Investing
5 Well-Known 'Strong Buy' Stocks Trading Under $10 With Incredible 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 well-known 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.
This popular home services company has been crushed and has massive upside potential and traded way up this week. Angi Inc. (NASDAQ: ANGI) connects home service professionals with consumers in the United States and internationally. Its Angi Ads business, which connects consumers with service professionals for local services through the Angi nationwide online directory of service professionals in various service categories; provides consumers with valuable tools, services, and content, including verified reviews, to help them research, shop, and hire for local services; and sells term-based website, and mobile and digital magazine advertising to service professionals, as well as provides quoting, invoicing, and payment services.
The company also owns and operates Angi Leads digital marketplace service that connects consumers with service professionals for home repair, maintenance, and improvement projects; offers consumers with the tools and resources to find local, pre-screened, and customer-rated service professionals, as well as online appointment booking; and connects consumers with service professionals by telephone, and home services-related resources.
Angi Inc. also operates Handy, a platform for household services, primarily cleaning and handyman services; Angi Roofing, which provides roof replacement and repair services; and home services marketplaces under the Travaux, MyHammer, Werkspot, MyBuilder, and Instapro names.
The Goldman Sachs team has an $8.50 price target for the stock, while the Wall Street consensus target is posted at $9.64. The shares closed Friday at $4.17.
This is a top company that some feel would be an outstanding addition to a networking giant as a takeover candidate. Infinera Corporation (NASDAQ: INFN) provides Intelligent Transport Networks, enabling carriers, cloud operators, governments and enterprises to scale network bandwidth, accelerate service innovation and simplify optical network operations.
Infinera’s portfolio of solutions includes optical transport platforms, converged packet-optical transport platforms, optical line systems, router platforms, and a suite of networking and automation software offerings.
Earlier this month the company announced today that the Asia-Africa-Europe-1 (AAE-1) Consortium, owner of one of the largest consortium cable systems in the world, selected Infinera’s ICE6 coherent 800G solution to increase its submarine network capacity and provide diverse, resilient connectivity across European, Asian, African, and Middle Eastern markets. AAE-1’s submarine upgrade will more than double the current capacity, providing in excess of 100 Terabytes per second, resulting in the largest-scale submarine upgrade in history.
Goldman Sachs has set a $10 price objective, which compares to the higher consensus across Wall Street of $9.30. The stock closed Friday at $4.86.
This telecommunications company once ruled the cell phone arena until the advent of the smartphone in 2007 but has re-emerged as a top “meme” stock. Nokia Corporation (NYSE: NOK) owns two main businesses: 1) Nokia Networks, a network infrastructure equipment supplier to global wireless and wireline operators 2) Technologies, its patent/IPR licensing activities.
In a very positive sign for investors earlier this year, the company started back up its quarterly dividend and initiated a share buyback program. The company reported very solid first-quarter comparable operating earnings and revenues that came in 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%.
Morgan Stanley has an Overweight rating on the stock to go with a $7.50 target price. The consensus target is posted at $7.10. The shares were last seen Friday at $4.59.
This stock was a red-hot initial public offering in 2019 and has had a wild three years but looks to be putting in a bottom. RealReal, Inc. (NASDAQ: REAL) is a San Francisco-based and enables secondhand luxury consignment sales. The RealReal has an active member base of 14 million, with over 600,000 active buyers.
Through its unique sourcing and fulfillment operations, The RealReal helps individuals sell unwanted or unused personal luxury clothing, accessories (fine jewelry, watches, handbags), and home & art goods by matching their consigned inventory with a buyer base on its marketplace.
76% of new inventory supply sells within 90 days, making warehouse efficiency critical; the analysts at BofA Securities were impressed by the scale & efficiency. One key financial takeaway was that variable cost (including authentication) is relatively smaller than they had expected.
The BofA Securities Buy rating comes with a huge $7 target price. The consensus target is posted at $9.67. The stock closed Friday’s session at $2.59.
This company has broken out and could be ready to run. Southwestern Energy Company (NYSE: SWN) an independent energy company, engages in the exploration, development, and production of natural gas, oil, and natural gas liquids (NGLs) in the United States.
It operates through two segments, Exploration and Production, and Marketing. 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; a total of 1,527 wells on production; and approximately proved natural gas, oil, and NGLs reserves comprising 21,148 billion cubic feet of natural gas equivalent (Bcfe).
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.
Raymond James has an Outperform rating and a $10.50 price target which may be ready to move higher. That compares with a consensus on Wall Street of 11.14. The stock was last seen Friday at $6,72 down a stunning 7.5%.
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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