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.
Goldman Sachs is the premier investment bank in the world, so we screened its outstanding research database and found five stocks trading under the $10 level that could provide investors with upside potential ranging from over 125% to 400%. For those leery of low-priced shares, just remember that Amazon and Apple at one time traded in the single digits. Zynga, a stock we have featured over the years, recently was purchased by Take-Two Interactive Software.
While all five are rated Buy at Goldman Sachs, they are much better suited for very aggressive investors. It also is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
This stock traded in the $50s a year ago and now has a huge upside. Farfetch Ltd. (NYSE: FTCH) provides an online marketplace for luxury fashion goods in the United States, the United Kingdom and elsewhere.
Besides operating Farfetch.com, an online marketplace, and the Farfetch app for retailers and brands, the company also offers web design, build, development and retail distribution solutions for retailers and brands. As of December 31, 2021, operated two Browns retail stores; two Stadium Goods retail stores; and 12 New Guards Off-White stores, three Ambush stores, two Palm Angels stores and three Off-White outlets. In addition, it operates approximately 60 New Guards franchised retail stores and four seasonal stores under various brands.
The $45 Goldman Sachs target price is well above the $30.58 consensus target. The shares closed on Friday at $7.86, so hitting the Goldman Sachs target would be a 475% or so gain.
This microcap biotech may be the biggest winner of all the Goldman Sachs Buy-rated stocks under $10. Kronos Bio Inc. (NASDAQ: KRON) is a clinical-stage biopharmaceutical company focused on the discovery and development of novel cancer therapeutics.
The company’s product engine focuses on dysregulated transcription factors and the transcriptional regulatory networks that drive oncogenic activity. Its lead product candidate is entospletinib, which is an orally administered, selective spleen tyrosine kinase inhibitor for acute myeloid leukemia patients.
The company’s planned registrational Phase 3 clinical trial of entospletinib in combination with induction chemotherapy in acute myeloid leukemia patients with NPM1 mutations. It is also developing KB-0742, an orally bioavailable inhibitor of cyclin-dependent kinase 9 for the treatment of MYC-amplified solid tumors, which is in Phase 1/2 clinical trial.
Goldman Sachs has set a price target of $35 per share, and the consensus target is even higher at $40.25. Hitting the Goldman Sachs target would be a more than 800% gain from Friday’s closing share price of $3.81.
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