5 Scorching Hot Stocks to Buy That Trade Under $10 and Have Big-Time Upside Potential

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By Lee Jackson Updated Published
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5 Scorching Hot Stocks to Buy That Trade Under $10 and Have 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.
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ATI Physical Therapy

This is a way for investors to play a health care service that is in demand due to the aging population. ATI Physical Therapy Inc. (NASDAQ: ATIP) operates as an outpatient physical therapy provider specializing in outpatient rehabilitation and adjacent health care services in the United States.

The company offers a range of services to its patients, including physical therapy, work conditioning, hand therapy, aquatic therapy, functional capacity assessment, sports medicine, wellness programs and home health. The company provides outpatient physical therapy services under the ATI Physical Therapy name. As of March 31, 2021, it had 882 owned and 22 managed clinics.

Jefferies has a large $12 price target on the shares, but the consensus target is even higher at $13. The stock was last seen Friday at $4.15.
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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.

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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.

Needham’s $4.50 price target is also less than the consensus target, which was last seen at $4.91. On Friday, Comscore stock closed trading Friday at $3.41 a share.
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DHT

Not only does this stock have big upside, but investors are also paid a sweet dividend. DHT Holdings Inc. (NYSE: DHT) owns and operates crude oil tankers, primarily in Monaco, Norway and Singapore. As of March 17, 2021, it had a fleet of 28 very large crude carriers with a capacity of 8,660,835 deadweight tons.

The company is known for its business approach, with an experienced organization with a focus on first rate operations and customer service, quality ships, prudent capital structure to accommodate staying power through the business cycles, a combination of market exposure and fixed income contracts for its fleet, a counter-cyclical philosophy with respect to investments, employment of the fleet and capital allocation and a transparent corporate structure maintaining a high level of integrity and good governance.

Investors in DHT stock receive a tempting 5.56% dividend. The $8.50 H.C. Wainwright price target is well above the $7.57 consensus target. Shares closed trading on Friday at $5.40.

Now

This off-the-radar energy play has some solid upside potential. Now Inc. (NYSE: DNOW) distributes downstream energy and industrial products for petroleum refining, chemical processing, liquefied natural gas terminals, power generation utilities and industrial manufacturing operations in the United States, Canada and elsewhere.
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The company offers its products under the DistributionNOW and DNOW brand names. It provides consumable maintenance, repair and operating supplies; pipes, valves, fittings, flanges, gaskets, fasteners, electrical products, instrumentations, artificial lift, pumping solutions, valve actuation and modular process, and measurement and control equipment; and mill supplies, tools, safety supplies and personal protective equipment, as well as applied products and applications, such as artificial lift systems, coatings and miscellaneous expendable items.

Now also offers original equipment manufacturer equipment, including pumps, generator sets, air and gas compressors, dryers, blowers, mixers, and valves; modular oil and gas tank battery solutions; and application systems, work processes, parts integration, optimization solutions and after-sales support. In addition, it provides supply chain and materials management solutions that include procurement, inventory and warehouse management, as well as solutions for logistics, point of issue technology, project management, business process and performance metrics reporting.

Stifel has set a $12 price target. The posted consensus target is slightly higher at $12.17, and the shares were last seen on Friday at $7.48 apiece.
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Waitr

Food delivery has never been bigger than over the past year due to the pandemic, and the growth could potentially continue. Waitr Holdings Inc. (NASDAQ: WTRH) provides online food ordering and delivery services in the United States. Its Waitr Platform and Bite Squad Platform facilitate ordering of food and beverages by diners from restaurant partners for pick-up and delivery through a network of drivers.

Waitr recently announced it will be partnering with payment processing company Flow Payments to create a cannabis delivery and payment processing service for legal marijuana dispensaries. The partnership will create a platform combining Waitr’s delivery technology and resources with Flow Payments’ processing to facilitate the sale and delivery of cannabis where state and federal laws allow.

The Benchmark price target is $4. The consensus target is up at $6, but Waitr stock closed trading on Friday at $1.15.
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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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