Investing

5 Red-Hot Buy-Rated Stocks Priced Under $10 With Huge Upside

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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 Puma Biotechnology). 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.

Arbe Robotics

This small cap gem caught some selling recently and offers an outstanding entry point. Arbe Robotics Ltd. (NASDAQ: ARBE) provides 4D imaging radar solutions in Israel and the United States. Its 4D imaging radar chipset solutions address the core issues that have caused autonomous vehicle and autopilot accidents, such as detecting stationary objects, identifying vulnerable road users and eliminating false alarms without radar ambiguities.

Arbe has repositioned radar, the most dependable of sensing technologies, from a supportive role to the backbone of a vehicle’s sensor suite, delivering unprecedented road safety through 4D ultra high-resolution imaging.

Cowen has a $12 price target on the shares, but the consensus target is up at $14.67. The shares closed on Friday at $8.13 apiece.


ASE Technology

While perhaps off the radar, this stock offers investors massive total return potential. ASE Technology Holding Co. Ltd. (NYSE: ASX) provides a range of semiconductor packaging and testing, as well as electronic manufacturing services, in the United States, Asia, Europe and elsewhere.

The company offers packaging services, including flip-chip ball grid array (BGA), flip-chip chip-scale package (CSP), advanced chip-scale packages, quad flat packages, low-profile and thin quad flat packages, bump chip carrier and quad flat no-lead (QFN) packages, advanced QFN packages, plastic BGAs and 3D chip packages. It offers stacked die solutions in various package types and copper and silver wire bonding solutions.

ASE also provides advanced packages, such as flip-chip BGA; heat-spreader FCBGA; flip-chip CSP; hybrid FCCSP; flip-chip package in package and package on package (POP); advanced single-sided substrate; high-bandwidth POP; fan-out wafer-level packaging; SESUB; and 2.5D silicon interposer.

In addition, the company offers IC wire bonding packages; system-in-package products (SiP) and modules; and interconnect materials, as well as assembles automotive electronic products. Further, it provides a range of semiconductor testing services, including front-end engineering testing, wafer probing, logic/mixed-signal/RF module and SiP/MEMS/discrete final testing, and other test-related services, as well as drop shipment services.

Shareholders receive a 3.05% dividend. The BofA Securities price target of $11 is less than the consensus target of $11.43. The stock was last seen on Friday at $6paew per share.

PAE

This stock has been sliding since the summer but finally looks like it has bottomed out. PAE Inc. (NYSE: PAE) provides operational solutions and outsourced services for the U.S. government, other allied governments, international organizations and companies. The company operates through two segments.

The Global Mission Services segment engages in logistics and stability operations, including lifecycle logistics operations, humanitarian and stability operations; infrastructure management, such as mission operations support, space development and operations, and test and training ranges; and force readiness comprising the maintenance and repair of military and civilian vehicle fleets and aircraft.

The National Security Solutions segment offers counterthreat solutions, such as training support and counterterrorism solutions; information optimization services, including business process outsourcing services to government agencies, such as citizenship processing and litigation services, and systems support; and intelligence solutions comprising intelligence analysis, mission support, program management, engineering and training solutions.

The $8 BofA Securities price target is much less than the $11.42 consensus target. On Friday, shares closed at $5.90.

Quipt Home Medical

This is a space many feel has huge growth potential due to an aging population. Quipt Home Medical Corp. (NASDAQ: QIPT) provides in-home monitoring equipment and disease management services, including end-to-end respiratory solutions for patients, in the United States.

The company offers daily and ambulatory aides; power mobility equipment; BiPAP and CPAP machines, nebulizers, oxygen concentrators and ventilators; oxygen therapy; sleep apnea and PAP treatment equipment; and home ventilator equipment, as well as rented respiratory equipment. The company also offers management of various chronic disease states, focusing on patients with heart and pulmonary disease, sleep disorders, reduced mobility and other chronic health conditions.

Benchmark started coverage recently with a $7.50 price target. The consensus target is even higher at $10.50, and the stock closed at $5.57 on Friday.

Zeta Global

This company is in a white-hot business silo and 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.

The company’s 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. Its 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. Its TruLift offers analysis to uniquely quantify incremental budgets that provide continued return on investment.

Barclays resumed coverage recently with a $12 price target. The consensus target is $12.25. The stock was last seen on Friday at $8.18 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.

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