Goldman Sachs Has 5 Stocks Trading Under $10 With 100% or More Upside Potential

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. For those leery of low-priced shares, just remember that Amazon and Apple at once time traded in the single digits.

Goldman Sachs is the premier investment bank in the world, so we screened its outstanding research database and found five stocks trading under the $10 level that could provide investors with upside potential ranging from over 100% to close to 200%.

While all five are rated Buy at Goldman Sachs, they are much better suited for very aggressive investors. It also is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
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ADT

This top security company is a well-known protector of homes and businesses. ADT Inc. (NYSE: ADT | ADT Price Prediction) is the largest residential and second-largest commercial security monitoring company in North America. The company serves over 7 million customers, installing over a million systems per year. Roughly 94% of revenue is generated in the United States, with the remainder from Canada.

Google announced last year that it was buying a 6.6% stake in the home security firm for $450 million in a deal that will allow it to provide service to customers of its Nest home security devices. ADT said that the companies will work to combine Nest products like cameras, thermostats, doorbells and alarm systems with ADT’s installation, service and professional monitoring network.

The Goldman Sachs price target on ADT stock is $13, which compares with a $9.85 consensus target. The shares closed trading on Friday at $7.59.
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This technology play offers some serious upside for aggressive investors. CommScope Holding Co. Inc. (NASDAQ: COMM) provides infrastructure solutions for communications networks worldwide. Its CommScope Connectivity Solutions segment offers optical fiber and twisted-pair structured cable solutions, intelligent infrastructure software, and network rack and cabinet enclosures under the Systimax, NetConnect and Uniprise brands, as well as fiber management systems, patch cords and panels, pre-terminated fiber connectivity, complete cabling systems and cable assemblies for use in offices and data centers.

This segment also provides fiber optic connectivity solutions, including hardened connector systems, fiber distribution hubs and management systems, couplers and splitters, plug and play multiport service terminals, hardened optical terminating enclosures, high-density cable assemblies, splices, and splice closures that support video, voice and high-speed data services provided by telecommunications operators and multisystem operators.

Goldman Sachs has a huge $21 price target, well above the $12.77 consensus target for Commscope stock. The shares last traded at $8.38 on Friday down over 7%.

Compass

This stock has taken a beating over the past year and looks poised to rebound. Compass Inc. (NYSE: COMP) provides real estate brokerage services in the United States. The company specializes in high-margin, luxury homes in upscale markets, including New York, Philadelphia, Boston and San Francisco.

The Compass platform includes an integrated suite of cloud-based software for customer relationship management, marketing, client service, brokerage services and other critical functionality, all custom-built for the real estate industry. Compass agents utilize the platform to grow their business, save time and manage their business more effectively.

The giant $24 Goldman Sachs price target compares with a $14.43 consensus target. Compass stock was last seen at $6.98 a share on Friday.
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Infinera

Some feel that this top company would be an outstanding addition to a networking giant as a takeover candidate. Infinera Corp. (NASDAQ: INFN) provides Intelligent Transport Networks, enabling carriers, cloud operators, governments and enterprises to scale network bandwidth, accelerate service innovation and simplify optical network operations.
Infinera’s portfolio of solutions includes optical transport platforms, converged packet-optical transport platforms, optical line systems, router platforms and a suite of networking and automation software offerings.

In 2020, Infinera and Windstream completed a live network trial that successfully achieved 800G single-wavelength transmission over 730 km across Windstream’s long-haul network between San Diego and Phoenix. The results of the trial mark a major milestone in optical networking by demonstrating that ultra-high-speed optical transmissions, such as 700G and 800G, powered by Infinera’s ICE6 optical engine and Windstream’s high-performance fiber network, can be deployed in real-world network applications over significant distances.

The Infinera stock target price at Goldman Sachs is $13. The consensus target is $10.10, and shares were last seen trading on Friday at $8.44.
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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.

Goldman Sachs has set a $7.50 target on Kosmos Energy stock. The consensus target of $3.79 is also below a closing share price on Friday of $5.63.
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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.