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5 Sizzling Well-Known Stocks Rated Buy Trading Under $10 With Big 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.
A major shareholder just made another significant investment into the stock. Blue Apron Holdings Inc. (NASDAQ: APRN) operates a direct-to-consumer platform that delivers original recipes with fresh and seasonal ingredients.
The company also operates Blue Apron Market, an e-commerce market that provides cooking tools, utensils, pantry items and other products. The company offers Blue Apron Wine, a direct-to-consumer wine delivery service that sells wines, which can be paired with its meals. It serves young couples, families, singles and empty nesters. The company offers its services through order selections on websites or mobile applications primarily in the United States.
Joseph N. Sanberg affiliate RJB Partners agreed to raise its investment in the company from $20 million to $50 million under a private placement. Blue Apron looks to use the proceeds of the private placement to invest in its long-term growth plan, with $25 million for strategic purposes, including exploring share buybacks. Upon closing, Alex Chalunkal, Sanberg’s chief investment officer, will join the Blue Apron board.
Lake Street has a $9 target price on Blue Apron stock. The consensus target is $9.33. The stock last traded on Friday at $3.81 up close to 4%.
This stock is close to breaking through the 200-day moving average. Bluebird Bio Inc. (NASDAQ: BLUE) is a biotechnology company that researches, develops and commercializes transformative gene therapies for severe genetic diseases.
Its product candidates for severe genetic diseases include betibeglogene autotemcel for the treatment of transfusion-dependent ß-thalassemia, lovotibeglogene autotemcel for the treatment of sickle cell disease and elivaldogene autotemcel to treat cerebral adrenoleukodystrophy.
The company’s clinical study program includes HGB-205, HGB-206 and HGB-210 to evaluate the safety and efficacy of lovo-cel in the treatment of patients with SCD; and HGB-204, HGB-205, HGB-207 and HGB-212 to evaluate the safety and efficacy of beti-cel in the treatment of patients with ß-thalassemia. It has strategic collaboration and license agreements with Orchard Therapeutics, Forty Seven and Magenta Therapeutics.
For Bluebird Bio stock, Baird has a $9 target price. The consensus target is $7.20, and shares last traded on Friday at $6.72 a gain of over 6%..
The nation’s top banks are big customers of this company’s products. Diebold Nixdorf Inc. (NYSE: DBD) provides connected commerce solutions to financial institutions and retailers in Europe, Asia, the Middle East, Africa, the North America and Latin America.
The company offers cash recyclers and dispensers, intelligent deposit terminals, teller automation tools and kiosk technologies, as well as physical security solutions. It also offers front-end applications for consumer connection points and back-end platforms that manage channel transactions, operations and integration, and facilitate omnichannel transactions, endpoint monitoring, remote asset management, customer marketing, merchandise management and analytics.
Diebold Nixdorf also provides banking product-related services, comprising proactive monitoring and rapid resolution of incidents through remote service capabilities or an on-site visit; first- and second-line maintenance, preventive maintenance and on-demand services; managed and outsourcing services, such as business processes, solution management, upgrades and transaction processing; and cash management services.
In addition, the company offers DN Vynamic software suite to simplify and enhance the consumer experience; mobile point of sale and self-checkout terminals; printers, scales and mobile scanners; and banknote and coin processing systems. It provides retail customers product-related services, such as on-demand and professional services; maintenance and availability services; implementation services; managed mobility services; monitoring and advanced analytics; and store life-cycle management services.
Wedbush’s $5 target price is less than the $5.67 consensus target. Diebold Nixdorf closed on Friday at $4.27.
This company returned to the publicly traded markets a few years ago after a stint in private equity land. Rackspace Technology Inc. (NYSE: RXT) operates as a multicloud technology services company worldwide.
The company’s Multicloud Services segment provides public and private cloud-managed services that allow customers to determine, manage and optimize the right infrastructure, platforms and services. It also provides professional services related to designing and building multicloud solutions and cloud-native applications.
Its Apps & Cross Platform segment includes managed applications; managed security services in the areas of security threat assessment and prevention, threat detection and response, rapid remediation, governance and risk and compliance assistance across multiple cloud platforms, as well as privacy and data protection services, including detailed access restrictions and reporting; data services; and professional services related to designing and implementing application, security and data services.
The Credit Suisse target price is $10. The consensus target for Rackspace Technology stock is $7.88. Shares were last seen at $5.76 on Friday.
This small-cap energy play is a low-cost way for energy investors looking to benefit from the rise in natural gas prices. Tellurian Inc. (NYSE: TELL) engages in the natural gas business worldwide.
The company is developing a portfolio of natural gas production, liquefied natural gas (LNG) marketing, and infrastructure assets that includes an approximately 27.6 million tons per annum LNG export facility and an associated pipeline. It owns interests in 11,060 net acres of natural gas assets and 78 producing wells located in the Haynesville Shale trend of northern Louisiana.
In July, Tellurian entered into an agreement to purchase natural gas assets from privately held EnSight IV Energy Partners and EnSight Haynesville Partners located in the Haynesville Shale. The purchase price is $125 million, subject to customary closing adjustments, and a contingent payment of $7.5 million, which is based on the price of natural gas and may be payable in March 2023 under certain conditions. Tellurian will fund the purchase with cash on hand and anticipates closing on the EnSight assets in the third quarter of 2022.
The Tellurian stock target price at BofA Securities is $4.50 target but may be headed higher soon. Shares have traded as high as $6.54 in the past year but were last changing hands on Friday at $4.13 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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