Investing

Goldman Sachs Has 5 Stock Picks Under $10 With Massive Upside Potential

Newmark

This real estate firm has been a rumored a takeover target. Newmark Group Inc. (NASDAQ: NMRK) is a leading U.S. commercial real estate brokerage firm. Its more than 1,500 producers operate from over 120 offices in North America, and they generated $1.6 billion in revenue in 2017.

Services offered include leasing (39% of revenue); capital markets (25%); mortgage origination (13%); mortgage servicing (7%); and property management, technology solutions, valuation and advisory and consulting (17%).

The $16 Goldman Sachs price objective is a little lower than the consensus target of $16.50. The stock was last seen trading at $9.75 per share.

Snap

This social media darling’s initial public offering was red hot out of the gate but the stock has tumbled back to earth over the past year. Snap Inc. (NYSE: SNAP) is a social media company consisting of leading social media platform Snapchat and hardware device Spectacles. Through Snapchat, the company facilitates communication through visual media, enabled by the mobile camera.

Users are able to share photos, videos and text and are exposed to publisher content from top media companies such as The Wall Street Journal, Vogue, People, MTV and CNN. Advertisers use the platform to promote products, which has a strong reach with the coveted millennial demographic.

Goldman Sachs has set its price target at $10. The consensus target is much lower at $8.02, and the shares traded at $6.90 on Friday.

Vivint Solar

Aggressive accounts may want to study this green energy play. Vivint Solar Inc. (NYSE: VSLR) finances, installs and services solar power systems on customer premises. The majority of the company’s installations are leased from Vivint by its customers.

The company posted solid third-quarter results, and Vivint is seeing stronger growth in key California and Northeast markets in particular due to its dynamic pricing model introduced earlier this year. Company management recently emphasized expectations for growth at or above general residential solar market growth rates, estimated at around 10% going forward, with current growth trends expected to continue supported by growing bookings to backlog.

The Goldman Sachs price target is $7.50. That compares with the consensus target of $8.10 and the recent share price of $5.80.

These are five stocks trading under the $10 level that have big upside to the analysts’ price targets. Again, while not suitable for conservative accounts, aggressive investors can get some solid share leverage buying 5,000, 10,000 or more shares and can make money on a much smaller share price move. Plus they are all covered with a Buy rating at the top firm on Wall Street, Goldman Sachs.