Investing
5 Blazing Hot Stocks That Trade Under $10 and Have Big 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 4.25% dividend. TD Securities has a target price in U.S. dollars of $9.05. The consensus target is higher at $11.05. Crescent Point Energy stock last traded on Friday at $6.75.
Enovix
This company has battery technology for the new age of electric vehicles that could be a total game changer in the industry. Enovix Corp. (NASDAQ: ENVX) is the leader in advanced silicon-anode lithium-ion battery development and production.
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The company’s proprietary 3D cell architecture increases energy density and maintains high cycle life. Enovix is building an advanced silicon-anode lithium-ion battery production facility in the United States for volume production.
Its initial goal is to provide designers of category-leading mobile devices with a high-energy battery so they can create more innovative and effective portable products. Enovix is also developing its 3D cell technology and production process for the electric vehicle and energy storage markets to help enable widespread utilization of renewable energy.
Oppenheimer’s $36 target price is higher than the $30.50 consensus target. On Friday, shares traded closed at $9.56..
IHS
Shares of this wireless tower giant have been crushed and offer huge upside potential. IHS Holding Ltd. (NYSE: IHS) owns, operates and develops shared telecommunications infrastructure in Africa, Latin America, Europe and the Middle East. It offers colocation and lease agreement, build-to-suit, fiber connectivity and rural telephony solutions. The company serves mobile network operators, internet service providers, broadcasters, security functions and private corporations.
Including the approximately 5,700 towers subject to the imminent completion of its pending deal in South Africa, IHS will own nearly 39,000 towers across 11 countries, making the company the third largest independent multinational tower company by tower count. This geographic scale helps diversify the revenue stream, and also positions IHS in some of the largest emerging markets in the world, including the three largest countries in Africa and the largest Latin American country by gross domestic product.
Goldman Sachs has set its target price at $13, but IHS stock has a consensus target of $15.75. The shares last traded at $7.21 on Friday.
24/7 Wall St.iQiyi
Many top analysts feel that shares of this company could explode higher soon. iQiyi Inc. (NASDAQ: IQ) provides online entertainment services under the iQiyi brand in the People’s Republic of China. The company offers various products and services, including internet video, online games, live broadcasting, online literature, animations, e-commerce and a social media platform.
The company operates a platform that provides a collection of internet video content, including professionally produced content licensed from professional content providers and self-produced content. iQiyi also provides membership, content distribution and online advertising services.
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In addition, it operates iQiyi Show, a live broadcasting service that enables users to follow their favorite hosts, celebrities and shows in real-time through live broadcasting; and iQiyi Lite, an easy and quick access to the personalized videos based on their user preferences. Further, it is involved in the talent agency and IP licensing activities, as well as engages in developing a video community app.
The Jefferies target price is $9. The consensus target is $6.42, but iQiyi stock closed at $7.31 on Friday.
Rocket Lab
Given the huge move to outer space for infrastructure and more, this stock is poised to benefit in a big way. Rocket Lab USA Inc. (NASDAQ: RKLB) is a space company that provides launch services and space systems solutions for the space and defense industries. The company provides launch services, spacecraft design services, spacecraft components, spacecraft manufacturing and other spacecraft and on-orbit management solutions. It offers constellation management services, as well as designs and manufactures small and medium-class rockets.
Rocket Lab also designs, manufactures and sells Electron small orbital launch vehicles and the Photon satellite platforms, as well as developing the Neutron 8-ton payload class launch vehicle. It conducts remote launch activities, and it designs and manufactures a range of components and subsystems for the Photon family of spacecraft and broader merchant spacecraft components. The company serves commercial, aerospace prime contractors and government customers.
The $10 Deutsche Bank target price is higher than the $9.33 consensus target. The shares closed Friday at $3.91.
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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