Investing
5 White-Hot Stocks Trading Under $10 to Buy Now Have Great Upside Potential
Published:
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.
We screened our 24/7 Wall St. research database looking for smaller cap companies that could very well offer patient investors some huge returns for the rest of 2021 and beyond. Many of the biggest companies in the world, including Apple and Amazon, once traded in the single digits at one time.
While all five of these stocks are rated Buy, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Shares of this popular and sophisticated fast-food restaurant have been mauled but have incredible potential. BurgerFi International Inc. (NYSE: BFI) operates as a franchisor of quick-service restaurants. Its products include burgers, hot dogs, crispy chicken, frozen custard, hand-cut fries, shakes, beer and wine. As of May 25, 2021, it operated approximately 120 BurgerFi restaurants globally.
BurgerFi is regarded as one of the nation’s fastest-growing premium fast-casual concepts through the BurgerFi brand, and the company recently announced the successful completion of its pending acquisition of Anthony’s Coal Fired Pizza & Wings from L Catterton for $156.6 million. Anthony’s was founded in 2002 and headquartered in Fort Lauderdale, and it is a leading operator of casual dining pizza restaurants with a very loyal fan base and, like BurgerFi, a high concentration of restaurants in the state of Florida.
BTIG Research recently started coverage, and its $11 price target is the same as the consensus target. The shares closed at $6.75 apiece on Friday.
This micro-cap biotech company could have some massive upside potential for aggressive traders. Corvus Pharmaceuticals Inc. (NASDAQ: CRVS), a clinical stage biopharmaceutical company, focuses on the development and commercialization of immuno-oncology therapies.
The company’s lead product candidate is CPI-006, an anti-CD73 monoclonal antibody, which is in Phase 1/1b clinical trial, that inhibits the production of adenosine and activate various immune cells, as well as Phase 3 clinical trial of CPI-006 for COVID-19.
Corvus Pharmaceuticals also develops CPI-818, a covalent inhibitor of ITK, which is in Phase 1/1b clinical trial to treat patients with various malignant T-cell lymphomas; and Ciforadenant (CPI-444), an oral, small molecule antagonist of the A2A receptor that is in Phase 1b/2 clinical trial for adenosine, an immune checkpoint. Its preclinical stage products include CPI-182, an antibody to block neutrophil function and migration, and myeloid derived suppressor cells, and CPI-935, an adenosine A2B receptor antagonist to prevent fibrosis.
Jefferies has an $8 price target on Corvus Pharmaceuticals stock. The lower consensus target is $5.70, and shares closed trading on Friday at $3.10.
This is another micro-cap biotech that is expected to post some very positive clinical results early next year. CTI BioPharma Corp. (NASDAQ: CTIC) is a biopharmaceutical company focused on the acquisition, development and commercialization of novel targeted therapies for blood-related cancers in the United States.
It develops pacritinib, an investigational oral kinase inhibitor with specificity for JAK2, FLT3, IRAK1, and CSF1R, which is in Phase 3 clinical trials for the treatment of adult patients with myelofibrosis. It has license and collaboration agreements with Teva Pharmaceutical Industries.
The stock was hit hard when the company announced the U.S. Food and Drug Administration (FDA) has extended the review period for the New Drug Application (NDA) for pacritinib for the treatment of adult patients with intermediate or high-risk primary or secondary (post-polycythemia vera or post-essential thrombocythemia) myelofibrosis (MF) with a baseline platelet count of <50 × 109/L. The Prescription Drug User Fee Act (PDUFA) action date has been extended by three months to February 28, 2022.
Stifel remains very positive and has a $5.50 target price. The consensus target is even higher at $7.12. The shares were last seen Friday at $1.61 up almost 12%.
This company posted solid earnings this past week and shares could explode higher. Navigator Holdings Ltd. (NYSE: NVGS) owns and operates a fleet of liquefied gas carriers worldwide. The company provides international and regional seaborne transportation services of liquefied petroleum gas, petrochemical gases and ammonia for energy companies, industrial users and commodity traders. As of December 31, 2020, it operated a fleet of 38 semi- or fully-refrigerated liquefied gas carriers.
The company posted quarterly earnings of $0.10 per share, beating the consensus estimate of $0.06 per share. This is up from earnings of $0.03 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 66.67%. A quarter ago, it was expected that this transportation company for the natural gas and chemical industry would post earnings of $0.13 per share when it actually produced earnings of $0.01, delivering a nasty surprise of −92.31%. Shareholders applauded the strong report and the positive forward look.
The $16 Stifel price target exceeds the $14.40 consensus target. The stock closed trading on Friday at $9.63 up close to 5%.
After a recent initial public offering, this stock has been hammered and offers an incredible entry point now. Real Good Food Co. (NASDAQ: RGF) operates as a health- and wellness-focused frozen food company. It develops, manufactures and markets foods designed to be high in protein, low in sugar, and made from gluten-free and grain-free ingredients in the United States.
The company offers comfort foods, such as bacon-wrapped stuffed chicken, chicken enchiladas, grain-free cheesy bread breakfast sandwiches and various entree bowls under the Realgood Foods brand name. It also sells private-label products. It serves retailers, which primarily sell its products through natural and conventional grocery, drug, club and mass merchandise stores. The company also sells its products through its e-commerce channel, which includes direct-to-consumer sales through its website, as well as through its retail customers’ online platforms.
Truist Securities has set a $15 price target. The consensus target is even higher at $15.50, and the stock closed trading at $8.15 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.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.