Investing

5 Scorching-Hot Stocks Trading Under $10 With Big-Time 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.

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 ADT and Cemex). 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.

AvePoint

This is an off-the radar idea with stellar potential. AvePoint Inc. (NASDAQ: AVPT) provides Microsoft 365 data management solutions worldwide. It offers a suite of software as a service solutions to migrate, manage and protect data. The company provides cloud solutions for Office 365, Salesforce and Dynamics 365, as well as hybrid/on-premises products. It also offers advisory and implementation, maintenance and support, Microsoft Teams surge and advisory, migration as a service and quick-start services.

Last month, AvePoint received the highest current offering score of all 10 vendors for cloud backup and was the lone vendor to receive a differentiated rating, which is the highest possible score, in all three criteria of Microsoft 365, Google Workspace and Salesforce. In addition, AvePoint received differentiated ratings in security and privacy, usability, storage options, planned enhancement and innovation roadmap criteria.

Cantor Fitzgerald has an $11 price target, but the consensus target is even higher at $13.60. The shares closed on Friday at $6.23.


Compass

This stock has taken a beating over the past year and looks poised to rebound. Compass Inc. (NYSE: COMP) provides real estate brokerage services in the United States. The company specializes in high-margin, luxury homes in upscale markets, including New York, Philadelphia, Boston and San Francisco.

Its cloud-based platform provides an integrated suite of software for customer relationship management, marketing, client service, brokerage services and other critical functionality, all custom-built for the real estate industry and adjacent services. The more than 25,000 Compass agents utilize the platform to grow their business, save time and manage their business more effectively.

The New York City-based company was founded in 2012 and went public last April.

The Goldman Sachs price target is a giant $24, while the consensus target is $18.154. The shares closed trading at $8.31 on Friday.

TRACON Pharmaceutical

Aggressive traders looking for a microcap biotech trade could have a winner here. TRACON Pharmaceutical Inc. (NASDAQ: TCON) is a clinical-stage biopharmaceutical company that focuses on the development and commercialization of therapeutics for cancer and age-related macular degeneration and fibrotic diseases in the United States.

The company’s lead clinical stage product includes envafolimab (KN035), an investigational PD-L1 single-domain antibody for the treatment of soft tissue sarcoma. The company’s clinical-stage products also include TRC102, which is a small molecule that is in Phase 2 clinical trial for the treatment of mesothelioma, Phase 1 clinical trial to treat solid tumors, Phase 1 trial to treat solid tumors and lymphomas, and Phase 1 trial to treat lung cancer. TRC253 is a small molecule that is in Phase 2 clinical trial for the treatment of metastatic castration-resistant prostate cancer, while TJ004309, a CD73 antibody, is in Phase 1 clinical development for the treatment of solid tumors.

Alliance Global’s $11 price target is slightly less than the $11.86 consensus target. The share price last seen on Friday was $2.36.

Vacasa

Vacation rental owners and travelers know this outstanding company well. Vacasa Inc. (NASDAQ: VCSA) operates vacation rental management platforms in North America, Belize and Costa Rica. The company enables guests to search, discover and book its properties on Vacasa.com and the Vacasa Guest App. It also provides services to buy and sell vacation homes through its network of real estate agents.

The company recently went public via a SPAC merger with TPG Pace Solutions, as Vacasa has a proven, scaled business model, very favorable secular tailwinds and experienced leadership team. The Vacasa team has executed exceptionally well, with its previously updated full-year 2021 revenue guidance came in more than $100 million higher than the initial revenue target provided when the companies announced the transaction back in July.

Oppenheimer recently started coverage of the stock and has a $12 price target. The consensus target is even higher at $14. Shares closed trading at $7.65 on Friday.

ViewRay

This stock was cut in half late last year, and now offers an outstanding entry point. ViewRay Inc. (NASDAQ: VRAY) designs, manufactures and markets radiation therapy systems. The company offers MRIdian, a magnetic resonance image guided radiation therapy system to image and treat cancer patients.

MRIdian integrates MRI technology, radiation delivery and proprietary software to see the soft tissues, shape the dose to accommodate for changes in anatomy, and strike the target using real-time targeting throughout the treatment. The company serves university research and teaching hospitals, community hospitals, private practices, government institutions and freestanding cancer centers. ViewRay markets MRIdian through a direct sales force and distribution network.

The $7 B. Riley Securities price target is less than the $8.57 consensus target but well above Friday’s closing price of $4.77 per share.


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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