Investing

Well-Known Companies Highlight Stocks to Buy Under $10 With Huge Potential

BioDelivery Sciences

This small-cap pharmaceutical stock has massive implied upside potential. BioDelivery Sciences International Inc. (NASDAQ: BDSI) engages in the development and commercialization of new applications of approved therapeutics to address important unmet medical needs. It focuses on pharmaceutical products in the areas of pain management and addiction.

Last week the company reported solid earnings for fourth-quarter 2020 that exceeded the consensus estimates. The company recorded a loss of a penny per share in the year-ago period. The reported earnings include share-based compensation and certain other expenses. Excluding these items, adjusted earnings still beat the figure posted in the year-ago quarter.

Revenues totaled $42.2 million, up 33.5% from the year-ago period, and outpaced the consensus estimate. The uptick was mainly driven by higher sales of Belbuca and Symproic.

The Truist Securities price target is $7, also in line with the consensus target of $7.08. The shares have traded mostly above $4 in the past few weeks.

Southwestern Energy

This stock has risen nicely this year but still looks to have big upside potential. Southwestern Energy Co. (NYSE: SWN) is an independent energy company engaged in the exploration, development and production of natural gas, oil and natural gas liquids (NGLs) in the United States. It focuses on the development of unconventional natural gas and oil reservoirs located in Pennsylvania, Ohio and West Virginia.

As of December 31, 2020, it had approximately 217,296 net acres in northeast Appalachia and approximately 571,922 net acres in southwest Appalachia. The company’s estimated proved natural gas, oil and NGLs reserves comprise 11,990 billion cubic feet of natural gas equivalent (Bcfe) and 2,437 Bcfe of proved undeveloped reserves.

Southwestern Energy also engages in marketing and transportation of natural gas, oil and NGLs. It serves energy companies, utilities and industrial purchasers of natural gas.

Johnson Rice recently started coverage and set a $6.75 price target. The consensus target is $4.57, which is about where Southwestern Energy stock was trading late in the week.

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