration and development of crude oil and natural gas in the United States and Canada. The company’s oil and natural gas properties are located primarily in North Dakota, Montana, Colorado and Pennsylvania, as well as Alberta, British Columbia and Saskatchewan.

The company posted quarterly earnings that beat the consensus estimate, an earnings surprise of 15%. In the previous quarter, Enerplus delivered an earnings surprise of more than 10%. Over the last four quarters, the company has surpassed consensus earnings estimates twice.

SunTrust has a price target at $13 on the stock, which compares to the consensus target last seen at $13.59. The stock traded on Friday’s close at $8.44 a share.


PennantPark Investment

PennantPark Investment Corp. (NASDAQ: PNNT) is a business development company that principally invests in U.S. middle-market private companies in the form of senior secured loans, mezzanine debt and equity investments. From time to time, the company also may invest in public companies with securities that are thinly traded. The company has seen some solid insider buying this year, which is a positive for shareholders.

As of March 31, 2019, the PennantPark portfolio totaled $1.24 billion and consisted of $686.6 million of first lien secured debt, $350.0 million of second lien secured debt, $49.9 million of subordinated debt and $158.2 million of preferred and common equity. Its debt portfolio consisted of 89% variable-rate investments and 11% fixed-rate investments.

Last year in May, the company announced a share repurchase program that allows it to repurchase up to $30 million of its outstanding common stock in the open market at prices below net asset value as reported in its most recently published consolidated financial statements. The shares may be purchased from time to time at prevailing market prices, through open market transactions, including block transactions.

PennantPark investors receive a massive 10.89% dividend. The $8 SunTrust price target is higher than the $7.39 consensus price objective. The stock traded most recently at a per-share price of $6.59.

TG Therapeutics

Takeover chatter on this company has been around for some time now. TG Therapeutics Inc. (NASDAQ: TGTX) is a biopharmaceutical company focused on the acquisition, development and commercialization of treatments for B-cell malignancies and autoimmune diseases.

Currently, TG Therapeutics is developing two therapies targeting hematological malignancies and autoimmune diseases. Ublituximab (TG-1101) is a novel, glycoengineered monoclonal antibody that targets a specific and unique epitope on the CD20 antigen found on mature B-lymphocytes. The company is also developing umbralisib (TGR-1202), an orally available PI3K delta inhibitor.

SunTrust has a giant $16 price target on the shares. The consensus target price is higher at $17.71, and the stock closed most recently at $6.92.

Unum Therapeutics

This micro-cap company could explode higher for investors. Unum Therapeutics Inc. (NASDAQ: UMRX) is a clinical-stage biopharmaceutical company focused on the development and commercialization of novel immunotherapy products designed to harness the power of a patient’s immune system to cure cancer. The firm’s technologies include an antibody-coupled T-cell receptor, which is a chimeric protein that binds to tumor-targeting antibodies.

Unum has four programs currently in Phase 1 clinical testing, including ACTR707, used in combination with rituximab in adult patients with r/r NHL. ACTR087 is used in combination with the novel antibody SEA-BCMA in r/r multiple myeloma, and ACTR707 is used in combination with trastuzumab in adult patients with HER2+ advanced cancer.

SunTrust has set its target price at a whopping $10. But that stands way below the massive $16 consensus price target. The shares ended last week at $3.38 apiece.

These are five stocks for very aggressive accounts looking to get share-count leverage on companies that 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 SunTrust and other major Wall Street firms have research coverage on them.

Want to Retire Early? Start Here (Sponsor)

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

 

Have questions about retirement or personal finance? Email us at [email protected]!

By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.

By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.