Investing

These 5 'Strong Buy' Stocks Trade Under $10 and Have Massive 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.

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 2022 and beyond. Skeptics of low-priced shares should remember that at one point both Amazon and Apple traded in the single digits. One stock we featured over the years, Zynga, recently was purchased by Take-Two Interactive.

While all five 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.

Absolute Software

This stock is on the verge of breaking through a longer term downtrend line, and the company posted solid fourth-quarter earnings. Absolute Software Corp. (NASDAQ: ABST) develops, markets and provides cloud-based endpoint visibility and control platforms for the management and security of computing devices, applications and data for enterprise and public sector organizations.

The company offers the Absolute platform to provide the connectivity, visibility and control of data and devices of the operating system; to recover automatically to a secure operational state without user intervention; to support various other security controls and productivity tools from decay and vulnerabilities; and to enable measurement of the health, compliance and state of decay of endpoint security controls and productivity tools self-healing if the application becomes uninstalled or broken.


Absolute Software also provides customer support, professional services, investigation services, support and education, and customer programs. The company markets its solutions through device original equipment manufacturers, distributors and value-added resellers, as well as directly to corporations, government agencies, educational institutions, financial services, health care sectors and consumers. It operates in North America, Europe, Africa and elsewhere.

Raymond James has a big $16 price target, though it is a tad below the $16.33 consensus target. The stock closed trading on Friday at $9.29.

ARBE Robotics

This small-cap gem caught some selling recently and offers an outstanding entry point. ARBE Robotics Ltd. (NASDAQ: ARBE) provides 4D imaging radar solutions in Israel and the United States.

The company offers 4D imaging radar chipset solutions that address the core issues that have caused the autonomous vehicle and autopilot accidents, such as detecting stationary objects, identifying vulnerable road users and eliminating false alarms without radar ambiguities.

ARBE Robotics has repositioned radar, the most dependable of sensing technologies, from a supportive role to the backbone of a vehicle’s sensor suite, delivering unprecedented road safety through 4D ultra high-resolution imaging.

The Maxim price target of $14 is lower than the $16.00 consensus target. The shares closed at $7.56 on Friday, down over 6% for the day.

CompoSecure

This stock got blasted recently but has started to climb back smartly. CompoSecure Inc. (NASDAQ: CMPO) designs and manufactures payment cards worldwide. Its products portfolio includes Arculus, which provides key-based security by integrating digital security technology into customers platforms that protect password-less login, multifactor identity authentication, noncustodial crypto key management and fraud reduction. It also offers customized metal cards, such as full metal, terra ceramics, metal hybrid, metal veneer and embedded metal cards.

The company also provides cryptocurrency and digital asset storage and security solutions. It serves financial institutions, plastic card manufacturers, government agencies, system integrators and security specialists.

Needham’s $14 target price compares with a $15.50 consensus target. On Friday, the stock last traded at $7.83 a share, which was down almost 6% for the day.

Skillsoft

This company has attracted a ton of attention across Wall Street. Skillsoft Corp. (NYSE: SKIL) provides corporate digital learning services in the United States and internationally. Its enterprise learning solutions prepare organizations for the future of work, as well as enable them to overcome critical skill gaps, drive demonstrable behavior change and unlock the potential in their greatest assets.

Skillsoft provides a comprehensive suite of content, including a library of authorized technology and developer curricula and multiple learning modalities that dramatically increase learner engagement and retention.

The $9 Citigroup target price is much less than the $14.86 consensus target but better than the closing share price of $6.38 on Friday.

Transocean

This is an inexpensive way to buy a deepwater oil drilling stock. Transocean Ltd. (NYSE: RIG) provides offshore contract drilling services for oil and gas wells worldwide. It contracts its drilling rigs, related equipment and work crews to drill oil and gas wells.

As of February 22, 2021, the company owned or had partial ownership interests in and operated a fleet of 37 mobile offshore drilling units, including 27 ultra-deepwater and 10 harsh environment floaters. It serves integrated oil companies, government-owned or government-controlled oil companies and other independent oil companies.

Over the past year, the company has seen some serious insider buying. In that time, the largest single purchase by an insider was when an independent director bought $21 million worth of shares at a price of $4.20 apiece. If the director was bullish at that level, then the current trading range offers a good entry point.

Evercore ISI recently resumed coverage, and it has a $6 target price. Transocean stock has traded as high as $5.13 per share in the past year, and the shares closed at $3.73 apiece on Friday. That was up almost 4%, as oil had a huge 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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