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 hundreds, all the way up to over $1,000 per share or more. 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.
Goldman Sachs is the premier investment bank in the world, so we screened the firm’s outstanding research database and found five stocks trading under the $10 level that could provide investors with some incredible upside potential. While all five are rated Buy at Goldman Sachs, they are much better suited for aggressive investors, and it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
ADT
This top security company is a well-known protector of homes and businesses. ADT Inc. (NYSE: ADT | ADT Price Prediction) is the largest residential and second-largest commercial security monitoring company in North America. The company serves over 7 million customers, installing over a million systems per year. Roughly 94% of revenue is generated in the United States, with the remainder from Canada.
[nativounit]
Google announced in August that it is buying a 6.6% stake in the home security firm for $450 million in a deal that will allow it to provide service to customers of its Nest home security devices. ADT said that the companies will work to combine Nest products like cameras, thermostats, doorbells and alarm systems with ADT’s installation, service and professional monitoring network.
The company also expects to offer certain Google devices to its customers beginning this year and to expand the integration in 2021.
The Goldman Sachs price target is a stunning $17, well above the $13.67 Wall Street consensus target. ADT stock has retreated in recent weeks to near $8 a share. Hitting the Goldman Sachs target would be a gigantic 108% gain.
Fly Leasing
This off-the-radar contrarian play has gigantic upside to the Goldman Sachs target. Fly Leasing Ltd. (NYSE: FLY) is a holding company that engages in purchasing and leasing of aircrafts. It focuses on acquiring and leasing the modern fuel-efficient commercial aircraft that are in strong demand around the world. Its portfolio includes Airbus A319, Airbus A320, Airbus A330, Airbus A340, Boeing 737, Boeing 747, Boeing 757 and Boeing 767 aircraft.
The company focuses on acquiring and leasing the most modern fuel-efficient commercial jet aircraft. Its aircraft are leased under multiyear contracts to a diverse group of airlines throughout the world. The company’s strategy is to effectively manage its fleet and grow its portfolio through accretive acquisitions of aircraft.
Goldman Sachs has a huge $19 price objective, while the consensus figure is $13.17. Shares have traded sideways since falling in March and were trading under $8 this past week. Hitting the target would be an incredible 161% gain.
Magenta Therapeutics
This could be another red-hot play for investors looking for a biotech idea. Magenta Therapeutics Inc. (NASDAQ: MGTA) is a clinical-stage biotechnology company developing therapeutics to transform hematopoietic stem cell transplants for patients with immune and blood-based diseases. It maintains a platform with an integrated and modular approach, which aims to reboot the blood and immune systems.
[recirclink id=786917]
Magenta Therapeutics also develops a pipeline of small molecules; biologics, including antibody drug conjugates; and a cell therapy, which transplant options for many more patients with autoimmune diseases, blood cancers and genetic diseases. Its C100 program targets HSCs, immune cells and disease-causing cells. The C200 program targets HSCs and disease-causing cells, and the C300 program targets only immune cells.
Magenta Therapeutics also has a research and clinical collaboration agreement with AVROBIO to evaluate targeted antibody-drug conjugates as a conditioning regimen for lentiviral gene therapies.
The towering $15 Goldman Sachs price target compares to the even higher $18.50 consensus target. Shares traded mostly below $7 last week. Hitting the Goldman Sachs target would be a massive 120% gain.
NextTier Oilfield Solutions
This oilfield services company is less well known to investors but has massive upside to the Goldman target. NextTier Oilfield Solutions (NYSE: NEX) is the third largest provider of U.S. land completion services, including 2.2 million hydraulic horsepower and other services.
This industry-leading company has a diverse set of well completion and production services across the most active and demanding basins. Its integrated solutions approach delivers efficiency, and the firm’s ongoing commitment to innovation helps its customers better address what is coming next.
NexTier is differentiated through four points of distinction, including safety performance, efficiency, partnership and innovation, and it may be one of the most compelling energy stocks today.
Goldman Sachs has set a $5 price target. The consensus target is $3.75, and shares slipped below $2 last month and have yet to recover. Trading to the Goldman Sachs target would be an incredible 170% gain.
[recirclink id=770502]
TechnipFMC
This is an incredible energy play for investors that may be a touch more conservative. TechnipFMC PLC (NYSE: FTI) engages in the oil and gas projects, technologies and systems and services businesses. It operates through three segments
The Subsea segment manufactures and designs products and systems; performs engineering, procurement and project management; and provides services used by oil and gas companies involved in deepwater exploration and production of crude oil and natural gas.
The Onshore/Offshore segment designs and builds onshore facilities related to the production, treatment and transportation of oil and gas, and it designs, manufactures and installs fixed and floating platforms for the production and processing of oil and gas reserves.
The Surface Technologies segment designs and manufactures systems, as well as provides services used by oil and gas companies involved in the land and shallow water exploration and production of crude oil and natural gas. This segment also designs, manufactures and supplies technologically advanced high-pressure valves and fittings for oilfield service companies, and it provides flowback and well-testing services for exploration and production companies.
Goldman Sachs has a $12.50 price objective on TechnipFMC stock. The consensus target price is $11.75, and shares traded above $6 apiece recently. Hitting that Goldman Sachs target would be a strong 100% gain.
[wallst_email_signup]
These five companies have all been sent to the single-digit penalty box. Some of them may have a difficult road back to prosperity, but given what we have seen in the past, and the massive liquidity being provided by Washington, D.C., the odds are good that each survives this downturn and could head much higher in the last quarter of the year and especially in 2021.
Top Gaining Stocks
Top Losing Stocks