Every time there is major carnage in the stock market, you see top companies trade into the single digits. During the global financial crisis in 2008 and 2009, stocks like Bank of America traded in the low-to-mid single digits. This time is no different, as well-known companies, some considered sector leaders, have been crushed and are now single-digit midgets.
We have been screening the top sell-side firms that we cover looking at changes and new commentary on each firm’s list of top stocks to buy. All major Wall Street brokerage firms have a list of top picks that they show their institutional and retail customers. At Raymond James, this list is called the Analyst Current Favorites.
The Raymond James Analyst Current Favorite contains current favorite stock ideas from the analysts in Equity Research. Analysts may only have one “buy” idea (from their stocks under coverage rated Strong Buy or Outperform) on the list at any given time. We screened the list and found five stocks trading under $10 that could be massive bargains now and have big upside to the price targets. All are rated Strong Buy.
Everi
This company in the gaming business could be an acquisition target. Everi Holdings Inc. (NYSE: EVRI) engages in the provision of technology solutions to the casino gaming industry. It operates through two segments.
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The Games segment provides solutions directly to gaming establishments to offer patrons gaming entertainment related experiences such as leased gaming equipment, sales and maintenance related services of gaming equipment, gaming systems and ancillary products and services.
The FinTech segment allows gaming establishments to offer patrons cash access services and products including access to cash at gaming facilities via ATM cash withdrawals; credit card cash access transactions and point of sale debit card cash access transactions; check-related services; fully integrated kiosks and maintenance services; compliance, audit and data software; casino credit data; and reporting services and other ancillary offerings.
Raymond James has a gigantic $14 price target on the shares, and the consensus price target on Wall Street is $13.50. The shares closed Wednesday at $4.01, up a staggering 27% on the day.
Flexion Therapeutics
This off-the-radar biotech play is an interesting idea for aggressive accounts to consider. Flexion Therapeutics Inc. (NASDAQ: FLXN) operates as a biopharmaceutical company, which engages in the development and commercialization of novel and local therapies. It specializes in the treatment of patients with musculoskeletal conditions, including osteoarthritis. It offers products under the Zilretta brand.
The company recently entered into an exclusive license agreement with HK Tainuo and Jiangsu Tainuo for the development and commercialization of Zilretta. HK Tainuo will pay Flexion an upfront payment of $10 million. Flexion also will be eligible to receive up to $32.5 million in aggregate development, regulatory and commercial sales milestone payments.
The Raymond James price objective is a massive $23, though the consensus price target is higher at $25.89. The stock closed most recently at $8.50, up over 11% on Wednesday.
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Halliburton
This company is down almost 75% over the past year, but it remains a top large-cap oil services pick across Wall Street. Halliburton Co. (NYSE: HAL | HAL Price Prediction) is one of the world’s largest providers of products and services to the energy industry.
The company serves the upstream oil and gas industry throughout the life cycle of the reservoir, from locating hydrocarbons and managing geological data to drilling and formation evaluation, well construction and completion, and optimizing production through the life of the field.
Halliburton is the second-largest provider of oil services and the number one player in pressure pumping services worldwide. The company’s business always has been dependent on commodity prices. The low price environment triggered by the battle between Saudi Arabia and Russia on oil production has hammered benchmark pricing, and Halliburton has felt the brunt of it. Contrarians that see a path to higher oil prices could make some huge money here.
Shareholders receive an 8.55% dividend, but that could be on the chopping block. The $12 Raymond James price target is in line with the $12 consensus target. Halliburton stock rose close to 9% on Wednesday and closed at $8.75.
Ladder Capital
This could be a home run for investors if the credit markets can remain stable. Ladder Capital Corp. (NYSE: LADR) is a diversified, fully-integrated commercial lending and investment company, primarily engaged in sourcing, underwriting and originating commercial loans for its own account and for sale into the secondary market.
Ladder invests opportunistically in commercial mortgage loans, commercial mortgage-backed securities and commercial real estate, and it provides a full spectrum of asset management services. Ladder is internally managed and completed a real estate investment trust (REIT) conversion in 2015.
Mortgage REITs and real estate finance companies have been hit hard, but Ladder recently provided a financing and liquidity update in which it noted over $300 million of cash, and that it has also timely met all margin calls. Ladder recently engaged Moelis to evaluate financing alternatives, consistent with its philosophy of proactively managing risk.
The current distribution, which may be lowered, is a massive 22.73%. Raymond James has set a stunning $20 price target. The consensus target is $12.90, and shares closed Wednesday at $6.14, after rising over 18% on the day.
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Nokia
This telecommunications company once ruled the cell phone arena, until the advent of the smartphone in 2007. Nokia Corp. (NYSE: NOK) owns two main businesses: 1) Nokia Networks, a network infrastructure equipment supplier to global wireless and wireline operators, and 2) Technologies, its patent/IPR licensing activities.
Last year, Nokia, NTT Docomo and Omron agreed to conduct joint field trials using 5G at their plants and other production sites. As part of the trial, Nokia will provide the enabling 5G technology and Omron the factory automation equipment, while NTT Docomo will run the 5G trial.
The trial follows the increasing demand for wireless communications at manufacturing sites driven by the need for stable connectivity between Internet of Things devices. As background noise from machines and the movement of people have the potential to interfere with wireless communications, the trial will aim to verify the reliability and stability of 5G technology deployed by conducting radio wave measurements and transmission experiments.
Raymond James has put a $6 price target on the company, while the consensus for the company is set at $4.82. The stock was last seen Wednesday at $3.24.
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These are five stocks for aggressive accounts looking 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 in addition to Raymond James also have research coverage. Note that we have had a huge rally, which continued on Wednesday, so caution should be used when buying now after such an upside surge.
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