Investing

5 Well-Known 'Strong Buy' Stocks Trading Under $25 With Huge Upside Potential

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While most of Wall Street focuses on large and mega-cap stocks, as they provide safety and liquidity, many investors are limited in the number of shares they can buy. Many of the most significant public companies, especially the technology giants, trade from the low hundreds to over $1000 per share. It’s hard to get decent share count leverage at those steep prices.

Many investors, especially more aggressive traders, look at lower-priced stocks to make good money and get a higher share count. That can 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 companies that could offer patient investors enormous returns for the rest of 2023 and beyond. For lower-price stock skeptics, many of the biggest companies in the world, including Apple Inc. (NASDAQ: AAPL), Amazon.com Inc. (NASDAQ: AMZN), and Netflix Inc. (NASDAQ: NFLX), all traded in the single digits at one time. In addition, Nvidia Corp. (NASDAQ: NVDA), which has exploded higher on AI semiconductor chips, sold under $10 for years.

Here are five well-known stocks trading under $25 with tremendous upside potential.

Ford Motor Company

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This legacy carmaker is a stunning, Strong Buy as the massive UAW strike recently ended. Ford Motor Company (NYSE: F) develops, delivers, and services a range of Ford trucks, commercial cars, vans, sport utility vehicles, and Lincoln luxury vehicles worldwide. Ford shareholders also grab a fat 5.82% dividend.

The company operates through;

  • Ford Blue
  • Ford Model E
  • Ford Pro
  • Ford Next
  • Ford Credit

The company sells Ford and Lincoln vehicles, service parts, and accessories through distributors, dealers, and dealerships to commercial fleet customers, daily rental car companies, and governments.

Ford also engages in vehicle-related financing and leasing activities to and through automotive dealers.

In addition, the company provides retail installment sale contracts

  • For new and used vehicles
  • Direct financing leases for new cars to retail and commercial customers, such as leasing companies, government entities, daily rental companies, and fleet customers.

Ford also offers wholesale loans to dealers

  • To finance the purchase of vehicle inventory
  • Loans to dealers to finance working capital, enhance dealership facilities, and purchase dealership real estate and other dealer vehicle programs.

KeyCorp

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This top regional player is very cheap at current levels for investors looking at financials. KeyCorp. (NYSE: KEY) operates as the bank holding company for KeyBank National Association and provides deposit, lending, cash management, and investment services to individuals and small and medium-sized businesses under KeyBank National Association.

KeyCorp also provides a broad range of sophisticated corporate and investment banking products:

  • Merger and acquisition advice,
  • Public and private debt and equity syndications
  • Derivatives to middle market companies in selected industries throughout the United States under KeyBanc Capital Markets.

KeyCorp investors are paid a massive 7.79% dividend.

Kinder Morgan

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This is one of the top energy stocks and remains a favorite across Wall Street, paying shareholders a solid 6.78% dividend. Kinder Morgan, Inc. (NYSE: KMI) is an energy infrastructure company in North America.

The company operates through

  • Natural Gas Pipelines
  • Products Pipelines
  • Terminals
  • CO2 segments.

The Natural Gas Pipelines segment

  • Owns and operates interstate and intrastate natural gas pipeline and underground storage systems; natural gas gathering and processing and treating facilities; natural gas liquids fractionation and transportation systems; and liquefied natural gas liquefaction and storage facilities.

 The Product Pipeline segment

  • Owns and operates refined petroleum products, crude oil, condensate pipelines, associated product terminals, and petrol OKEpipeline transmix facilities.

The Terminals segment

  • Owns and operates liquids and bulk terminals that store and handle various commodities, including gasoline, diesel fuel, chemicals, ethanol, metals, and petroleum coke, and owns tankers.

The CO2 segment

  • Produces, transports, and markets CO2 to recover and produce crude oil from mature oil fields and owns interests in/or operates oil fields, gasoline processing plants, and a crude oil pipeline system in West Texas. It holds and runs approximately 83,000 miles of pipelines and 144 terminals.

Palantir Technologies

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Started by Silicon Valley legend Peter Thiel, this company may have the most significant upside potential of all of the stocks in this group and is also a potential takeout candidate. Palantir Technologies Inc. (NASDAQ: PLTR) builds and deploys software platforms for the intelligence community in the United States to assist in counterterrorism investigations and operations.

The company offers Palantir Gotham, a software platform for government operatives in the defense and intelligence sectors, which enables users to 

  • Identify patterns hidden deep within datasets, ranging from signal intelligence sources to reports from confidential informants, as
  • Facilitates the handoff between analysts and operational users, helping operators plan and execute real-world responses to threats identified within the platform.

The company also provides Palantir Foundry, a platform that transforms organizations’ operations by creating a central operating system for their data. It allows individual users to integrate and analyze the data they need in one place.

Nordstrom

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This high-end retailer could explode higher with a big holiday shopping season. Nordstrom, Inc. (NYSE: JWN) is a fashion retailer that provides apparel, shoes, beauty, accessories, and home goods for women, men, young adults, and children.

It offers a range of brand name and private label merchandise through various channels, such as

  • Nordstrom branded stores and
  • Online at Nordstrom.com;
  • Nordstrom.ca;
  • Nordstrom stores;
  • Nordstrom Rack stores;
  • Nordstrom Locals;
  • ASOS;
  • Nordstromrack.com;
  • Clearance stores under the Last Chance name.

Top analysts across Wall Street see significant value in the company, which remains a leading retail destination for higher net-worth clientele. Wellness and beauty brand The Skinny Confidential recently launched its first nationwide retail partnership in store with 93 Nordstrom full-line locations to attract millennial shoppers.

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