Investing
5 Sizzling Buy-Rated Stocks Trading Under $10 With Big-Time 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.
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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.
Given the aging U.S. population, this looks like an outstanding idea for investors. Brookdale Senior Living Inc. (NYSE: BKD) owns and operates senior living communities in the United States. It operates through five segments.
The Assisted Living and Memory Care segment owns or leases communities consisting of freestanding multi-story communities and freestanding single-story communities, which offer housing and 24-hour assistance with activities of daily life to mid-acuity and frail elderly residents. This segment also operates memory care communities for residents with Alzheimer’s and other dementias.
The Independent Living segment owns or leases communities, comprising independent and assisted living units in a single community, that are primarily designed for middle- to upper-income seniors. The Continuing Care Retirement Communities segment owns or leases communities that offer various living arrangements, such as independent and assisted living, memory care and skilled nursing, as well as services to accommodate various levels of physical ability and health needs.
The Health Care Services segment provides home health, hospice and outpatient therapy services, while the Management Services segment operates communities under the management agreements.
As of December 31, 2020, the company owned 350 communities, leased 301 communities, managed 72 communities on behalf of third parties and three communities for which it has equity interest.
Stifel has a $9.80 price target on the shares, and the consensus target is lower at $8.26. Brookdale Senior Living closed Friday at $7.80.
Smart investors know that regardless of the economy, Americans will continue to buy makeup and fragrances and this is a very solid play on that theme. Coty Inc. (NYSE: COTY) is number two globally in the fragrance category and number six in color cosmetics.
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The company manufactures, markets, distributes and sells beauty products worldwide. The company provides prestige fragrances, skincare and color cosmetics products through prestige retailers, including perfumeries, department stores, e-retailers, direct-to-consumer websites, and duty-free shops under the Alexander McQueen, Burberry, Bottega Veneta, Calvin Klein, Cavalli, Chloe, Davidoff, Escada, Gucci, Hugo Boss, Jil Sander, Joop!, Kylie Jenner, Lacoste, Lancaster, Marc Jacobs, Miu Miu, Nikos, philosophy, and Tiffany & Co. brands.
Coty also offers mass color cosmetics, fragrance, skincare, and body care products primarily through hypermarkets, supermarkets, drug stores, pharmacies, mid-tier department stores, traditional food and drug retailers, and e-commerce retailers under the Adidas, Beckham, Biocolor, Bozzano, Bourjois, Bruno Banani, CoverGirl, Enrique, Max Factor, Mexx, Monange, Nautica, Paixao, Rimmel, Risque, Sally Hansen, Stetson, and 007 James Bond brands.
The Jefferies price target of $12 is higher than the $10.28 consensus target. Coty stock was last seen Friday at $8.72.
This top master limited partnership is a very safe way for investors looking for energy exposure and income. Energy Transfer L.P. (NYSE: ET) 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.
Energy Transfer stock investors receive a 6.25% distribution. The $13 Wolfe Research price target is in line with the $13.06 consensus target. On Friday, the units closed right at the $10 mark.
Investors who are more aggressive may want to consider this smaller cap mining company. Kinross Gold Corporation (NYSE: KGC) is one of the largest gold producers in the world, and together with its subsidiaries, engages in the acquisition, exploration, and development of gold properties principally in Canada, the United States, the Russian Federation, Brazil, Chile, Ghana, and Mauritania.
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Kinross’s gold output is expected to rise over the next several years 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.
BofA Securities has set a $9.50 price target. The consensus target is up at $9.91, and Kinross Gold stock closed Friday at $6.12.
This under-the-radar micro-cap could really have some upside for investors. LiveVox Holding Inc. (NASDAQ: LVOX) develops and sells cloud-based digital engagement tools and customer services. Its products include Four Clouds, an outbound voice solution that enables to manage regulatory requirements with the option of three manual and one automated outbound dialing system. Its Bundles includes two-way messaging, outbound campaigns and compliance, speech analytics, inbound contact center and cloud interactive voice response (IVR) solutions. Its inbound voice solutions include automatic call distributor, IVR and wallboards, and the blended omnichannel solutions include as voice, email, SMS, virtual agents and webchat.
The company also offers CRM, which integrates to other data sources for knowledge on-hand for focusing on experience consistency, and Workforce Optimization, an easy-to-use and easy-to-activate tools to help expand productivity and compliance in contact center from any starting point. Its SpeechIQ allows users to approach quality assurance in a very targeted fashion and on a broad scale, and its PBX Solution, a connectivity solution, includes cloud-based VoIP phone service, SD-WAN, wireless backup and internet service provider management that eliminates connection issues while reducing expenses.
LiveVox serves financial services, teleservices, health care, telecom, customer care, business process outsourcing and collection industries.
Piper Sandler’s $12 price target is less than the $14.33 consensus target. The stock popped more than 7% Friday before rolling over and closing at $7.99.
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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