Investing

5 Smoking Hot Buy-Rated Stocks Under $10 With Gigantic 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.
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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.

Skeptics of low-priced shares should remember that at one point Amazon, Apple and Netflix traded in the single digits. One stock we featured over the years, Zynga, was purchased by Take-Two Interactive. Cogent Biosciences, which we featured last March, has tripled since then.

We screened our 24/7 Wall St. research database looking for smaller cap companies that could offer patient investors some huge returns for the new year and beyond. While these five stocks are rated Buy and have a ton of Wall Street coverage, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Arco 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 is based in Montevideo, Uruguay and 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, Aruba, Brazil, Chile, Colombia, Costa Rica, Curacao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago, Uruguay, the U.S. Virgin Islands of St. Croix and St. Thomas, and Venezuela. As of December 31, 2021, it operated or franchised 2,261 restaurants.

Goldman Sachs has a $10 price target on Arcos Dorados stock. The $10.28 consensus target is a bit higher, and shares closed on Friday at $8.69.

Gambling.com

With sports betting exploding, this stock is a solid play that has been cut in half since late last year. Gambling.com Group Ltd. (NASDAQ: GAMB) is a multiple-award-winning performance marketing company and a leading provider of digital marketing services active exclusively in the online gambling industry.

The company operates from offices in Ireland, the United States and Malta. Through its proprietary technology platform, it publishes a portfolio of premier branded websites, including Gambling.com and Bookies.com.

Founded in 2006, the company owns and operates more than 30 websites in six languages across 13 national markets, covering all aspects of the online gambling industry, including iGaming and sports betting.

Truist Financial’s target price is $12, while the consensus target is $12.67. The shares closed on Friday at $9.25.

New York Community Bancorp

This somewhat off-the-radar company pays a huge dividend and is an attractive idea for investors also looking to own financials now. New York Community Bancorp Inc. (NYSE: NYCB) operates as the bank holding company for New York Community Bank, which provides banking products and services in New York, New Jersey, Ohio, Florida and Arizona.
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The company accepts various deposit products, such as interest-bearing checking and money market, savings, non-interest-bearing and individual retirement accounts, as well as certificates of deposit. Its loan products include multifamily loans; commercial real estate loans; specialty finance loans and leases; and commercial and industrial loans; acquisition, development and construction loans; one-to-four family loans; and consumer loans.

The company also offers annuities, life and long-term care insurance products and mutual funds; cash management products; and online, mobile and phone banking services. It primarily serves individuals, small and midsize businesses, and professional associations through a network of 237 community bank branches and 340 ATM locations.

New York Community Bancorp stock investors receive a 7.20% dividend. Piper Sandler’s $11 price target compares with the $10.07 consensus target and the close at $9.68 on Friday, which was up close to 3% for the day.

Oatly

After an initial public offering in 2021, this stock was hammered and now looks like a solid idea for aggressive investors. Oatly Group AB (NASDAQ: OTLY) provides a range of plant-based dairy products made from oats in Sweden.

It offers Barista edition oatmilk, oatgurts and frozen desserts and novelties. It has ready-to-go drinks, such as cold brew latte, mocha latte, matcha latte, and mini oatmilk in original and chocolate flavors, as well as cooking products, including cooking creams, creme fraiche products, whipping creams, vanilla custards and spreads in a variety of flavors.

Mizuho upgraded Oatly stock this week and raised its $2.50 target price to $6. The consensus target is $3.98. The shares closed on Friday at $2.54.

SoFi Technologies

This company took the SPAC route for its IPO and remains a millennial trader favorite. SoFi Technologies, Inc. (NASDAQ: SOFI) provides digital financial services that allow its members to borrow, save, spend, invest and protect their money. The company offers student loans; personal loans for debt consolidation and home improvement projects; and home loans.

SoFi also provides cash management, investment and other related services. In addition, it operates Galileo, a technology platform that offers services to financial and non-financial institutions, and Apex, a technology-enabled platform that provides investment custody and clearing brokerage services.

The $8 BofA Securities price target is greater than the $7.33 consensus target. SoFi Technologies stock closed almost 5% higher on Friday at $5.67.


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.

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