Investing
5 Stocks to Buy Every Investor Knows That Trade Below $10 and Have 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. Cogent Biosciences, which we featured in March, has doubled.
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 top security company is a well-known protector of homes and businesses. ADT Inc. (NYSE: ADT) is the largest residential and second-largest commercial security monitoring company in North America. The company serves over 7 million customers, installing over a million systems per year. Roughly 94% of revenue is generated in the United States, with the remainder from Canada.
Google announced last year that it was buying a 6.6% stake in the home security firm for $450 million in a deal that will allow it to provide service to customers of its Nest home security devices. ADT said that the companies will work to combine Nest products like cameras, thermostats, doorbells and alarm systems with ADT’s installation, service and professional monitoring network.
The Goldman Sachs price target of $12 compares with the $9.88 consensus target on ADT stock. The shares last traded on Friday at $8.02 up over 4%.
Shares of this popular home services company have been crushed and have huge upside potential. Angi Inc. (NASDAQ: ANGI) connects home service professionals with consumers in the United States and internationally.
The Angi Ads business connects consumers with service professionals for local services through the Angi nationwide online directory of service professionals in various service categories. It provides consumers with valuable tools, services and content, including verified reviews, to help them research, shop and hire for local services, and it 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, which connects consumers with service professionals for home repair, maintenance and improvement projects; offers consumers with 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 also operates Handy, a platform for household services, primarily cleaning and repair services; Angi Roofing, which provides roof replacement and repair services; and home services marketplaces under the Travaux, MyHammer, Werkspot, MyBuilder and Instapro names.
Goldman Sachs has an $8.50 price target for Angi stock, while the consensus target is up at $9.61. The stock closed on Friday at $5.82.
This stock has been obliterated over the past six months but 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.
JetBlue recently won a hard-fought battle with Frontier Airlines and completed a deal to buy and merge with low-cost carrier Spirit Airlines for $3.8 billion in cash. The combined company will become the fifth largest U.S. carrier.
The MKM Partners target price is $13, well above the $9.88 consensus target. JetBlue Airways stock last traded at $8.68 on Friday.
Increasing numbers of people are using satellite radio, and this stock is a solid idea for aggressive investors. Sirius XM Holdings Inc. (NASDAQ: SIRI) is the world’s largest radio company measured by revenue, and it has approximately 33.1 million subscribers.
The company creates and offers commercial-free music; premier sports talk and live events; comedy; news; exclusive talk and entertainment; and a wide range of Latin music, sports and talk programming. Sirius XM is available in vehicles from every major car company and on smartphones and other connected devices as well as online.
Sirius XM is also a leading provider of connected vehicles services, giving customers access to a suite of safety, security and convenience services, including automatic crash notification, stolen vehicle recovery assistance, enhanced roadside assistance and turn-by-turn navigation.
The Sirius XM price target at BofA Securities is $7.50 but may be headed higher soon. The consensus price target is $7.12, and shares were last seen on Friday at $6.58.
The sports apparel stock has been crushed and looks like a solid bargain here. Under Armour Inc. (NYSE: UAA) engages in the developing, marketing and distributing performance apparel, footwear and accessories for men, women and youth. The company offers its apparel in compression, fitted and loose fit types.
The company also provides footwear products for running, training, basketball, cleated sports, recovery and outdoor applications. The company’s accessories include gloves, bags, headwear and sports masks, and it offers and digital subscription and advertising services under the MapMyRun and MapMyRide platforms.
Under Armor primarily offers its products under the Under Armor, UA, HeatGear, ColdGear, HOVR, Protect This House, I Will, UA Logo, Armour Fleece and Armour Bra brands. The company sells its products through wholesale channels, including national and regional sporting goods chains, independent and specialty retailers, department store chains, mono-branded Under Armour retail stores, institutional athletic departments, and leagues and teams, as well as independent distributors and directly to consumers through a network of 422 brand and factory house stores, as well as through e-commerce websites.
The $12 Barclays target price for Under Armour stock is less than the $13.40 consensus but well above the share price of $9.33 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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