Investing

5 Stocks Every Investor Knows Trading Under $10 That Have Huge 2023 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.

Carnival

The travel sector roared back after the COVID-19 pandemic waned, and this stock is a leader in the industry. Carnival Corp. (NYSE: CCL) operates as a leisure travel company. Its ships visit approximately 700 ports under the Carnival Cruise Line, Princess Cruises, Holland America Line, P&O Cruises (Australia), Seabourn, Costa Cruises, AIDA Cruises, P&O Cruises (UK) and Cunard brand names.

The company also provides port destinations and other services, as well as owns and operates hotels, lodges, glass-domed railcars and motor coaches. It sells its cruises primarily through travel agents, tour operators, vacation planners and websites. The company operates in the United States, Canada, Continental Europe, the United Kingdom, Australia, New Zealand, Asia and elsewhere. It operates 87 ships with 223,000 lower berths.

Stifel has a $17 target price on Carnival stock. The consensus target is much higher $30.37, but shares last traded on Friday at $9.00.

Peloton

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.
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The company recently announced 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 Bank of America Securities target price of $16 is less than the $17.07 consensus target. Peloton Interactive stock closed on Friday at $9.39.

SoFi

This company took the SPAC route for its IPO and remains a millennial trader favorite. SoFi Technologies, Inc. (NASDAQ: SOFI) provides digital financial services that 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.

The $9 BofA Securities price target compares with an $8.13 consensus target for SoFi Technologies stock, as well as a closing share price of $5.18 on Friday.

Southwestern Energy

This stock has broken out and could be ready to run. Southwestern Energy Co. (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.
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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.

Truist Financial recently boosted its $7 target price for Southwestern Energy stock to $11. That is in line with the $11.01 consensus target. The stock closed at $6.81 on Friday.

Under Armour

The sports apparel stock has been crushed and looks like a solid bargain. 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 an $11 target price at Deutsche Bank. The consensus target is $10.67, and shares closed on Friday at $8.29.


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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