Investing
Snapchat Maker Highlights 5 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.
Figs
While somewhat off the radar, this company provides products to the 18 million health care workers in the United States. Figs Inc. (NYSE: FIGS) operates as a direct-to-consumer health care apparel and lifestyle company in the United States. It designs and sells scrubwear and other offerings, such as lab coats, under scrubs, outerwear, loungewear, compression socks and other lifestyle apparel.
The company also offers sports bras, performance leggings, super-soft Pima cotton tops, vests, fleeces, and jackets. Its necessities include face masks, scrub caps, lanyards, badge reels, tote bags, baseball caps and beanies. The company markets and sells its products through its digital platform, including a website and mobile app.
The stock roared higher on Friday after posting results for the first quarter that blew away expectations.
Telsey Advisory has an $11 target price on the shares. The consensus target is just $8.48, and shares closed over 11% higher on Friday at $7.70.
Getty Images
Trillium Capital reportedly has proposed to Buy this company for $10 a share. Getty Images Holdings Inc. (NASDAQ: GETY) operates as a visual content creator and marketplace in the Americas, Europe, the Asia-Pacific and elsewhere. It maintains privately-owned photographic archives covering news, sport and entertainment events, as well as a variety of subjects, including lifestyle, business, science, health, wellness, beauty, sports, transportation and travel under the Getty Images, iStock and Unsplash brands.
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The company also provides music licensing and digital asset management and distribution services. It serves enterprises, businesses and individual creators.
While some are skeptical that the deal with Trillium Capital happens, as evidenced by the recent trading price, the company remains cheap at current levels and is a solid buy either way.
Citigroup’s $8 target price compares with a $6.46 consensus target and a closing share price of $5.93 on Friday.
Navitas Semiconductor
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.
Baird’s price target is $10, while the consensus target is $8.94. Navitas Semiconductor stock closed on Friday at $5.80.
Snap
The roller-coaster ride for this stock over the past few years has given traders the perfect entry point. Snap Inc. (NYSE: SNAP) operates as a camera and social media company in North America, Europe and elsewhere.
The company offers Snapchat, a camera application with various functionalities, such as Camera, Communication, Snap Map, Stories and Spotlight that enable people to communicate visually through short videos and images.
Snap also provides Spectacles, an eyewear product that connects with Snapchat and captures photos and video from a human perspective. Its advertising products include AR ads and Snap ads, comprised of a single image or video ads, story ads, collection ads, dynamic ads and commercials.
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Earnings for the quarter increased, but revenues fell short. However, the results did reflect steady user growth. The concerns over Tik-Tok seem to have crept into the conversation for Snap, and many feel that is not warranted.
Credit Suisse has set its target price at $11. Snap stock has an $8.40 consensus target, and shares closed at $8.23 on Friday, which was up over 4% for the day.
SoFi Technologies
This company took the SPAC route for its IPO and remains a millennial trader favorite. SoFi Technologies Inc. (NASDAQ: SOFI) provides digital financial services that allow its members to borrow, save, spend, invest and protect their money. The company offers student loans; personal loans for debt consolidation and home improvement projects; and home loans.
SoFi also provides cash management, investment and other related services. In addition, it operates Galileo, a technology platform that offers services to financial and non-financial institutions, and Apex, a technology-enabled platform that provides investment custody and clearing brokerage services.
Oppenheimer recently reiterated its Outperform rating on SoFi Technologies stock. Its $7.50 price target is the same as the consensus target. The shares closed on Friday at $5.16, up almost 6% on the day, after posting solid earnings earlier in the week.
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, and major Wall Street firms have research coverage.
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