5 Stocks Rated Buy 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 low to mid hundreds and all the way up to over $1,000 per share. 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 make decisions, 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 and found five stocks trading under the $10 level that could provide investors with some solid upside potential. While much better suited for aggressive accounts, they could prove exciting additions to portfolios looking for solid alpha potential.

AK Steel

This company has rallied recently but still offers investors a solid entry point at current levels. AK Steel Holding Corporation (NYSE: AKS) is the sixth-largest U.S. steelmaker and has the capacity to produce nearly 7 million tons of a total 110 million tons of U.S. steel capacity. The company produces flat-rolled carbon, stainless and electrical steel, and tubular products in the United States and internationally. It produces flat-rolled value-added carbon steels, including coated, cold-rolled, and hot-rolled carbon steel products; and specialty stainless and electrical steels in sheet and strip forms.

AK Steel also produces carbon and stainless steel that is finished into welded steel tubing, which is used in the automotive, large-truck, industrial, and construction markets; buys and sells steel and steel products, and other materials; and produces metallurgical coal from reserves in Pennsylvania.

Deutsche Bank rates the stock a Buy with a $7 price target. The Wall Street consensus target is posted at $5.57. The shares were trading at $4.64 on Friday.

Kosmos Energy

This stock was just raised to a Buy at Jefferies and is a solid energy exploration and production play. Kosmos Energy Ltd. (NYSE: KOS) is a conventional oil and gas E&P company focused on the Atlantic margin. The company focus is on unlocking new hydrocarbon systems and growing and maturing discovered basins through follow-on exploration success, development and production.

Although many companies in the sector have scaled back exploration, Kosmos believes this is the best route to generating value, by seeking to replicate its discovery and development of the Jubilee field in Ghana.

Jefferies has a $9.50 price objective for the company, while the Wall Street consensus is posted at $8.78. The shares closed trading on Friday at $7.96.