Investing
Goldman Sachs Has 5 Sizzling Buy-Rated Stocks Under $10 With Huge 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 10% to 70%. 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.
This stock has been crushed over the past year but may be poised to turn. Avaya Holdings Corp. (NYSE: AVYA) is a global business communications company, which engages in the provision of business collaboration and communication solutions.
The Products and Solutions segment includes unified communications and contact center platforms, applications and devices. The Services segment consists of three business areas: Global Support Services, Enterprise Cloud and Managed Services and Professional Services.
The Goldman Sachs price target is $12, while the consensus target is $7.17, and shares last traded on Friday at $4.52.
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.
Goldman Sachs has a $9 price target, and the consensus target is $7.50. The shares closed on Friday at $5.34.
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.
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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 Genius Sports stock has a target price of $10 at Goldman Sachs. The consensus target is $8.22, and shares closed at $3.01 on Friday.
This stock is a solid energy exploration and production play, and with oil and gas prices near all-time highs, this could be an outstanding idea now. Kosmos Energy Ltd. (NYSE: KOS) is a deepwater independent oil and gas exploration and production company, focused along the Atlantic Margins.
The company’s primary assets include production offshore Ghana, Equatorial Guinea and the U.S. Gulf of Mexico, as well as a gas development offshore Mauritania and Senegal. It also maintains a proven basin exploration program.
Kosmos Energy’s focus is on unlocking new hydrocarbon systems and growing and maturing discovered basins through follow-on exploration success, development and production.
The $9.50 Goldman Sachs target price is well above the $5.15 consensus target. Kosmos Energy stock last traded on Friday at $8.00.
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.
Its products include soda, energy drinks, organic tea, mixers, kidz beverages and sparkling water under the Zevia brand name. 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.
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 $14 price target, almost double the $7.25 consensus target. On Friday, shares traded at $2.86, so hitting the Goldman Sachs target would be a huge gain.
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. Again though, it must be noted these are only suitable for very aggressive stock investors with extremely high risk tolerance.
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