Investing
5 Outstanding Buy-Rated Stocks Trading Under $10 With Abundant 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 Nokia 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.
Ardagh Metal Packaging
This stock was blasted back in the late summer and looks ready to surge higher. Ardagh Metal Packaging S.A. (NYSE: AMBP) supplies metal beverage cans in Europe, the United States and Brazil. Its products are used in various end-use categories, including beer, carbonated soft drinks, energy drinks, hard seltzers, juices, pre-mixed cocktails, teas, sparkling waters and wine. The company serves beverage producers.
The company announced this week that it plans to build a new state-of-the-art $200 million beverage can plant in Northern Ireland. The plant will be located near Belfast and will service the growing needs of the firm’s beverage customers in Ireland, the United Kingdom and the rest of Europe.
Citigroup has a $13 price target on the shares, and the consensus target is $12.43. The shares closed on Friday at $9.60.
Asure Software
This small-cap tech player has some big-time growth potential. Asure Software Inc. (NASDAQ: ASUR) provides cloud-based human capital management solutions in the United States. It helps various small and midsized businesses to develop human capital to get to the next level, stay compliant and allocate resources toward growth.
The company’s solutions include Asure Payroll & Tax, an integrated cloud-based solution that automates regulations associated with payroll and taxes, including wages, benefits, overtime, garnishments, tips, direct deposits and fair labor standard act, as well as federal, state and local payroll taxes.
Asure HR is a cloud-based functionality that handles human resources (HR) complexities, such as employee self-service, that enable employees to access information, pay history and company documents. Asure Time & Attendance provides cost savings and return-on-investment gains come in the form of strategic use of labor dollars and the elimination of time theft. It also provides HR services that offer services ranging from an online compliance library and on-demand call center for various HR questions to outsourced HR functions.
Cowen’s $12 price target, is much lower than the $29.54 consensus target. The shares were last seen on Friday at $8.68.
24/7 Wall St.Hyliion
This off-the-radar stock holds solid potential for patient investors. Hyliion Holdings Corp. (NYSE: HYLN) designs, develops and sells electrified powertrain solutions for the commercial transportation industry. It also provides battery management systems for hybrid and fully electric vehicle applications.
Hyliion’s corporate goal is to reduce the carbon intensity and greenhouse gas (GHG) emissions of Class 8 commercial trucks by being a leading provider of electrified powertrain solutions. Leveraging advanced software algorithms and data analytics capabilities, Hyliion offers fleets an easy, efficient system to decrease fuel and operating expenses while seamlessly integrating with their existing fleet operations.
Hyliion’s powertrain solutions are designed to be installed on most major Class 8 commercial trucks, with the goal of transforming the commercial transportation industry’s environmental impact at scale.
Cantor Fitzgerald recently resumed coverage on Hyliion Holdings stock. The firm’s $12 price target compares with the $8 consensus target and a closing price of $6.92 on Friday.
Kosmos Energy
This stock is solid energy exploration and production play and, with oil and gas prices rising, could be an outstanding idea now. Kosmos Energy Ltd. (NYSE: KOS) is a deepwater independent oil and gas exploration and production company, focused along the Atlantic Margins.
The company’s primary assets include production offshore Ghana, Equatorial Guinea and the U.S. Gulf of Mexico, as well as a gas development offshore Mauritania and Senegal. It also maintains a proven basin exploration program.
Kosmos Energy’s focus is on unlocking new hydrocarbon systems and growing and maturing discovered basins through follow-on exploration success, development and production.
Barclays has set a $5.16 target. The consensus target is $3.25, and Kosmos Energy stock closed trading on Friday at $3.39.
Spire Global
This is another stock that cratered earlier this fall and has big-time upside potential for those who can wait for a recovery. Spire Global Inc. (NASDAQ: SPIR) provides space-based data, analytics and space services worldwide. It offers access to datasets and insights about earth, enabling organizations to make decisions. The company collects data relating to aviation, weather, maritime and earth intelligence and gives it to commercial and government organizations.
The company announced earlier this month that it has been included as a subcontractor in an award contract between Harris Miller Miller & Hanson and the National Aeronautics and Space Administration (NASA). The award supports a national campaign of community overflight tests using NASA’s X-59 Quiet SuperSonic Technology research aircraft.
The $10 Baird price target is near the $10.17 consensus target. Shares last traded at $5.10 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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