Investing
5 'Strong Buy' Stocks Everyone Knows Have Big Upside Potential and Trade Under $10
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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 tripled.
While all five of these stocks are rated Buy, it is important to remember that no single analyst report should be used as the sole basis for any buying or selling decision.
This stock has big upside and investors are paid a huge dividend. Brandywine Realty Trust (NYSE: BDN) is one of the largest, publicly traded, full-service, integrated real estate companies in the United States. Its core focus is on the Philadelphia, Austin and District of Columbia markets. Organized as a real estate investment trust (REIT), it owns, develops, leases and manages an urban, town center and transit-oriented portfolio comprising 175 properties and 24.7 million square feet, as of December 31, 2020. That excludes assets held for sale.
The company posted revenues of $124.04 million for the quarter ended June 2022, and that figure compares to year-ago revenues of $120.1 million. The company has topped consensus revenue estimates twice over the past four quarters.
Brandywine Realty Trust stock investors receive a 9.34% dividend. Truist Financial has an $11 target price, while the consensus target is $10.17. The stock closed on Friday at $8.29 a share.
Smart investors know that regardless of the economy, Americans will continue to buy makeup and fragrances and this is a very solid play on that theme. Coty Inc. (NYSE: COTY) is number two globally in the fragrance category and number six in color cosmetics.
The company manufactures, markets, distributes and sells beauty products worldwide. The company provides prestige fragrances, skincare and color cosmetics products through prestige retailers, including perfumeries, department stores, e-retailers, direct-to-consumer websites, and duty-free shops under the Alexander McQueen, Burberry, Bottega Veneta, Calvin Klein, Cavalli, Chloe, Davidoff, Escada, Gucci, Hugo Boss, Jil Sander, Joop!, Kylie Jenner, Lacoste, Lancaster, Marc Jacobs, Miu Miu, Nikos, philosophy, and Tiffany & Co. brands.
Coty also offers mass color cosmetics, fragrance, skincare, and body care products primarily through hypermarkets, supermarkets, drug stores, pharmacies, mid-tier department stores, traditional food and drug retailers, and e-commerce retailers under the Adidas, Beckham, Biocolor, Bozzano, Bourjois, Bruno Banani, CoverGirl, Enrique, Max Factor, Mexx, Monange, Nautica, Paixao, Rimmel, Risque, Sally Hansen, Stetson, and 007 James Bond brands.
BofA Securities resumed coverage of Coty stock this past week and has a $9 price target. The consensus target is $10.71, and shares were last seen trading on Friday at $7.69.
Investors looking for a play in the electric vehicle arena may be intrigued by this company. Nikola Corp. (NASDAQ: NKLA) operates as a technology innovator and integrator that works to develop energy and transportation solutions. It operates through two business units.
The Truck business unit develops and commercializes battery hydrogen-electric and battery-electric semi trucks to the trucking sector. The Energy business unit develops and constructs a network of hydrogen fueling stations, and it offers battery electric vehicle (BEV) charging solutions for its fuel cell electric vehicle and BEV customers, as well as other third-party customers. The company also assembles, integrates, and commissions its vehicles in collaboration with its business partners and suppliers.
BTIG Research started coverage this past week, and its $12 target price is higher than the $10.61 consensus target for Nikola stock. The stock closed at $5.12 on Friday.
This telecommunications company ruled the cell phone arena until the advent of the smartphone in 2007 and recently re-emerged as a top meme stock. Nokia Corp. (NYSE: NOK) owns two main businesses: 1) Nokia Networks, a network infrastructure equipment supplier to global wireless and wireline operators, and 2) Technologies, its patent/IPR licensing activities.
In a very positive sign for investors, the company has resumed its quarterly dividend and initiated a share buyback program after reporting very solid fourth-quarter results, with comparable operating earnings above market estimates as the telecom equipment maker kept costs in check. Nokia also forecasted annual revenue that was largely ahead of projections and set a long-term target for operating margins of at least 14%, replacing its earlier 2023 target of between 11% and 13%.
Credit Suisse recently upgraded the stock to Outperform with a $6.12 target price. The consensus target is $6.83. Nokia stock closed on Friday at $4.63.
This is another meme stock trader favorite. SoFi Technologies Inc. (NASDAQ: SOFI) provides digital financial services, and it took the SPAC route for its initial public offering back in June of 2021.
The company’s financial services allow its members to borrow, save, spend, invest and protect their money. The company offers student loans, personal loans for debt consolidation and home improvement projects, and home loans.
SoFi also provides cash management, investment and other related services. In addition, it operates Galileo, a technology platform that offers services to financial and non-financial institutions, and Apex, a technology-enabled platform that provides investment custody and clearing brokerage services.
BofA Securities upgraded SoFi Technologies stock this past week and has a $9 price target. The consensus target is $8.63. Shares ended Friday trading at $6.05 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 history or liquidity, and major Wall Street firms have research coverage.
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