Investing
5 Familiar 'Strong Buy' Stocks Trading Under $10 Have 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.
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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.
This sports-betting-related stock has been hammered and holds massive upside potential, and it could even be a takeover target. Genius Sports Ltd. (NYSE: GENI) develops and sells technology-led products and services to the sports, sports betting and sports media industries.
The company offers technology infrastructure for the collection, integration and distribution of live data of sports leagues; streaming solutions, comprising of technology, automatic production and distribution for sports to commercialize video footage of their games; and end-to-end integrity services to sports leagues, such as full-time active monitoring technology, which uses mathematical algorithms to identify and flag suspicious betting activity in global betting markets, as well as full suite of online and offline educational and consultancy services.
Oppenheimer has its price objective on Genius Sports stock set at $7, a bit less than the $7.75 consensus target. Shares ended trading at $4.31 on Friday.
This is a 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.
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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.
Last month, BofA Securities upgraded SoFi Technologies stock to Buy with a $9 price target. The consensus target is $8.38, and shares closed at $5.01 on Friday.
This stock has broken out and could be ready to run. Southwestern Energy Company (NYSE: SWN) an independent energy company, engages in the exploration, development, and production of natural gas, oil, and natural gas liquids (NGLs) in the United States.
It operates through two segments, Exploration and Production, and Marketing. The company focuses on the development of unconventional natural gas and oil reservoirs located in Pennsylvania, West Virginia, Ohio, and Louisiana.
As of December 31, 2021, it had approximately 768,050 net acres in Appalachia; a total of 1,527 wells on production; and approximately proved natural gas, oil, and NGLs reserves comprising 21,148 billion cubic feet of natural gas equivalent (Bcfe).
Southwestern Energy also engages in the marketing and transportation of natural gas, oil, and NGLs. The company serves LNG exporters, energy companies, utilities, and industrial purchasers of natural gas.
This past week, Truist Financial raised its rating to Buy and boosted its target price to $11. The consensus target is $11.49. Southwestern Energy stock ended the week trading at $6.78 a share.
This is a solid small-cap energy play for investors looking for a European angle. TechnipFMC PLC (NYSE: FTI) engages in the oil and gas projects, technologies and systems and services businesses in Europe, North and Latin America, Africa, and elsewhere.
The Subsea segment engages in the design, engineering, procurement, manufacturing, fabrication, installation and life of field services for subsea systems, subsea field infrastructure and subsea pipe systems used in oil and gas production and transportation. It provides subsea production and processing systems; subsea umbilicals, risers and flowlines; vessels; and Subsea Studio for optimizing the development, execution and operation of current and future subsea fields. This segment also offers well and asset services; research, engineering, manufacturing and supply chain services; and product management services.
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The Surface Technologies segment designs, manufactures and services products and systems used in land and shallow water exploration and production of crude oil and natural gas. This segment offers drilling and completion systems; surface wellheads and production trees systems; iComplete, a digitally enabled pressure control system; fracturing tree and manifold systems; pressure pumping; well service pumps; well control, safety and integrity systems, multiphase meter modules, in-line separation and processing systems, and standard pumps; flowback and well testing services; skid systems; automation and digital systems; and flow measurement and automation solutions.
TechnipFMC stock has a $14.50 target price at BNP Paribas, well above last week’s 52-week high of $9.74. Shares closed on Friday at $9.42.
With the pandemic mostly in the rear-view mirror, Americans are going out to music and sporting events, and this company benefits in a big way. Vivid Seats Inc. (NASDAQ: SEAT) operates as an online secondary marketplace for tickets in the United States and Canada.
Its Marketplace segment acts as an intermediary between event ticket buyers and sellers, and it processes ticket sales on its website and mobile applications through its distribution partners. It also sells tickets for live sports, concerts, and theater shows and other live events. This segment offers Skybox, a proprietary enterprise resource planning tool that helps ticket sellers manage ticket inventories, adjust pricing and fulfill orders across multiple ticket resale marketplaces.
The Resale segment acquires tickets to resell on secondary ticket marketplaces, and it provides internal research and development support for Skybox and to deliver seller software and tools.
The $13 Credit Suisse target price compares with a $12.65 consensus target and the close at $8.11 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 history or liquidity, and major Wall Street firms have research coverage.
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