Investing

5 Outstanding Stocks to Buy That Trade Below $10 and Have Huge 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.

Bright Health

This healthcare company’s recent IPO stumbled out of the gate, but the stock looks poised to bounce back smartly. Bright Health Group Inc. (NYSE: BHG) is an integrated care delivery company engaged in the delivery and financing of health insurance plans in the United States. It operates in two segments, NeueHealth and Bright HealthCare. The company offers individual and family, Medicare and employer insurance plans. It also operates 28 managed and affiliated risk-bearing primary care clinics.

Top analysts feel that the company’s strategy to combine a managed care organization business and provider assets will serve the company well as the market continues to shift towards value-based care. While some see competitive risk in the individual market, and acknowledge that the company’s NeueHealth business is relatively nascent, most believe those risks are accounted for in the company’s current valuation multiple.

Citigroup analysts started coverage this past week and have a strong $12 price target. Because it had a recent initial public offering, there is no consensus target yet. Bright Health stock has traded between $7.98 and $17.93 since the IPO, and shares closed at $8.92 on Friday.


Nokia

This telecommunications company ruled the cell phone arena until the advent of the smartphone in 2007. Now it has re-emerged as a top meme stock. Nokia Corp. (NYSE: NOK) owns two main businesses: 1) Nokia Networks, a network infrastructure equipment supplier to global wireless and wireline operators, and 2) Technologies, its patent/IPR licensing activities.

The company posted some good news when it recently indicated it expects to revise its fiscal 2021 guidance upward, citing continued strength in its business supported by “good cost control” and strength in several of the company’s end markets.

Top Wall Street analysts feel that the market is currently overstating the extent of sales losses from currency, China exposure and its lost contracts with Verizon. Most believe investors should position for the upgrade cycle that likely will continue to play out over the next 12 months.

Cowen’s $8 target for Nokia stock compares with the much lower $6.03 consensus target. On Friday, the shares closed trading at $6.10.

Polypid

Shares of this off-the-radar company have huge upside potential. Polypid Ltd. (NASDAQ: PYPD) a late-stage biopharmaceutical company that develops, manufactures and commercializes products based on polymer-lipid encapsulation matrix platform to address unmet medical needs.

The company’s lead products includes D-PLEX100, which is in Phase 3 clinical trial for the prevention of sternal (bone) surgical site infections (SSIs), as well as for the prevention of abdominal (soft tissue) SSIs. The company is aiming to improve surgical outcomes through locally administered, controlled, extended-release therapeutics.

Cantor Fitzgerald recently started coverage with an Outperform rating and a massive $24 price target. No consensus target was available. The stock was last seen on Friday at $7.93 per share.

ShareCare

This is another digital health care play that offers tantalizing upside potential. Sharecare Inc. (NASDAQ: SHCR) operates its Sharecare platform, which connects doctors, health plans, employers, health management tools, information and others to enable individuals, workforces and communities to improve their holistic well-being.

The company’s comprehensive and data-driven virtual health platform is designed to help people, providers, employers, health plans, government organizations and communities optimize individual and population-wide well-being by driving positive behavior change. The firm’s philosophy that everybody benefits when committed to supporting each individual through the lens of their personal health and making high-quality care more accessible and affordable for everyone.

BTIG Research recently started coverage with a Buy rating and a $15 price target. A consensus target was not available. The stock closed trading on Friday at $7.16 a share.

Skillsoft

This company has attracted a ton of attention across Wall Street. Skillsoft Corp. (NYSE: SKIL) provides corporate digital learning services in the United States and internationally. Its enterprise learning solutions prepare organizations for the future of work, as well as enable them to overcome critical skill gaps, drive demonstrable behavior change and unlock the potential in their greatest assets.

Skillsoft provides a comprehensive suite of content, including a library of authorized technology and developer curricula and multiple learning modalities that dramatically increase learner engagement and retention.

Last month it completed its previously announced debt refinancing. The company closed a new $480 million senior secured term loan B facility. This facility, along with cash on hand, will be used to refinance and repay the company’s existing term loan facilities, thereby reducing long-term debt by approximately $130 million.

Barclays recently started coverage with an Overweight rating. Its $12 price target on Skillsoft stock is less than the posted consensus target of $14.20. The shares were last seen Friday at $9.29.


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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