Investing
5 Well-Known 'Strong Buy' Stocks Trading 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 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.
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We screened our 24/7 Wall St. research database looking for well-known 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.
ADT
This top security company is a well-known protector of homes and businesses. ADT Inc. (NYSE: ADT) is the largest residential and second-largest commercial security monitoring company in North America. The company serves over 7 million customers, installing over a million systems per year. Roughly 94% of revenue is generated in the United States, with the remainder from Canada.
Google announced last year that it was buying a 6.6% stake in the home security firm for $450 million in a deal that will allow it to provide service to customers of its Nest home security devices. ADT said that the companies will work to combine Nest products like cameras, thermostats, doorbells and alarm systems with ADT’s installation, service and professional monitoring network. The company expects to expand the integration this year and beyond.
Citigroup has a $10.25 price target on ADT stock, about the same as the $10.21 consensus target. The stock closed Friday at $6.86 a share.
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.
The company offers the BlackBerry Spark software platform, which includes a suite of security software products and services comprising BlackBerry UEM, BlackBerry Dynamics and BlackBerry Workspaces solutions. Its BlackBerry Spark SDK promotes the evolution of a platform ecosystem by enabling enterprise and independent software vendor developers to integrate the security features of BlackBerry Spark into their own mobile and web applications.
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It also provides BlackBerry Internet of Things (IoT) solutions, including BlackBerry QNX, BlackBerry Certicom, BlackBerry Radar, BlackBerry Jarvis, BlackBerry AtHoc, BlackBerry Alert, SecuSUITE and other IoT applications. As of February 28, 2021, it owned approximately 38,000 worldwide patents and applications.
Canaccord Genuity’s $7 target price could be going higher, after the company posted very solid fiscal fourth-quarter results. The consensus target for BlackBerry stock is $8.29. Shares ended Friday trading at $5.72.
Coty
Smart investors know that regardless of the economy, Americans will continue to buy makeup and fragrances and this is a very solid play on that theme. Coty Inc. (NYSE: COTY) is number two globally in the fragrance category and number six in color cosmetics.
The company manufactures, markets, distributes and sells beauty products worldwide. The company provides prestige fragrances, skincare and color cosmetics products through prestige retailers, including perfumeries, department stores, e-retailers, direct-to-consumer websites, and duty-free shops under the Alexander McQueen, Burberry, Bottega Veneta, Calvin Klein, Cavalli, Chloe, Davidoff, Escada, Gucci, Hugo Boss, Jil Sander, Joop!, Kylie Jenner, Lacoste, Lancaster, Marc Jacobs, Miu Miu, Nikos, philosophy, and Tiffany & Co. brands.
Coty also offers mass color cosmetics, fragrance, skincare, and body care products primarily through hypermarkets, supermarkets, drug stores, pharmacies, mid-tier department stores, traditional food and drug retailers, and e-commerce retailers under the Adidas, Beckham, Biocolor, Bozzano, Bourjois, Bruno Banani, CoverGirl, Enrique, Max Factor, Mexx, Monange, Nautica, Paixao, Rimmel, Risque, Sally Hansen, Stetson, and 007 James Bond brands.
The price target at Raymond James is $12, while the consensus target is $12.63. Coty stock closed trading at $8.11 on Friday.
24/7 Wall St.Kinross Gold
Investors who are more aggressive may want to consider this smaller cap mining company. Kinross Gold Corp. (NYSE: KGC) engages in the acquisition, exploration and development of gold properties principally in Canada, the United States, the Russian Federation, Brazil, Chile, Ghana and Mauritania.
The company recently announced a definitive agreement with Asante Gold to sell its Chirano gold mine in Ghana for $225 million in total. Top analysts felt that the $225 million was below the intrinsic value of $263 million or more, but many felt that the Chirano mine was a very likely candidate for a sale given the small net asset value and it had a relatively short mine life expectancy.
Kinross Gold stock comes with a 2.19% dividend. The $7.65 BofA Securities price target is less than the consensus target of $9.75 but well above the $5.08 share price last seen on Friday.
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Nokia
This telecommunications company ruled the cell phone arena until the advent of the smartphone in 2007 and recently re-emerged 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.
In a very positive sign for investors this past week, the company resumed its quarterly dividend and initiated a share buyback program after reporting very solid fourth-quarter results, with comparable operating earnings above market estimates as the telecom equipment maker kept costs in check. Nokia also forecasted annual revenue that was largely ahead of projections and set a long-term target for operating margins of at least 14%, replacing its earlier 2023 target of between 11% and 13%.
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