Investing

5 Buy-Rated Stocks Trading Under $10 With Huge 2022 New Year's Potential

furryscalyman / Flickr

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.

Each week we screen our 24/7 Wall St. research database looking for stocks rated Buy at major firms priced and under the $10 level (last week’s picks included Canoo and Gol Linhas). This week was no exception as we found five new stocks that could provide investors with some solid upside potential. Skeptics of low-priced 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 and making good ideas to trade even harder to find), they could prove exciting additions for traders looking for solid alpha potential. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Accuray

This off-the-radar gem spiked big-time in the fall but has come back in to offer a very solid entry point. Accuray Inc. (NASDAQ: ARAY) develops, manufactures and sells radiotherapy systems for alternative cancer treatments in the Americas, Europe, the Middle East, India, Japan, China and elsewhere.

The company offers the CyberKnife System, a robotic stereotactic radiosurgery and stereotactic body radiation therapy system used for the treatment of various types of cancer and tumors in the body, such as prostate, lung, brain, spine, liver, pancreas and kidney. Accuray also provides the TomoTherapy System, including the Radixact System, which consists of an integrated radiation therapy system designed for the treatment of a range of cancer types. In addition, it offers post-contract customer support, installation, training and other professional services.

The company primarily markets its products directly to customers, including hospitals and stand-alone treatment facilities through its sales organization, as well as to customers through sales agents and group purchasing organizations in the United States, as well as to customers directly and through distributors and sales agents internationally.

Loop Capital has a $7.50 target price for Accuray stock. The Wall Street consensus target is even higher at $8.30. The stock ended trading on Friday at $4.77 a share.


Bionano Genomics

Aggressive investors looking for a biotech play are in luck with this microcap stock. Bionano Genomics Inc. (NASDAQ: BNGO) is a genome analysis company that provides tools and services based on its Saphyr system to scientists and clinicians conducting genetic research and patient testing.

The Saphyr system is a research use only platform for ultra-sensitive and ultra-specific structural variation detection that enables scientists and clinicians to accelerate the search for new diagnostics and therapeutic targets and to streamline the study of changes in chromosomes.

Bionano Genomics also provides diagnostic testing for those with autism spectrum disorder and other neurodevelopmental disabilities. In addition, it offers an agnostic cross-platform data interpretation and clinical reporting software that integrates next-generation sequencing and microarray data, and it provides visualization of copy number variants, single-nucleotide variants and absence of heterozygosity across the genome for a fully integrated analysis in one view.

The Oppenheimer target price is $14 price target, and the consensus target is $12.00. The stock closed at $2.99 on Friday.

Grab

This stock has been cut in half since early November, and it appears to have stabilized enough to jump in. Grab Holdings Ltd. (NASDAQ: GRAB) operates a transportation and fintech platform in Southeast Asia. It offers a range of services, including mobility, food, package and grocery delivery services, as well as mobile payments and financial services.

Anthony Tan, Group CEO and co-founder, said this after the company’s successful conversion from SPAC status:

Our evolution into a superapp was guided by the everyday problems we wanted to solve for the people we care about, and accelerated by the growing appetite for digital services in a rapidly transforming landscape. From on-demand mobility and deliveries to digital financial services, enterprise services and more, we believe we are only scratching the surface of the opportunity ahead of us. While there’s no doubt this is an exciting moment, we’re grounded in the knowledge that this is just day one. Our calling remains the same – to unlock greater opportunity for all Southeast Asians to participate in the digital economy.

The $10.50 Jefferies price target is well above the $8.84 consensus target. Grab stock closed on Friday at $7.13 per share.

Innovid

This stock was crushed after going public via a SPAC transaction and is a bargain at current trading levels. Innovid Corp. (NYSE: CTV) operates as a connected TV advertising delivery and measurement platform. It offers marketer solutions, such as connected TV advertising, ad serving, creative management, advertising measurement, and identity resolution; publisher solutions; and creative ad authoring tools. The company serves brands, agencies and publishers in the Americas, Europe and the Asia Pacific.

Founded in 2007, Innovid is uniquely equipped to support the transition of traditional linear ad investment to connected TV advertising (CTV). The company’s core ad delivery solution provides advertisers a consolidated interface to streamline ad serving, operating as the infrastructure through which CTV ads are delivered across all media including direct buys, programmatic inventory, the open web and walled gardens. Innovid’s platform also allows advertisers to tap into value-added features designed to increase the performance of advertising creative through personalization and interactivity, as well as provide deeper insights into CTV advertising reach, frequency and engagement.

Needham recently started coverage on the stock and has a $10 price target. The consensus target is $11.00., and on Friday the shares closed trading at $6.65.

Pear Therapeutics

This is another solid play for investors looking for microcap biotech ideas. Pear Therapeutics Inc. (NASDAQ: PEAR) engages in developing and commercializing software-based medicines.

The company has a pipeline of products and product candidates across therapeutic areas, including severe psychiatric and neurologic conditions. Its products include PearConnect, a patient service center for prescription digital therapeutics; reSET for the treatment of substance use disorder; reSET-O for the treatment of opioid use disorder; and Somryst for the treatment of chronic insomnia.

Crossroads, a national leader in the treatment of opioid use disorder, began implementing Pear’s reSET-O PDT technology in its centers across western Pennsylvania in January 2020. Now, Pear’s reSET and reSET-O PDTs have the potential to reach thousands of additional patients per month as a standard of care for eligible patients in Crossroads locations across the rest of Pennsylvania and into Kentucky, New Jersey and Virginia.

Citigroup started coverage last week. Its $13 price target is lower than the $14.40 consensus target, but the stock was trading at $6.20, up a stunning 22% on Friday.


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.

Essential Tips for Investing: Sponsored

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

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.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.