5 Stocks Trading Under $10 With Explosive Upside Potential

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By Lee Jackson Published
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5 Stocks Trading Under $10 With Explosive 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.

We screened our 24/7 Wall St. research database looking for smaller cap companies that could very well offer patient investors some huge returns the rest of 2021 and beyond. Such investors that did that in 2008 and 2009 absolutely killed it over the next few years.

It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
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Aurora Mobile

This off-the-radar stock is offering aggressive investors big upside potential. Aurora Mobile Ltd. (NYSE: JG) engages in the provision of mobile big data solutions platforms. It also offers mobile apps and provides core in-app functionalities needed by developers, including push notification, instant messaging, analytics and sharing and short message service.

The company also provides application programming interfaces that create connectivity and automate the process of message exchange between the mobile apps and its backend network, and its interactive web-based service dashboard allows app developers to utilize and monitor its services through controls on an ongoing basis. It primarily serves mobile app developers in a range of industries, such as media, entertainment, gaming, financial services, tourism, e-commerce, education and health care.

Oppenheimer has an Outperform rating and a $6 price target. The Wall Street consensus target is just $3.04. The stock briefly went above $4 last week, before retreating somewhat.

Casper Sleep

While not to be confused with a friendly ghost, this bed retailer has been hot. Casper Sleep Inc. (NASDAQ: CSPR) is a high-growth branded sleep company that was founded in 2013 and is based in New York City. Revenues totaled $497 million in 2020. Casper Sleep has evolved from a pure online direct-to-customer company that sold a singular mattress in the United States to a multichannel sleep-focused company with a strong and growing brand that is operating 60 company-owned stores and nearly 20 wholesale partners.

Analysts feel that the company is in the early stages of capturing market share, with its comprehensive focus on sleep and wellness. Its strong brand recognition and broadening product lines and distribution partners give it the ability to convert more shoppers to customers.

Wedbush recently upgraded the stock to Outperform with a $10.50 price target. The consensus target is $10.67, and shares traded near $9 for much of the past week.
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Charah Solutions

While way off the radar of many investors, this company has big upside possibilities. Charah Solutions Inc. (NASDAQ: CHRA) provides environmental and maintenance services to the power generation industry in the United States. The company operates in two segments.

The Environmental Solutions segment offers remediation and compliance services, including development, construction and management of landfills for coal-fired power generation facilities, and new and existing ash ponds. It offers active pond management services, such as clean closure, cap-in-place and design and construction of new ponds.

The Maintenance and Technical Services segment provides fossil services, including coal ash management, silo management, on-site ash transportation, landfill management and capture and disposal of ash byproducts, as well as staffing solutions for coal-fired power generation facilities. it manages combustion byproducts comprising bottom ash, as well as disposal of flue gas desulfurization gypsum, fixated scrubber sludge and fluidized bed combustion fly ash.

Stifel’s Buy rating comes with an $8 price target. The consensus target is a much lower $4.75. The stock was trading below $6 a share late last week.

Energy Transfer

The top master limited partnership (MLP) is a very safe way for investors looking for energy exposure and income. Energy Transfer L.P. (NYSE: ET | ET Price Prediction) owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with a strategic footprint in all the major domestic production basins.

This publicly traded limited partnership has core operations that include complimentary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (NGLs) and refined product transportation and terminaling assets; NGL fractionation; and various acquisition and marketing assets.

Through its ownership of Energy Transfer Operating, formerly known as Energy Transfer Partners, the company also owns Lake Charles LNG, as well as the general partner interests, the incentive distribution rights and 28.5 million common units of Sunoco, and the general partner interests and 39.7 million common units of USA Compression Partners.

Investors receive a 6.89% distribution. Mizuho recently upgraded the stock to Buy with a $12 price target. The posted consensus target is $11.33, and Energy Transfer stock hit a year-to-date high near $9 late last week.
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GasLog

This is another solid play for more aggressive income investors. GasLog Partners L.P. (NYSE: GLOP) owns, operates and acquires liquefied natural gas (LNG) carriers under multiyear charters. As of March 2, 2021, it operated a fleet of 15 LNG carriers with an average carrying capacity of approximately 158,000 cubic meters.

GasLog Partners is a publicly traded MLP but has elected to be treated as a C corporation for U.S. income tax purposes, and therefore its investors receive an Internal Revenue Service Form 1099 with respect to any distributions declared and received.

Shareholders receive a nice 5.29% dividend. Jefferies recently raised the stock to Buy from Neutral and has a $4 price target. The consensus target was last seen at $3.80, and the stock traded shy of $3 per share late last week.
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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.

Photo of Lee Jackson
About the Author Lee Jackson →

Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad and diverse career, which included a stint as the creative services director at the NBC affiliate in Austin, Texas, gives him unique insight into the financial industry and world.

Lee Jackson's journey in the financial industry spans over 30 years, with nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career was marked by his presence on the sell side during pivotal Wall Street events, from the dot.com rise and bubble to the Long Term Capital Management debacle, 9/11, and the Great Recession of 2008. This is a testament to his resilience and adaptability in the face of market volatility.

Lee Jackson’s practical financial industry experience, acquired from a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing on various platforms. This unique combination allows him to shed light on the intricacies and workings of Wall Street in a way that only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.

Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.

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