Investing

5 Buy-Rated, Scorching-Hot Stocks All 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 not only to 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 Energy Transfer 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.

Digital Bridge

This stock caught an upgrade this past week from a big Wall Street bank. DigitalBridge Group Inc. (NASDAQ: DBRG) is a leading global digital infrastructure real estate investment trust (REIT). With a heritage of over 25 years investing in and operating businesses across the digital ecosystem, including towers, data centers and fiber, small-cell and edge infrastructure, the DigitalBridge team manages a $35 billion portfolio of digital infrastructure assets on behalf of its limited partners and shareholders.

The company recently announced the expansion of the Vantage SDC (stabilized data centers) platform with the acquisition of CA22, a 24-megawatt hyperscale data center serving the strategic Santa Clara, California, market. The transaction is valued at $539 million and will be funded primarily through existing and new Vantage SDC debt facilities and cash on hand.

Raymond James just raised the shares to Strong Buy. Its $9 price target compares with a consensus target of $9.67. The stock closed on Friday at $6.70 per share up over 4%.


Honest Company

This company was started by actress Jessica Alba, and the stock has been pummeled since coming public earlier this year. Honest Co. Inc. (NASDAQ: HNST) manufactures and sells baby, personal and beauty care products. It offers products in the areas of diapers, bath, body, beauty, cleaning, gifts and clothing. The company serves customers through digital and retail sales channels, such as its website and third-party e-commerce sites, as well as brick-and-mortar retailers.

Despite a rash of shareholder lawsuits, Wall Street continues to like the prospects, and an aggressive investor could get a nice bounce from here.

Guggenheim has a $14 price target on Honest Company stock. The posted consensus target is in line at $14.06, and the stock was last seen at $9.55 on Friday.

Leap Therapeutics

This micro-cap biotech stock could be a huge winner for aggressive investors. Leap Therapeutics Inc. (NASDAQ: LPTX) is a clinical-stage biopharmaceutical company that acquires and develops therapies for the treatment of cancer.

The company’s lead programs include DKN-01, a monoclonal antibody that inhibits Dickkopf-related protein 1. DKN-01 is in multiple clinical trials for treating esophagogastric, hepatobiliary, gynecologic and prostate cancers.

Note that Leap Therapeutics has entered into a strategic partnership with BeiGene for the rights to develop DKN-01 in Asia (excluding Japan), Australia and New Zealand.

The Mizuho price target is $6. That is well above the $4.80 consensus target. Shares closed trading on Friday at $3.37.

MultiPlan

This off-the-radar idea has reported solid earnings and could jump much higher. MultiPlan Corp. (NYSE: MPLN) provides data analytics and technology-enabled cost management, payment and revenue integrity solutions to the health care industry in the United States.
It offers analytics-based services that reduce medical costs through data-driven algorithms that detect claims overcharges and recommend or negotiate reimbursement. Its network-based services reduce medical costs through contracted discounts with health care providers, and its payment integrity services reduce medical costs by identifying and removing improper and unnecessary charges paid during the claim.

MultiPlan also provides health benefit plans, which feature reference-based pricing and tools to engage health plan members and providers to make use of benefits before and after care delivery. The company serves national insurance companies, Blue Cross and Blue Shield plans, provider-sponsored and independent health plans, third-party administrators, insurance bill review companies, Taft-Hartley plans and other entities that pay medical bills in the commercial health care, government, workers’ compensation and auto medical markets.

The $9 Citigroup price target tops the $8.75 consensus target. On Friday, the shares were last seen at $5.05.

Zeta Global

This company is in a white-hot business silo and the stock has massive upside potential. Zeta Global Holdings Corp. (NASDAQ: ZETA) operates an omnichannel data-driven cloud platform that provides enterprises with consumer intelligence and marketing automation software in the United States and internationally.

Its Zeta Marketing Platform analyzes billions of structured and unstructured data points to predict consumer intent by leveraging sophisticated machine learning algorithms and the industry’s opted-in data set for omnichannel marketing. The Consumer Data Platform ingests, analyzes and distills disparate data points to generate a single view of a consumer, encompassing identity, profile characteristics, behaviors and purchase intent.

Zeta also offers various types of product suites, such as opportunity explorer, consumer experiences, omnichannel acquisition and identity and data management. In addition, the company provides demand-side platform and website personalization services, and its TruLift offers analysis to uniquely quantify incremental budget that provides continued return on investment.

The Wall Street high $16.50 price target comes from Roth Capital. The consensus target is just $12.25, and the last trade on Friday was reported at $8.58.


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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