5 End-of-Summer Stocks Trading Under $10 With Giant Upside Potential
La Jolla Pharmaceuticals
This biopharmaceutical company has been mentioned as a possible takeover candidate and the stock has been battered over the past six months. La Jolla Pharmaceuticals Co. (NASDAQ: LJPC) engages in the discovery, development and commercialization of therapies intended to significantly improve outcomes in patients suffering from life-threatening diseases.
Giapreza (angiotensin II), formerly known as LJPC-501, was approved by the U.S. Food and Drug Administration (FDA) on December 21, 2017, as a vasoconstrictor indicated to increase blood pressure in adults with septic or other distributive shock. Furthermore, the company announced last week that the European Commission has approved Giapreza for the treatment of refractory hypotension in adults with septic or other distributive shock. While the news is positive, the SunTrust analysts think additional upside should come if the company joins with a partner for its commercialization efforts in the European Union.
SunTrust has a Buy rating and a whopping $20 price target, while the consensus price objective was last seen at $19.80. The shares ended the week trading at $9.57 apiece.
Northern Oil and Gas
Stifel analysts remain very positive on this small-cap energy play. Northern Oil and Gas Inc. (NYSE: NOG) is engaged in the acquisition, exploration, development and production of oil and natural gas properties, primarily in the Bakken and Three Forks formations within the Williston Basin in North Dakota and Montana. It is the largest non-operator in that basin.
With Bakken returns continuing to improve to well above 50%, and the company’s operating partners representing what may be as the best operators in the basin, there is upside potential.
The company recently posted solid second-quarter results, and it also announced that its chief executive officer was stepping down, a move that some on Wall Street welcome after some issues in the past. Moreover, it was noted this week that Northern is expected to have free cash flow equal to almost three-quarters of the stock market capitalization over the next year.
Stifel’s monster $5.80 price target compares to the $3.87 consensus target for the shares, which ended trading most recently at $1.84.
This solid real estate play could hold some very large total return upside. VEREIT Inc. (NYSE: VER) company owns 4,291 properties 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.
The $11 Goldman Sachs price target on the stock compares with the analysts’ consensus target of $9.75. VEREIT shares closed most recently at $9.75.
These five stocks trading under the $10 level have big upside to the analysts’ price targets. Again, while they are 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, all these stocks are covered with Buy ratings at major Wall Street firms.