Investing
5 Sizzling Stocks to Buy Trading Under $10 With Big 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. Patient investors that did that in 2008 and 2009 absolutely killed it over the next few years.
While all five of the 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.
Going south of the border could provide some big upside for investors looking to add foreign stocks. Banco Santander Mexico S.A. (NYSE: BSMX) provides various banking products and services in Mexico.
The company operates through Retail Banking and Corporate and Investment Banking segments. It offers various deposit products, such as current accounts, savings accounts and time deposits, as well as certificates of interbank deposits; and payroll loans, personal loans, credit cards, mortgages and insurance brokerage services.
The bank also provides cash management, working capital solutions and trade finance; structured credit and debt products, project finance and asset-based finance; financial and strategic advisory services for mergers and acquisition; solutions and services for investing and hedging; and internet and mobile banking services. It serves individuals, private banking clients, small and medium-sized enterprises, middle-market corporations, government institutions and corporate and institutional customers. As of December 31, 2020, it operated through a network of 1,350 offices, 9,448 ATMs and 2,297 contact center positions.
JPMorgan recently raised its Neutral rating to Overweight and has a $6.75 price target. The Wall Street consensus target is higher at $7.05. The shares closed Friday at $5.88.
This micro-cap biotech could have some explosive upside potential. CASI Pharmaceuticals Inc. (NASDAQ: CASI) develops and commercializes therapeutics and pharmaceutical products in China, the United States and elsewhere.
The company offers the following:
The company has licensing agreements with Juventas Cell Therapy, BioInvent International, Black Belt Therapeutics and Cleave Therapeutics. The company also has distribution agreements with China Resources Guokang Pharmaceuticals, Pharmathen Global and Riemser Pharma.
BTIG Research has a $4 price target on the shares, and the consensus target is $4.20. The stock was last seen Friday at $1.69.
This is a great idea for investors looking for growth and income. New York Mortgage Trust Inc. (NASDAQ: NYMT) invests in, finances and manages mortgage-related single-family and multi-family residential assets in the United States.
Its targeted investments include the following:
The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders.
Investors receive a whopping 8.87% dividend. B. Riley recently started coverage and has a $6 price target. That compares with the lower $4.81 consensus target. The last Friday trade was reported at $4.58
This is another micro-cap biotech company that could be a huge winner. 9 Meters Biopharma Inc. (NASDAQ: NMTR) is a clinical-stage biopharmaceutical company focused on patients with rare and unmet needs in gastroenterology. Its pipeline includes drug candidates for short bowel syndrome (SBS) and celiac disease, as well as for undisclosed rare diseases and unmet needs.
The company is developing the following:
9 Meters Biopharma also has a collaboration with the Duke Clinical Research Institute to support the clinical development of NM-002.
Citigroup started coverage this past week with a $3 price target. The posted consensus target is even higher at $4.50. The shares closed Friday at $1.38.
While way off the radar, this is an exciting idea for traders who are more conservative and looking for energy plays. Target Hospitality Inc. (NYSE: TH) operates as a specialty rental and hospitality services company in the United States.
The company owns a network of specialty rental accommodation units with approximately 13,800 beds across 26 communities. It serves investment grade oil and gas companies, energy infrastructure companies and U.S. government and government contractors.
Stifel recently started coverage with a $4.50 price target, and the consensus target is $4.38. Fridays closing trade was reported at $3.73.
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, they are not penny stocks with absolutely no track record or liquidity, and major Wall Street firms have research coverage.
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