Investing

5 Top Analysts Favorite Stocks Under $10 Are Smoking Hot

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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 Coty 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.

Benson Hill

This off-the-radar play is cheap and holds a ton of potential. Benson Hill Inc. (NASDAQ: BHIL) operates as a food technology company that unlocks natural genetic diversity of plants. The company offers CropOS, a technology platform, which uses artificial intelligence, data and various advanced breeding techniques that combine data, plant and food sciences to deliver crops optimized for nutrition, flavor and yield.

The company’s technology is applied in soybeans and yellow peas. It serves breeders and seed producers, farmers, logistics/consolidates, processors/wholesale suppliers, food/beverage companies, food service providers/retailers and consumers.

Barclays initiated coverage with a $10 price target, the same as the consensus target. The stock closed on Friday at $6.75 a share.


Cycleriaon Therapeutics

This low-priced micro-cap biotech has some gigantic upside potential. Cycleriaon Therapeutics Inc. (NASDAQ: CYCN) is a clinical-stage biopharmaceutical company engaged in the discovering, development and commercialization of medicines for serious central nervous system (CNS) diseases.

The company’s product candidates include CY6463, a CNS-penetrant, soluble guanylate cyclase stimulator that is in Phase 2 trials for the treatment of mitochondrial encephalomyopathy, lactic acidosis and stroke-like episodes and Alzheimer’s disease with vascular pathology. Its Olinciguat is an orally administered vascular soluble guanylate cyclase stimulator that is in Phase 2 studies for the treatment of sickle cell disease. Praliciguat is an orally administered systemic sGC stimulator that is in Phase 2 trials for the treatment of diabetic nephropathy and heart failure with preserved ejection fraction.

Truist Securities started coverage with a massive $14 price target. The consensus target is much lower at $10.50, and shares closed trading on Friday at $2.88 apiece.

InflaRx

This company has therapies for autoimmune and inflammatory diseases. InflaRx N.V. (NASDAQ: IFRX) is a clinical-stage biopharmaceutical company that discovers and develops inhibitors using C5a technology, primarily in Germany and the United States. Its C5a is an inflammatory mediator that is involved in the enhancement of a variety of autoimmune and other inflammatory diseases.

The company’s lead product candidate is IFX-1, an intravenously delivered first-in-class anti-C5a monoclonal antibody, which completed the Phase 2b clinical trial for the treatment of hidradenitis suppurativa, a rare and chronic debilitating systemic inflammatory skin disease. It aims to treat ANCA-associated vasculitis, a rare and life-threatening autoimmune disease, and pyoderma gangrenosum, a chronic inflammatory skin disorder. It is also developing IFX-1 for the treatment of oncological diseases.

The company also develops IFX-2, which is in the pre-clinical development stage for the treatment of chronic inflammation and autoimmune diseases. InflaRx has co-development agreement with Beijing Defengrei Biotechnology.

Raymond James recently raised the price objective to $14 from $10. The consensus price target is just $9.08. The stock was last seen Friday at $4.65 a share.

Patterson-UTI

This very well-known oilfield services stock offers more conservative traders a solid energy play. Patterson-UTI Energy Inc. (NASDAQ: PTEN) provides onshore contract drilling services to oil and natural gas operators in the United States and Canada. It operates through three segments.

The Contract Drilling Services segment markets its contract drilling services, primarily in west Texas and southeastern New Mexico, north central and east Texas, northern Louisiana, Colorado, Wyoming, North Dakota, south Texas, western Oklahoma, Pennsylvania, Ohio and West Virginia.

The Pressure Pumping Services segment offers pressure pumping services that consist of well stimulation for the completion of new wells and remedial work on existing wells, as well as hydraulic fracturing, cementing and acid pumping services in Texas and the Appalachian region.

The Directional Drilling Services segment provides a suite of directional drilling services, including directional drilling and measurement-while-drilling services; supply and rental of downhole performance motors and wireline steering tools; and services that enhance the accuracy of horizontal wellbore placement.

The recent BofA Securities upgrade included a target price hike to $10.50 from $9.25. The consensus target is $10.81, and Patterson-UTI Energy stock closed on Friday at $9.36.

Valens Semiconductor

Chips are red-hot, and this is a great way to play the arena. Valens Semiconductor Ltd. (NYSE: VLN) engages in the provision of semiconductor products with a focus on enabling high-speed video and data transmission for the audio-video and automotive industries.

The company offers HDBaseT technology that enables the simultaneous delivery of ultra-high-definition digital video and audio, Ethernet, USB, control signals and power through a single long-reach cable. The company offers audio-video solutions for the enterprise, education, digital signage, residential and industrial markets; and automotive solutions, which provide chipsets that support advanced driver-assistance systems, automated driving systems, infotainment, telecommunications and basic connectivity. It serves customers through distributors and representatives in Israel, China, Europe, Japan, Korea, Taiwan, the United States and elsewhere.

Citigroup started coverage recently with a $12 price target. The consensus target is higher at $15. The shares were last seen at $9.94 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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