While Most of Wall Street focuses on large and mega cap stocks, as they provide a degree of safety and liquidity, many investors are limited in the amount of shares they can buy. Many of the biggest public companies, especially the technology giants, trade in the low to mid hundreds all the way up to over $1,000 per share. At those steep prices, It’s pretty hard to get any decent share count leverage.
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Many investors, especially more aggressive traders, look at lower-priced stocks as a way to not only 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 the firm’s outstanding research database and found five stocks trading under the $10 level that could provide investors with some massive upside potential ranging from over 75% to 500%.
For low-price stock skeptics, many of the biggest companies in the world including Apple and Amazon traded in the single digits at one time. One stock that we covered over the years, Zynga, was purchased by Take-Two Interactive. Cogent Biosciences, another one we featured in March, has tripled.
While all five are rated Buy at Goldman Sachs, they are much better suited for very aggressive accounts, and it is important to remember that no single analyst report should be used as the sole basis for any buying or selling decision.
24/7 Wall St.ADT
This top security company is a well-known protector of home and business. 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 1 million systems per year. Roughly 94% of revenue is generated in the US, with the remainder from Canada.
Google announced last year they were 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.
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In September, insurance giant State Farm bought a 15% stake in the company. The Goldman Sachs analyst noted at the time that the partnership leveraged ADT’s smart home devices, including flood detection, smoke alarm and home intrusion devices, and related monitoring services to allow State Farm to offer lower homeowner insurance premiums to reflect risk mitigation efforts.
The Goldman Sachs price target is $11 which compares with the $9.80 consensus target. The shares ended trading Friday at $9.
ANGI Inc.
This popular home services company has been crushed and has massive upside potential. Angi Inc. (NASDAQ: ANGI) connects home service professionals with consumers in the United States and internationally. Its Angi Ads business, which connects consumers with service professionals for local services through the Angi nationwide online directory of service professionals in various service categories, provides consumers with valuable tools, services, and content, including verified reviews, to help them research, shop, and hire for local services; and sells term-based website, and mobile and digital magazine advertising to service professionals, as well as provides quoting, invoicing, and payment services.
The company also owns and operates Angi Leads digital marketplace service that connects consumers with service professionals for home repair, maintenance, and improvement projects; offers consumers tools and resources to find local, pre-screened, and customer-rated service professionals, as well as online appointment booking; and connects consumers with service professionals by telephone, and home services-related resources.
Angi Inc. also operates Handy, a platform for household services, primarily cleaning and handyman services; Angi Roofing, which provides roof replacement and repair services; and home services marketplaces under the Travaux, MyHammer, Werkspot, MyBuilder, and Instapro names.
The Goldman Sach team has a large $6 price target for the stock, while the Wall Street consensus target is posted just lower at $5.99. Hitting the Goldman Sachs target would be a huge 196% gain after the stock closed Friday at $2.12.
24/7 Wall St.Altice USA
This communications company is offering the best entry point in years. Altice USA, Inc. (NYSE: ATUS), together with its subsidiaries, provides broadband communications and video services in the United States, Canada, Puerto Rico, and the Virgin Islands. It offers broadband, video, telephony, and mobile services to approximately five million residential and business customers.
The company’s video services include delivery of broadcast stations and cable networks; over-the-top services; video-on-demand, high-definition channels, digital video recorder, and pay-per-view services; and platforms for video programming through mobile applications. It also provides voice-over-Internet protocol telephone services; and mobile services, such as data, talk, and text.
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In addition, the company offers Ethernet, data transport, IP-based virtual private networks, Internet access, and telephony services; hosted telephony services, managed Wi-Fi, managed desktop and server backup, and collaboration services comprising audio and web conferencing; fiber-to-the-tower services to wireless carriers; data services consisting of wide area networking and dedicated data access, as well as wireless mesh networks; and enterprise-class telephone services that include traditional multi-line phone service.
Altice USA provides business email, hosted private branch exchange, web space storage, and network security monitoring; and international calling and toll-free numbers. Additionally, the company offers audience-based and IP-authenticated cross-screen advertising solutions; and television and digital advertising services, as well as operates news channels under the News 12 Networks, Cheddar, and i24NEWS names. It also provides broadband communications and video services under the Optimum and Suddenlink brands.
The Goldman Sachs price target is set at $7, while the Wall Street consensus target price is set higher at $9.57. The final trade Friday was filled at $4.65.
Dole
If you are a fan of pineapple and other fruit and vegetables, then this stock should be very familiar. Dole plc (NYSE: DOLE) engages in sourcing, processing, marketing, and distribution of fresh fruit and vegetables worldwide. The company operates through four segments: Fresh Fruit; Diversified Fresh Produce – EMEA; Diversified Fresh Produce – Americas and the rest of the world; and Fresh Vegetables.
Dole offers bananas, pineapples, grapes, berries, avocados, deciduous fruit, and organic produce; value-added salads, which include packaged salad and meal kits; and fresh packed vegetables, such as iceberg, romaine, leaf lettuces, and celery, as well as health foods and consumer goods. The company serves retailers, wholesalers, and food service customers.
The company has seen some big insider buying from Jan Barta, who bought another large block of stock back in September. Goldman Sachs has put a $16 price target on the shares, which compares with the lower $12.95 consensus target and Friday’s final trade of $8.85.
Kosmos Energy
This stock is just over the $10 level and is a solid energy exploration and production play, and with oil and gas prices near all-time highs, this could be an outstanding idea now. Kosmos Energy Ltd. (NYSE: KOS) is a deepwater independent oil and gas exploration and production company, focused along the Atlantic Margins.
The company’s primary assets include production offshore Ghana, Equatorial Guinea, and the U.S. Gulf of Mexico, as well as a gas development offshore Mauritania and Senegal. It also maintains a proven basin exploration program.
24/7 Wall St.Goldman Sachs Spots One Red-Hot Sector With 5 Likely 2023 Winners Paying Big Dividends
Kosmos Energy’s focus is on unlocking new hydrocarbon systems and growing and maturing discovered basins through follow-on exploration success, development, and production.
The Goldman Sachs Buy rating comes with a $9 target. The consensus target is posted higher at $9.71. The stock closed Friday’s trading at $10.16.
Five stocks for aggressive accounts that look to get share-count leverage on companies that have sizable upside potential. While not suited for all investors, these are not penny stocks with absolutely no track record or liquidity, and Goldman Sachs has research coverage.
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