Investing

5 Stocks Trading 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.

We screened our 24/7 Wall St. research database looking for smaller cap companies that could very well offer patient investors some huge returns the rest of 2021 and beyond. Such investors that did that in 2008 and 2009 absolutely killed it over the next few years.

It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Aurora Mobile

This off-the-radar stock is offering aggressive investors big upside potential. Aurora Mobile Ltd. (NYSE: JG) engages in the provision of mobile big data solutions platforms. It also offers mobile apps and provides core in-app functionalities needed by developers, including push notification, instant messaging, analytics and sharing and short message service.

The company also provides application programming interfaces that create connectivity and automate the process of message exchange between the mobile apps and its backend network, and its interactive web-based service dashboard allows app developers to utilize and monitor its services through controls on an ongoing basis. It primarily serves mobile app developers in a range of industries, such as media, entertainment, gaming, financial services, tourism, e-commerce, education and health care.

Oppenheimer has an Outperform rating and a $6 price target. The Wall Street consensus target is just $3.04. The stock briefly went above $4 last week, before retreating somewhat.

Casper Sleep

While not to be confused with a friendly ghost, this bed retailer has been hot. Casper Sleep Inc. (NASDAQ: CSPR) is a high-growth branded sleep company that was founded in 2013 and is based in New York City. Revenues totaled $497 million in 2020. Casper Sleep has evolved from a pure online direct-to-customer company that sold a singular mattress in the United States to a multichannel sleep-focused company with a strong and growing brand that is operating 60 company-owned stores and nearly 20 wholesale partners.

Analysts feel that the company is in the early stages of capturing market share, with its comprehensive focus on sleep and wellness. Its strong brand recognition and broadening product lines and distribution partners give it the ability to convert more shoppers to customers.

Wedbush recently upgraded the stock to Outperform with a $10.50 price target. The consensus target is $10.67, and shares traded near $9 for much of the past week.