Investing
5 Well-Known Buy-Rated Stocks Trade Under $10 and Offer Huge Potential 2023 Gains
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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.
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 last March, has tripled since then.
We screened our 24/7 Wall St. research database looking for smaller cap companies that could offer patient investors some huge returns for the rest of 2022 and beyond. While these five stocks are rated Buy and have a ton of Wall Street coverage, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
This company’s breakthrough chip technology makes it a potential takeover candidate. Navitas Semiconductor Corp. (NASDAQ: NVTS) develops ultra-efficient gallium nitride (GaN) semiconductors, transforming the performance of power electronics. The company primarily sells its GaN integrated circuits (ICs) into mobile markets but is developing technology to supply high-growth areas such as automotive, solar and data centers.
The company was founded in 2014. GaN power ICs integrate GaN power with drive, control, sensing and protection to enable faster charging, higher power density and greater energy savings for mobile, consumer, enterprise, eMobility and new energy markets. Over 150 Navitas patents are issued or pending. Over 50 million units have been shipped with zero reported GaN field failures, and Navitas introduced the industry’s first and only 20-year warranty. Navitas is the world’s first semiconductor company to be CarbonNeutral-company certified.
Rosenblatt Securities has a $10 target price on Navitas Semiconductor stock, which is above the $8 consensus target. The shares closed on Friday at $3.51.
This fallen angel has been hammered, and savvy investors can scoop up the very cheap shares. Rocket Companies Inc. (NYSE: RKT) engages in the tech-driven real estate, mortgage, and e-commerce businesses in the United States and Canada.
The company’s solutions include Rocket Mortgage, a mortgage lender; Amrock, which provides title insurance, property valuation and settlement services; Rocket Homes, a home search platform and real estate agent referral network, which offers technology-enabled services to support the home buying and selling experience; Rocket Auto, an automotive retail marketplace that provides centralized and virtual car sales support to online car purchasing platforms; and Rocket Loans, an online-based personal loans business.
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The company also offers Core Digital Media, a digital social and display advertiser in the mortgage, insurance and education sectors; Rocket Solar, which connects homeowners with digital financing solutions through a team of trained solar advisors; Truebill, a personal finance app that helps clients manage every aspect of their financial lives; Lendesk, a technology services company that provides a point of sale system for mortgage professionals and a loan origination system for private lenders; and Edison Financial, a digital mortgage broker. In addition, the company originates, closes, sells and services agency-conforming loans.
On Rocket Companies stock, Wells Fargo has an Overweight rating and a $10 target price. The consensus target is $7.12, and shares closed at $7.00 on Friday.
Over 20 years ago, American Airlines spun off this company, and investors are getting an incredible entry point as travel picks up around the globe. Sabre Corp. (NASDAQ: SABR) provides software and technology solutions for the travel industry worldwide.
The Travel Solutions segment operates as a business-to-business travel marketplace that offers travel content, such as inventory, prices and availability from a range of travel suppliers, including airlines, hotels, car rental brands, rail carriers, cruise lines and tour operators with a network of travel buyers comprising online and offline travel agencies, travel management companies and corporate travel departments.
This segment also provides a portfolio of software technology products and solutions through software-as-a-service (SaaS) and hosted delivery models to airlines and other travel suppliers. Its products include reservation systems for carriers, commercial and operations products, agency solutions and data-driven intelligence solutions.
The Hospitality Solutions segment provides software and solutions to hoteliers through SaaS and hosted delivery models.
BofA Securities has set an $11 price target, and the consensus target on Sabre stock is $9.84. The stock closed at $6.18 on Friday.
This energy stock has put in a long base and looks ready to breakout and move higher. Tetra Technologies Inc. (NYSE: TTI) is a geographically diversified oil and gas services company, that engages in the completion of fluids and associated products and services.
Tetra’s Completion Fluids and Products division manufactures and markets clear brine fluids, additives and associated products and services to the oil and gas industry. The Water and Flowback Services division provides onshore oil and gas operators with comprehensive water management services.
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The company is evolving its business model by expanding into the low carbon energy markets with its chemistry expertise, key mineral acreage and global infrastructure. Recently announced initiatives include commercialization of Tetra PureFlow, an ultra-pure zinc bromide for stationary batteries and energy storage; advancing an innovative carbon capture utilization and storage technology with CarbonFree to capture CO2 and mineralize emissions to make commercial, carbon-negative chemicals; and development of Tetra’s lithium and bromine mineral acreage to meet the growing demand for oil and gas products and energy storage.
Johnson Rice’s $7 target price is just below the $7.25 consensus target. Tetra Technologies stock closed on Friday at $3.46.
This is an inexpensive way to buy a deepwater oil drilling stock. Transocean Ltd. (NYSE: RIG) provides offshore contract drilling services for oil and gas wells worldwide. It contracts its drilling rigs, related equipment and work crews to drill oil and gas wells.
As of February 22, 2021, the company owned or had partial ownership interests in and operated a fleet of 37 mobile offshore drilling units, including 27 ultra-deepwater and 10 harsh environment floaters. It serves integrated oil companies, government-owned or government-controlled oil companies, and other independent oil companies.
Over the past year, Transocean has seen some serious insider buying. In that time, the largest single purchase by an insider was when an independent director bought $21 million worth of shares at a price of $4.20 apiece. If the director was bullish at that level, the current trading range still offers a good entry point.
Transocean stock has a $6 target price at Barclays. The consensus target was last seen at $5.09, and shares last changed hands on Friday at $4.56 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 track record or liquidity.
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