Investing
5 Red-Hot Stocks to Buy Now Trading Under $10 With Abundant 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 look like solid ideas for aggressive traders and investors.
With the number of new equity traders skyrocketing over the past year due to the popularity of Robinhood and WallStreetBets, locating good ideas to trade has become even more challenging. These five could all prove to be exciting additions for traders looking for solid alpha potential. While they are definitely better suited for aggressive investors, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
This small-cap biotech has some big-time upside potential. Aptose Biosciences Inc. (NASDAQ: APTO) is a clinical-stage biotechnology company that discovers and develops personalized therapies addressing unmet medical needs in oncology in Canada.
The company’s lead clinical program is APTO-253, which is in a Phase 1 clinical trial for the treatment of patients with relapsed or refractory hematologic malignancies. The company has an agreement with CrystalGenomics to research, develop and commercialize CG026806, a non-covalent small molecule therapeutic agent, which is in the preclinical stage for the treatment of acute myeloid leukemia and chronic lymphocytic leukemia/mantle cell lymphoma.
Oppenheimer has a $9 price target on the shares, while the Wall Street consensus target is $4.72. The shares tumbled more than 5% on Friday to just above $5.
This stock got hit back in January and is still trying to break the downtrend line from the highs. CarLotz Inc. (NASDAQ: LOTZ) operates as a used car and motorcycles retailer. It offers compacts, convertibles, coupes, sport utility vehicles, trucks, vans and wagons.
The company’s services include inspection, cleaning, photography, listings on major car buying websites and management of buyer inquiries and test drives at its retail stores. In addition, its retail remarketing technology provides performance metrics, data analytics and custom business intelligence reporting to corporate vehicle sourcing partners.
The Barrington Research price target is a massive $22. There was no consensus figure, and the shares have retreated from near $8 last week.
This off-the-radar idea has been on a solid roll and could hop into double digits soon. Costamare Inc. (NYSE: CMRE) is one of the world’s leading owners and providers of containerships for charter.
The company has 46 years of history in the international shipping industry and a fleet of 72 containerships, with a total capacity of approximately 529,000 twenty-foot equivalent units, including two new build container ships currently under construction. Ten of the company’s containerships have been acquired pursuant to the Framework Deed with York Capital Management by vessel-owning joint venture entities, in which Costamere holds a minority equity interest.
Stifel recently lifted the price target to $9.50 from $8.50. That compares with an $11.25 consensus target. The stock has been trading below the $10 level.
This company had a major international conglomerate take a large position late in 2018. Cronus Group Inc. (NASDAQ: CRON) is a global cannabis company founded in 2012 and based in Ontario, Canada, with a presence across five continents. Its principal activities are the production and sale of cannabis and cannabis-derived products in federally legal jurisdictions.
Back in December of 2018, Altria agreed to buy a 45% stake in the company for about $1.8 billion, a sign of the new world in which the tobacco company must compete. This strategic partnership provides Cronos with additional financial resources, product development and commercialization capabilities, as well as deep regulatory expertise, to better position the company to compete, scale and lead the rapidly growing global cannabis industry. This also gives Altria the option to increase to full ownership if it so chooses down the road.
Raymond James has set an $11 price target, but there is no consensus target. Cronus stock dropped below $8 last week for the first time since early in the year.
Investors who are more aggressive may want to consider this smaller cap mining company. Kinross Gold Corp. (NYSE: KGC) is one of the largest gold producers in the world. It engages in the acquisition, exploration and development of gold properties principally in Canada, the United States, the Russian Federation, Brazil, Chile, Ghana and Mauritania.
BofA Securities has noted in the recent past that its Buy rating is a function of its view that Kinross’s gold output will rise to 2.9 million gold equivalent ounces in 2023. Kinross is trading at material discounts to the senior gold producer peers. A key catalyst for Kinross will be the completion of the Tasiast Phase Two mine development in 2022.
The $11.50 BofA Securities price target is in line with the $11.48 consensus target. Kinross Gold stock recently traded near $7.50.
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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