4 Goldman Sachs Tech and Gaming Stock Picks Under $10 With Huge Upside Potential

Technology

Published: October 10, 2020 6:10 am

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 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’s pretty hard to get any decent share count leverage.

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 incredible upside potential. While all four are rated Buy at Goldman Sachs, they are much better suited for aggressive investors, and it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

CommScope

This technology play offers some serious upside for aggressive investors. CommScope Holding Co. Inc. (NASDAQ: COMM) provides infrastructure solutions for communications networks worldwide. Its CommScope Connectivity Solutions segment offers optical fiber and twisted-pair structured cable solutions, intelligent infrastructure software, and network rack and cabinet enclosures under the Systimax, NetConnect and Uniprise brands, as well as fiber management systems, patch cords and panels, pre-terminated fiber connectivity, complete cabling systems and cable assemblies for use in offices and data centers.

This segment also provides fiber optic connectivity solutions, including hardened connector systems, fiber distribution hubs and management systems, couplers and splitters, plug and play multiport service terminals, hardened optical terminating enclosures, high-density cable assemblies, splices, and splice closures that support video, voice and high-speed data services provided by telecommunications operators and multisystem operators.

Goldman Sachs has a $14 price target on the shares, while the Wall Street consensus target is $15.00. CommScope stock traded mostly between $9 and $10 a share last week.

Glu Mobile

This gaming stock also could have some big upside for aggressive accounts. Glu Mobile Inc. (NASDAQ: GLUU) designs, markets and sells mobile games. It specializes in free-to-play mobile games designed to a section of users who download and make purchases games through direct-to-consumer digital storefronts, such as the Apple App Store, Google Play Store, Amazon Appstore and others.

The company creates games based on its own brands, Blood & Glory, Contract Killer, Cooking Dash, Deer Hunter, Diner Dash, Eternity Warriors, Frontline Commando, Gun Bros, QuizUp and Tap Sports.

Glu Mobile also creates games based on third-party licensed brands, such as “Kim Kardashian: Hollywood,” “MLB Tap Sports Baseball” and “Restaurant Dash with Gordon Ramsay.”

The Goldman Sachs price target of $9.80 is less than the $11.09 consensus target. Glu Mobile stock traded mostly between $7 and $8 a share for the past month.