Investing
5 Red-Hot New Stocks Trading Under $10 With Huge Upside Potential
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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. 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.
Each and every week, we screen our 24/7 Wall St. research database looking for stocks rated Buy at major firms and priced under the $10 level (the most recent picks included Aurora Cannabis and Oasis Petroleum), and this week was no exception. We found five more stocks 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.
This company’s shares have been on a roll and are breaking out. Harmonic Inc. (NASDAQ: HLIT) engages in the development and sale of video delivery software, products, system solutions and services. It operates through its Video and Cable Edge segments.
The Video segment sells video processing and production and playout services to cable operators, satellite and telecommunications pay-TV service providers, and broadcast and media companies, including streaming new media companies. The Cable Edge segment markets cable access solutions and related services, such as CableOS software-based Converged Cable Access Platform solutions.
Stifel has a $10 price target on the shares, while the Wall Street consensus target is much lower at $7.42. The stock closed trading on Friday at $7.68.
Shares of this smaller energy company have sizable upside potential from current trading levels. Jagged Peak Energy Inc. (NYSE: JAG) is a Permian Basin oil and gas producer with 70,000 net acres in the Southern Delaware Basin in three operating areas.
Its largest position is held in Whiskey River (35,000 net acres), which is located in Reeves and Ward counties, followed by Big Tex (22,000 net acres), which is located in Pecos County, and Cochise (12,900 net acres), which straddles Ward and Winkler counties.
Nomura recently started coverage with an $11 price target. The consensus target is higher at $12.52, but the stock traded at $8.75 on Friday’s close.
This regional airline is out of bankruptcy and ready to fly higher. Mesa Air Group Inc. (NASDAQ: MESA) is the sixth largest regional airline in the United States (based on departures), providing over 600 daily departures to 110 cities in the United States, Canada, Mexico, Cuba and the Bahamas. Today, the carrier operates 144 large regional aircraft under long-term, fixed-fee contracts for American and United.
The $16 Merrill Lynch price target compares to the $14.67 consensus target. The shares ended the week at $9.88.
This off-the-radar micro-cap could explode to the upside for investors. Meet Group Inc. (NASDAQ: MEET) engages in the provision of mobile social entertainment apps designed for human connections. Its primary apps include MeetMe, LOVOO, Skout and Tagged. It operates through mobile platforms like iPhone, Android, iPad and other tablets.
The company recently unveiled a number of safety-related features on MeetMe including the most prominent Report Abuse button seen in any major live streaming app. When a user taps this button, a screen-grab will be sent to the firm’s 200+ person moderation team for rapid review of both the screen-grab and the active live-stream. The button will appear in every user stream, making it even easier for users to alert the moderation team to potentially problematic video content.
Oppenheimer has set its price target at $7. The slightly higher consensus target of $7.25 compares with the most recent share price of $3.50.
Mohawk Group Holdings Inc. (NASDAQ: MWK) had a recent IPO that is trading below the offering price for the deal, and its shares could have big upside potential. It operates as a technology-enabled consumer products company in the United States. It offers home and kitchen appliances; kitchenware; environmental appliances, such as dehumidifiers and air conditioners; beauty related products; and consumer electronics under the hOme, Vremi, Xtava, and RIF6 brands. The company markets and sells its products through e-commerce platforms
Mohawk was founded in 2014 and is based in New York. The company applies artificial intelligence and machine learning and uses data and social proof to validate high-caliber product offerings, rather than relying on brand value and traditional marketing tactics.
The Alliance Global price target is a massive $15. No consensus target was available. The stock traded most recently at $7.28.
These are five stocks for aggressive accounts looking to get share count leverage on companies with sizable upside potential. While not suited for all investors, they are not penny stocks with absolutely no track record or liquidity, and major Wall Street firms have research coverage on them. Note though that value stocks come with some risks while markets are at all-time highs.
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