5 Red-Hot Stocks Under $10 With Big Upside Potential

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By Lee Jackson Updated Published
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5 Red-Hot Stocks 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. Many of the biggest companies in the world, including Apple and Amazon, traded in the single digits at one time.

While all five of the following 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.
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Avinger

This medical devices company could be a takeover candidate. Avinger Inc. (NASDAQ: AVGR) designs, manufactures and sells a suite of image-guided and catheter-based systems used by physicians to treat patients with peripheral arterial disease (PAD) in the United States and Europe. Its lumivascular platform integrates optical coherence tomography visualization with interventional catheters to provide real-time intravascular imaging during the treatment portion of PAD procedures.

The company’s lumivascular products comprise Lightbox imaging consoles, as well as the Ocelot family of catheters, which are designed to allow physicians to penetrate a total blockage in an artery, and Pantheris, an image-guided atherectomy device that allows physicians to precisely remove arterial plaque in PAD patients.

In addition, its first-generation chronic total occlusion-crossing catheters, Wildcat and Kittycat 2, employ a proprietary design that uses a rotational spinning technique allowing the physician to switch between passive and active modes when navigating across such an occlusion.

B. Riley Securities has started coverage with a $2.50 price target, which is right in line with the consensus target. The stock closed Friday at $1.11.

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Cemex

Investors looking for an infrastructure and construction play south of the border should check out this idea. Cemex SAB de C.V. (NYSE: CX | CX Price Prediction) produces, markets, distributes and sells cement, ready-mix concrete, aggregates, clinker and other construction materials worldwide.

The company also offers various complementary construction products, including asphalt products, concrete blocks, roof tiles, architectural products, concrete pipes for storm and sanitary sewers applications, and other precast products, including rail products, concrete floors, box culverts, bridges, drainage basins, barriers and parking curbs.

In addition, it provides building solutions for housing projects, pavement projects and green building consultancy services, as well as for cement trade maritime services and for information technology solutions. The company operates around 2,000 retail stores in approximately 600 cities.

Goldman Sachs has a $10.40 price target. That compares with the lower $10.07 consensus target and Friday’s $8.33 closing print.
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comScore

This intriguing information and analytics company could be a gigantic winner for aggressive investors. comScore Inc. (NASDAQ: SCOR) measures advertising, consumer behavior and audiences across media platforms worldwide. The company offers ratings and planning products and services, including:

  • Media Metrix Multi-Platform and Mobile Metrix measure websites and apps on computers, smartphones and tablets
  • Video Metrix delivers measurement of digital video consumption
  • Plan Metrix, offers understanding of consumer lifestyle

The company’s ratings and planning products and services also include the following:

  • TV Essentials combines TV viewing information with marketing segmentation and consumer databases.
  • StationView Essentials reveals consumer viewing patterns and characteristics.
  • Cross-Platform Suite integrates person-level linear TV viewership with digital audience data
  • OnDemand Essentials provides transactional tracking and reporting.
  • Comscore Campaign Ratings for verification of mobile and desktop video campaigns.
  • Validated Campaign Essentials validates whether digital ad impressions are visible to humans, identifies those that are fraudulent and verifies that ads are shown in brand-safe content and delivered to the right audience targets.
  • Total Home Panel Suite captures over-the-top (OTT) media, connected TV and Internet of Things device usage and content consumption.

The $7 Craig Hallum price target is well above the $4.91 consensus target. The stock was last seen Friday at $4.87.

Enthusiast Gaming

The gaming space remains red hot, and this is an interesting idea for aggressive investors. Enthusiast Gaming Holdings Inc. (NASDAQ: EGLX) engages in the media, content, entertainment and esports businesses in the United States, Canada and elsewhere.

The company operates an online network of approximately 100 gaming-related websites. It owns and operates Enthusiast Gaming Live Expo, a video-gaming expo and provides management and support services to players involved in professional gaming. It also owns and manages esports teams, which cover games including Call of Duty, Madden, Fortnite, Overwatch, Apex and Valorant.

The company also produces and programs approximately 30 weekly shows across advertising-based video on demand and OTT channels, and it represents approximately 500 gaming influencers across YouTube and Twitch. It operates Luminosity Gaming, an eSports franchise, and hosts other gaming events.

H.C. Wainwright recently started coverage and has a $10 price target. No consensus target was available. The stock closed Friday at $6.29, up over 6%.

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Mogo

This is an off-the-radar name from the Great White North also holds some huge potential. Mogo Inc. (NASDAQ: MOGO) operates as a financial technology company in Canada.

The company provides a finance app that empowers consumers with solutions to help them get in control of their financial wellness. It offers users a Mogo app and provides access to MogoSpend, a digital spending account with Platinum Prepaid Visa Card (MogoCard). Its MogoCrypto enables the buying and selling of bitcoin, and it has a bitcoin rewards program.

The company offers free monthly credit score monitoring. Its MogoProtect is a free ID fraud protection, while MogoMortgage is a digital mortgage experience and MogoMoney provides access to personal loans. Mogo also operates a digital payments platform.

BTIG Research started coverage a few weeks ago with a strong $13 price target. No consensus target was available. Friday’s last trade came in at $7.35.
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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, they are not penny stocks with absolutely no track record or liquidity, and major Wall Street firms have research coverage.

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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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