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. Many of the biggest public companies, especially the technology giants, trade in the hundreds, all the way up to over $1,000 per share or more. 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.
Goldman Sachs is the premier investment bank in the world, so we screened the firm’s outstanding research database and found five stocks trading under the $10 level that could provide investors with some incredible upside potential. While all five are rated Buy at Goldman Sachs, they are much better suited for aggressive investors, and it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
This top security company is a well-known protector of homes and businesses. ADT Inc. (NYSE: ADT) is the largest residential and second-largest commercial security monitoring company in North America. The company serves over 7 million customers, installing over a million systems per year. Roughly 94% of revenue is generated in the United States, with the remainder from Canada.
Google announced in August that it is buying a 6.6% stake in the home security firm for $450 million in a deal that will allow it to provide service to customers of its Nest home security devices. ADT said that the companies will work to combine Nest products like cameras, thermostats, doorbells and alarm systems with ADT’s installation, service and professional monitoring network.
The company also expects to offer certain Google devices to its customers beginning this year and to expand the integration in 2021.
The Goldman Sachs price target is a stunning $17, well above the $13.67 Wall Street consensus target. ADT stock has retreated in recent weeks to near $8 a share. Hitting the Goldman Sachs target would be a gigantic 108% gain.
This off-the-radar contrarian play has gigantic upside to the Goldman Sachs target. Fly Leasing Ltd. (NYSE: FLY) is a holding company that engages in purchasing and leasing of aircrafts. It focuses on acquiring and leasing the modern fuel-efficient commercial aircraft that are in strong demand around the world. Its portfolio includes Airbus A319, Airbus A320, Airbus A330, Airbus A340, Boeing 737, Boeing 747, Boeing 757 and Boeing 767 aircraft.
The company focuses on acquiring and leasing the most modern fuel-efficient commercial jet aircraft. Its aircraft are leased under multiyear contracts to a diverse group of airlines throughout the world. The company’s strategy is to effectively manage its fleet and grow its portfolio through accretive acquisitions of aircraft.
Goldman Sachs has a huge $19 price objective, while the consensus figure is $13.17. Shares have traded sideways since falling in March and were trading under $8 this past week. Hitting the target would be an incredible 161% gain.
This could be another red-hot play for investors looking for a biotech idea. Magenta Therapeutics Inc. (NASDAQ: MGTA) is a clinical-stage biotechnology company developing therapeutics to transform hematopoietic stem cell transplants for patients with immune and blood-based diseases. It maintains a platform with an integrated and modular approach, which aims to reboot the blood and immune systems.