Investing
Goldman Sachs Has 5 Stocks Rated Buy Under $10 With 75% to 500% 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 one 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 75% to 500%.
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.
Array Technologies
This company is still sometimes confused with a biotech with a similar name that Pfizer bought in 2019. Array Technologies Inc. (NASDAQ: ARRY) provides solar tracking solutions and services for utility-scale projects. Its products include DuraTrack HZ v3, a single-axis solar tracking system, and SmarTrack, a machine learning software that automatically adjusts module angles in response to weather and site conditions.
This stock had a red-hot initial public offering in 2020. Shares charged out of the gate, as the first trade was 34% above where the upsized IPO was priced. A total of 47.5 million shares were sold in the offering, as the maker of ground-mounting systems used in solar energy projects sold 7 million shares to raise $154 million and a selling shareholder sold 40.5 million shares.
Since then, Array Technologies stock has crashed and is offering investors an incredible entry point.
Goldman Sachs has a $21 price target on the shares, and the consensus target is $20.40. The stock closed trading on Thursday at $8.74. Hitting the Goldman Sachs target would be more than a 125% gain.
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.
The company 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 of $10 compares with an $11.28 consensus target. With Genius Sports stock closing Thursday at $ 3.93, hitting the target would be a staggering 150% or more gain.
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) 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 $37 Goldman Sachs price target is higher than the $31.25 consensus target. From Thursday’s closing share price of $5.89, the target represents well over a 500% gain.
Lulu’s Fashion Lounge
This small-cap retailer blew out earnings expectations recently and looks 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.
Goldman Sachs has set a $15 target price, but the consensus target is higher at $17.29 The stock last traded on Thursday at $9.74. Hitting the Goldman Sachs target would be a 75% or so gain.
Rent the Runway
This may be an off-the-radar idea, but the upside potential is huge. Rent the Runway Inc. (NASDAQ: RENT) rents designer dresses, clothing and accessories for women through its stores and online platform. The company offers ready-to-wear, workwear, denim, casual, maternity, outerwear, blouses, knitwear, loungewear, activewear, ski wear, evening wear and kids wear products. It also offers jewelry, handbags and other accessories.
The stock has been absolutely mauled since it went public last October, and insiders have continued to buy shares during the freefall. The good news for investors considering shares now is the company has increased its subscribers substantially to 150,000 and has over 2.5 million lifetime customers.
The Goldman Sachs price target is $25. The $21.56 consensus target is also well above the final share price Thursday of $5.72. The Goldman Sachs target represents about a 330% gain.
24/7 Wall St.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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