With the Federal Reserve out of the way until the next meeting, stocks rebounded this week as investors digested new data and anticipated a continued dovish stance from the central bank. The huge Alibaba IPO also sparked enthusiasm among investors, as the long-awaited stock finally started trading.
In reviewing our weekly research, we came across some top stocks to buy trading under $10 that could have big upside for our readers. Typically these stocks receive less Wall Street coverage and are far less crowded, which can bode well for risk-tolerant investors. These are not suitable for investors with conservative growth or income portfolios that are designed to protect capital.
Ballard Power Systems Inc. (NASDAQ: BLDP) has been around forever as a fuel cell play. Sidoti decided on Tuesday to raise its rating to Buy from Neutral. This actually prevented further selling from the prior day as this was a $3.40 stock at the end of the prior week and dipped under $3.10 this past week. Ballard was trading at $3.17 at Friday’s close.
DryShips Inc. (NASDAQ: DRYS) was started as Buy with a $5 price target at Deutsche Bank in a late-Monday call. The Deutsche Bank research on the sector was very positive, with 2015 expected to be a solid year for growth across shipping. The shares closed trading Friday at $3.00.
Groupon Inc. (NASDAQ: GRPN) found a huge friend in Sterne Agee this week. The firm has the stock rated at Buy with a huge $12 price target. The analyst cited multiple reasons for the bullish posture on the stock, including much easier comparisons, a first-time analyst day in November, a new Yelp-type service and a very reasonable valuation. Shares were trading late Friday just below $7.
Hercules Offshore Inc. (NASDAQ: HERO) was reiterated as a buy this week at Deutsche Bank. While Gulf of Mexico drilling activity is muted, signs of life, especially after hurricane season ends in November, look encouraging. The Deutsche Bank price target for the stock is a monster $6. Shares ended the week at $2.39.
Merrimack Pharmaceuticals Inc.‘s (NASDAQ: MACK) top drug is MM-398, which has shown to treat pancreatic cancer in Phase 3 trials. Fully one-quarter of patients using the drug have survived, which is a high percentage when you consider that late-stage pancreatic cancer is almost always quickly lethal. J.P. Morgan has an Overweight rating on the stock and a gigantic $14 price target. Shares were trading at Friday close at $7.29.
Nokia Corp. (NYSE: NOK) had a solid week on the heels of a positive research call from Oppenheimer, as it raised the prior Perform rating to Outperform. What really stood out was the $12 price target. This implies that Nokia could rally by more than 40%. Shares were trading Friday at $8.64.
On Track Innovations Ltd. (NASDAQ: OTIV) landed a positive call on Tuesday from Northland Securities. The firm maintained its Outperform rating and raised the price target to $4.25 from $3.50 in the call. The company specializes in near field communications (NFC) and cashless payment solutions. Apple released its iPhone 6 with both NFC and cashless payment as features, a huge win for the company. The stock ended Friday’s session at $3.11.
Scorpio Bulkers Inc. (NYSE: SALT) was started as Buy at Deutsche Bank on Wednesday. The company’s fleet of cargo ships transports a range of major and minor bulk commodities, including ores, coal, grains and fertilizers, along worldwide shipping routes. Deutsche Bank has put a solid $12 price target for the stock, which was trading at $7.21 as the week came to a close.
Skullcandy Inc. (NASDAQ: SKUL) was started as Overweight on Wednesday with a $9.50 price target by Piper Jaffray. Shares of the popular ear-buds company were trading hands late Friday at $7.87.
Yingli Green Energy Holding Co. (NYSE: YGE) may be the ideal stock for aggressive investors looking to acquire a large share position. Deutsche Bank reiterated its bullish call on the solar company this past week, and it has a gigantic $6 price target. Shares of the company were trading at $3.39 at Friday’s close.
Keep in mind that these are very risky calls and only intended for accounts designed for trading volatile names. With that caveat in place, the firms that cover these stocks are all very reputable and have done their homework.
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