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

September 7, 2019 by Trey Thoelcke

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.

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Every week, we screen our 24/7 Wall St. research database looking for stocks with Buy equivalent rating at major firms and priced under the $10 level (last week’s picks included La Jolla Pharmaceuticals and VEREIT), 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.

Antero Resources

Shares of this company with big potential for investors bounced recently and is still offering a nice entry point. Antero Resources Corp. (NYSE: AR) is engaged in the exploration, development and acquisition of natural gas, natural gas liquids and oil properties located in the Appalachian Basin. Other activities include water handling and treatment, and marketing of excess firm transportation capacity.

The company’s subsidiary, Antero Midstream Partners, is a master limited partnership that owns, operates and develops midstream energy infrastructure primarily to service its production and completion activity. Its natural gas gathering and compression assets support the exploration and development activities. The combination of the two makes this a solid pick for investors.

Guggenheim has a $10.00 price objective on the shares, while the Wall Street consensus price target is $6.83. The shares traded on Friday’s close at $3.53 apiece.

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.

Macquarie has an $11 price objective on the shares, and the Wall Street consensus target price is $10.34. The shares traded on Friday’s close at $7.19.