Investing

5 Sizzling 'Strong Buy' Stocks Trading 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.

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.

Farfetch

This stock traded in the $50s a year ago and now has huge potential upside. Farfetch Ltd. (NYSE: FTCH) provides an online marketplace for luxury fashion goods in the United States, the United Kingdom and elsewhere.

Besides operating Farfetch.com, an online marketplace, and the Farfetch app for retailers and brands, the company also offers web design, build, development and retail distribution solutions for retailers and brands. As of December 31, 2021, operated two Browns retail stores; two Stadium Goods retail stores; and 12 New Guards Off-White stores, three Ambush stores, two Palm Angels stores and three Off-White outlets. In addition, it operates approximately 60 New Guards franchised retail stores and four seasonal stores under various brands.

BofA Securities has a target price of $21 on Farfetch stock. The consensus target is higher at $30.58, and the shares closed trading on Friday at $7.27.

Gambling.com

With sports betting exploding, this stock is a solid play that has been cut in half since late last year. Gambling.com Group Ltd. (NASDAQ: GAMB) is a multi-award-winning performance marketing company and a leading provider of digital marketing services active exclusively in the online gambling industry.
The Gambling.com Group operates from offices in Ireland, the United States and Malta. Through its proprietary technology platform, it publishes a portfolio of premier branded websites, including Gambling.com and Bookies.com.
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Founded in 2006, the group owns and operates more than 30 websites in six languages across 13 national markets, covering all aspects of the online gambling industry, including iGaming and sports betting.

Truist Financial’s $13 target price compares with a $12.67 consensus target. The shares closed over 2% higher to $8.05 on Friday.

Navitas Semiconductor

This company has breakthrough chip technology that makes it a potential takeover candidate. Navitas Semiconductor Corp. (NASDAQ: NVTS) develops ultra-efficient gallium nitride (GaN) semiconductors, transforming the performance of power electronics. The company primarily sells its GaN integrated ciruits (ICs) into mobile markets but is developing technology to supply high-growth areas such as automotive, solar and data centers.

The company was founded in 2014. GaN power ICs integrate GaN power with drive, control, sensing and protection to enable faster charging, higher power density and greater energy savings for mobile, consumer, enterprise, eMobility and new energy markets. Over 150 Navitas patents are issued or pending. Over 50 million units have been shipped with zero reported GaN field failures, and Navitas introduced the industry’s first and only 20-year warranty. Navitas is the world’s first semiconductor company to be CarbonNeutral-company certified.

Craig Hallum’s $10 target price target is just below the $10.25 consensus target. Navitas Semiconductor stock closed on Friday at $3.70.

RealReal

After a red-hot initial public offering in 2019, this stock has had a wild three years but looks to be putting in a bottom. RealReal Inc. (NASDAQ: REAL) is San Francisco-based and enables secondhand luxury consignment sales. RealReal has an active member base of 14 million, with over 600,000 active buyers.

Through its unique sourcing and fulfillment operations, RealReal helps individuals sell unwanted or unused personal luxury clothing, accessories (fine jewelry, watches, handbags) and home and art goods by matching their consigned inventory with a buyer base on its marketplace.
Some 76% of RealReal’s new inventory supply sells within 90 days, making warehouse efficiency critical. The analysts at BofA Securities were impressed by the scale and efficiency. One key financial takeaway was that variable cost (including authentication) is relatively smaller than expected.

The Raymond James target price is $9, and the consensus target on RealReal stock is $9.18. Shares last traded at $2.47 on Friday.
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Southwestern Energy

Natural gas has been mauled recently due to a liquefied natural gas plant closure, and this is providing investors an incredible entry point for this energy play. 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.

Benchmark recently started coverage on Southwestern Energy stock with a big $14 target price. The consensus target is $11.13, and shares closed trading on Friday at $6.34.


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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