5 More Stocks Priced Under $10 With Massive Implied Upside

Print Email

Falcon Minerals

This company provides investors with a unique way to be involved in the energy sector. Falcon Minerals Corp. (NASDAQ: FLMN) engages in the provision of oil and gas minerals. It also owns mineral, royalty and overriding royalty interests in the Eagle Ford and Austin Chalk in Karnes, DeWitt and Gonzales counties in Texas.

The company also owns additional assets of approximately 68,000 gross unit acres in Pennsylvania, Ohio and West Virginia prospective for the Marcellus Shale. Falcon Minerals recently averaged 150 line-of-sight wells in various stages of development on its Eagle Ford minerals position, as well as 28 wells turned in line during the first quarter of 2019. There recently were 10 active rigs operating on Falcon’s Eagle Ford position, which is an increase from an average of five active rigs at the beginning of the year.

Stifel’s Buy rating is accompanied by a $10 price target, which is right in line with the $10.25 consensus estimate. The shares closed trading at $7.38 apiece on Friday.

Kindred Biosciences

This is another small-cap biotech with big upside potential. Kindred Biosciences Inc. (NASDAQ: KIN) is a commercial-stage biopharmaceutical company focused on saving and improving the lives of pets. Its mission is to bring to pets the same kinds of safe and effective medicines that human family members enjoy.

The company’s strategy is to identify compounds and targets that already have demonstrated safety and efficacy in humans and to develop therapeutics based on these validated compounds and targets for dogs, cats and horses.

Kindred Biosciences has a deep pipeline of novel drugs and biologics in development across many therapeutic classes. The company’s first approved drug is Mirataz (mirtazapine transdermal ointment) for the management of weight loss in cats.

The $14 Stifel price target for the Buy-rated stock is lower than the $18.60 consensus price objective but well above the $7.94 at which shares traded hands at week’s end.

Zynga

This very aggressive tech play could have upside above the current targets on Wall Street. Zynga Inc. (NASDAQ: ZNGA) is a leading developer of mobile and social games. In the company’s relatively short history, it has developed a broad portfolio of games that includes several on Facebook and several top-grossing mobile apps. Key franchises include FarmVille, Zynga Poker, Hit It Rich Slots and Words With Friends.

The company posted very solid first-quarter results that beat Wall Street estimates, and it also raised forward guidance. Early acquisitions traction and a strong marketing push drove bookings upside. Organic growth, however, remains soft, and with Wall Street looking for upside, new title traction will be a key driver for the remainder of 2019.

Stephens rates the stock at Overweight with an $8.50 price target. That compares to a lower consensus target of $6.39, which was close to Friday’s closing share price of $6.29.

I'm interested in the Newsletter
 

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.