Investing
5 Sizzling Stocks to Buy Now Trade Under $10 and Have 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 software and health care stocks). 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, 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 is a way for investors to play a health care service that is in demand due to the aging population. ATI Physical Therapy Inc. (NASDAQ: ATIP) operates as an outpatient physical therapy provider specializing in outpatient rehabilitation and adjacent health care services in the United States.
The company offers a range of services to its patients, including physical therapy, work conditioning, hand therapy, aquatic therapy, functional capacity assessment, sports medicine, wellness programs and home health. The company provides outpatient physical therapy services under the ATI Physical Therapy name. As of March 31, 2021, it had 882 owned and 22 managed clinics.
Jefferies has a $5 price target, and the consensus target is $4.83. Shares closed at $3.38 apiece on Friday, down almost 8% on the day.
Millennials and others are big fans of this news and information company. BuzzFeed Inc. (NASDAQ: BZFD), a tech-powered media company, provides breaking news, original reporting, entertainment and videos across the social web to its global audience.
The company also provides cross-platform networks, such as BuzzFeed Originals, which creates articles, lists, quizzes and videos; BuzzFeed Media, a portfolio of identity-driven lifestyle brands that includes Nifty, Goodful, As/Is, and Tasty; BuzzFeed Studios, which produces original content across broadcast, cable, film and digital platforms; BuzzFeed News, which includes reporting and investigative journalism; and BuzzFeed Commerce, which develops social commerce products and experiences, licensing and other strategic partnerships.
Craig Hallum’s price target is $7.50, while the consensus target was last seen at $7.25. The shares closed trading on Friday at $4.44, up almost 10% on the day.
This stock has been cut in half since early November, and it appears to have stabilized enough to jump in. Grab Holdings Ltd. (NASDAQ: GRAB) operates a transportation and fintech platform in Southeast Asia. It offers a range of services, including mobility, food, package and grocery delivery services, as well as mobile payments and financial services.
Anthony Tan, Group CEO and co-founder, said this after the company’s successful conversion from SPAC status:
Our evolution into a superapp was guided by the everyday problems we wanted to solve for the people we care about, and accelerated by the growing appetite for digital services in a rapidly transforming landscape. From on-demand mobility and deliveries to digital financial services, enterprise services and more, we believe we are only scratching the surface of the opportunity ahead of us. While there’s no doubt this is an exciting moment, we’re grounded in the knowledge that this is just day one. Our calling remains the same – to unlock greater opportunity for all Southeast Asians to participate in the digital economy.
Loop Capital recently started coverage. Its $8 price target is more conservative than the $8.76 consensus target. Grab stock closed trading on Friday at $5.60 a share.
This stock has been beaten down over the past year and could be poised to bounce back in a big way. Latch Inc. (NASDAQ: LTCH) operates as an enterprise technology company worldwide.
The company’s products include LatchOS for Commercial Office, a commercial solution that would extend smart access, visitor and delivery management, smart device and sensor control, connectivity, and identity and personalization solutions. Its Latch Visitor Express is a contactless visitor entry system, and The Latch Lens Partner Program enables access device partners to leverage Latch’s software and Latch Lens. The LatchID is an identification system, and Latch C2 is a smart access solution for retrofits and new construction.
Berenberg recently started coverage with an $8 price objective. The consensus target is much higher at $11.17, but the stock closed on Friday at $6.15.
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 $7 Truist Securities price target is well above the $4.00 consensus figure for Limelight Networks stock. The shares last traded on Friday at $4.24, up almost 14% on the day.
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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