Investing
5 Red-Hot Well-Known Stocks Trading Under $10 That Fast Money Traders Absolutely Love
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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. 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, 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 the rest of 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.
This satellite provider has always been rumored to be a takeover target. Dish Network Corp. (NASDAQ: DISH) provides pay-TV services in the United States. It offers video services under the Dish TV brand, and its programming packages 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.
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. Its markets Sling TV services to consumers who do not subscribe to traditional satellite and cable pay-TV services.
Credit Suisse has a $27 target price on Dish Network stock, while the consensus target is just $15.29. The stock closed on Friday at $6.69.
This electric vehicle (EV) stock could be a takeover candidate. Fisker Inc. (NYSE: FSR) develops, manufactures, markets, leases and sells EVs. It is also involved in the asset-light automotive business. In addition, it offers Fisker Flexible Platform Agnostic Design, a process that develops and designs electric vehicles in specific segment sizes.
Earlier this year, the company announced that it officially started production of the Fisker Ocean all-electric sport utility vehicle in Graz, Austria. Fisker said it expects to see more than 300 units manufactured in the first quarter, 8,000 units in the second quarter, and 15,000-plus units in the third quarter. It is targeting 2023 production of 42,400 units. The CEO said at the time that demand was stronger than the company initially expected.
Citigroup’s $15 target price is shy of the $15.29 consensus target, but Fisker stock closed on Friday at $5.53.
This sports-betting-related stock just signed a big-time partnership with the NFL, and ARK’s 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 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.
The Oppenheimer price objective is $10, and Genius Sports stock has a $9.50 consensus target. On Friday, shares closed at $6.40, up almost 4% for the day.
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.
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.
Last fall, the stock was added to the small-cap Russell 2000, which is a huge advantage as index funds that replicate the index in its entirety have to buy the shares. In addition, the company posted second-quarter results that blew away estimates.
The $10 Truist Financial price target compares with the $8.97 consensus target and a closing share price of $5.89 for Holley stock on Friday.
This company took the SPAC route for their IPO and is a meme stock trader favorite that posted solid quarterly results. SoFi Technologies Inc. (NASDAQ: SOFI) provides digital financial services that allow its members to borrow, save, spend, invest and protect their money.
The company also 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.
SoFi Technologies stock has a $15 target price at Mizuho. The consensus target is $10.02, and shares closed at $8.22 on Friday.
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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