Most of Wall Street focuses on large-cap and mega-cap stocks. After all, they provide a degree of safety and liquidity. Yet, 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. Then 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. Nvidia, which has exploded higher on AI semiconductor chips, traded under $10 for years. 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 for smaller cap companies that could offer patient investors some huge returns going forward. These five under $10 stock picks are rated Buy and have a ton of Wall Street coverage. Yet, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Many top analysts feel that shares of this company could explode higher soon. iQiyi Inc. (NASDAQ: IQ) provides online entertainment services under the iQiyi brand in the People’s Republic of China. The company offers various products and services, including internet video, online games, live broadcasting, online literature, animations, e-commerce and a social media platform.
The company operates a platform that provides a collection of internet video content, including professionally produced content licensed from professional content providers and self-produced content. iQiyi also provides membership, content distribution and online advertising services.
In addition, it operates iQiyi Show, a live broadcasting service that enables users to follow their favorite hosts, celebrities and shows in real-time through live broadcasting; and iQiyi Lite, an easy and quick access to the personalized videos based on their user preferences. Further, it is involved in the talent agency and IP licensing activities, as well as engages in developing a video community app.
Benchmark has a $9 target price on iQiyi stock. The consensus target is $8.47, and shares traded on Friday at $4.90 apiece.
This electric vehicle (EV) company could be in the sights of a larger car maker. Lucid Group Inc. (NASDAQ: LCID) is an automotive company focused on the design, development, customer experience, sale and service of EVs, as well as electric powertrains for Formula E and energy storage systems, starting with its Air sedan, to be followed by additional models through 2030. (These 19 executives pay themselves over $150 million a year.)
The company’s vehicles are manufactured off of Lucid Electric Advanced Platform (LEAP), a skateboard architecture that will underpin numerous models, and offered to consumers through a direct sales and service model.
While the EV industry has become a do-or-die proposition, Aston Martin recently announced it would be taking up with Lucid Motors for future battery EV development and stepping away from Mercedes-Benz’s EV technology.
Needham’s $9 target price is $9, and Lucid stock has a consensus of $7.35. Shares traded at $4.10 on Friday.
This stock was the birthplace for a large part of the meme stock revolution and has continued to attract big trading volume. Robinhood Markets Inc. (NASDAQ: HOOD) operates a financial services platform in the United States that allows users to invest in stocks, exchange-traded funds ETFs), options, gold and cryptocurrencies. (These 19 executives pay themselves over $150 million a year.)
The company also offers various learning and education solutions:
- Snacks is a digest of business news stories.
- Learn is a collection of approximately 650 articles, including guides, feature tutorials and a financial dictionary.
- Newsfeeds offers access to free premium news from various sites, such as Barron’s, Reuters and The Wall Street Journal.
- Lists allow users to create custom watchlists to monitor securities, ETFs and cryptocurrencies, as well as cash management services.
The $24 JMP Securities price target is well above the consensus of $12.38. Robinhood Markets stock traded on Friday at $9.05.
The roller-coaster ride for this stock over the past few years has given traders the perfect entry point. Snap Inc. (NYSE: SNAP) operates as a camera and social media company in North America, Europe and elsewhere. (Here is a ranking of the world’s largest social media sites.)
The company offers Snapchat, a camera application with various functionalities, such as Camera, Communication, Snap Map, Stories and Spotlight that enable people to communicate visually through short videos and images.
Snap also provides Spectacles, an eyewear product that connects with Snapchat and captures photos and video from a human perspective. Its advertising products include AR ads and Snap ads, comprised of a single image or video ads, story ads, collection ads, dynamic ads and commercials.
Snap posted very solid earnings this week. Revenues increased 5.3% year over year to $1.19 billion, which beat the Wall Street consensus forecast. Daily active users (DAU) at the end of the reported quarter were 406 million, up 11.8% year over year. The company added 43 million DAU on a year-over-year basis.
Snap stock has a $16 target price at Credit Suisse. The consensus target is $9.65, and on Friday shares traded at $9.40.
This is an inexpensive way to buy a deepwater oil drilling stock. Transocean Ltd. (NYSE: RIG) provides offshore contract drilling services for oil and gas wells worldwide. It contracts its drilling rigs, related equipment and work crews to drill oil and gas wells.
Transocean specializes in technically demanding sectors of the global offshore drilling business with a particular focus on deepwater and harsh environment drilling services. It also operates the highest-specification floating offshore drilling fleet in the world.
Transocean owns or has partial ownership interests in and operates a fleet of 37 mobile offshore drilling units. These consist of 27 ultra-deepwater floaters and 10 harsh environment floaters. In addition, Transocean is constructing one ultra-deepwater drillship and holds a noncontrolling ownership interest in a company that is constructing one ultra-deepwater drillship.
Citigroup boosted its $9.50 target price to $10.50 just last month. The consensus target is $6.85. Transocean stock traded at $6.70 on Friday.
These are five under $10 stock picks 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, and major Wall Street firms have research coverage.
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