Investing

5 Sizzling Stocks 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.

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Every week, we screen our 24/7 Wall St. research database looking for stocks with Buy equivalent ratings at major firms and priced under the $10 level (last week’s picks included Ford and General Electric), 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 to be exciting additions to portfolios looking for solid alpha potential.

Applied Genetic Technology

This small-cap biotech company has huge upside potential. Applied Genetic Technology Corp. (NASDAQ: AGTC) engages in the development of gene therapy platforms to develop transformational genetic therapies for patients suffering from rare and debilitating diseases. It has clinical trials in the field of ophthalmology, optogenetics, adrenoleukodystrophy and otology.

Recently the company said data sets from the dose escalation groups of its Phase 1 and 2 XLRP program and a preliminary look at three-month data from its XLRP dose expansion group demonstrated a favorable safety profile with stability of visual function in peripherally dosed patients and improvement of visual function in 50% of centrally dosed patients.

The company’s president and chief executive, Sue Washer, said, “Taken together, we believe these data put our company in a favorable position to move its current clinical programs forward and bring important therapies to patients who today lack effective treatment options.”

Wedbush recently raised its price target to $12 from $11. That compares to the lower Wall Street consensus target of $10.58. The stock traded on Friday’s close at $3.99 a share.

Clear Channel Outdoor

This advertising play looks interesting at current trading levels. Clear Channel Outdoor Holdings Inc. (NYSE: CCO) is one of the world’s largest outdoor advertising companies, with a diverse portfolio of 450,000 print and digital displays in 31 countries across Asia, Europe, Latin America and North America, reaching millions of people monthly. Its growing digital platform includes over 14,000 digital displays in its international markets and more than 1,600 digital displays, including more than 1,300 digital billboards, in the United States.

It has two business divisions. Clear Channel International covers markets in Asia, Europe and Latin America. Clear Channel Outdoor Americas is the U.S. and Caribbean business division. The company employs 5,600 people globally.

Wells Fargo started the stock with at Outperform with a $4 price target earlier this week. The consensus target is $3.83, and the stock closed at $2.58 on Friday.


Glu Mobile

This gaming stock could have some big upside for aggressive accounts. Glu Mobile Inc. (NASDAQ: GLUU) designs, markets and sells mobile games. It specializes in free-to-play mobile games designed to a section of users who download and make purchases games through direct-to-consumer digital storefronts, such as the Apple App Store, Google Play Store, Amazon Appstore and others.

The company operates through the following geographical segments: United States of America; Americas excluding United States of America; Europe, the Middle East and Africa; and Asia Pacific.

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Past portfolio titles have included “The Contract Killer,” “Cooking Dash,” “Covet Fashion,” “Deer Hunter,” “Design Home,” “QuizUp,” “Racing Rivals and Tap Sports Baseball,” as well as games based on third-party licensed brands, including “Gordon Ramsay DASH,” “Kendall & Kylie” and “Kim Kardashian: Hollywood.”

The $8 D.A. Davidson price target compares with a $7.91 consensus target. The shares ended the week at $4.90.

Pareteum

This is a very off-the-radar software play that aggressive accounts could get some big leverage on. Pareteum Corp. (NASDAQ: TEUM) engages in the provision of mobile networking software and services. It offers mobile proprietary software-defined network architecture platforms for the telecommunications industry, utilizing messaging and security capabilities for the mobile virtual network operators, Internet-of-Things markets, mobile and enterprise markets.

Pareteum delivered a strong second quarter, achieving robust year-over-year revenue growth and solid bottom-line performance driven by substantial customer demand and increasing connections and usage within the customer base. While the revenues were slightly below consensus, that looks to be baked into the current price.

The Oppenheimer price target is $4, much lower than the $7 consensus target. The stock was last seen changing hands at $1.33 a share.

TherapeuticsMD

This small-cap health care stock has been on a solid run and looks to continue to push higher. TherapeuticsMD Inc. (NASDAQ: TXMD) focuses on developing and commercializing products for women. Its technology, Symboda, develops advanced hormone therapy pharmaceutical products to enable delivery of bio-identical hormones through a variety of dosage forms and administration routes.

The firm also manufactures and distributes branded and generic prescription prenatal vitamins, as well as over-the-counter vitamins under the Bijuva, Imvexxy, vitaMedMD and BocaGreenMD brands.

Oppenheimer has set a big $9 price target. The consensus price objective is even higher at $11. The stock was trading at $3.78 on Friday’s close.

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 while markets are again near all-time highs, value stocks come with some risks.

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