Investing
5 Sizzling Well-Known Buy-Rated Stocks Under $10 Could Explode Higher in October
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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.
The largest airline in Brazil emerged from the pandemic as one of the top airlines in Latin America. Azul S.A. (NYSE: AZUL) provides scheduled air transportation services in Brazil. As of December 31, 2022, the company operated approximately 1,000 daily departures to 158 destinations through a network of 300 nonstop routes with an operating fleet of 177 aircraft and a passenger contractual fleet of 194 aircraft.
Azul is also involved in cargo transportation, loyalty programs, travel packages, funding, logistics solutions and aircraft financing activities.
Goldman Sachs recently upgraded the airline and named the stock its top pick in the region. The company was founded in 2008 by the former CEO of JetBlue, David Neeleman.
The $18.30 Goldman Sachs target price on Azul stock is well above the consensus target of $15.90. The shares closed on Friday at $8.72.
Shares of this well-known health care name have big upside potential, and the company could post $8.5 billion in revenue this year. Bausch Health Companies Inc. (NYSE: BHC) operates as a diversified pharmaceutical company. It develops, manufactures and markets a range of products primarily in gastroenterology, hepatology, neurology, dermatology, international pharmaceuticals and eye health.
Bausch Health operates through these segments:
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The company was formerly known as Valeant Pharmaceuticals International and changed its name in July 2018.
Jefferies upgraded the shares this past week and has a $16 target price. The consensus target is $9.67, and the stock closed at $8.22 on Friday.
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.
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.
A Strong Buy rating accompanies the $19 target price at Raymond James. The consensus target for Dish Network stock is $12.40, and the stock last traded on Friday at $6.27.
This cycling and exercise platform was a huge pandemic winner but has been hammered this past year. Peloton Interactive Inc. (NASDAQ: PTON) operates interactive fitness platforms in North America and internationally. The company offers connected fitness products with touchscreens that stream live and on-demand classes under the Peloton Bike, Peloton Bike+, Peloton Tread and Peloton Tread+ names.
Peloton also provides connected fitness subscriptions for various household users and access to various live and on-demand classes. Its Peloton Digital app for connected fitness subscribers provides access to its classes. As of June 30, 2022, it had approximately 6.9 million members. The company markets and sells its interactive fitness products directly through its retail showrooms and online.
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The company announced last November a partnership with Dick’s Sporting Goods to sell their exercise bikes through the retail giant. Peloton’s exercise hardware (minus its new rowing machine) is available for sale at 100 Dick’s Sporting Goods locations.
Deutsche Bank has set its target price at $13, while the consensus target is just $8.05. Peloton Interactive stock closed on Friday at $4.46.
This company is poised to be a huge winner in the fuel cell battle for electric vehicles (EVs). Plug Power Inc. (NASDAQ: PLUG) delivers end-to-end clean hydrogen and zero-emissions fuel cell solutions for supply chain and logistics applications, on-road EVs, the stationary power market and others in North America and internationally. It engages in building an end-to-end green hydrogen ecosystem, including liquid green hydrogen production, storage and handling, transportation and dispensing infrastructure.
The company offers the following:
Plug Power stock has a $14 target price at Susquehanna. The consensus target is up at $17.93. On Friday, shares closed at $7.43.
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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