Investing
Goldman Sachs Has 5 Stellar Stocks to Buy Under $10 With Up to 735% 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 about a year ago, has tripled since then.
Goldman Sachs is the premier investment bank in the world, so we screened the firm’s outstanding research database and found five stocks trading under the $10 level that could provide investors with some massive upside potential. While all are rated Buy at the firm, they are much better suited for very aggressive investors, and it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
This small cap biotech has monster upside potential. Allogene Therapeutics Inc. (NASDAQ: ALLO) a clinical-stage immuno-oncology company, develops and commercializes genetically engineered allogeneic T cell therapies for the treatment of cancer. It develops, manufactures and commercializes UCART19, an allogeneic chimeric antigen receptor (CAR) T cell product candidate for the treatment of pediatric and adult patients with R/R CD19 positive B-cell ALL.
The company also develops ALLO-501, an anti-CD19 allogeneic CAR T cell product candidate that is in Phase I clinical trial for the treatment of R/R non-Hodgkin lymphoma; and ALLO-501A, which is in Phase I/II clinical trial for treatment R/R large B-cell lymphoma or transformed follicular lymphoma.
Allogene Therapeutics has license and collaboration agreements with Pfizer, Servier, Cellectis, and Notch Therapeutics, as well as clinical trial collaboration agreement with SpringWorks Therapeutics. It also has a strategic collaboration agreement with The University of Texas MD Anderson Cancer Center for the preclinical and clinical investigation of allogeneic CAR T cell product candidates.
The $35 Goldman Sachs price target is well above the $19.73 consensus target and a closing share price of $5.99 on Friday. Hitting the Goldman Sachs target would be a 480% gain.
Shares of this popular home services company have been crushed and have huge upside potential. Angi Inc. (NASDAQ: ANGI) connects home service professionals with consumers in the United States and internationally.
The Angi Ads business connects consumers with service professionals for local services through the Angi nationwide online directory of service professionals in various service categories. It provides consumers with valuable tools, services and content, including verified reviews, to help them research, shop and hire for local services, and it sells term-based website and mobile and digital magazine advertising to service professionals, as well as provides quoting, invoicing and payment services.
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The company also owns and operates Angi Leads digital marketplace service, which connects consumers with service professionals for home repair, maintenance and improvement projects; offers consumers with tools and resources to find local, pre-screened and customer-rated service professionals, as well as online appointment booking; and connects consumers with service professionals by telephone and home services-related resources.
Angi also operates Handy, a platform for household services, primarily cleaning and repair services; Angi Roofing, which provides roof replacement and repair services; and home services marketplaces under the Travaux, MyHammer, Werkspot, MyBuilder and Instapro names.
Goldman Sachs team has set its price target at $5.50. The consensus target is $4.67, and the stock closed on Friday at $2.53. Hitting the Goldman Sachs target would be a 125% gain.
This small biotech play could be a big short-squeeze candidate. Gossamer Bio Inc. (NASDAQ: GOSS) a clinical-stage biopharmaceutical company focused on discovering, acquiring, developing and commercializing therapeutics in the disease areas of immunology, inflammation and oncology in the United States.
The company is developing GB002, an inhaled, small molecule, platelet-derived growth factor receptor, or PDGFR, colony stimulating factor 1 receptor, or CSF1R, and c-KIT inhibitor for the treatment of pulmonary arterial hypertension; GB004, a gut-targeted, oral small molecule for the treatment of inflammatory bowel disease; GB5121, an oral, irreversible, covalent, small molecule inhibitor of Bruton’s Tyrosine Kinase for the treatment of primary central nervous system lymphoma; and GB7208, an oral, small molecule, BTK inhibitor for the treatment of multiple sclerosis.
It has license agreements with Pulmokine to develop and commercialize GB002 and related backup compounds, and Aerpio Pharmaceuticals to develop and commercialize GB004 and related compounds.
With a third of the float short, any positive turn of events could cause the stock to rocket higher.
Goldman Sachs has a $10 target price, while the consensus target is $7.42. The stock closed on Friday at $1.83. Hitting the Goldman Sachs target would be a 450% gain.
This microcap biotech may be the biggest winner of all the Goldman Sachs Buy-rated stocks under $10. Kronos Bio Inc. (NASDAQ: KRON), a clinical-stage biopharmaceutical company, focuses on the discovery and development of novel cancer therapeutics.
The company’s product engine focuses on dysregulated transcription factors and the transcriptional regulatory networks that drive oncogenic activity. Its lead product candidate is entospletinib, which is an orally administered, selective spleen tyrosine kinase inhibitor for acute myeloid leukemia patients.
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The company announced in January that it has entered into a discovery collaboration in the field of oncology with Genentech, a member of the Roche Group, focused on discovering and developing small-molecule drugs that modulate transcription factor targets selected by Genentech. Kronos Bio will receive a $20 million upfront payment and could receive up to an additional $554 million in milestone payments.
The target price at Goldman Sachs is $14. The lower $10 consensus target is also well above Friday’s $1.78 per share close. Hitting the Goldman Sachs target would be a gain of 735%.
Flying private has exploded since the start of the pandemic in 2020, and that growth may remain for years. Wheels Up Experience Inc. (NYSE: UP) provides private aviation services, primarily in the United States.
The company’s a suite of products and services includes multi-tiered membership programs, on-demand flights across various private aircraft cabin categories, aircraft management, retail and wholesale charter, whole aircraft acquisitions and sales, corporate flight solutions, special missions, signature events and experiences, and commercial travel. It operates a fleet of approximately 1,500 aircraft.
Wheels Up Customers can access membership programs, charter, aircraft management services and whole aircraft sales, as well as unique commercial travel benefits through a strategic partnership with Delta Air Lines. The Wheels Up Services brands also offer freight, safety and security solutions, and managed services to individuals, industry, government and civil organizations.
The Goldman Sachs price target of $3.70 compares with a $3.54 consensus target and a closing price on Friday of $1.13 a share. Hitting the target would be a 230% gain.
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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