Investing

Red-Hot AI Company One of 5 'Strong Buy' Stocks Under $10 With Huge 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 2023 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.

Crescent Point Energy

This Canadian energy company offers a solid dividend. Crescent Point Energy Corp. (NYSE: CPG) explores, develops and produces light and medium crude oil and natural gas reserves in western Canada and the United States. The company’s crude oil and natural gas properties, and related assets are located in the provinces of Alberta, British Columbia, Manitoba and Saskatchewan, as well as the states of North Dakota and Montana.

In December, the company announced it entered into a purchase and sale agreement to acquire certain Kaybob Duvernay assets from Paramount Resources for cash consideration of $375 million. These assets are adjacent to Crescent Point’s existing land base and further enhance the company’s scale, high-return drilling inventory and development opportunities within the basin.

The assets include approximately 130 net drilling locations across nearly 65,000 net acres of crown land (90% average working interest) with no expiries. The acquired assets currently produce over 4,000 barrels of oil equivalent per day (50% liquids) and include a gas plant, associated pipelines, water infrastructure and seismic data.

Shareholders receive a 4.09% dividend. TD Securities has a target price (in U.S. dollars) of $9.05. The consensus target is even higher at $11.05. Crescent Point Energy stock last traded on Friday at $6.86.

JetBlue Airways

This stock has been obliterated over the past six months even though the carrier holds a very commanding position on the east coast of the United States. JetBlue Airways Corp. (NASDAQ: JBLU) provides air transportation services. As of December 31, 2021, the company operated a fleet of 63 Airbus A321 aircraft, eight Airbus A220 aircraft, 21 Airbus A321neo aircraft, 130 Airbus A320 aircraft and 60 Embraer E190 aircraft.

The carrier serves 107 destinations in 31 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, and 24 countries in the Caribbean and Latin America. The company also has a strategic partnership with American Airlines to create connectivity for travelers in the Northeast.

Deutsche Bank’s price target on JetBlue Airways stock is $8.50. The consensus price target is up at $13.83, and shares closed at $8.62 on Friday.

Kinross Gold

Investors who are more aggressive may want to consider this smaller-cap mining company. Kinross Gold Corp. (NYSE: KGC) engages in the acquisition, exploration and development of gold properties principally in Canada, the United States, the Russian Federation, Brazil, Chile, Ghana and Mauritania.
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The company is also involved in the extraction and processing of gold-containing ores, reclamation of gold mining properties and the production and sale of silver.

Kinross announced last month that it has acquired deemed beneficial ownership of 5,018,017 common shares of Allegiant Gold issuable upon exercise of common share purchase warrants previously acquired by Kinross. The warrants were acquired as part of the previously announced investment in Allegiant completed on March 17, 2022. Pursuant to the investment, Kinross purchased 10,036,034 units of Allegiant, representing 9.9% of its issued and outstanding shares. Each unit consisted of one common share and one-half of one common share purchase warrant.

Kinross Gold stock investors receive a 2.89% dividend. The BofA Securities price target is $4.90, while the consensus target is $5.62. On Friday, shares last traded at $3.86 apiece.

Opendoor Technologies

This could be one of the best small-cap technology ideas now. Opendoor Technologies Inc. (NASDAQ: OPEN) operates a digital platform for residential real estate in the United States. The platform enables consumers to buy and sell a home online. The company also provides title insurance and escrow services.

Mortgage rates have dropped some recently, after zooming over 7% late last year. While the housing market is cooling some, in the hot markets the company focuses on, like Phoenix, the demand is still strong.

The $4.50 JMP Securities target price compares with the $4.31 consensus target and a $2.01 share price last seen on Friday.

SoundHound AI

This top artificial intelligence (AI) stock could be a huge winner as its technology continues to be added to other platforms. SoundHound AI Inc. (NASDAQ: SOUN) develops an independent voice AI platform that enables businesses across industries to deliver high-quality conversational experiences to their customers.

Its products include the Houndify platform, which offers a suite of Houndify tools to help brands build conversational voice assistants, such as automatic speech recognition, natural language understanding, wake words, custom domains, text-to-speech and embedded voice solutions.

The company announced in January that as part of a targeted restructuring, it will increase its focus on SoundHound for Restaurants while reducing investment in new verticals and already completed language development projects. It will maintain its growing licensing business in smart devices, TV and automotive verticals.

These measures are expected to reduce costs by approximately 40% while still enabling the company to deliver revenue growth of over 50% in 2023. As a result of this restructuring, cost reductions and revenue growth, SoundHound expects to have much lighter capital needs going forward and become operating cash flow positive by the fourth quarter of this year.

Wedbush has set its target price at $5. The consensus target is $3.70, and shares closed on Friday at $4.02.


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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