Investing
5 Sizzling Stocks Trading Under $10 With Gigantic Upside Potential
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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 ratings at major firms and priced under the $10 level (last week’s picks included Nokia and other Raymond James favorites), and this week was no exception. We found five new stocks that could provide investors with some solid upside potential. While more suited for aggressive accounts, they could prove to be exciting additions to portfolios looking for solid alpha potential.
This stock has been battered and holds solid upside potential for those with somewhat lower risk tolerance. Archrock Inc. (NYSE: AROC) is a natural gas contract operations services company. It also provides natural gas compression services to customers in the oil and natural gas industry throughout the United States and supplies aftermarket services to customers that own compression equipment in the United States.
The company operates through two segments. The Contract Operations segment primarily provides natural gas compression services to meet specific customer requirements. It provides contract operations services, including the personnel, equipment, tools, materials and supplies to meet its customers’ natural gas compression needs.
The Aftermarket Services segment provides a range of services to support the compression needs of customers, from parts sales and normal maintenance services to full operation of a customer’s owned assets.
RBC has a massive $14 price target on the shares, while the Wall Street consensus target is $14.30. The stock traded at $9.68 per share on Friday’s close.
This under-the-radar stock holds huge potential upside for aggressive accounts. BrainsWay Ltd. (NASDAQ: BWAY) is a commercial-stage medical device company focused on the development and sale of non-invasive neuromodulation products using the company’s proprietary Deep Transcranial Magnetic Stimulation (Deep TMS) technology for the treatment of major depressive disorder and obsessive-compulsive disorder. BrainsWay received marketing authorization from the U.S. Food and Drug Administration (FDA) for the former disorder in 2013 and for the latter in August 2018.
BrainsWay is currently conducting clinical trials of Deep TMS in other psychiatric, neurological and addiction disorders, including smoking cessation and post-traumatic stress disorder, and it is planning trials for opioid addiction, fatigue in multiple sclerosis and post-stroke rehabilitation.
The Oppenheimer price objective is a gigantic $17 price target, and the posted consensus target price is $16.69. The stock ended the week trading at $8.84.
This stock has been pounded and offers a massive distribution for accounts looking for income. EnLink Midstream LLC (NYSE: ENLC) is a Texas-based energy midstream company that owns limited partner interest and the general partnership interest in EnLink Midstream Partners, which is a master limited partnership primarily engaged in the gathering, transmission, processing and marketing of natural gas and natural gas liquids (NGLs).
EnLink Midstream operates a differentiated midstream platform that is built for long-term, sustainable value creation. EnLink’s best-in-class services span the midstream value chain, providing natural gas, crude oil, condensate and NGL capabilities. The company’s integrated asset platforms are in premier production basins and core demand centers, including the Permian Basin, Oklahoma, North Texas and the Gulf Coast.
EnLink’s strong financial foundation and commitment to execution excellence has driven competitive returns, and the shares look very reasonable at current trading levels.
Shareholders receive a gigantic 16.29% dividend. The huge $12 RBC price objective compares to the $9.46 consensus target price. Shares closed trading at $6.98 on Friday.
The SunTrust team is very positive on this smaller cap company. Extraction Oil and Gas LLC (NYSE: XOG) is focused on the acquisition, development and production of oil, natural gas and NGL reserves in the Rocky Mountains, primarily in the Wattenberg Field of the Denver-Julesburg Basin (DJ Basin) of Colorado.
The company offers its exploration and production processes in various steps, such as seismic, site preparation, drilling the well, completing the well, monitoring the well and reclaiming the site. Extraction utilizes sound walls to mute or redirect noise caused by its operations, and uses an electric rig to manage its drilling operations. It uses vapor recovery units to capture emissions from storage facilities. Lastly, the company uses lease automatic custody transfer units to collect oil from tanks in a closed-loop system that manages air emissions associated with the oil gathering and transportation process.
SunTrust has set its price target at $8. The consensus target was last seen at $5.08, and the stock closed at $2.11 per share.
This micro-cap biotech could be a huge home run for aggressive accounts. MEI Pharma Inc. (NASDAQ: MEIP) engages in the clinical development of therapies for cancer. Its drug candidates include pracinostat, an oral HDAC inhibitor that is being developed in combination with azacitidine for the treatment of acute myeloid leukemia and myelodysplastic syndrome. Its pipeline also consists of ME-401 (an oral PI3K delta inhibitor), voruciclib (an oral CDK inhibitor) and ME-344 (a mitochondrial inhibitor).
MEI has a strong foundation to build value through advancing the company’s pipeline, evaluating drug combination opportunities across the B-cell malignancy landscape and continuing to create and explore strategic opportunities to most effectively leverage the potential of the pipeline. Top management feels that each of the company’s four clinical-stage oncology candidates is well positioned for continued clinical development.
Oppenheimer has a strong $7 target price. But the consensus target is even higher at $8.50. Share were last trading hands at $1.78 apiece.
These are five stocks for aggressive accounts that look to get share count leverage on stocks 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.
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