Investing
5 Very Well-Known 'Strong Buy' 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.
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 could be one of the best small-cap technology ideas now. Opendoor Technologies Inc. (NASDAQ: OPEN) operates a digital platform for residential real estate in the United States. The platform enables consumers to buy and sell a home online. The company also provides title insurance and escrow services.
Mortgage rates have dropped some recently, and while the housing market is cooling, in the hot markets the company focuses on, like Phoenix, the demand is still extremely strong.
JMP Securities has a $12 target price on Opendoor Technologies stock. The consensus target is even higher at $13.14. The shares last traded on Friday at $5.56.
This well-known cryptocurrency miner’s stock has been destroyed, and for those still positive on digital currencies, it may be a goldmine. Riot Blockchain Inc. (NASDAQ: RIOT) focuses on bitcoin mining operations in North America. It operates through Bitcoin Mining, Data Center Hosting and Electrical Products and Engineering segments.
In June 2022, Riot produced 421 bitcoins, an increase of approximately 73%, as compared to June 2021 production of 243 bitcoins. As of June 30, 2022, Riot held approximately 6,654 bitcoins, all produced by the company’s self-mining operations.
Last month, the company sold 300 bitcoins, generating net proceeds of approximately $6.2 million. Riot Blockchain currently has a deployed fleet of 42,455 miners, with a hash rate capacity of 4.4 exahash per second.
The B. Riley Securities target price is $16. The consensus target for Riot Blockchain stock is higher at $21.50. The shares closed on Friday at $5.46.
This fallen angel has been hammered, and savvy investors can scoop up the very cheap shares. Rocket Companies Inc. (NYSE: RKT) engages in the tech-driven real estate, mortgage, and e-commerce businesses in the United States and Canada.
The company’s solutions include Rocket Mortgage, a mortgage lender; Amrock, which provides title insurance, property valuation and settlement services; Rocket Homes, a home search platform and real estate agent referral network, which offers technology-enabled services to support the home buying and selling experience; Rocket Auto, an automotive retail marketplace that provides centralized and virtual car sales support to online car purchasing platforms; and Rocket Loans, an online-based personal loans business.
The company also offers Core Digital Media, a digital social and display advertiser in the mortgage, insurance and education sectors; Rocket Solar, which connects homeowners with digital financing solutions through a team of trained solar advisors; Truebill, a personal finance app that helps clients manage every aspect of their financial lives; Lendesk, a technology services company that provides a point of sale system for mortgage professionals and a loan origination system for private lenders; and Edison Financial, a digital mortgage broker. In addition, the company originates, closes, sells and services agency-conforming loans.
The $10 Wells Fargo target price is higher than the $8.57 consensus target. Rocket Companies stock last traded at $8.56 a share on Friday.
Over 20 years ago, American Airlines spun off this company, and investors are getting an incredible entry point as travel picks up around the globe. Sabre Corp. (NASDAQ: SABR) provides software and technology solutions for the travel industry worldwide.
The Travel Solutions segment operates as a business-to-business travel marketplace that offers travel content, such as inventory, prices and availability from a range of travel suppliers, including airlines, hotels, car rental brands, rail carriers, cruise lines and tour operators with a network of travel buyers comprising online and offline travel agencies, travel management companies and corporate travel departments.
This segment also provides a portfolio of software technology products and solutions through software-as-a-service (SaaS) and hosted delivery models to airlines and other travel suppliers. Its products include reservation systems for carriers, commercial and operations products, agency solutions and data-driven intelligence solutions.
The Hospitality Solutions segment provides software and solutions to hoteliers through SaaS and hosted delivery models.
The Sabre stock price target at BofA Securities is $14 price target. The consensus target is $12.50, and shares last traded at $6.82 on Friday.
This energy stock has put in a long base and looks ready to breakout and move higher. Tetra Technologies Inc. (NYSE: TTI) is a geographically diversified oil and gas services company, that engages in the completion of fluids and associated products and services.
Its Completion Fluids and Products division manufactures and markets clear brine fluids, additives and associated products and services to the oil and gas industry. The Water and Flowback Services division provides onshore oil and gas operators with comprehensive water management services.
The company is evolving its business model by expanding into the low carbon energy markets with its chemistry expertise, key mineral acreage and global infrastructure. Recently announced initiatives include commercialization of Tetra PureFlow, an ultra-pure zinc bromide for stationary batteries and energy storage; advancing an innovative carbon capture utilization and storage technology with CarbonFree to capture CO2 and mineralize emissions to make commercial, carbon-negative chemicals; and development of Tetra’s lithium and bromine mineral acreage to meet the growing demand for oil and gas products and energy storage.
Johnson Rice just upgraded Tetra Technologies to a Buy and has a $7 target price. The $4 consensus is in the ballpark with the $3.99 per share last seen on Friday.
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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