Investing
These 5 Stocks Everyone Knows Well Trade Under $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.
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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 smaller cap 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.
Antero Midstream
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 9.92% distribution. Wells Fargo recently lifted its $12 target price to $13. The consensus target is $10.57, and shares last traded on Friday at $9.18.
JetBlue Airways
This stock has been obliterated over the past six months even though 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.
The company recently announced a finalized deal to buy Spirit Airlines, the low-cost leader airline, for $3.8 billion, or $33.50 per share, in cash after a long battle with Frontier Airlines to finish the deal.
MKM Partners has a $13 target price on JetBlue Airways stock. The consensus target is $9.33, and shares closed at $6.63 on Friday.
24/7 Wall St.Luminar Technologies
This company has the potential to be a leader in autonomous driving. Luminar Technologies Inc. (NASDAQ: LAZR) is an automotive technology company that provides sensor technologies and software for passenger cars and commercial trucks in North America, Europe and elsewhere.
Its Autonomy Solutions segment designs, manufactures and sells laser imaging, detection and ranging sensors, as well as related perception and autonomy software solutions primarily for original equipment manufacturers in the automobile, commercial vehicle, robo-taxi and adjacent industries.
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The Component segment develops ultra-sensitive pixel-based sensors. This segment also designs, tests and provides consulting services for nonstandard integrated circuits for use in the automobile and aeronautics sector, as well as government spending in military and defense activities.
J.P. Morgan’s $30 target price is well above the $14.75 consensus target for Luminar Technologies stock. On Friday, shares closed at $7.28 apiece.
Peloton Interactive
This cycling and exercise platform was a huge pandemic winner but has been hammered this year. Peloton Interactive Inc. (NASDAQ: PTON) operates interactive fitness platforms in North America and internationally. The company offers connected fitness products with touchscreens that stream live and on-demand classes under the Peloton Bike, Peloton Bike+, Peloton Tread and Peloton Tread+ names.
Peloton Interactive also provides connected fitness subscriptions for various household users and access to various live and on-demand classes. Its Peloton Digital app for connected fitness subscribers provides access to its classes. As of June 30, 2022, it had approximately 6.9 million members. The company markets and sells its interactive fitness products directly through its retail showrooms and online.
The company announced this week a partnership with Dick’s Sporting Goods to sell its exercise bikes through the retail giant. Peloton’s exercise hardware (minus its new rowing machine) will be available for sale at 100 Dick’s Sporting Goods locations in time for the holidays.
The $20 Cowen target price compares with a $17.07 consensus target. Peloton Interactive stock last traded at $6.93 on Friday.
Under Armour
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.
Under Armour stock has a $15 target price at BMO Capital Markets. The consensus target is $13.21, and shares ended trading on Friday at $5.96.
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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