5 Sizzling Stocks Trading Under $10 That Have Incredible Upside Potential

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By Lee Jackson Published
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5 Sizzling Stocks Trading Under $10 That Have Incredible 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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ADT

This top security company is a well-known protector of homes and businesses. ADT Inc. (NYSE: ADT | ADT Price Prediction) is the largest residential and second-largest commercial security monitoring company in North America. The company serves over 7 million customers, installing over a million systems per year. Roughly 94% of revenue is generated in the United States, with the remainder from Canada.

Google announced in August that it is buying a 6.6% stake in the home security firm for $450 million in a deal that will allow it to provide service to customers of its Nest home security devices. ADT said that the companies will work to combine Nest products like cameras, thermostats, doorbells and alarm systems with ADT’s installation, service and professional monitoring network.

The company also expects to offer certain Google devices to its customers beginning this year and to expand the integration in 2021.

RBC Capital Markets has a $12 price target on ADT stock, and the consensus target is $11.16. Shares traded at $8.45 on Friday.
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Akerna

This off-the radar company and has the potential to be a huge winner with the administration and Congress signaling possible marijuana legalization. Akerna Corp. (NASDAQ: KERN) offers the MJ Platform, an enterprise resource planning system to the cannabis industry, and Leaf Data Systems, a tracking system designed for government agencies.
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The company also provides consulting services to the cannabis industry. Its business intelligence infrastructure as a service tool delivers supply chain analytics for the cannabis, hemp and CBD industries. Last Call Analytics is a subscription analytics tool for alcohol brands to analyze their retail sales analytics. In addition, the company operates a seed-to-sale platform that allows cultivators to track and report various stages of their cannabis growing operations, production and sales processes.

Akerna also offers cannabis cultivation management and software to manage and optimize operational workflow in business analytics, as well as cannabis tracking technology that provides seed-to-sale-to-self data.

Lake Street recently started coverage and has an $8 target price. The consensus target for Akerna stock is $8, and the shares traded at $3.30 on Friday.
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Aurora Mobile

This off-the-radar stock offers aggressive investors big upside potential. Aurora Mobile Ltd. (NYSE: JG) engages in the provision of mobile big data solutions platforms. It also offers mobile apps and provides core in-app functionalities needed by developers, including push notification, instant messaging, analytics and sharing and short message service.

The company also provides application programming interfaces that create connectivity and automate the process of message exchange between the mobile apps and its backend network. Its interactive web-based service dashboard allows app developers to utilize and monitor its services through controls on an ongoing basis. It primarily serves mobile app developers in a range of industries, such as media, entertainment, gaming, financial services, tourism, e-commerce, education and health care.

Oppenheimer’s $4 price target is greater than the $3.04 consensus target. On Friday, the stock traded at $2.00 per share.

Southwestern Energy

This stock has traded sideways all year long and could be ready to run. Southwestern Energy Co. (NYSE: SWN) is one of the largest U.S. natural gas producers. Its primary producing locations are in the Fayetteville region and the Marcellus Shale. The company has acquired acreage in southwest Appalachia, is exceeding expectations and provides a runway to growth.
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The company’s estimated proved natural gas, oil and natural gas liquid reserves comprise 12,721 billion cubic feet of natural gas equivalent (Bcfe) and 929 Bcfe of proved undeveloped reserves. It also engages in marketing of natural gas, oil and natural gas liquids. Southwestern Energy serves energy companies, utilities and industrial purchasers of natural gas.

Johnson Rice has set a $6.75 price target, while the posted consensus target is $6.47 per share. Southwestern Energy stock traded at $4.55 on Friday.

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TrueCar

This is one of many companies helping to restyle the business of selling and marketing cars. TrueCar Inc. (NASDAQ: TRUE) is an internet-based information, technology and communication services company in the United States. It operates its platform on the TrueCar website and mobile applications.

The company’s platform enables users to obtain market-based pricing data on new and used cars, and to connect with its network of TrueCar certified dealers. The company also offers forecast and consulting services regarding determination of the residual value of an automobile at given future points in time, which are used to underwrite automotive loans and leases, and by financial institutions to measure exposure and risk across loan, lease and fleet portfolios.

Truist Securities recently started coverage, and its $7 price target is above the $6.29 consensus target. TrueCar stock traded on Friday at $4.15.
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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.

Photo of Lee Jackson
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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