Investing

Big Upside Potential Seen for These 5 Stocks Trading Under $10

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 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.

An $8 price target accompanies Citigroup’s Buy rating, although that target is below the $9.28 consensus estimate. The shares closed at $6.30 apiece on Friday.

Sientra

This stock has been blitzed over the past year, and it offers aggressive accounts a timely entry point. Sientra Inc. (NASDAQ: SIEN) is a medical aesthetics company that engages in developing and commercializing plastic surgery implantable devices. It operates through two reportable segments.

The Breast Products segment focuses on sales of its breast implants, tissue expanders and scar management products under the brands Sientra, AlloX2, Dermaspan, Softspan and Biocorneum. The miraDry segment focuses on sales of the miraDry System, consisting of a console and a handheld device that uses consumable single-use bioTips to reduce underarm perspiration.

Stevens has set a $16 price target on the shares, while the consensus figure is $13.25. The shares were trading hands most recently at $6.92.

Vivint Solar

This is a green energy play aggressive accounts may want to study. 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 second-quarter results, including installing 66 megawatts, which was above the high end of its guidance. That represents 19% growth over the second quarter last year, and management said it does not expect the momentum to slow down.

The company recently entered into a $325 million credit facility that replaces its existing aggregation facility and reduces the cost of debt by 87.5 basis points and significantly increases the amount of upfront proceeds on a per-system basis.

Bank of America has put a $14 price target on the shares, which compares with the posted consensus target of $11.50. The stock closed most recently at $7.98 a share.

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 while markets have retreated somewhat from all-time highs, value stocks still come with some risks.