5 Favorite Stocks Trading Under $10 With Massive Upside Potential

July 20, 2019 by Lee Jackson

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. Often 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.

Each and every week, we screen our 24/7 Wall St. research database looking for stocks rated Buy at major firms and priced under the $10 level (last week’s picks included Jagged Peak Energy and Mohawk), and this week was no exception. We found five more stocks that could provide investors with some solid upside potential. While more suited for aggressive accounts, they could prove exciting additions to portfolios looking for solid alpha potential.

BlackBerry

This was the first “smartphone” type company that was buried when Apple released the iPhone. BlackBerry Ltd. (NYSE: BB) continues transitioning from a mobile hardware provider to a mobile-focused security software and services company. Its portfolio of products includes BlackBerry Secure Unified Endpoint Management, crisis communication, corporate asset tracking, cybersecurity services and other secure collaboration software and communication technologies.

The company also licenses its brand/IP for mobile devices, and its QNX business provides leading embedded software systems. Earlier this year BlackBerry named Bryan Palma as president and chief operating officer. Palma was most recently Cisco’s senior vice president and general manager of customer experience for the Americas. Before joining Cisco, he was the vice president of cyber and security solutions at Boeing.

RBC has a $9 price objective on the shares, and the Wall Street consensus target price is $10.31. The shares traded on Friday’s close at $7.08.

Encana

This stock has pulled back sharply and is offering an outstanding entry point. Encana Corp. (NYSE: ECA) is an energy producer focused on developing its multibasin portfolio of natural gas, oil and natural gas liquids (NGLs) producing plays. Its operations also include the marketing of natural gas, oil and NGLs. All of its reserves and production are located in North America.

Its Canadian Operations segment includes the exploration for and development and production of natural gas oil and NGLs and other related activities within Canada. This includes Montney in northeast British Columbia and northwest Alberta and Duvernay in west central Alberta. The USA Operations segment includes the exploration for and development and production of natural gas, oil and NGLs and other related activities within the United States.

Encana investors receive a 1.72% dividend. The Merrill Lynch analysts remain positive on the with a $10 price target. The post consensus target is $10.54, and the shares closed on Friday at $4.55.

Ericsson

This top European tech and telecom company offers aggressive investors the potential for big upside. Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC) provides network equipment and software and services for network and business operations worldwide.

The company’s Networks segment delivers products and solutions for mobile access, internet protocol and transmission networks, core networks and cloud. This segment offers radio access solutions; IP routing and transport solutions; microwave and optical transmission solutions for mobile and fixed networks; IP multimedia subsystem solutions; a cloud platform that handles workloads for various clouds; and telecom, information technology (IT) and commercial cloud services.

Its Global Services segment delivers managed services, including services for designing, building, operating and managing the day-to-day operations of the customer network or solutions; maintenance services; network sharing solutions; shared solutions; and managed services of IT environments, as well as provides broadcast and media services.

Ericsson investors receive just a 0.77% dividend. The $11.40 Merrill Lynch price target is well above the $6.63 consensus figure. The shares closed trading at $8.85 on Friday.

Nokia

This telecommunications company once ruled the cell phone arena, until the advent of the smartphone in 2007. Nokia Corp. (NYSE: NOK) owns two main businesses: 1) Nokia Networks, a network infrastructure equipment supplier to global wireless and wireline operators, and 2) Technologies, its patent/IPR licensing activities.

Nokia’s customers include communications service providers whose combined networks support 6.1 billion subscriptions, as well as enterprises in the private and public sector that use the firm’s network portfolio to increase productivity. Through Nokia’s Research teams, including the world-renowned Nokia Bell Labs, the firm is leading the world to adopt end-to-end 5G networks that are faster and more secure.

This stock is on the Merrill Lynch US 1 list and comes with a $7.10 price target. The consensus target is set at $7.09, and the stock ended the week at $5.14 a share.

TiVo

This company’s name actually became a verb years ago when people referred to recording TV shows. TiVo Corp. (NASDAQ: TIVO) provides entertainment technology, software and services. It operates through two segments.

The Intellectual Property Licensing segment consists of International Patent Group patent licensing to third-party guide developers such as multichannel video service providers, consumer electronics and set-top box manufacturers and interactive television software and program guide providers in the online, over-the-top video and mobile phone businesses.

The Product segment covers licensing of company-developed IPG products and services provided for multichannel video service providers and consumer electronics manufacturers, in-guide advertising revenue, analytics revenue and revenue from licensing metadata.

TiVo investors receive a very solid 4.37% dividend. B. Riley FBR has a massive $18 price target, but the consensus target is even higher at $21.54. The shares closed on Friday at $7.23 apiece.

These are five stocks for aggressive accounts looking to get share count leverage on companies with sizable upside potential. While not suited for all investors, they are not penny stocks with absolutely no track record or liquidity, and major Wall Street firms have research coverage on them. Note though that value stocks come with some risks while markets are at all-time highs.

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