Investing
5 More Sizzling Stocks to Buy Under $10 With Massive Implied Upside
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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 again 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. Note that last week’s under-$10 picks included Casper Sleep and Energy Transfer.
While all five stocks are rated Buy, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
This microcap biotech could prove to be a gigantic winner. Adverum Biotechnologies Inc. (NASDAQ: ADVM) is a clinical-stage gene therapy company that develops gene therapy product candidates to treat ocular and rare diseases.
Its lead product candidate is ADVM-022, a single intravitreal injection gene therapy candidate used for the treatment of patients with chronic retinal diseases, including wet age-related macular degeneration and diabetic macular edema. Adverum Biotechnologies has license and collaboration agreements with the University of California, Cornell University, GenSight Lexeo and Virovek.
The stock was hit hard recently in reaction to a suspected unexpected serious adverse reaction of hypotony (clinically relevant decrease in ocular pressure). The event happened during a Phase 2 trial valuating ADVM-022 gene therapy to treat diabetic macular edema. The company immediately decided to unmask the 36-patient trial to determine if any other treated patients might have similar issues.
Despite the setback, Goldman Sachs kept a Buy rating, though it lowered the price target to $10. The posted consensus target is $10.63. The stock was crushed after the announcement and has since traded below the $4 level.
This off-the-radar stock also offers aggressive investors big upside potential. Aurora Mobile Ltd. (NYSE: JG) is a holding company that 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, as well as an interactive web-based service dashboard that 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.
Alliance Global’s Outperform rating comes with a $7 price target. The consensus target is much lower at $3.04. The stock has found support around $3 recently.
This stock was hammered earlier this year, but it looks to have put in a base and may be ready for a big bounce. Diginex Ltd. (NASDAQ: EQOS) is a digital asset financial services and advisory company that provides products, architecture and infrastructure for the financial markets in the areas of digital asset ecosystem in Singapore and internationally.
The company operates Equos, a cryptocurrency exchange for professional and individual investors. Its over-the-counter trading platform, Digivault, is a hot and cold custodian platform for the custody of digital assets for institutional investors, and its Diginex Access is a front-to-back integrated trading platform that provides trading and portfolio management solutions to institutional and professional retail clients. It also provides asset management services under the Bletchley Park Asset Management name, as well as securitization advisory, origination, and distribution services.
H.C. Wainwright believes in the company and has an Overweight rating and a massive $12 price target. The consensus target also is $12, and the shares have traded near $6 in recent weeks.
This is another microcap biotech play that could be a big winner. Durect Corp. (NASDAQ: DRRX) is a biopharmaceutical company that researches and develops medicines based on its epigenetic regulator and pharmaceutical programs.
The company offers Alzetproduct line, which consists of osmotic pumps and accessories used for research in mice, rats and other laboratory animals. It also develops DUR-928, an endogenous, orally bioavailable small molecule that is in Phase 2b clinical trial to play a regulatory role in lipid homeostasis, inflammation and cell survival, as well as completed Phase 1b clinical trial to treat patients with nonalcoholic steatohepatitis.
In addition, Durect offers Posimir, a post-surgical pain product to deliver bupivacaine in adults. It markets and sells its Alzet lines through its direct sales force in the United States, as well as through a network of distributors in Japan, Europe and elsewhere. The company has strategic collaboration and other agreements with Virginia Commonwealth University Intellectual Property Foundation, Indivior UK, Santen Pharmaceutical, Sandoz and Gilead Sciences.
A huge $8 price target accompanies Oppenheimer’s Outperform rating is well above the lower $6.67 consensus target. The stock has traded below $2 since the beginning of April.
This is an interesting idea for those looking for a small-cap gaming idea. PlayAGS Inc. (NYSE: AGS) designs and supplies gaming products. The company operates through three segments.
The Electronic Gaming Machines segment includes server-based and back-office systems. The Table Products includes live felt table games, side bets and card shuffler. The Interactive Social Casino Games segment provides casino games on desktop and mobile devices. Its products include slots, cabinets, interactive and table games.
The analysts at Truist Securities recently started coverage with a Buy rating and a $12 price target. Though the stock broke above $9.50 late in the week, the consensus target is just $6.03.
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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