Investing
5 'Strong Buy' Well-Known Stocks Under $10 That Offer Giant 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.
With shares trading under $10 apiece, this very well-run company offers a huge total return package. Antero Midstream Corp. (NYSE: AM) owns, operates and develops midstream energy infrastructure. It operates through two segments.
The Gathering and Processing segment includes a network of gathering pipelines and compressor stations that collects and processes production from Antero Resources’ wells in West Virginia and Ohio.
The Water Handling segment delivers fresh water and offers other fluid handling services, such as wastewater transportation, disposal and treatment, as well as high-rate transfer services.
Antero Midstream stock investors receive a 9.73% distribution. Wells Fargo recently lifted its $12 target price to $13. The analysts’ consensus target is $10.71. The shares last traded on Friday at $9.26.
This top MLP is a very safe way for investors looking for energy exposure and income. Energy Transfer L.P. (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with a strategic footprint in all the major domestic production basins
This publicly traded limited partnership has core operations that include complimentary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (NGLs) and refined product transportation and terminaling assets; NGL fractionation; and various acquisition and marketing assets.
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After the purchase of Enable Partners last December, Energy Transfer now owns and operates more than 114,000 miles of pipelines and related assets in all the major U.S. producing regions and markets across 41 states, further solidifying its leadership position in the midstream sector.
The completion of the transaction was immediately accretive to Energy Transfer and furthers Energy Transfer’s deleveraging efforts. It also adds significant fee-based cash flows from fixed-fee contracts. Additionally, the combined operations of the two companies are expected to generate annual run-rate cost and efficiency synergies of more than $100 million, excluding potential financial and commercial synergies.
Through its ownership of Energy Transfer Operating, formerly known as Energy Transfer Partners, the company also owns Lake Charles LNG, as well as the general partner interests, the incentive distribution rights and 28.5 million common units of Sunoco, and the general partner interests and 39.7 million common units of USA Compression Partners.
Investors receive an 8.35% distribution. Morgan Stanley has a $15 price target for Energy Transfer stock. The consensus target is $15.47. The shares closed on Friday at $9.82.
Shares of this wireless tower giant have been crushed and offer huge upside potential. IHS Holding Ltd. (NYSE: IHS) owns, operates and develops shared telecommunications infrastructure in Africa, Latin America, Europe and the Middle East. It offers colocation and lease agreement, build-to-suit, fiber connectivity and rural telephony solutions. The company serves mobile network operators, internet service providers, broadcasters, security functions and private corporations.
Including the approximately 5,700 towers subject to the imminent completion of its pending deal in South Africa, IHS will own nearly 39,000 towers across 11 countries, making the company the third largest independent multinational tower company by tower count. This geographic scale helps diversify the revenue stream, and also positions IHS in some of the largest emerging markets in the world, including the three largest countries in Africa and the largest Latin American country by gross domestic product.
The $20.50 consensus target price is higher than Citigroup’s $16 target. IHS stock last traded at $8.47 on Friday.
This stock was obliterated by the pandemic, but the carrier holds a very commanding position on the east coast of the United States. JetBlue Airways Corp. (NASDAQ: JBLU) provides air transportation services. As of December 31, 2020, the company operated a fleet of 63 Airbus A321 aircraft, one Airbus A220 aircraft, 13 Airbus A321 neo aircraft, 130 Airbus A320 aircraft and 60 Embraer E190 aircraft.
The carrier serves 107 destinations in the 31 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, and 24 countries in the Caribbean and Latin America. The company also has a strategic partnership with American Airlines to create connectivity for travelers in the Northeast.
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The $13 MKM Partners target price compares with the $13.50 consensus target for JetBlue Airways stock and a share price of $8.10 last seen on Friday.
This somewhat off-the-radar company pays a huge dividend and is an attractive idea for investors also looking to own financials now. New York Community Bancorp Inc. (NYSE: NYCB) operates as the bank holding company for New York Community Bank, which provides banking products and services in New York, New Jersey, Ohio, Florida and Arizona.
The company also offers annuities, life and long-term care insurance products and mutual funds; cash management products; and online, mobile and phone banking services. It primarily serves individuals, small and midsize businesses, and professional associations through a network of 237 community bank branches and 340 ATM locations.
New York Community Bancorp stock comes with a 7.44% dividend. BofA Securities has set a $10 price target, but the consensus target is higher at $12. Shares closed on Friday at $9.36 apiece.
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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