Technology
5 Technology and Gaming Stocks Trading Under $10 With Massive Upside Potential
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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 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’s pretty hard to get any decent share count leverage.
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 technology and related companies that are likely to survive the current troubles and could very well offer patient investors some huge returns over the next year or so. Patient investors that did that in 2008 and 2009 absolutely killed it over the next few years.
While all five stocks 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 gaming retailer has had an up and down year but may be poised to go significantly higher. GameStop Corp. (NYSE: GME) sells new and pre-owned video game hardware; video game software; pre-owned and value video games; video game accessories, including controllers, gaming headsets, virtual reality products, memory card, and other add-ons for use with video game hardware and software; and digital products, such as downloadable content, network points cards, prepaid digital and prepaid subscription cards and digitally downloadable software.
GameStop also sells collectibles comprising licensed merchandise primarily related to the video game, television and movie industries, as well as pop culture themes; gaming-related print media and mobile and consumer electronics; PC entertainment software in various genres comprising sports, action, strategy, adventure/role playing and simulation; and strategy guides, magazines, and interactive game figures.
In addition, the company operates e-commerce sites under the GameStop, EB Games, Micromania and ThinkGeek brands, as well as collectibles stores under the Zing Pop Culture and ThinkGeek brand, and Game Informer, a video game magazine.
Telsey Advisory just upgraded the shares to Outperform from Market Perform and raised the price target to $10. The Wall Street consensus target price is $6.20. This past week, GameStop stock rose above the $9 level for the first time this year.
This gaming stock could have some big upside for aggressive accounts. Glu Mobile Inc. (NASDAQ: GLUU) designs, markets and sells mobile games. It specializes in free-to-play mobile games designed to a section of users who download and make purchases games through direct-to-consumer digital storefronts, such as the Apple App Store, Google Play Store, Amazon Appstore and others.
The company creates games based on its own brands, Blood & Glory, Contract Killer, Cooking Dash, Deer Hunter, Diner Dash, Eternity Warriors, Frontline Commando, Gun Bros, QuizUp and Tap Sports.
Glu Mobile also creates games based on third-party licensed brands, such as “Kim Kardashian: Hollywood,” “MLB Tap Sports Baseball” and “Restaurant Dash with Gordon Ramsay.”
The $9.80 Goldman Sachs price target is lower than the $11.09 consensus target. Glu Mobile stock broke above $7.50 on Friday.
This Chinese company is thought to be in play as a potential buyout candidate. iClick Interactive Asia Group Ltd. (NASDAQ: ICLK) engages in the provision of online marketing and data technology platforms. Its data-driven solutions help marketers identify, engage and activate potential customers; monitor and measure the results of marketing campaigns; and create content catering to potential customers across different content distribution channels through both personal computer and mobile devices.
iClick offers mobile audience solutions, which are non-search-engine marketing solutions designed to identify, engage and activate audience on mobile apps and monitor and measure the results of online marketing activities on such channels. Other solutions focus on identifying, engaging and activating audience on non-mobile app content distribution channels comprising PC banner displays, PC video advertisements and search engine marketing. The company sells its solutions by entering into marketing campaign contracts with marketers or marketing agencies.
Alliance Global raised its price objective from $10 to $12, near the consensus figure of $12.13. Shares have retreated from the year-to-date high near $10 seen at the beginning of this month.
This stock looks to have bottomed recently and could be ready for a sizable move higher. Limelight Networks Inc. (NASDAQ: LLNW) offers services and solutions for businesses to deliver their digital content across the internet, mobile, social and other digital initiatives. It operates edge services platform that provides content delivery services, video content management services, performance services for website and web application acceleration and security, professional services, cloud storage and edge computing services, as well as sells equipment.
Limelight Networks also offers professional services and other infrastructure services, such as transit and rack space services. It serves media companies operating in the television, music, radio, newspaper, magazine, movie, gaming, software and social media industries, as well as enterprises, technology companies and government entities conducting business online.
The Oppenheimer price objective is $9. The consensus target price is $8.86, and Limelight Networks stock rose above $6 late last week.
This company has gone through numerous transformations over the past 20 years and is poised for potential strong growth. Zix Corp. (NASDAQ: ZIXI) provides email encryption, data loss prevention (DLP), threat protection, archiving and bring-your-own-device mobile security solutions for the health care, financial services, insurance and government industries primarily in the United States.
The company offers the following:
Zix sells its services through a direct sales force and a network of resellers and other distribution partners.
Northland Securities has a gigantic $11 price target. The consensus target is $10.50, and shares have mostly traded between $5 and $7 since April.
These are five stocks for very aggressive investors looking 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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