Investing

5 Sizzling Stocks to Buy Under $10 With Sizable 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.

Ardelyx

This intriguing biotech play has some solid Phase 3 candidates. Ardelyx Inc. (NASDAQ: ARDX) is a biopharmaceutical company that develops and sells medicines for the treatment of kidney and cardiorenal diseases in the United States and internationally.

The company’s lead product candidate is tenapanor, which has completed a late-stage clinical trial for the treatment of patients with irritable bowel syndrome with constipation, as well in Phase 3 clinical trial for the treatment of hyperphosphatemia in end-stage renal disease patients on dialysis.

Ardelyx’s RDX013 is a small molecule potassium secretagogue program that is in Phase 2 clinical trial for the treatment of patients with hyperkalemia. Its RDX020 is a small molecule program for the treatment of metabolic acidosis.

Wedbush’s Outperform rating comes with a gigantic $14 price target. The consensus target is slightly lower at $13.86, and shares have been trading just above $6 recently.