Investing

5 Stocks to Buy Under $10 With Explosive Upside Potential

While most of Wall Street focuses on large-cap 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 is difficult 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 and priced under the $10 level. This week we found five new stocks that could provide investors with some solid upside potential.

With the number of new equity traders skyrocketing over the past year due to the Reddit/WallStreetBets popularity, locating good ideas to trade has become even more challenging. These five could all prove to be exciting additions for traders looking for solid alpha potential. While they are definitely better suited for aggressive investors, it is still important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Finvolution

This off-the-radar stock has exploded higher but looks to have even more upside potential. Finvolution Group (NYSE: FINV) is an investment holding company that operates in the online consumer finance industry in the People’s Republic of China. It is a fintech platform that connects underserved individual borrowers with financial institutions.

The company’s platform provides standard and other loan products. As of June 30, 2020, it had approximately 110.4 million cumulative registered users. The company was formerly known as PPDAI and changed its name in November 2019.

Credit Suisse has an $11.60 price target on the shares, and the Wall Street consensus target is just $6.73. The stock had a strong move earlier this month, and the shares were trading around $8.00 last week.