Investing
Goldman Sachs Has 5 Stocks Under $10 Rated Buy With 125% to 400% 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.
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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.
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 125% to 400%. For those leery of low-priced shares, just remember that Amazon and Apple at one time traded in the single digits. Zynga, a stock we have featured over the years, recently was purchased by Take-Two Interactive Software.
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.
Shares of this popular home services company have been crushed and have huge upside potential. Angi Inc. (NASDAQ: ANGI) connects home service professionals with consumers in the United States and internationally.
The Angi Ads business connects consumers with service professionals for local services through the Angi nationwide online directory of service professionals in various service categories. It provides consumers with valuable tools, services and content, including verified reviews, to help them research, shop and hire for local services, and it sells term-based website and mobile and digital magazine advertising to service professionals, as well as provides quoting, invoicing and payment services.
Goldman Sachs has a $12 price target for Angi stock, while the consensus target is $11.59. The shares closed trading on Friday at $4.73. Hitting the Goldman Sachs target would be about a 128% gain.
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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.
The Goldman Sachs target price is $21, and the consensus target for Array Technologies stock is $21.80. Shares traded on Friday at $7.02 down 5%. Hitting the Goldman Sachs target would be a 148% gain or so.
If clinical data goes the way the analysts expect, this stock could be an incredible home run. Kinnate Biopharma Inc. (NASDAQ: KNTE) is a biopharmaceutical company focused on the discovery and development of small molecule kinase inhibitors to treat genomically defined cancers in the United States.
The company develops KIN-2787, a rapidly accelerated fibrosarcoma inhibitor for the treatment of patients with lung cancer, melanoma and other solid tumors; KIN-3248 small-molecule kinase inhibitors that target cancer-associated alterations in fibroblast growth factor receptors FGFR2 and FGFR3 genes; and small molecule research programs, including Cyclin-Dependent Kinase 12(CDK12) inhibitor in its KIN004 program.
The company recently announced that the first patient has commenced treatment in its Phase 1 KN-4802 clinical trial evaluating its lead fibroblast growth factor receptor (FGFR) product candidate, KIN-3248. This is a next-generation pan-FGFR inhibitor being developed for the treatment of intrahepatic cholangiocarcinoma and urothelial carcinoma, as well as other solid tumors.
The $44 Goldman Sachs price objective is higher than the also incredible $41.50 consensus target. The shares closed trading at $8.26 on Friday. Hitting the Goldman Sachs target would be a moonshot 415% gain.
This off-the-radar company has been growing quickly, as home security has become a priority for many. Vivint Smart Home Inc. (NYSE: VVNT) engages in the sale, installation, servicing and monitoring of smart home and security systems, primarily in the United States and Canada.
The company’s smart home platform includes cloud-enabled smart home operating systems; AI-driven smart home automation and assistance software; software-enabled smart home devices; and tech-enabled services to educate, manage and support the smart home. It also offers other devices, including control panel, door and window sensors, security cameras and smoke alarms, door locks, motion sensors, glass break detectors, key fobs, emergency pendants, carbon monoxide detectors and fire, flood and burglary sensors.
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Vivint Smart Home solutions enable subscribers to interact with their connected home with voice or mobile device, including front door viewing live and recorded video inside and outside homes, as well as control thermostats, locks, lights and garage doors, and managing movement of families, friends and visitors. As of March 31, 2021, its smart home platform had approximately 1.9 million subscribers and managed approximately 26 million in-home devices. It markets its products through direct-to-home and inside sales channels.
The Goldman Sachs price target of $14 compares with a $12.14 consensus target and a $5.40 per share Vivint Smart Home stock price on Friday. Hitting the Goldman Sachs target price would be about a 166% gain.
This is another micro-cap idea with incredible upside potential. Zevia PBC (NYSE: ZVIA) is a beverage company that develops, markets, sells and distributes various carbonated and non-carbonated soft drinks in the United States and Canada.
The company offers soda, energy drinks, organic tea, mixers, kids beverages and sparkling water. The company offers its products through various retail channels, including grocery distributors, national retailers, warehouse club and natural products retailers, as well as e-commerce channels. It provides its products under the Zevia brand name.
The company is focused on addressing the global health challenges resulting from excess sugar consumption by offering a broad portfolio of zero-sugar, zero-calorie, naturally sweetened beverages. All Zevia beverages are made with a handful of simple, plant-based ingredients, contain no artificial sweeteners, and are Non-GMO Project verified, gluten-free, Kosher, vegan and zero sodium.
Goldman Sachs has set a $16 price target. The consensus target is $11.27, and shares wrere last traded on Friday at $3.44. Hitting that Goldman Sachs target would be a gain of 300% or so.
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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