Investing

5 Outstanding Well-Known Stocks to Buy Under $10 With Huge Upside Potential

maogg / E+ via Getty Images

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.

Arcos Dorados

This company may seem under the radar, but it has one of the best products imaginable in terms of name recognition. Arcos Dorados Holdings Inc. (NYSE: ARCO) is the world’s largest independent McDonald’s franchisee.

The company has the exclusive right to own, operate and grant franchises of McDonald’s restaurants in 20 countries and territories in Latin America and the Caribbean, including Argentina, Brazil, Colombia, Costa Rica, Mexico, Panama, Peru, Puerto Rico, the U.S. Virgin Islands and Venezuela. As of December 31, 2020, it operated or franchised 2,236 restaurants.

The analysts at BofA Securities recently upgraded the stock to Buy and have a $10 price target. That compares with the lower $8.59 consensus target on Arcos Dorados stock, as well as a recent share price of $8.00.

BlackBerry

This stock has been in and out of the meme stock lineup but remains a potential takeover target. BlackBerry Ltd. (NYSE: BB) provides intelligent security software and services to enterprises and governments worldwide. The company leverages artificial intelligence and machine learning to deliver solutions in the areas of cybersecurity, safety and data privacy, as well as endpoint security management, encryption and embedded systems.
The company offers the BlackBerry Spark software platform, which includes a suite of security software products and services comprising BlackBerry UEM, BlackBerry Dynamics and BlackBerry Workspaces solutions. Its BlackBerry Spark SDK promotes the evolution of a platform ecosystem by enabling enterprise and independent software vendor developers to integrate the security features of BlackBerry Spark into their own mobile and web applications.

It also provides BlackBerry Internet of Things (IoT) solutions, including BlackBerry QNX, BlackBerry Certicom, BlackBerry Radar, BlackBerry Jarvis, BlackBerry AtHoc, BlackBerry Alert, SecuSUITE and other IoT applications. As of February 28, 2021, it owned approximately 38,000 worldwide patents and applications.

Canaccord Genuity’s $7 target price for BlackBerry stock may be going higher in the wake of very solid fiscal fourth-quarter results. The consensus target is $8.29, and shares changed hands on Friday at $6.75 apiece.

Coty

Smart investors know that regardless of the economy, Americans will continue to buy makeup and fragrances and this is a very solid play on that theme. Coty Inc. (NYSE: COTY) is number two globally in the fragrance category and number six in color cosmetics.

The company manufactures, markets, distributes and sells beauty products worldwide. The company provides prestige fragrances, skincare and color cosmetics products through prestige retailers, including perfumeries, department stores, e-retailers, direct-to-consumer websites, and duty-free shops under the Alexander McQueen, Burberry, Bottega Veneta, Calvin Klein, Cavalli, Chloe, Davidoff, Escada, Gucci, Hugo Boss, Jil Sander, Joop!, Kylie Jenner, Lacoste, Lancaster, Marc Jacobs, Miu Miu, Nikos, philosophy, and Tiffany & Co. brands.

Coty also offers mass color cosmetics, fragrance, skincare, and body care products primarily through hypermarkets, supermarkets, drug stores, pharmacies, mid-tier department stores, traditional food and drug retailers, and e-commerce retailers under the Adidas, Beckham, Biocolor, Bozzano, Bourjois, Bruno Banani, CoverGirl, Enrique, Max Factor, Mexx, Monange, Nautica, Paixao, Rimmel, Risque, Sally Hansen, Stetson, and 007 James Bond brands.

Jefferies has a $15 price target, while the consensus target is $12.88. Coty stock traded on Friday at $8.50.

Nokia

This telecommunications company ruled the cell phone arena until the advent of the smartphone in 2007 and recently re-emerged as a top meme stock. Nokia Corp. (NYSE: NOK) owns two main businesses: 1) Nokia Networks, a network infrastructure equipment supplier to global wireless and wireline operators, and 2) Technologies, its patent/IPR licensing activities.

In a very positive sign for investors this past week, the company restarted its quarterly dividend and initiated a share buyback program after reporting very solid fourth-quarter results, with comparable operating earnings above market estimates as the telecom equipment maker kept costs in check. Nokia also forecasted annual revenue that was largely ahead of projections and set a long-term target for operating margins of at least 14%, replacing its earlier 2023 target of between 11% and 13%.

The $8 Cowen target price is higher than the $7.03 consensus target for Nokia stock. The shares traded at $5.40 on Friday.

Sirius XM

Increasing numbers of people are using satellite radio, and this stock is a solid idea for aggressive investors. Sirius XM Holdings Inc. (NASDAQ: SIRI) is the world’s largest radio company measured by revenue, and it has approximately 33.1 million subscribers.

The company creates and offers commercial-free music; premier sports talk and live events; comedy; news; exclusive talk and entertainment; and a wide range of Latin music, sports and talk programming. Sirius XM is available in vehicles from every major car company and on smartphones and other connected devices as well as online.

Sirius XM is also a leading provider of connected vehicles services, giving customers access to a suite of safety, security and convenience services, including automatic crash notification, stolen vehicle recovery assistance, enhanced roadside assistance and turn-by-turn navigation.

The Sirius XM stock price target at BofA Securities is $7.50 but may be going higher soon. The consensus target is $7.30, and shares traded on Friday at $6.55.


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.

Want to Retire Early? Start Here (Sponsor)

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

 

Have questions about retirement or personal finance? Email us at [email protected]!

By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.

By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.