Investing
5 Sizzling 'Strong Buy' Stocks Under $10 With 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.
With sports betting exploding, this stock is a solid play that has been cut in half since late last year. Gambling.com Group Ltd. (NASDAQ: GAMB) is a multi-award-winning performance marketing company and a leading provider of digital marketing services active exclusively in the online gambling industry.
The company operates from offices in Ireland, the United States and Malta. Through its proprietary technology platform, it publishes a portfolio of premier branded websites, including Gambling.com and Bookies.com. Founded in 2006, it owns and operates more than 30 websites in six languages across 13 national markets, covering all aspects of the online gambling industry, including iGaming and sports betting.
Stifel has a $13 target price on the shares, while the consensus target is $12. The shares closed trading on Friday at $8.93.
This small-cap retailer blew out earnings expectations this week and is looking ready to run much higher. Lulu’s Fashion Lounge Holdings Inc. (NASDAQ: LVLU) is an online fashion retailer of women’s apparel targeting millennial and Gen Z customers. It specializes in occasion dresses but also offers broader categories, including formal, bridal, lounge, vacation and basics. Lulus sells products on its website in the United States.
Its fiscal fourth-quarter adjusted diluted loss was smaller than analysts polled by Capital IQ had expected and much smaller than the loss in the year-ago period. Revenue was up year over year and also topped consensus estimates. Its projected net revenue for fiscal 2022 is greater than the analysts’ forecast as well, so an outstanding quarter for the company.
BofA Securities just reiterated its Buy rating and has a $14 target price. The consensus target is even higher at $20.43, and the stock was last seen at $7.75 on Friday, up over 14% for the day.
After a red-hot initial public offering in 2019, this stock has had a wild three years but looks to be putting in a bottom. RealReal Inc. (NASDAQ: REAL) is San Francisco-based and enables secondhand luxury consignment sales. RealReal has an active member base of 14 million, with over 600,000 active buyers.
Through its unique sourcing and fulfillment operations, RealReal helps individuals sell unwanted or unused personal luxury clothing, accessories (fine jewelry, watches, handbags) and home and art goods by matching their consigned inventory with a buyer base on its marketplace. Some 76% of new inventory supply sells within 90 days, making warehouse efficiency critical. The analysts at BofA Securities were impressed by the scale and efficiency. One key financial takeaway was that variable cost (including authentication) is relatively smaller than expected.
The RealReal target price at BofA Securities is $18 target price, and the consensus target is $15.00. Shares last traded hands at $7.22 on Friday.
This stock has broken out and could be ready to run. Southwestern Energy Co. (NYSE: SWN) is an independent energy company engaged in the exploration, development and production of natural gas, oil, and natural gas liquids (NGLs) in the United States. The company focuses on the development of unconventional natural gas and oil reservoirs located in Pennsylvania, West Virginia, Ohio and Louisiana.
As of December 31, 2021, it had approximately 768,050 net acres in Appalachia; 1,527 wells on production; and approximately proved natural gas, oil and NGLs reserves of 21,148 billion cubic feet of natural gas equivalent.
Southwestern Energy also engages in the marketing and transportation of natural gas, oil and NGLs. The company serves LNG exporters, energy companies, utilities and industrial purchasers of natural gas.
The $9 Raymond James price target may be ready to move higher. The consensus target is just $5.24, but Southwestern Energy stock last traded on Friday at $7.35 a share.
This is another energy stock that has put in a long base and looks ready to break out and move higher. Tetra Technologies Inc. (NYSE: TTI) is a geographically diversified oil and gas services company, that engages in the completion of fluids and associated products and services.
Its Completion Fluids and Products division manufactures and markets clear brine fluids, additives and associated products and services to the oil and gas industry. The Water and Flowback Services division provides onshore oil and gas operators with comprehensive water management services.
Stifel has set a $5 target price, and the consensus target for Tetra Technologies stock is $4. The shares closed trading at $3.92 on Friday.
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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