Investing

Goldman Sachs Has 5 Buy-Rated Stocks Under $10 With Up to 600% 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. 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 nearly 600%.

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.

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 Goldman Sachs price target of $24 is well above the $14.43 consensus target. The shares closed at $7.61 on Friday. The Goldman Sachs target represents a gain of more than 200%.

Genius Sports

This sports-betting-related stock has been hammered and holds massive upside potential, and it could even be a takeover target. Genius Sports Ltd. (NYSE: GENI) develops and sells technology-led products and services to the sports, sports betting and sports media industries.
Genius Sports offers technology infrastructure for the collection, integration and distribution of live data of sports leagues; streaming solutions, comprising of technology, automatic production and distribution for sports to commercialize video footage of their games; and end-to-end integrity services to sports leagues, such as full-time active monitoring technology, which uses mathematical algorithms to identify and flag suspicious betting activity in global betting markets, as well as full suite of online and offline educational and consultancy services.

Genius Sports also provides live sports data collection; pre-game and in-game odds feeds; risk management services, including customer profiling, monitoring of incoming bets, automated acceptance and rejection of bets, and limit setting; live streaming services; creation, delivery and measurement services for personalized online marketing campaigns; and fan engagement widgets for digital publishers that offer live game statistics and betting-related content.

The Goldman Sachs price objective is $24. The lower $10.83 consensus target. With Genius Sports stock closing on Friday at $4.53, hitting the Goldman Sachs target would be a gain of more than 400%.

Kronos Bio

This microcap biotech may be the biggest winner of all the Goldman Sachs Buy-rated stocks under $10. Kronos Bio Inc. (NASDAQ: KRON) is a clinical-stage biopharmaceutical company focused on the discovery and development of novel cancer therapeutics.

The company’s product engine focuses on dysregulated transcription factors and the transcriptional regulatory networks that drive oncogenic activity. Its lead product candidate is entospletinib, an orally administered, selective spleen tyrosine kinase inhibitor for acute myeloid leukemia patients.

The company has planned a registrational Phase 3 clinical trial of entospletinib in combination with induction chemotherapy in acute myeloid leukemia patients with NPM1 mutations. It is also developing KB-0742, an orally bioavailable inhibitor of cyclin-dependent kinase 9 for the treatment of MYC-amplified solid tumors, which is in Phase 1/2 clinical trial.

The staggering $50 Goldman Sachs price target compares with the $40.25 consensus and a closing share price on Friday of $7.01. Hitting the Goldman Sachs target would be a 600% gain.

Planet Labs PBC

This is another micro-cap stock that could surge with positive earnings. Planet Labs PBC (NYSE: PL) designs, builds and operates an earth observation fleet of imaging satellites that capture and compile data. It serves agriculture, civil government, defense and intelligence, drought response, education and research, energy and infrastructure, finance and insurance, forestry and land use, mapping, maritime, sustainability and federal sectors.
Earlier this month, Planet Labs announced the general availability of the next generation of its PlanetScope Monitoring product, offering high-quality, analysis-ready data to all existing PlanetScope customers. While previously offering four spectral bands, PlanetScope will now include eight spectral bands, in addition to a series of enhancements, providing customers with richer, cleaner and more consistent data to empower deeper analysis of earth’s changing conditions.

Goldman Sachs has set its target price at $11, while the consensus target is even higher at $13.19. The shares last traded on Friday at $5.16 apiece. The Goldman Sachs target represents a gain of over 100%.

Sonendo

This is another company that has a solid following across Wall Street. Sonendo. Inc. (NASDAQ: SONX) a commercial-stage medical technology company that develops, manufactures and commercializes devices for root canal therapy in the United States and Canada. It provides GentleWave, a tooth decay treatment device for cleaning and disinfecting the microscopic spaces within teeth without the need to remove tooth structure.

The company also offers SoundSeal, a material used to build and create a sealing platform on the top of the crown, as well as Sonendo-branded liquid solution of ethylenediaminetetraacetic acid that is used to help debride and disinfect the root canal system. In addition, it provides The Digital Office, a practice management software that integrates digital offices for dental practitioners.

The Goldman Sachs price target of $10 is less than the $16.98 consensus figure. The shares were last seen trading on Friday at $4.31. The Goldman Sachs target represents a gain of 140%.


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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