Investing

5 Sizzling Stocks to Buy Trading Under $10 With Massive 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. 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.

Each week we screen our 24/7 Wall St. research database looking for stocks rated Buy at major firms priced under the $10 level, 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 investors, they could prove exciting additions to portfolios looking for solid alpha potential. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Antero Resources

This one has big potential for investors 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.

JPMorgan has a $6 price target on the shares. The Wall Street consensus target is $4.89, and Antero Resources stock recently broke above the $5 level.


Evogene

This is an idea for investors sifting through the health care arena looking for a bargain. Evogene Ltd. (NASDAQ: EVGN) engages in the development and commercialization of a computer-biological platform for improving the development processes of products in the field of life sciences. It operates through the following segments.

The Agriculture segment engages in the development of seed traits, agrochemical products and agrobiological products to improve plant performance. The Industry segment engages in the development of castor bean seeds to serve as a feedstock source for biofuel and other industrial uses. The Human segment engages in the discovery and development of human microbiome-based therapeutics.

Cantor Fitzgerald recently started coverage and has a $9 price target, the same as the consensus target. The stock has rallied smartly, closing above the $4 level recently.

Magnolia Oil and Gas

This smaller cap company has been on a wild ride this year and its shares look poised to move higher. Magnolia Oil and Gas Corp. (NYSE: MGY) engages in the business of acquisition, development, exploration and production of oil, natural gas and natural gas liquids reserves in the United States.


The company has oil and natural gas properties located in Karnes County and the Giddings Field in South Texas, primarily comprising the Eagle Ford Shale and the Austin Chalk formation. As of December 31, 2019, its assets consisted of a total leasehold position of 455,964 net acres, including 16,841 net acres with 200 net producing wells in the Karnes County portion of the Eagle Ford Shale, and 439,123 net acres with 846 net producing wells in the Giddings Field of the Austin Chalk.

Goldman Sachs recently raised its price target to $9.50. The posted consensus target is $7.86. The shares have seen a nice move higher recently and were trading just over $8.

NewAge

The marijuana industry is also focused on infused products and this is a solid play. NewAge Inc. (NASDAQ: NBEV) engages in the development and commercialization of a portfolio of beverages. It operates through the following segments.

The Noni by NewAge segment focuses on the development, manufacturing and marketing of Tahitian Noni Juice, MAX and other noni beverages, as well as other nutritional, cosmetic and personal care products. The NewAge segment markets and sells a portfolio of healthy beverage brands, including XingTea, Marley, Búcha Live Kombucha, Coco-Libre, Evian, Nestea, Illy Coffee and Volvi.

The $5 Alliance Global price target is in line with the consensus target. The shares have traded north of $3 recently.

PlayAGS

This could be an interesting play for those looking for a small-cap gaming idea. PlayAGS Inc. (NYSE: AGS) designs and supplies gaming products. The company operates through three segments.

The Electronic Gaming Machines segment includes server-based and back-office systems. The Table Products includes live felt table games, side bets and card shuffler. The Interactive Social Casino Games segment provides casino games on desktop and mobile devices. Its products include slots, cabinets, interactive and table games.

Stifel recently started coverage, and the firm has an $8 price target. The $6.03 consensus target is in the same ballpark as the share price.


These are five stocks for very aggressive investors looking to get share-count leverage with 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 other major Wall Street firms also have research coverage.

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Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.

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