Investing

5 Stocks to Buy Now Trading Under $10 With Plenty of Upside Potential

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While most of Wall Street focuses on large-cap 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 difficult 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.

Catalyst Biosciences

This is a great biotech play for aggressive investors. Catalyst Biosciences Inc. (NASDAQ: CBIO) is a clinical-stage biopharmaceutical company that is focused on developing various treatments for hemophilia and other rare bleeding disorders using its potent subcutaneous (SQ) coagulation factors that promote blood clotting. Its engineered coagulation factors are designed to overcome the limitations of current intravenous treatment options, facilitate prophylaxis and ultimately deliver substantially better outcomes for patients using SQ dosing.

The company’s products include Marzeptacog alfa (activated), a subcutaneously administered next-generation engineered coagulation Factor VIIa that has completed Phase 2 development for individuals with hemophilia A or B with inhibitors. Its Dalcinonacog alfa is a next-generation engineered coagulation Factor IX therapy that has completed Phase 2b clinical trials for the treatment of hemophilia B.

The company also develops CB 2679d-GT, an early stage Factor IX gene therapy construct for Hemophilia B; CB 2782-PEG, a long-acting anti-C3 protease for the treatment of dry age-related macular degeneration; and an SQ systemic complement inhibitors pipeline.

Piper Sandler recently started coverage with a sizable $15 target price. That is below the higher $19.20 Wall Street consensus target. The stock hit a year-to-date high of $7.55 last week but retreated somewhat afterward.


Genasys

The shares of this stock have been on a roll and look to continue the trend higher. Genasys Inc. (NASDAQ: GNSS) provides critical communications systems and solutions and a multichannel approach to deliver geo-targeted alerts, notifications, instructions and information before, during and after public safety threats and critical business events.

Its communications platform includes Genasys Emergency Management (GEM) applications, National Emergency Warning Systems (NEWS) and LRAD long-range voice broadcast systems. The firm operates through its Hardware and Software segments.

Oppenheimer has a $9 price target, and the posted consensus target is $8.83. The stock has retreated from a recent 52-week high of $8.32.

Kadmon

This is another small biotech play with big-time upside potential. Kadmon Holdings Inc. (NASDAQ: KDMN) is a biopharmaceutical company that discovers, develops and commercializes small molecules and biologics primarily for the treatment of inflammatory and fibrotic diseases.

The company’s lead product candidates include KD025, an orally administered selective inhibitor of the rho-associated coiled-coil kinase 2, which is in Phase 2 clinical trial for the treatment of chronic graft-versus-host and fibrotic diseases. Its KD045 is an oral inhibitor of ROCK for the treatment of fibrotic diseases, and KD033 is an anti-PD-L1/IL-15 fusion protein for the treatment of cancer.

The company also engages in developing tesevatinib to treat autosomal dominant polycystic kidney disease; ribavirin, a nucleoside inhibitor to treat hepatitis; and Clovique, a trientine hydrochloride capsules for the treatment of Wilson’s disease.

Kadmon has strategic collaborations and license agreements with Nano Terra and Dyax.

The big $11 Jefferies price target is less than the even bigger $12.83 consensus target. The stock recently hit a 52-week high of $5.73, but the share price has pulled back a dollar or so since.

Plains All American Pipeline

This company remains a top master limited partnership pick across Wall Street. Plains All American Pipeline L.P. (NYSE: PAA) is primarily engaged in midstream crude oil activities, including transportation, gathering, marketing and terminaling.

Top analysts feel the company deserves a premium valuation given its leverage to the Permian and attractive organic growth backlog. The company owns an extensive network of pipeline transportation, terminaling, storage and gathering assets in key crude oil and natural gas liquids (NGLs) producing basins and transportation corridors and at major market hubs in the United States and Canada. On average, Plains All American handles more than 6 million barrels per day of crude oil and NGLs in its Transportation segment.

Investors receive a solid 8.48% distribution. BofA Securities has set the price objective at $13. The consensus target price is lower at $12.09, and Plains All American Pipeline stock has traded mostly between $8 and $10 a share since November.

Resonant

This off-the-radar technology play has been on fire and looks poised to push much higher. Resonant Inc. (NASDAQ: RESN) is a late-stage development company that designs and develops filters for radio frequency (RF) and front-ends used in the mobile device, automotive, medical, Internet of Things and related industries in the United States and internationally.

The company uses Infinite Synthesized Networks technology, a software platform to configure and connect resonators that are building blocks of RF filters. The company develops a series of single-band designs for frequency bands, and multiplexer filter designs for two or more bands to address the carrier aggregation requirements, as well as filter designs to replace various filters and associated componentry for various bands.

The Stifel price target is $8.40. The consensus target is down at $6.43, and the stock hit a 52-week high of $8.33 last week before slipping below the $7 level again.


These are five stocks for aggressive investors 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 have research coverage.

 

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