Investing

Goldmans Sachs Has 7 Well-Known Sizzling Buy-Rated Stocks Trading 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.

Skeptics of low-priced shares should remember that at one point both Amazon, Apple and Netflix traded in the single digits. One stock we featured over the years, Zynga, was purchased by Take-Two Interactive. Cogent Biosciences, which we featured in March, has tripled since then.

Goldman Sachs is the premier investment bank in the world, so we screened its outstanding research database and found seven stocks trading under the $10 level that could provide investors with some huge upside potential. While all seven are rated Buy at Goldman Sachs, they are much better suited for very aggressive investors. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

ADT

This top security company is a well-known protector of homes and businesses. ADT Inc. (NYSE: ADT) is the largest residential and second-largest commercial security monitoring company in North America. The company serves over 7 million customers, installing over a million systems per year. Roughly 94% of revenue is generated in the United States, with the remainder from Canada.

Google announced last year that it was buying a 6.6% stake in the home security firm for $450 million in a deal that will allow it to provide service to customers of its Nest home security devices. ADT said that the companies will work to combine Nest products like cameras, thermostats, doorbells and alarm systems with ADT’s installation, service and professional monitoring network.

Insurance giant State Farm announced recently that it would be acquiring a 15% stake in the company by investing $1.2 billion. The chief operating officer of the company, Paul Smith, will join ADT’s board of directors.

Citigroup has a $10.25 price target on ADT stock, and the consensus target is $10.89. The stock last traded on Friday at $8.01 a share.

Altice USA

This communications company’s stock is offering the best entry point in years. Altice USA Inc. (NYSE: ATUS) provides broadband communications and video services in the United States, Canada, Puerto Rico and the Virgin Islands. It offers broadband, video, telephony and mobile services to approximately 5 million residential and business customers.
The company’s video services include delivery of broadcast stations and cable networks; over-the-top services; video-on-demand, high-definition channels, digital video recorder and pay-per-view services; and platforms for video programming through mobile applications. It also provides voice over internet protocol telephone services, as well as mobile services, such as data, talk and text.

In addition, the company offers Ethernet, data transport, IP-based virtual private networks, internet access and telephony services; hosted telephony services, managed Wi-Fi, managed desktop and server backup, and collaboration services comprising audio and web conferencing; fiber-to-the-tower services to wireless carriers; data services consisting of wide area networking and dedicated data access, as well as wireless mesh networks; and enterprise-class telephone services that include traditional multiline phone service.

Altice USA provides business email, hosted private branch exchange, web space storage and network security monitoring, as well as international calling and toll-free numbers. Additionally, the company offers audience-based and IP-authenticated cross-screen advertising solutions; and television and digital advertising services, as well as operates news channels under the News 12 Networks, Cheddar and i24NEWS names. It also provides broadband communications and video services under the Optimum and Suddenlink brands.

The Goldman Sachs price target is $10, though the consensus target is up at $13.86. Altice USA stock closed at $5.40 on Friday.

Dole

For fans of pineapple and other fruits and vegetables, this stock should sound very familiar. Dole PLC (NYSE: DOLE) engages in sourcing, processing, marketing and distribution of fresh fruit and vegetables worldwide.

The company offers bananas, pineapples grapes, berries, avocados, deciduous fruit and organic produce; value added salads, which include packaged salad and meal kits; and fresh packed vegetables, such as iceberg, romaine, leaf lettuces, and celery, as well as health foods and consumer goods. The company serves retailers, wholesalers and foodservice customers.

The company has seen some big insider buying from Jan Barta, who bought another large block of stock in September.

Goldman Sachs has set a $17 price target. Dole stock has a $13.45 consensus target, and on Friday it last traded at $7.65 a share.

Equitrans Midstream

This energy stock offers a solid dividend and good exposure to the sector. Equitrans Midstream Corp. (NTSE: ETRN) owns, operates, acquires and develops natural gas gathering, transmission and storage, and water services assets in the Appalachian Basin.

The Gathering System segment includes 1,130 miles of high-pressure gathering lines with compression of approximately 485,000 horsepower and multiple interconnect points. Andi it has approximately 910 miles of Federal Energy Regulatory Commission (FERC) low-pressure gathering lines.

The Transmission and Storage System segment comprises 950 miles of FERC-regulated interstate pipeline that connects to seven interstate pipelines and local distribution companies.

The Water Service System segment includes two independent systems comprising approximately 200 miles of pipeline that deliver fresh water from the Monongahela River, the Ohio River, local reservoirs and various regional waterways.

Equitrans Midstream comes with a 7.58% dividend. The $10 Goldman Sachs price target is higher than the $9.45 consensus. The stock was last seen at $7.90 on Friday.

IHS

Shares of this wireless tower giant have been crushed and offer huge upside potential. IHS Holding Ltd. (NYSE: IHS) owns, operates and develops shared telecommunications infrastructure in Africa, Latin America, Europe and the Middle East. It offers colocation and lease agreement, build-to-suit, fiber connectivity and rural telephony solutions. The company serves mobile network operators, internet service providers, broadcasters, security functions and private corporations.

Including the approximately 5,700 towers subject to the imminent completion of its pending deal in South Africa, IHS will own nearly 39,000 towers across 11 countries, making the company the third largest independent multinational tower company by tower count. This geographic scale helps diversify the revenue stream, and also positions IHS in some of the largest emerging markets in the world, including the three largest countries in Africa and the largest Latin American country by gross domestic product.

Goldman Sachs trimmed its $15 target price on IHS stock to $13 this past week. The $18 consensus target is higher, and the stock last traded on Friday at $5.27.

Kosmos Energy

This stock is a solid energy exploration and production play, and with oil and gas prices near all-time highs, this could be an outstanding idea now. Kosmos Energy Ltd. (NYSE: KOS) is a deepwater independent oil and gas exploration and production company, focused along the Atlantic Margins.

The company’s primary assets include production offshore Ghana, Equatorial Guinea and the U.S. Gulf of Mexico, as well as a gas development offshore Mauritania and Senegal. It also maintains a proven basin exploration program.

Kosmos Energy’s focus is on unlocking new hydrocarbon systems and growing and maturing discovered basins through follow-on exploration success, development and production.

Kosmos Energy stock has an $8.50 target price at Goldman Sachs. The consensus target is just $7.56, and the stock closed at $5.69 on Friday.

Lulu’s Fashion Lounge

This small-cap online retailer blew out the first-quarter results but has backed up big as concerns over consumer spending grow. Lulu’s Fashion Lounge Holdings Inc. (NASDAQ: LVLU) is an online fashion retailer of women’s apparel targeting millennial and Gen Z customers. It specializes in occasion dresses but also offers broader categories, including formal, bridal, lounge, vacation and basics. Lulus sells products on its website in the United States.

The company remains focused on growing its market base and has analytics-driven inventory control that keeps the products being offered fresh. The stock has been eviscerated as the spiraling inflation numbers have hurt many retailers, but Lulu’s Fashion Lounge is solidly profitable and looks to grow revenue and earnings next year.

The Goldman Sachs price target is $10 while the consensus target is set even higher at $11.56. On Friday, Lulu’s Fashion Lounge stock closed at $4.97.


These are seven stocks for aggressive investors looking to get share count leverage on companies that have sizable upside potential. While clearly not suited for all investors, they are not penny stocks with absolutely no track record or liquidity, and Goldman Sachs has research coverage. Again though, it must be noted, these are only suitable for very aggressive stock investors with an extremely high risk tolerance.

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