Investing
5 Stocks Under $10 With Massive Upside Potential and ARK’s Cathie Wood Loves Two of Them
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While Most of Wall Street focuses on large and mega-cap stocks, as they provide a degree of safety and liquidity, many investors are limited in the amount of shares they can buy. Many of the biggest public companies, especially the technology giants, trade in the low to mid hundreds all the way up to over $1,000 per share. At those steep prices, It’s pretty hard 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 to not only 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.
We screened our 24/7 Wall St. research database looking for smaller cap companies that could very well offer patient investors some huge returns for the rest of 2023 and beyond. For low-price stock skeptics, many of the biggest companies in the world including Apple, Amazon and Netflix all traded in the single digits at one time. In addition, Nvidia, which has exploded higher on AI semiconductor chips traded under $10 for years.
One stock we featured over the years, Zynga, was purchased by Take-Two Interactive. Cogent Biosciences, featured in March of 2022 has tripled. While all five of the companies are rated Buy, it’s important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
This little-known healthcare company has been battered and offers an incredible entry point, and Cathie Wood owns a massive 13.5 million shares. Cerus Corporation (NASDAQ: CERS) operates as a biomedical products company. The company focuses on developing and commercializing the INTERCEPT Blood System to enhance blood safety. Its INTERCEPT Blood System is a proprietary technology for controlling biological replication designed to reduce blood-borne pathogens in donated blood components intended for transfusion.
The company offers INTERCEPT Blood Systems for platelets and plasma, which is designed to inactivate blood-borne pathogens in platelets and plasma donated for transfusion; INTERCEPT Blood System for red blood cells to inactivate blood-borne pathogens in red blood cells donated for transfusion; and INTERCEPT Blood System for Cryoprecipitation that uses its plasma system to produce pathogen reduced cryo-precipitated fibrinogen complex for the treatment and control of bleeding, including massive hemorrhage associated with fibrinogen deficiency, as well as pathogen reduced plasma, cryoprecipitate reduced.
The company sells platelet and plasma systems through its direct sales force and distributors in the United States, Europe, the Commonwealth of Independent States, the Middle East, Latin America, and internationally.
Cantor Fitzgerald has an Overweight rating on the shares with a $9 target price. The Wall Street consensus is posted at $7.63. The final trade on Friday was filled at $2.42.
This satellite provider has always been rumored to be a takeover target. DISH Network Corporation (NASDAQ: DISH), together with its subsidiaries, provides pay-TV services in the United States. The company operates in two segments, Pay-TV and Wireless. It offers video services under the DISH TV brand; and programming packages that include programming through national broadcast networks, local broadcast networks, and national and regional cable networks, as well as regional and specialty sports channels, premium movie channels, and Latino and international programming packages.
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The company also provides access to movies and television shows through TV or Internet-connected devices; and dishanywhere.com and mobile applications on Internet-connected devices to view authorized content, search program listings, and remotely control certain features of their DVRs.
In addition, it offers Sling TV services, including Sling Domestic, Sling International, Sling Latino, Sling Orange, and Sling Blue services that require an internet connection and are available on streaming-capable devices, such as streaming media devices, TVs, tablets, computers, game consoles, and phones, as well as market SLING TV services to consumers who do not subscribe to traditional satellite and cable pay-TV services.
Further, the company provides wireless subscribers consumer plans with no annual service contracts, as well as monthly service plans, including high-speed data and unlimited talk and text. The company offers receiver systems and programming through direct sales channels, as well as independent third parties, such as small retailers, direct marketing groups, local and regional consumer electronics stores, retailers, and telecommunications companies.
Raymond James has a Strong Buy rating and a stout $21 target price. The consensus target on Wall Street is set lower at $16.50. The stock closed Friday at $6.61.
This sports betting-related stock just signed a big-time partnership with the NFL and Cathie Wood owns over 5 million shares. Genius Sports Ltd. (NYSE: GENI) develops and sells technology-led products and services to the sports, sports betting, and sports media industries.
The company offers technology infrastructure for the collection, integration, and distribution of live data of sports leagues; streaming solutions, comprising of technology, automatic production, and distribution for sports to commercialize video footage of their games; and end-to-end integrity services to sports leagues, such as full-time active monitoring technology, which uses mathematical algorithms to identify and flag suspicious betting activity in global betting markets, as well as a full suite of online and offline educational and consultancy services.
Genius Sports also provides live sports data collection; pre-game and in-game odds feeds; risk management services, including customer profiling, monitoring of incoming bets, automated acceptance and rejection of bets, and limit setting; live streaming services; creation, delivery, and measurement services for personalized online marketing campaigns; and fan engagement widgets for digital publishers that offer live game statistics and betting-related content.
BTIG Research has a Buy rating, and their price objective for the stock is set at $9, and that is versus the slightly lower $8 consensus target. Friday’s final trade was reported at $7.50.
Do-it-yourself car enthusiasts know this old-school company well. Holley Inc. (NYSE: HLLY) designs, manufactures, and markets automotive aftermarket products for car and truck enthusiasts in the United States, Canada, Europe, and China.
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The company’s products include carburetors, fuel pumps, fuel injection systems, nitrous oxide injection systems, superchargers, exhaust headers, mufflers, distributors, ignition components, engine tuners, automotive performance plumbing products, and exhaust products as well as shifters, converters, transmission kits, transmissions, tuners, and automotive software. It also offers wheels, chassis and suspension products, helmets, head and neck restraints, seat belts, firesuits, and electronic control and monitoring systems.
The company sells its products under the Holley, Holley EFI, APR, MSD, Flowmaster, Powerteq, Accel, and Simpson brands to retailers directly, as well as through distributors and online channels.
Earlier this year, the stock was added to the small-cap Russell 2000, offering a huge advantage as index funds that replicate the index in its entirety have to buy the shares.
JPMorgan has an Overweight rating and has set a $7 target versus the lower $4.85 consensus and Friday’s closing trade of $5.44.
This company took the SPAC route for its IPO and is a sizzling “meme stock” trader favorite. SoFi Technologies, Inc. (NASDAQ: SOFI) provides digital financial services. The company operates through three reportable segments: Lending, Financial Services, and Technology Platform. Its financial services 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 Technologies, Inc. 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.
BTIG Research has a Buy rating and a big $14 target price. The consensus target across Wall Street is $8.08. The shares were last seen Friday at $9.08.
Five stocks for very aggressive accounts that look to get share count leverage on companies that have sizable upside potential. While not suited for all investors, these are not penny stocks with absolutely no track record or liquidity, and major Wall Street firms have research coverage.
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