Stocks may have had a very volatile week, but investors and traders are still looking for opportunities in overlooked or undervalued companies. 24/7 Wall St. reviews dozens of analyst reports and boutique research reports each day, which translates to hundreds of reports each week. Some of these reports cover stocks to buy and others cover stocks to sell.
When investors think of value, sometimes they think of low-priced stocks under $10. Investors looking at analyst reports in small-cap or low-priced stocks do need to consider several risks above and beyond traditional risks in large cap stocks. Calling for upside of 50%, 75% or 100% is far from normal expectations and is not the typical risk-reward scenario for most stocks.
Almost none of these low-priced stocks would pass the traditional “widows and orphans” suitability test. Also, many speculative analyst stocks fail to live up to expectations, and many of them can crash and burn over time.
24/7 Wall St. has included a research summary of each analyst call of these top stocks under $10 seen in the past week. Also included is a note tied to the price, value or trading range, and some color has been added on each. These were the top analyst stocks to buy under $10 seen in research calls issued this past week.
Alcatel-Lucent S.A. (NYSE: ALU) seems to have finally started to pull itself off the deck and get earnings back on track. The company was featured in a UBS report about the coming demand surge for fiber delivery and advanced networks. The Thomson/First Call consensus price target was $4.69, versus a prior close of $3.19. Then shares were at $3.11 on late Friday trading, after a massive market sell-off on Thursday. This is now a potential 50% gain.
DSP Group Inc. (NASDAQ: DSPG) was started as Buy with an $11 price target at Needham & Co. on Tuesday. Shares were at $8.59 prior to the call, implying upside of nearly 30% then. Shares were trading at $8.86 late on Friday.
Eldorado Gold Corp. (NYSE: EGO) was featured this week as part of a Credit Suisse mining and metals call for a potential turnaround. Credit Suisse’s price target is $10, while the consensus is at $9.06. Shares closed Thursday at $7.03, and shares were at $6.86 late on Friday.
IGI Laboratories Inc. (NYSEMKT: IG) saw its shares rise on Friday after Oppenheimer maintained its Outperform rating and raised its $8 target price to $10. Shares were up 5% at $9.25 late on Friday on above normal trading volume. This may not be massive upside, but it could be good to look for opportunities if shares pull back from their highs — particularly after IG hit a new 15-year high of $9.40 on Friday.
Immunomedics Inc. (NASDAQ: IMMU) could nearly double, at least that is the opinion from Jefferies. The brokerage firm started Immunomedics with a Buy rating and assigned it a whopping $6 price target, versus a prior $3.18 close. Shares were up 5% shortly after that call was made, and they were at $3.52 late on Friday.
magicJack VocalTec Ltd. (NASDAQ: CALL) is a runner up as the share price was $10.10, and it had traded under $10 the day before the analyst call was made. The boutique firm Sidoti started magicJack with a Buy rating.
Maxwell Technologies Inc. (NASDAQ: MXWL) was reiterated as Outperform by a firm named Northland Securities on Wednesday, but what stood out was that the firm raised its price target to $13 from $12. Shares of this $265 million market cap energy storage and power delivery products outfit were at $9.18 on Friday, leaving more than 40% implied upside. If this doesn’t sound bullish enough, just consider that the consensus price target is $15.50, and the highest price target is up at $18.
ShoreTel Inc. (NASDAQ: SHOR) was raised to Buy from Neutral by SunTrust Robinson Humphrey on Tuesday, and the price target was raised to $9.00 from $7.50 in the call. This upgrade projected more than 40% upside from the prior $6.39 closing price — and the $9 target would not even make for a 52-week high. Shares were closer to $6.80 late on Friday.