Investing

5 Very Well-Known Hot Stocks to Buy Under $10 With Huge Upside Potential

NoDerog / E+ via Getty Images

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.
[in-text-ad]
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.

Casper Sleep

While not to be confused with a friendly ghost, this bed retailer has been hot. Casper Sleep Inc. (NASDAQ: CSPR) designs and sells sleep products to consumers in the United States, Canada and Europe.

The company offers a range of mattresses, pillows, sheets, duvets, bedroom furniture, sleep accessories, sleep technology and other sleep-centric products and services. As of December 31, 2020, the company distributed its products through its e-commerce platform, 67 Casper retail stores and 20 retail partners.

Casper Sleep and Bed Bath & Beyond announced earlier this summer a new national partnership that brings Casper’s award-winning suite of sleep offerings to Bed Bath & Beyond customers through the Bed Bath & Beyond website, mobile app and in select retail stores.

Roth Capital has a $12 price target on the shares. The posted consensus target is just $8.55, and the stock closed trading on Friday at $5.06 per share.


Energy Transfer

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.
[in-text-ad]
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 6.89% distribution. Earlier in the summer, Raymond James raised its $12 price target to $13, which is still less than the $13.82 consensus target. The shares were last seen Friday at $9.65.

Lantronix

This company is producing solid revenue and is a great idea for aggressive traders. Lantronix Inc. (NASDAQ: LTRX) provides software as a service (SaaS), engineering services and hardware for edge computing, the Internet of Things (IoT) and remote environment management in the Americas, Europe and elsewhere.

The company’s products include IoT Connectivity, which provide wired and wireless connections that enhance the value and utility of modern electronic systems and equipment through secure network connectivity, application hosting, protocol conversion, secure access for distributed IoT deployments and various other functions. Its SaaS platform enables customers to deploy, monitor, manage and automate across their global deployments through a single platform login.

The company offers its products through value-added resellers, systems integrators, distributors, online retailers and original equipment manufacturers, as well as an e-commerce site for direct sales.

The $10 Roth Capital price target compares with the $8.67 consensus price. The stock closed trading on Friday at $6.33.

Nokia

This telecommunications company once ruled the cell phone arena, until the advent of the smartphone in 2007, but it has reemerged 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.
[in-text-ad]
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 has set its price target for Nokia stock at $8. The lower $7.07 consensus compares with Friday’s closing print of $6.04.

Zynga

This very aggressive tech play could have upside even above the huge Wedbush target. Zynga Inc. (NASDAQ: ZNGA) provides social game services in the United States and internationally. It develops, markets and operates social games as live services played on mobile platforms, such as Apple iOS and Google’s Android operating systems; social networking platforms, such as Facebook and Snapchat; and personal computers consoles, such as Nintendo’s Switch game console, and other platforms and consoles.

Zynga also provides advertising services, comprising mobile advertisements, engagement advertisements and offers, and branded virtual items and sponsorships for marketers and advertisers, as well as licenses its own brands.

With live events growing the company’s revenues, cost-cutting should drive margin expansion, which is very positive. The company also pops up in takeover chatter, and the low price makes it even more attractive.

Wedbush has a massive $15 price target. The consensus target for Zynga stock is much lower at $11.87. The stock was last seen on Friday at $8.80 per share.


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.

Want to Retire Early? Start Here (Sponsor)

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

 

Have questions about retirement or personal finance? Email us at [email protected]!

By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.

By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.