5 New Stocks to Buy Trading Under $10 With Incredible Upside Potential

Print Email

Ryerson

This top small-cap play could make sense for more aggressive accounts. Ryerson Holdings Inc. (NYSE: RYI) offers a line of stainless steel, aluminum, carbon steel and alloy steels, as well as nickel and red metals in various shapes and forms, including coils, sheets, rounds, hexagons, square and flat bars, plates, structurals and tubings.

The company also provides value-added processing and fabrication services, such as sawing, slitting, blanking, cutting to length, leveling, flame cutting, laser cutting, edge trimming, edge rolling, roll forming, tube manufacturing, polishing, shearing, forming, stamping, punching, rolling shell plate to radius and processing materials to a specified thickness, length, width, shape and surface quality pursuant to specific customer orders.

The $10 Deutsche Bank price target compares with the $8.92 consensus target. The shares closed trading on Friday at $7.02.

Tellurian

This company could be poised for big gains as liquefied natural gas (LNG) exporting continues to ramp higher. Tellurian Inc. (NASDAQ: TELL) is an LNG development company headquartered in Houston. The company plans to develop a 27.6 metric tonnes per annum LNG terminal with five plants near Lake Charles, Louisiana, as well as upstream assets and pipeline infrastructure.

The initial phase likely will include three plants (16.6 metric tonnes per annum, capacity). The Driftwood project will be financed by equity customer/partners as well as project debt financing. Tellurian will own 28% to 42% of Driftwood Holdings and 100% of Tellurian Marketing.

The company recently announced that the U.S. Federal Energy Regulatory Commission issued the final Environmental Impact Statement for Driftwood LNG export facility and an associated 96-mile pipeline (Driftwood project), proposed near Lake Charles on the U.S. Gulf Coast. When and if the agency grants authorization, Tellurian should be ready to make a final investment decision and begin construction in the first half of 2019, with the first LNG expected in 2023.

The Merrill Lynch energy team’s Buy rating comes with a $12 price objective. The posted consensus target price is $11.38, and the stock traded most recently at $9.50 a share.

Uxin

Since the recent IPO, this stock has been hammered and offers investors an incredible entry point. Uxin Ltd. (NASDAQ: UXIN), through its subsidiaries, operates a used car e-commerce platform in China. Its Uxin Used Car app provides consumers with customized car recommendation, financing, title transfer, delivery, insurance referral, warranty and other related services. Uxin Auction is an app that helps business buyers to source vehicles through online auctions.

The company also facilitates used car transaction services and financing solutions offered by third-party financing partners to buyers for their used car purchases. Uxin announced on Jan. 14 that its key cross-regional transaction service volume exceeded 10,000 units this past December. The 2018 figures were more than 75 times higher than those from the same period in 2017.

JPMorgan rates the stock at Overweight, but its $7 price target is way below the $11.72 consensus target. The shares closed trading at $3.22 on Friday.

These are five stocks for aggressive accounts that look to get share count leverage on companies that have solid and sizable upside potential. While not suited for all investors, these are not penny stocks with absolutely no track record or liquidity, as major Wall Street firms have research coverage on them.