Investing

Goldman Sachs Has 5 More Stocks Under $10 to Buy With Huge Upside Potential

Lee Jackson

Published: December 1, 2018 8:25 am

Last Updated: January 11, 2020 2:15 pm

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, 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 the decision-making process, especially when you are on to a winner, as you can always sell half and keep half.

Goldman Sachs is the premier investment bank in the world, so we screened its outstanding research database and found five more 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.

Alta Mesa Resources

This small-cap energy play doubles as a potential takeout candidate. Alta Mesa Resources Inc. (NYSE: AMR) is an oil and gas exploration company focused on the development and acquisition of unconventional oil and gas reserves in Oklahoma. Its exploration operations are located in the eastern portion of the Anadarko Basin and are referred to as Sooner Trend Anadarko Basin Canadian and Kingfisher County (STACK).

The STACK represents the company’s exploration locations, the Alta Mesa acreage and the Kingfisher Midstream plant. It is a prolific hydrocarbon system with high oil- and liquids-rich natural gas content and has multiple horizontal target horizons.

Goldman Sachs has a massive $6.50 price target on the shares, while the Wall Street consensus target was last seen at $5.88. But the shares were changing hands most recently at $1.53 apiece.

CVR Partners

This off-the-radar company could be a little more palatable for accounts with a lower risk tolerance level. CVR Partners L.P. (NYSE: UAN) produces and distributes nitrogen fertilizer products, which are used by farmers to manage the yield and quality of their crops. As of December 31, 2016, the company produced its nitrogen fertilizer products at two manufacturing facilities, located in Coffeyville, Kansas, and East Dubuque, Illinois.

The company’s Coffeyville facility included a 1,300 ton-per-day capacity ammonia unit, a 3,000 ton-per-day capacity urea-ammonium nitrate unit and a gasifier complex having a capacity of 89 million standard cubic feet per day of hydrogen. The gasifier is a dual-train facility, with each gasifier able to function independently of the other. The Coffeyville facility utilizes a petroleum coke, or pet coke, gasification process to produce nitrogen fertilizer.

Goldman Sachs has its price target set at $5.40, and the posted consensus target is $5.45. The stock recently closed at $3.72.

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Corporacion America Airports

Consumers always need to travel, and this company is a great way to play a very limited subsector. Corporacion America Airports S.A. (NYSE: CAAP) is a global airport concessions operator, managing 52 airports across seven different countries in Latin America, Europe and Eurasia. The company is ranked number one in number of airports and number nine in terms of traffic. Out of the current 52 airports, 34 belong to AA2000 concession, which represents 62% of total airports in Argentina.

The company posted solid results this past week, with EBITDA of $136.5 million, which was up 8.8% year over year and was 4.8% better than expected, for a margin of 40.8%, compared with 36% last year.

The stunning $23 Goldman Sachs price target towers over the $17.17 consensus target. The shares ended the week at $7.98.

Magenta Therapeutics

This could be a red-hot play for investors looking at biotech. Magenta Therapeutics Inc. (NASDAQ: MGTA) is a clinical-stage biotechnology company developing therapeutics to transform hematopoietic stem cell transplants for patients with immune and blood-based diseases. It maintains a platform with an integrated and modular approach that aims to reboot the blood and immune systems.

The company also is developing a pipeline of small molecules; biologics, including antibody drug conjugates; and a cell therapy, which transplant options for many more patients with autoimmune diseases, blood cancers and genetic diseases. Magenta’s C100 program targets hematopoietic stem cells, immune cells and disease-causing cells, while the C200 program targets hematopoietic stem cells and disease-causing cells and the C300 program targets only immune cells.

Goldman Sachs has set its price target at $18. That compares to the higher consensus target of $20, as well as the most recent share price of $9.78.

VEREIT

This is a solid real estate play that could hold some very large upside. VEREIT Inc. (NYSE: VER) company owns 4,291 properties, which are located in 49 states, as well as the District of Columbia, Puerto Rico and Canada.

The company owns retail, office and industrial assets. In addition to its owned portfolio, the company manages $7.0 billion of gross real estate investments on behalf of the Cole Capital non-listed real estate investment trusts (REITs).

The Goldman Sachs price target is $9 per share. The consensus target across Wall Street is $8.36, and the shares were last seen at $7.65.

These five stocks trading under the $10 level 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.