Investing

5 Blazing Hot and Well-Known Stocks Under $10 With Huge 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 SFL and Taboola.com). 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.

Casper Sleep

While not to be confused with a friendly ghost, this bed retailer has been hot. Casper Sleep Inc. (NASDAQ: CSPR) designs and sells sleep products to consumers in the United States, Canada and Europe.

The company offers a range of mattresses, pillows, sheets, duvets, bedroom furniture, sleep accessories, sleep technology and other sleep-centric products and services. As of December 31, 2020, the company distributed its products through its e-commerce platform, 67 Casper retail stores and 20 retail partners.

Casper Sleep and Bed Bath & Beyond announced earlier this summer a new national partnership that brings Casper’s award-winning suite of sleep offerings to Bed Bath & Beyond customers through the Bed Bath & Beyond website, mobile app and in select retail stores.

Roth Capital has a $12 price target on the shares, and the Wall Street consensus target is lower at $8.55. The shares closed on Friday at $4.87.


Energy Transfer

This top master limited partnership is a very safe way for investors looking for energy exposure and income. Energy Transfer L.P. (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with a strategic footprint in all the major domestic production basins.

This publicly traded limited partnership has core operations that include complimentary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (NGLs) and refined product transportation and terminaling assets; NGL fractionation; and various acquisition and marketing assets.

Through its ownership of Energy Transfer Operating, formerly known as Energy Transfer Partners, the company also owns Lake Charles LNG, as well as the general partner interests, the incentive distribution rights and 28.5 million common units of Sunoco, and the general partner interests and 39.7 million common units of USA Compression Partners.

Investors receive a 6.43% distribution. Earlier this month, Citigroup raised its price target to $15 from $14. The consensus target is $13.88, and Energy Transfer stock closed trading at $9.28 on Friday.

Lantronix

This company is producing solid revenue and is a great idea for aggressive traders. Lantronix Inc. (NYSE: LTRX) provides software as a service (SaaS), engineering services and hardware for edge computing, the Internet of Things (IoT) and remote environment management in the Americas, Europe and elsewhere.

The company’s products include IoT Connectivity, which provide wired and wireless connections that enhance the value and utility of modern electronic systems and equipment through secure network connectivity, application hosting, protocol conversion, secure access for distributed IoT deployments and various other functions. Its SaaS platform enables customers to deploy, monitor, manage and automate across their global deployments through a single platform login.

The company offers its products through value-added resellers, systems integrators, distributors, online retailers and original equipment manufacturers, as well as an e-commerce site for direct sales.

The $10 Roth Capital price objective is well above the $8.67 consensus target. The shares were last seen on Friday at $6.05.

Nokia

This telecommunications company once ruled the cell phone arena, until the advent of the smartphone in 2007, but it has reemerged as a top meme stock. Nokia Corp. (NYSE: NOK) owns two main businesses: 1) Nokia Networks, a network infrastructure equipment supplier to global wireless and wireline operators, and 2) Technologies, its patent/IPR licensing activities.

The company posted some good news earlier this year when it indicated it expects to revise its fiscal 2021 guidance upward, citing continued strength in its business supported by “good cost control” and strength in several of the company’s end markets.

Top Wall Street analysts feel that the market is currently overstating the extent of sales losses from currency, China exposure and its lost contracts with Verizon. Most believe investors should position for the upgrade cycle that likely will continue to play out over the next 12 months.

Cowen has set an $8 target price on Nokia stock. The consensus target is just $7.17, and on Friday the shares were last seen changing hands at $5.58 apiece.

Zynga

This very aggressive tech play could have upside even above the huge Wedbush target. Zynga Inc. (NASDAQ: ZNGA) provides social game services in the United States and internationally. It develops, markets and operates social games as live services played on mobile platforms, such as Apple iOS and Google’s Android operating systems; social networking platforms, such as Facebook and Snapchat; and personal computers consoles, such as Nintendo’s Switch game console, and other platforms and consoles.

Zynga also provides advertising services, comprising mobile advertisements, engagement advertisements and offers, and branded virtual items and sponsorships for marketers and advertisers, as well as licenses its own brands.

With live events growing the company’s revenues, cost-cutting should drive margin expansion, which is very positive. The company also pops up in takeover chatter, and the low price makes it even more attractive.

Wedbush’s massive $15 price target is almost double the $7.65 closing price seen on Friday. The consensus target price is $12.09.


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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