Investing

5 Scorching Buy-Rated Stocks Trading Under $10 With Big 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.

Each week we screen our 24/7 Wall St. research database looking for stocks rated Buy at major firms priced under the $10 level and this week was no exception (last week’s picks included Nokia and Zynga). This week, we found five new stocks that could provide investors with some solid upside potential. Skeptics of low price shares should remember that at one point both Amazon and Apple traded in the single digits.

While more suited for aggressive investors, and with the number of new traders skyrocketing over the past year, making good ideas to trade even harder to find, these five stocks could prove exciting additions for traders looking for solid alpha potential. It is important to remember, though, that no single analyst report should be used as a sole basis for any buying or selling decision.

BrightSpire Capital

This real estate investment trust (REIT) pays a very solid dividend. BrightSpire Capital Inc. (NASDAQ: BRSP) operates as a commercial real estate credit REIT in the United States that focuses on originating, acquiring, financing, and managing a portfolio of commercial real estate senior mortgage loans, mezzanine loans, preferred equity, debt securities and net leased properties.

Because the company qualifies as a REIT for federal income tax purposes, it generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as Colony Credit Real Estate and changed its name to BrightSpire Capital in June.

Investors receive a 6.58% dividend. BTIG Research has an $11.50 price target on the shares. The consensus target is $12, and the stock closed on Friday at $9.46 a share.


GoHealth

This company is in the right space for investors looking to tap into the insurance silo. GoHealth Inc. (NASDAQ: GOCO) operates as a health insurance marketplace and Medicare-focused digital health company in the United States.

The company operates a technology platform that leverages machine-learning algorithms of insurance behavioral data to optimize the process for helping individuals find the health insurance plan for their specific needs. Its products include Medicare Advantage, Medicare Supplement, Medicare prescription drug plans, and Medicare Special Needs Plans. It offers IFP, dental plans, vision plans and other ancillary plans to individuals. The company sells its products through carrier and online platforms, as well as independent and external agencies.

The Barclays price target of $10 is less than the $12.57 consensus target. GoHealth stock closed at $5.62 on Friday.

In8bio

This off-the-radar play has huge upside potential. In8bio Inc. (NASDAQ: INAB) is a clinical-stage biotechnology company, focused on the discovery, development and commercialization of gamma-delta T cell therapies for the treatment of cancers.

The company develops INB-200, a genetically modified autologous gamma-delta T cell product candidate that is in Phase I clinical trial for the treatment of solid tumors. Its INB-100, an allogeneic product candidate, is in Phase I clinical trial to treat patients with acute leukemia undergoing hematopoietic stem cell transplantation. It also develops INB-400 and INB-300, which are in the preclinical phase for treatment of various solid tumor cancers.

The $19 B. Riley Securities price target compares with a $15.50 consensus target and a closing print on Friday of $8.89.

Shift Technologies

This off-the-radar idea also has big-time upside potential. Shift Technologies Inc. (NASDAQ: SFT) provides an end-to-end auto e-commerce platform for buying and selling used cars. The company engages in the retail sale of used vehicles through its platform that enables mobile digital transactions, such as car searching, scheduling an on-demand test drive and purchasing at home or at the preferred site of a test drive, as well as provides financing and services.
The company also provides value-added products, such as vehicle service contracts, guaranteed asset protection waiver coverage, prepaid maintenance plans and appearance protection plans. In addition, it is involved in the sale of used vehicles through wholesale auctions or directly to a wholesaler.

Truist Securities started coverage this week with a $12 price target. The consensus target for Shift Technologies stock is $12.88, and the shares were last seen at $8.13 on Friday.

Talkspace

This company posted very solid second-quarter results and the stock has solid upside potential. Talkspace Inc. (NASDAQ: TALK) operates as a virtual behavior health care company. It delivers health care through encrypted web and mobile platforms.

The company offers treatment options for every need, including psychiatry or adolescent, individual or couples therapy. The members can send text, video and voice messages to their therapists and engage in live video sessions.

Talkspace brings the telehealth model to the world of mental and behavioral health. The company offers individual therapy, couples therapy, adolescent therapy and even psychiatric care and medication management via remote video link.

Talkspace users can select from a list of providers, all licensed by the appropriate medical boards. Using online video connections to link patients and doctors makes it easy to record the conversations. In addition, Talkspace has hit on a novel idea to bring AI tech to bear on the mental health sector. The company records therapy sessions, strips out all identifying data, and has machine learning and speech analysis algorithms analyze the content.

Citigroup has set a $7 price target. The posted consensus target is much higher at $11. Talkspace stock closed on Friday at $5.


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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