Investing

5 Stocks Rated Buy Under $10 With Huge Upside Potential

Novavax

This small biotech has taken investors on a roller-coaster ride over the past three years but could be ready for a big move higher. Novavax Inc. (NASDAQ: NVAX) is a clinical-stage vaccine company focused on the discovery, development and commercialization of recombinant nanoparticle vaccines and adjuvants. It operates through developing recombinant vaccines segment. The company, through its recombinant nanoparticle vaccine technology, produces vaccine candidates to respond to both known and newly emerging diseases.

The Novavax product pipeline focuses on a range of infectious diseases with vaccine candidates in clinical development for respiratory syncytial virus, seasonal influenza, pandemic influenza and the Ebola virus. The company’s lead adjuvant for human applications, Matrix-M, is in a Phase 1/2 clinical trial for pandemic influenza H7N9 vaccine candidate.

JPMorgan analyst Eric Joseph swung to bullish from bearish this week, citing a favorable risk-reward investment profile ahead of pivotal trial data on its RSV treatment for infants, due out in the first quarter of 2019. Joseph raised his rating two notches to Overweight from Underweight.

Note that the $2.25 JPMorgan price target is less than the $3.86 consensus target. The stock traded at $1.60.

Noble

This is a top player in the Gulf of Mexico. Noble Corp. (NYSE: NE) operates as an offshore drilling contractor for the oil and gas industry worldwide. It owns and operates a fleet of mobile offshore drilling units. As of December 31, 2017, the company operated a fleet of eight drillships, six semi-submersibles and 14 jack-ups.

Top Wall Street analysts feel that the company will be able to put idle or stacked rigs back to work over the next two years, and many are very bullish on the company’s prospects after some sustained underperformance.

RBC has a $15 price target, while the posted consensus target was last seen at $5.90. Shares were trading at $6.98.

Precision Drilling

Canada’s leading oilfield services firm provides contract drilling, well servicing and strategic support services to its customers. Precision Drilling Corp. (NYSE: PDS) provides customers with access to an extensive fleet of contract drilling rigs, directional drilling services, well service and snubbing rigs, coil tubing services, camps, rental equipment and water treatment units backed by a comprehensive mix of technical support services and skilled, experienced personnel.

Despite the company’s large Canadian exposure, 54% of its U.S. drilling fleet is located in the Permian Basin, which remains the hottest shale area in the United States. This stock may be a top pick for aggressive accounts looking for low-priced stocks to gain more shares.

RBC has its price objective set at $7. The consensus target price is $4.44, and the stock traded at $3.75 on Friday.

These are five stocks for aggressive accounts that look 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 on them.

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