Investing

5 Outstanding Well-Known Stocks to Buy Under $10 With Huge Upside Potential

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 2022 and beyond. Skeptics of low-priced shares should remember that at one point both Amazon and Apple traded in the single digits. One stock we featured over the years, Zynga, recently was purchased by Take-Two Interactive.

While all five 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.

Arcos Dorados

This company may seem under the radar, but it has one of the best products imaginable in terms of name recognition. Arcos Dorados Holdings Inc. (NYSE: ARCO) is the world’s largest independent McDonald’s franchisee.

The company has the exclusive right to own, operate and grant franchises of McDonald’s restaurants in 20 countries and territories in Latin America and the Caribbean, including Argentina, Brazil, Colombia, Costa Rica, Mexico, Panama, Peru, Puerto Rico, the U.S. Virgin Islands and Venezuela. As of December 31, 2020, it operated or franchised 2,236 restaurants.

The analysts at BofA Securities recently upgraded the stock to Buy and have a $10 price target. That compares with the lower $8.59 consensus target on Arcos Dorados stock, as well as a recent share price of $8.00.

BlackBerry

This stock has been in and out of the meme stock lineup but remains a potential takeover target. BlackBerry Ltd. (NYSE: BB) provides intelligent security software and services to enterprises and governments worldwide. The company leverages artificial intelligence and machine learning to deliver solutions in the areas of cybersecurity, safety and data privacy, as well as endpoint security management, encryption and embedded systems.

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