Investing

5 Red-Hot Stocks Trading Under $10 With Massive Upside Potential

Thinkstock

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 is 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 week we screen our 24/7 Wall St. research database looking for stocks rated Buy at major firms and priced under the $10 level. This week we found five new stocks that could provide investors with some solid upside potential.

While more suited for aggressive investors, and with the number of new traders skyrocketing over the past year and making good ideas to trade even harder to find, these could prove exciting additions for traders looking for solid alpha potential. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Akerna

This off-the-radar company has the potential to be a huge winner with the new administration signaling possible marijuana legalization. Akerna Corp. (NASDAQ: KERN) offers the MJ Platform, an enterprise resource planning system to the cannabis industry, and Leaf Data Systems, a tracking system designed for government agencies.

The company also provides consulting services to the cannabis industry. Its business intelligence infrastructure as a service tool delivers supply chain analytics for the cannabis, hemp and CBD industries. Last Call Analytics is a subscription analytics tool for alcohol brands to analyze their retail sales analytics. In addition, the company operates a seed-to-sale platform that allows cultivators to track and report various stages of their cannabis growing operations, production and sales processes.

Akerna also offers cannabis cultivation management and software to manage and optimize operational workflow in business analytics, as well as cannabis tracking technology that provides seed-to-sale-to-self data.

Alliance Global has a Buy rating and an $8 price target for the shares. The Wall Street consensus target is $8, and the shares have been trading near the $7 level.


Biolase

This company just signed a deal that could be a total game-changer. Biolase Inc. (NASDAQ: BIOL) develops, manufactures, markets and sells laser systems for dental practitioners and their patients in the United States and internationally. Its dental laser systems allow dentists, periodontists, endodontists, oral surgeons and other dental specialists to perform a range of minimally invasive dental procedures, such as cosmetic, restorative and complex surgical applications.

The company offers Waterlase all-tissue dental laser systems for cutting soft and hard tissues, and diode laser systems to perform soft tissue, hygiene, cosmetic procedures and teeth whitening, as well as to provide temporary pain relief. Its Epic Hygiene laser manages nonsurgical periodontitis and enhances clinical production. It also manufactures and sells consumable products and accessories for its laser systems, as well as markets flexible fibers and hand pieces, and teeth whitening gel kits. The company sells its products through its field sales force and distributor network.

The company recently announced an agreement with Dental Care Alliance (DCA), one of the largest dental support organizations in the United States, with more than 330 affiliated practices in 20 states, to expand laser adoption and hands-on training programs in targeted geographies. The company expects the agreement to lead to a rollout across all DCA offices in 2021.

Ascendiant Capital Markets has a Buy rating and a $3 price target. The consensus target is $1.41, and shares have been trading near $1.

Marathon Oil

This leading integrated oil and gas firm has extensive upstream operations. Marathon Oil Corp. (NYSE: MRO) operates through three segments. The North America Exploration and Production segment develops, explores for, produces and markets crude oil and condensate, natural gas liquids (NGLs) and natural gas in North America.

The International Exploration and Production segment explores for, produces and markets crude oil and condensate, NGLs and natural gas in Equatorial Guinea, Gabon, the Kurdistan Region of Iraq, Libya and the United Kingdom, as well as produces and markets products manufactured from natural gas, such as liquefied natural gas and methanol in Equatorial Guinea.

The Oil Sands Mining segment mines, extracts and transports bitumen from oil sands deposits in Alberta and Canada, and it upgrades the bitumen to produce and market synthetic crude oil and vacuum gas oil.

Marathon stock investors receive a 1.85% dividend. Truist Securities maintains a Buy rating with a $12 price target, while the consensus target is $8.31 The shares were trading near $8.50.

Organogenesis

Organogenesis Holdings Inc. (NASDAQ: ORGO) is a regenerative medicine company focused on the development, manufacture and commercialization of solutions for the advanced wound care and surgical and sports medicine markets, primarily in the United States.

The company’s advanced wound care products include Apligraf for the treatment of venous leg ulcers and diabetic foot ulcers (DFUs), Dermagraft for treating DFUs, PuraPly AM to address biofilm across a range of wound types and Affinity and NuShield to address various wound sizes and types.

Its surgical and sports medicine products included ReNu for in-office joint and tendon applications. NuCel is for bony fusion in the spine and extremities, and NuShield and Affinity is for surgical applications in targeted soft tissue repairs. PuraPly AM is for the surgical treatment of open wounds.

Oppenheimer has an Overweight rating and just raised its target price to $13 from $9. The posted consensus target is $10.50. Shares have spiked over the past 90 days and were trading near $9.50.

Westport Fuel Systems

This off-the radar stock has been on a roll and still has solid upside potential. Westport Fuel Systems Inc. (NASDAQ: WPRT) engineers, manufactures and supplies alternative fuel systems and components for use in transportation applications worldwide.

The company offers alternative fuel systems and components, which include a range of alternative fuels, such as liquefied petroleum gas, compressed natural gas, liquefied natural gas, renewable natural gas and hydrogen. It also offers independent aftermarket, original equipment manufacturers (OEMs) and delayed OEMs, electronics, current and advanced research and development programs, supply chain and product planning activities.

Its Westport High Pressure Direct Injection 2.0 is a fully integrated system that powers compression ignition engines by natural gas, which reduces greenhouse gas emissions. In addition, the company develops, sells and markets spark-ignited natural gas or propane engines. Its CWI engines are for transit, school and shuttle buses, conventional trucks and tractors, refuse collection trucks and specialty vehicles, such as short-haul port drayage trucks and street sweepers. Its products and services are used for passenger cars; light-, medium- and heavy-duty trucks; and horsepower, cryogenics and hydrogen applications.

Oppenheimer’s Overweight rating comes with a $10 price target, which was just hiked from $3. The $5.70 consensus target is lower. The stock has increased nicely over the past month and was trading just below $7.


These are five stocks for aggressive investors that look 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 have research coverage.

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.

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