Investing

5 Sizzling Stocks Trading Under $10 With Gigantic Upside Potential

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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 priced under the $10 level and this week was no exception (last week’s picks included GoHealth and Talkspace). This week, we found five new stocks that could provide investors with some solid upside potential. Skeptics of low price shares should remember that at one point both Amazon and Apple traded in the single digits.

While more suited for aggressive investors, and with the number of new traders skyrocketing over the past year, making good ideas to trade even harder to find, these five stocks could prove exciting additions for traders looking for solid alpha potential. It is important to remember, though, that no single analyst report should be used as a sole basis for any buying or selling decision.

CareMax

This is a very intriguing idea for aggressive investors looking for alpha. CareMax Inc. (NASDAQ: CMAX) is a health care organization providing medical services through physicians and health care professionals. The company offers a suite of health care and social services to its patients, including primary care, specialty care, telemedicine, health and wellness, optometry, dental, pharmacy and transportation. As of June 30, 2021, it owned and operated 36 multi-specialty medical care centers throughout Miami-Dade, Broward and Orange Counties in Florida.

Earlier this month the company closed the previously announced acquisition of DNF Medical Centers, a leading medical practice in the Orlando Metro area. DNF operates six conveniently located medical centers serving approximately 4,000 Medicare Advantage members in its network. With this acquisition, CareMax now operates 42 medical centers, serving approximately 66,000 patients, including approximately 26,000 Medicare Advantage members. CareMax intends to use DNF as the foundation to further expand in the Central Florida and Tampa Bay region, a market with more than 2 million Medicare-eligible beneficiaries.

Piper Sandler recently upgraded the stock to Overweight from Neutral and has a $14 price target. The consensus price objective is $14 as well. The shares closed Friday at $9.46.


EZCORP

Shares of this leading pawn shop company offer some big-time upside potential. EZCORP Inc. (NASDAQ: EZPW) provides pawn loans in the United States and Latin America. The company also sells merchandise, primarily collateral forfeited from pawn lending operations and pre-owned merchandise purchased from customers.

It offers pawn loans, which are nonrecourse loans collateralized by tangible personal property, including jewelry, consumer electronics, tools, sporting goods and musical instruments. In addition, the company offers Lana, a web-based engagement platform to manage pawn loans. As of September 30, 2020, it owned and operated 505 pawn stores in the United States; 368 pawn stores in Mexico; and 132 pawn stores in Guatemala, El Salvador, Honduras and Peru.

Oppenheimer started coverage of the pawn shop giant this past week with a $12 price target. The consensus target is $6.75, and on Friday the stock as last seen at $7.08.

One Stop Systems

The shares of this stock have traded sideways for months and could be ready for a substantial breakout. One Stop Systems Inc. (NASDAQ: OSS) designs, manufactures and markets high-performance computing modules and systems for edge deployments in the United States and internationally. Its systems are built using the graphical processing unit (GPU) and solid-state flash technologies.

The company provides GPU appliances that are fully integrated computer clusters; GPU expansion units, which could add hundreds or thousands of computing cores with hundreds of teraflops of computing performance to OEM servers virtually; flash storage and network appliances that are networked storage appliances optimized for the environment and system software of its customers; and flash storage arrays, which provide hundreds of terabytes of storage and millions of input/output operations per second with flash memory.

One Stop Systems It also offers servers for PCI express-over-cable expansion; desktop computing appliances in various configurations that add input/output flexibility to user’s desktop systems; PCIe expansions; industrial and panel PCs; and ruggedized mobile high-performance computing devices that meet the specialized requirement for devices deployed at the edge in various environmental conditions.

The $8.50 Roth Capital price target is greater than the $8.30 consensus target. Shares closed trading on Friday at $5.42.

SFL

For those with a lower risk tolerance but looking for value, this might be the right play. SFL Corp. Ltd. (NYSE: SFL) owners, operates and charters vessels and offshore related assets on medium and long-term charters. It is also involved in the charter, purchase and sale of assets. In addition, the company operates in various sectors of the maritime, and shipping and offshore industry, including oil transportation, dry bulk shipments, chemical transportation, oil product transportation, container transportation, car transportation and drilling rigs.

As of June 14, 2021, it had a fleet of approximately 80 vessels, such as container vessels, bulkers, tankers and offshore drilling rigs. It operates in Bermuda, Cyprus, Liberia, Norway, Singapore, the United Kingdom and the Marshall Islands.

Jefferies has set a $9 price target, while the consensus target is $9.12. The final trade for Friday hit the tape at $7.99.

Taboola.com

This off-the-radar idea has among the largest upside targets. Taboola.com Ltd. (NASDAQ: TBLA) operates an artificial intelligence-based algorithmic engine platform in Israel, the United Kingdom, the United States and elsewhere.

The company offers Taboola, a platform that partners with websites, devices and mobile apps (collectively referred to as digital properties) and recommends editorial content and advertisements on the open web. Digital properties use Taboola’s recommendation platform to achieve their business goals, such as driving new audiences to their sites and apps or increasing engagement with existing audiences. It also provides monetization opportunities to publishers.

Credit Suisse started coverage last week and has a $14 price target. The consensus target is higher at $16.40, and the shares closed on Friday at $8.75.


These are five stocks for aggressive investors looking to get share count leverage on companies that have sizable upside potential. While not suited for all investors, they are not penny stocks with absolutely no track record or liquidity, and major Wall Street firms 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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