Investing
5 Stocks to Buy Under the Christmas Tree and Under $10 With Huge 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 and under the $10 level (last week’s picks included Energy Transfer and Sirius XM). This week was no exception as we found five new stocks that could provide investors with some solid upside potential. Skeptics of low-priced 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 and making good ideas to trade even harder to find), they could prove exciting additions for traders looking for solid alpha potential. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
This stock has been crushed this year and, after a long sideways move, could be ready to trade much higher. Canoo Inc. (NASDAQ: GOEV) is a mobility technology company that designs, engineers, develops and manufactures electric vehicles for commercial and consumer markets in the United States.
The company offers B2B delivery vehicles, multi-purpose delivery vehicles and lifestyle vehicles using skateboard architecture technology. It intends to serve small businesses, independent contractors, service technicians, retailers, corporations, logistics companies, fleet managers and others.
Distinguished by its experienced team from leading technology and automotive companies, Canoo has designed a modular electric platform purpose-built to deliver maximum vehicle interior space that is customizable across all owners in the vehicle lifecycle to support a wide range of vehicle applications for consumers and businesses. Canoo has offices in California, Michigan and Texas.
Roth Capital has a $14 price target on Canoo stock. The consensus target is $13.75, and the stock was last seen trading at $8.35.
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.
The Barclays price target of $8 is less than the $9.87 consensus target for GOL Linhas stock. Shares recently traded at $6.45.
This stock looks to have bottomed recently, and it could be ready for a sizable move higher. Limelight Networks Inc. (NASDAQ: LLNW) offers services and solutions for businesses to deliver their digital content across the internet, mobile, social and other digital initiatives. It operates edge services platform that provides content delivery services, video content management services, performance services for website and web application acceleration and security, professional services, cloud storage and edge computing services, as well as sells equipment.
Limelight Networks also offers professional services and other infrastructure services, such as transit and rack space services. It serves media companies operating in the television, music, radio, newspaper, magazine, movie, gaming, software and social media industries, as well as enterprises, technology companies and government entities conducting business online.
The $5 Raymond James price objective compares with a $4 consensus target. Limelight Networks stock recently traded at $3.70 per share.
This off-the-radar idea holds some big upside potential. Markforged Holding Corp. (NASDAQ: MKFG) designs, develops and manufactures industrial 3D printers. The company offers end-to-end metal and carbon fiber 3D printers; 3D printers for continuous fiberglass reinforced parts; refined FFF 3D printers for micro carbon fiber filled nylon parts; fiber composite 3D printer; and FFF desktop 3D printer for micro carbon fiber filled nylon parts. It also offers 3D printing software.
The company is advancing its position as a leader in point-of-need production of industrial-strength end use parts with the FX20 printer. This new production-ready hardware prints the flame-retardant, high-performance thermoplastic material with ULTEM 9085 filament in combination with Markforged’s propriety Continuous Fiber Reinforcement printing technology for high-strength, heat resistant and higher performance parts that can meet the needs of the most demanding industries such as aerospace, defense, automotive and oil and gas.
Goldman Sachs recently started coverage and has a $6.50 price target, but the consensus target is much higher at $10.50. Shares recently have traded for $5.40 apiece.
This micro-cap financial services stock has plenty of upside to go with a very low stock price. Mercurity Fintech Holding Inc. (NASDAQ: MFH) engages in the design, development, creation, testing, installation, configuration, integration and customization of digital asset infrastructure solutions based on blockchain technologies in the British Virgin Islands and the Asia-Pacific region.
The company provides digital asset trading infrastructure solutions based on internet and blockchain technologies for traders, communities and liquidity providers. Its asset digitization platform provides blockchain-based digitalization solutions for traditional assets that include fiat currencies, bonds and precious metals. It also offers a decentralized finance platform that solves retail traders’ problems, cross-border payments services through NBpay and supplemental services for its platforms, such as customized software development, maintenance and compliance support services.
Raymond James has set a $5.25 price objective. The share price has been as high as $13.14 in the past year but was around $3.25 late last week.
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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