Investing
These 5 Well-Known Stocks Trade Under $10 and Have Abundant 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.
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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 of these 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 stock has been on fire this week and 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.
Raymond James has an $8 target price on Bluebird Bio stock. The consensus target is $7.70, and the shares last traded on Friday at $5.93.
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.
Diebold Nixdorf 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.
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The company 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, it 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 target price is $5, while the consensus target for Diebold Nixdorf stock is $5.67. Shares closed at $3.53 on Friday.
This streaming company’s stock is a very solid play for gambling, and it has become a new meme stock favorite. FuboTV Inc. (NYSE: FUBO) is a digital entertainment company focused on offering consumers a live television streaming platform for sports, news and entertainment.
It is a virtual multichannel video programming distributor that streams in 4K. Its subscription-based services are offered to consumers who can sign-up for accounts, through which it provides basic plans with the flexibility for consumers to purchase the add-ons and features suited for them.
Since the start of 2022, the company has added nearly 20 FAST channels, with the goal of launching approximately 100 more by the end of the year. The strategy aligns with an overall industry shift to ad-supported content, as studies show consumers prefer these services over more expensive options.
Needham’s $7 target price is less than the $9.83 consensus target, but FuboTV stock last traded on Friday at $3.64.
This is an inexpensive way to buy a deepwater oil drilling stock. Transocean Ltd. (NYSE: RIG) provides offshore contract drilling services for oil and gas wells worldwide. It contracts its drilling rigs, related equipment and work crews to drill oil and gas wells.
As of February 22, 2021, Transocean owned or had partial ownership interests in and operated a fleet of 37 mobile offshore drilling units, including 27 ultra-deepwater and 10 harsh environment floaters. It serves integrated oil companies, government-owned or government-controlled oil companies and other independent oil companies.
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Over the past year, the company has seen some serious insider buying. In that time, the largest single purchase by an insider was when an independent director bought $21 million worth of shares at a price of $4.20 apiece. If the director was bullish at that level, then the current trading range offers a good entry point.
Transocean stock has a $4.50 target price at Capital One Financial. The shares have traded as high as $5.56 in the past year but were last seen at $3.71 on Friday.
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 $15 target price at BMO Capital Markets compares with a $13.07 consensus target. Under Armour stock last changed hands on Friday at $8.73 a share.
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 history or liquidity, and major Wall Street firms have research coverage.
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