Stocks challenged new all-time highs yet again this last week, yet investors keep being told that the bull market now is moving to a stock picker’s market. 24/7 Wall St. reviews dozens of analyst research reports each day, looking for new ideas and hidden gems for our readers. While we often see many stocks to buy from Wall Street analyst reports, sometimes the stocks trading under $10 have incredible upside price targets.
As always, we would caution that stocks trading under $10 are often among the riskiest of all stocks. Still, many investors love the low-priced sticks as they feel like there is a larger room for upside. Some analysts even make projections of 50%, 100% or even exponential upside. That is not the sort of call you would expect for a Dow Jones Industrial Average component.
If you want to see just how the indexes treat stocks under $10: only four of the S&P 500 stocks have traded under $10 for weeks. As of Friday, only two S&P 500 stocks were trading under $10.
Another consideration on risk in most of the stocks under $10 is that almost all of these selected from this past week would fail the “widows and orphans” suitability test. This is what brokers and financial advisors have to consider when it comes to ethics and suitability for clients.
In order to come up with this list of stocks under $10 this week, we literally went back over more than 300 different analyst calls from this past week alone. These are the 11 analyst stocks we tracked this past week with huge implied upside, if the analysts are correct in their calls.
Apollo Investment Corp. (NASDAQ: AINV) was raised to Outperform from Market Perform with a $9.50 price target at Keefe Bruyette & Woods on Tuesday. While the stock was at $8.53 ahead of the call, the stock was at $8.34 on Friday, which now brings upside of about 14%, plus that dividend yield of almost 10%.
Atlantic Power Corp. (NYSE: AT) was raised to Sector Perform from Underperform at RBC Capital Markets on Thursday. The report might not seem like much on the surface, but it eliminates a “sell” equivalent rating. Shares did rise about 1% to $3.53, and shares were even higher on Friday. The thing to remember is that this is one of the more controversial power generation stocks with an incredibly high dividend yield.