Investing
5 Well-Known Sizzling Stocks to Buy 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 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 marketing, outsourced services and robotics plays). 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.
Smart investors know that regardless of the economy, Americans will continue to buy makeup and fragrances and this is a very solid play on that theme. Coty Inc. (NYSE: COTY) is number two globally in the fragrance category and number six in color cosmetics.
The company manufactures, markets, distributes and sells beauty products worldwide. The company provides prestige fragrances, skincare and color cosmetics products through prestige retailers, including perfumeries, department stores, e-retailers, direct-to-consumer websites, and duty-free shops under the Alexander McQueen, Burberry, Bottega Veneta, Calvin Klein, Cavalli, Chloe, Davidoff, Escada, Gucci, Hugo Boss, Jil Sander, Joop!, Kylie Jenner, Lacoste, Lancaster, Marc Jacobs, Miu Miu, Nikos, philosophy, and Tiffany & Co. brands.
Coty also offers mass color cosmetics, fragrance, skincare, and body care products primarily through hypermarkets, supermarkets, drug stores, pharmacies, mid-tier department stores, traditional food and drug retailers, and e-commerce retailers under the Adidas, Beckham, Biocolor, Bozzano, Bourjois, Bruno Banani, CoverGirl, Enrique, Max Factor, Mexx, Monange, Nautica, Paixao, Rimmel, Risque, Sally Hansen, Stetson, and 007 James Bond brands.
Deutsche Bank has a $10 price target on Coty stock, while the Wall Street consensus target is up at $11.07. The shares last traded on Friday at $8.48.
This is another solid play for more aggressive income investors. GasLog Partners L.P. (NYSE: GLOP) owns, operates and acquires liquefied natural gas (LNG) carriers under multiyear charters. As of March 2, 2021, it operated a fleet of 15 LNG carriers with an average carrying capacity of approximately 158,000 cubic meters.
GasLog Partners is a publicly traded master limited partnership but has elected to be treated as a C corporation for U.S. income tax purposes, and therefore its investors receive an Internal Revenue Service Form 1099 with respect to any distributions declared and received.
Shareholders receive a 0.77% dividend. Jefferies recently upgraded the stock from Hold to Buy and lifted the $5.00 target price to $6.50. The consensus target is $4.90. The stock closed on Friday at $5.58.
This is one of the biggest airlines in South America and is a solid idea for traders with a touch less risk tolerance. GOL Linhas Aéreas Inteligentes S.A. (NYSE: GOL) provides air passenger transportation services in Brazil, the rest of South America, the Caribbean and the United States.
The company operates through Flight Transportation and Smiles Loyalty Program segments. It also offers cargo transportation and logistics services. In addition, the company provides Smiles loyalty programs with approximately 18.2 million members, allowing clients to accumulate and redeem miles. It operates a fleet of 120 Boeing aircraft, with 750 daily flights to approximately 100 destinations.
Barclays recently started coverage of the South American airline with an Overweight rating and an $8 price target. The consensus target is higher at $9.87, and shares closed Friday at $5.47.
This is an incredible energy play for investors that may be a touch more conservative. TechnipFMC PLC (NYSE: FTI) engages in the oil and gas projects, technologies and systems and services businesses. It operates through three segments.
The Subsea segment manufactures and designs products and systems; performs engineering, procurement and project management; and provides services used by oil and gas companies involved in deepwater exploration and production of crude oil and natural gas.
The Onshore/Offshore segment designs and builds onshore facilities related to the production, treatment and transportation of oil and gas, and it designs, manufactures and installs fixed and floating platforms for the production and processing of oil and gas reserves.
The Surface Technologies segment designs and manufactures systems, as well as provides services used by oil and gas companies involved in the land and shallow water exploration and production of crude oil and natural gas. This segment also designs, manufactures and supplies technologically advanced high-pressure valves and fittings for oilfield service companies, and it provides flowback and well-testing services for exploration and production companies.
The $10 Piper Sandler price objective compares with a consensus target of $9.87. On Friday, the stock was was seen at $7.37 a share.
This very aggressive tech play could have upside even above the analysts’ consensus 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.
BTIG Research started coverage earlier this week with a $10 price target. The consensus target is $11.43. Zynga stock closed trading at $7.38 on Friday.
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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