Investing

Goldman Sachs Has 5 Sizzling Stocks to Buy Now Trading Under $10

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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.

Goldman Sachs is the premier investment bank in the world, so we screened the firm’s outstanding research database and found five stocks trading under the $10 level that could provide investors with some solid upside potential.

While all five are rated Buy at Goldman Sachs, they are much better suited for aggressive investors, and it is important to remember, though, that no single analyst report should be used as a sole basis for any buying or selling decision.

ADT

This top security company is a well-known protector of homes and businesses. ADT Inc. (NYSE: ADT) 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 and to expand the integration.

The Goldman Sachs price target on ADT stock is $13, while the consensus target is $10.78. The shares closed on Friday at $8.17.


AvePoint

This is a very off-the-radar company that could be a big winner. AvePoint Inc. (NASDAQ: AVPT) provides Microsoft 365 data management solutions worldwide. It offers a suite of software as a service solutions to migrate, manage and protect data. The company provides cloud solutions for Office 365, Salesforce and Dynamics 365, as well as hybrid/on-premises products. It also offers advisory and implementation, maintenance and support, Microsoft Teams surge and advisory, migration as a service and quick-start services.

Earlier this year, the company announced the completion of its previously announced business combination with Apex Technology Acquisition, a publicly traded special purpose acquisition company (SPAC).

Goldman Sachs has a $17 price target. There is no consensus due to the recent SPAC conversion. AvePoint stock was last seen at $8.17 on Friday.

Energy Transfer

The 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.

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 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 6.31% distribution. The $14 Goldman Sachs price target compares to the $13.88 consensus figure. The shares closed trading on Friday at $9.75.

Infinera

Some feel that this top company would be an outstanding addition to a networking giant as a takeover candidate. Infinera Corp. (NASDAQ: INFN) provides Intelligent Transport Networks, enabling carriers, cloud operators, governments and enterprises to scale network bandwidth, accelerate service innovation and simplify optical network operations.

Infinera’s portfolio of solutions includes optical transport platforms, converged packet-optical transport platforms, optical line systems, router platforms and a suite of networking and automation software offerings.

Last summer, Infinera and Windstream completed a live network trial that successfully achieved 800G single-wavelength transmission over 730 km across Windstream’s long-haul network between San Diego and Phoenix. The results of the trial mark a major milestone in optical networking by demonstrating that ultra-high-speed optical transmissions, such as 700G and 800G, powered by Infinera’s ICE6 optical engine and Windstream’s high-performance fiber network, can be deployed in real-world network applications over significant distances.

Goldman Sachs has set a $12 price objective. The consensus target for Infinera stock is $10.83. The stock closed trading on Friday at $8.38.

Zynga

This very aggressive tech play could have upside even above the Goldman Sachs 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.

Goldman Sachs has a $12.60 price target, while the consensus is at a much lower $11.87. The last trade for Friday was reported at $7.49.


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 Goldman Sachs and other major Wall Street firms have research coverage.

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