Investing
5 New 'Strong Buy' Stocks Trading Under $10 With Big-Time 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.
Skeptics of low-priced shares should remember that at one point 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 new year 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 received a well-justified upgrade just this past week. CommScope Holding Co. Inc. (NASDAQ: COMM) provides infrastructure solutions for communications and entertainment networks. It operates through the following four segments.
The Broadband Networks segment provides converged cable access platforms, passive optical networking products, video systems, access technologies, fiber and coaxial cables, fiber and copper connectivity products, and hardened closures to the telco and cable provider broadband market.
The Outdoor Wireless Networks segment provides base station antennas, radio frequency filters, tower connectivity, microwave antennas, metro cell products, cabinets, steel towers, accessories, Spectrum Access System and Comsearch products to the macro and metro cell markets.
The Venue and Campus Networks segment offers Wi-Fi and switching, distributed antenna systems, licensed and unlicensed small cells, enterprise fiber, and copper infrastructures for campuses, venues, data centers and buildings.
BofA Securities just upgraded CommScope stock and has a $15 target price. The consensus target is $10.38, and shares last traded on Friday at $9.13, up over 7% for the day on the upgrade.
This oil industry services stock holds solid value at current trading levels. Helix Energy Solutions Group Inc. (NYSE: HLX) is an offshore energy services company that provides specialty services to the industry, primarily in Brazil, the Gulf of Mexico, the North Sea and the Asia Pacific and West Africa regions.
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The company engineers, manages and conducts well intervention operations that include production enhancement and abandonment and construction in water depths ranging from 200 to 10,000 feet. It offers remotely operated vehicles, trenchers and drills for offshore construction and well intervention services. It also provides intervention engineering; inspection, repair and maintenance of production structures, trees, jumpers, risers, pipelines, subsea equipment and related support services. In addition, the company offers reclamation and remediation services, well plug and abandonment services, pipeline abandonment services and site inspections.
Helix Energy also engages in the installation of flowlines, control umbilicals and manifold assemblies and risers; trenching and burial of pipelines; installation and tie-in of riser and manifold assembly; commissioning, testing and inspection activities; and provision of cable and umbilical lay and connection services. Additionally, the company offers oil and natural gas processing facilities and services to oil and gas companies, as well as a fast response system. It serves independent oil and gas producers and suppliers, pipeline transmission companies, renewable energy companies and offshore engineering and construction firms.
BTIG Research has a $10 price target, while Helix Energy Solutions stock has an $8.79 consensus target. Shares closed at $7.93 on Friday.
Started by Silicon Valley legend Peter Thiel, this company may offer the largest upside potential of all the stocks in this group, and it is also a takeover candidate. Palantir Technologies Inc. (NYSE: PLTR) builds and deploys software platforms for the intelligence community in the United States to assist in counterterrorism investigations and operations.
Palantir Gotham is the company’s software platform for government operatives in the defense and intelligence sectors that enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants, as well as facilitates the handoff between analysts and operational users, helping operators plan and execute real-world responses to threats that have been identified within the platform.
The company also provides Palantir Foundry, a platform that transforms the ways organizations operate by creating a central operating system for their data, and it allows individual users to integrate and analyze the data they need in one place.
A Wall Street high $15 target price accompanies the Strong Buy rating at Raymond James. The consensus target was last seen at $12.03. On Friday, Palantir Technologies stock closed at $6.96.
This company has attracted a ton of attention across Wall Street. Skillsoft Corp. (NYSE: SKIL) provides corporate digital learning services in the United States and internationally. Its enterprise learning solutions prepare organizations for the future of work, as well as enable them to overcome critical skill gaps, drive demonstrable behavior change and unlock the potential in their greatest assets.
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In addition, Skillsoft provides various platform capabilities, such as open platform, custom channels and journeys, administrator-promoted content, and flexible assignments, tracking and in-depth reporting, training groups, and records management. Further, the company offers learning management systems and talent management software.
The company has seen a strong increase in insider buying over the last year, and with its current low price, more could be on the way.
Citigroup’s $4.50 target price compares with the $3.94 consensus target for Skillsoft stock. Shares closed on Friday at $2.05, which was up over 5% on the day.
This stock went from a bungled IPO to one of the most bizarre Wall Street stories ever. WeWork Inc. (NYSE: WE) provides flexible workspace solutions to individuals and organizations worldwide. The company offers workstation, private office and customized floor solutions, as well as various amenities and services, such as private phone booths, internet, high-speed business printers and copiers, mail and package handling, front desk services, off-peak building access, common areas and daily enhanced cleaning solutions.
The company also offers various value-add services and business and technical service solutions, including professional employer organization and payroll services, remote workforce solutions, human resources benefits, dedicated bandwidth and IT equipment co-location solutions. In addition, the company offers workspace management solutions, which enable landlords and operators to power flexible spaces and provide direct access to an established customer base. As of December 31, 2021, its real estate portfolio included 756 locations.
Having been restructured to a large degree, the “change the world” ethos once echoed by the founders has rolled back to the company being a real estate play.
BTIG thinks there is value and started coverage of WeWork stock late last year with a $7.50 price target. The consensus target is $6.58, and shares closed at $1.80 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 track record or liquidity.
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