Investing

5 Scorching-Hot Stocks to Buy Under $10 With Big 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 not only to 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 for the rest of 2021 and beyond. Many of the biggest companies in the world, including Apple and Amazon, once traded in the single digits at one time.

While all five of these stocks are rated Buy, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Innoviz Technologies

This off-the-radar tech play is breaking through a big downtrend line and looks poised to move higher. Innoviz Technologies Ltd. (NASDAQ: INVZ) designs and manufactures solid state lidar sensors and develops perception software that enable the mass-production of autonomous vehicles.

The company manufactures InnovizOne, a solid-state lidar sensor designed for automakers and robotaxi, shuttle, trucking and delivery companies requiring an automotive-grade and mass-producible solution to achieve autonomy. Its automotive-grade sensor is integrable into Level 3 through 5 autonomous vehicles for the safety of passengers and pedestrians.

Innoviz Technologies also provides InnovizTwo, an automotive-grade lidar sensor that offers a solution for all levels of autonomous driving, as well as option to integrate the perception application in the lidar sensor; and perception application, a software application that turns the InnovizOne lidar’s raw point cloud data into perception outputs to provide superior scene perception and deliver an automotive-grade ASIL B(D) solution.

Its products can be used in various industries, including robotaxis, shuttles, delivery vehicles, buses, trucking, drones and robotics, as well as construction, agriculture, smart city, security, mining, maritime and mapping.

Goldman Sachs just raised its $7 price target to $9. The consensus target is $10, and the shares have traded between $7 and $8 in recent days.

LSI Industries

This stock has made a long sideways move and looks ready to pop higher. LSI Industries Inc. (NASDAQ: LYTS) manufactures and sells non-residential lighting and retail display solutions in the United States, Canada, Mexico, Australia and Latin America.

Its Lighting segment manufactures, markets, and sells non-residential outdoor and indoor lighting solutions. It also offers lighting control products, including sensors, photocontrols, dimmers, motion detection and Bluetooth systems to support lighting fixtures, and it designs, engineers and manufactures electronic circuit boards, assemblies and sub-assemblies.

The Display Solutions segment manufactures, sells and installs exterior and interior visual image and display elements, including printed and structural graphics, digital signage, menu board systems, display fixtures, refrigerated displays and custom display elements.

Investors receive a 2.67% dividend. Canaccord Genuity’s $10 target price is less than the $13.47 consensus target. The share price recently dropped below $8.


Oatly

This oat milk company had a recent initial public offering and was hammered, so it looks like a solid idea for aggressive investors. Oatly Group AB (NASDAQ: OTLY) provides a range of plant-based dairy products made from oats in Sweden.

It offers Barista edition oatmilk, oatgurts and frozen desserts and novelties. It has ready-to-go drinks, such as cold brew latte, mocha latte, matcha latte, and mini oatmilk in original and chocolate flavors, as well as cooking products, including cooking creams, creme fraiche products, whipping creams, vanilla custards and spreads in a variety of flavors.

The stock plunged recently nearly 21% after third-quarter revenue missed expectations and not just the Wall Street consensus but the company’s own forecast as well. Revenue totaling $171 million was a record for the oat-based dairy alternative company, up from $114.7 million the year before, but Chief Executive Toni Petersson had set much higher goals.

The $14 Morgan Stanley price target is less than the $16.39 consensus target. Oatly stock slipped below $10 a share this past week.

Ouster

While way off the grid for most investors, this stock has been cut by 65% this year and looks ready to take some ground back. Ouster Inc. (NYSE: OUST) designs and manufactures digital lidar sensors for industrial automation, smart infrastructure, robotics and automotive markets. Its product portfolio includes OS0, an ultra-wide view digital lidar; OS1, a mid-range digital lidar; OS2, a long-range digital lidar; and ES2 digital lidar.

The company announced in October it had completed the acquisition of Sense Photonics and formally established Ouster Automotive, a new functional division of the company focusing on driving mass-market adoption of digital lidar in consumer and commercial vehicles. Under the terms of the agreement, Ouster acquired 100% of Sense and all its property for approximately 10 million shares of Ouster common stock, inclusive of 0.8 million shares underlying assumed options, after closing adjustments.

Barclays has set a $12 price target, but the consensus target is $16.75. The stock recently has been trading between $6 and $7.

Yamana

This is a smaller market cap gold-mining stock for investors looking to add a higher share count and some inflation protection. Yamana Gold Inc. (NYSE: AUY) is a Toronto-based mining company with operations and development projects in North, South and Central America. The company is focused on growing profitably through the careful management of cost

Yamana engages in operating mines, development stage projects and exploration and mineral properties, chiefly in Canada, Brazil, Chile and Argentina. The company primarily sells precious metals, including gold, silver and copper. Its principal mining properties comprise the Chapada and Jacobina mines in Brazil, the Canadian Malartic mine in Canada, and the Cerro Moro mine in Argentina and the El Peñón and Minera Florida mines in Chile.

BofA Securities recently raised its rating to Buy, with a $6 price target. The consensus target for Yamana Gold stock is just $3.86, and the shares have been trading north of $4.


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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