When it comes to investing in the stock market, most investors are familiar with the large-cap and mega-cap stocks that dominate the headlines. These stocks are often seen as safer bets due to their size, stability, and liquidity. However, many investors face limitations in the number of shares they can purchase, especially when dealing with high-priced shares, such as those of technology giants trading at hundreds or even over $1,000 per share.
For investors looking to not only potentially make substantial profits but also increase their share count, lower-priced stocks can provide an attractive alternative. This strategy can offer valuable leverage in the decision-making process, particularly when a stock is on an upward trajectory. Investors can consider selling a portion of their holdings while retaining the rest, thereby optimizing their investment strategy.
Skeptics of low-priced stocks should recall that some of today’s tech giants, like Amazon, Apple, and Netflix, once traded as single-digit stocks. Even companies like Nvidia, a leader in AI semiconductor chips, spent years trading under $10 per share. It’s a reminder that promising opportunities can be found in the lower-priced segment of the market.
We’ve scoured the 24/7 Wall St. research database to identify five under $10 stock picks rated as “Buy” and backed by significant Wall Street coverage. While it’s essential to remember that no single analyst report should be the sole basis for any investment decision, these stocks may offer patient investors the potential for significant returns.
1. Holley Inc. (NYSE: HLLY)
Holley is a well-known name among do-it-yourself car enthusiasts. The company designs, manufactures, and markets a wide range of automotive aftermarket products for car and truck enthusiasts across the United States, Canada, Europe, and China. Holley’s product portfolio includes carburetors, fuel pumps, exhaust systems, and much more, sold under various brand names.
The recent addition of Holley to the small-cap Russell 2000 index is a significant advantage, as index funds replicating this index are obliged to purchase its shares. Furthermore, the company recently reported stellar second-quarter results. Benchmark has set a $12 target for Holley stock, while the consensus target stands at $9.33. As of Friday, shares were trading at $4.65.
2. Lucid Group Inc. (NASDAQ: LCID)
Lucid Group is a company in the electric vehicle (EV) sector and is focused on the design, development, sale, and service of EVs and electric powertrains. The company’s vehicles are manufactured using the Lucid Electric Advanced Platform (LEAP) and are sold directly to consumers. Recently, Aston Martin announced a partnership with Lucid Motors for future battery EV development.
Needham has set a $9 target price for Lucid, with a consensus target of $7.35. Shares traded at $5.10 on Friday.
3. Robinhood Markets Inc. (NASDAQ: HOOD)
Robinhood Markets operates a financial services platform that allows users to invest in stocks, ETFs, options, gold, and cryptocurrencies. The platform also offers educational resources and newsfeeds from premium sources such as Barron’s, Reuters, and The Wall Street Journal.
JMP Securities has a price target of $24 for Robinhood Markets, nearly double the consensus target of $12.38. The stock traded at $9.30 on Friday.
4. Tetra Technologies Inc. (NYSE: TTI)
Tetra Technologies is a geographically diversified oil and gas services company that offers fluids and associated products and services to the oil and gas industry. The company is expanding its business model by entering the low-carbon energy markets.
Benchmark has set an $8 target price for Tetra Technologies, compared to the consensus target of $7.80. Shares were priced at $6.20 on Friday.
5. Under Armour Inc. (NYSE: UAA)
Under Armour develops, markets, and distributes performance apparel, footwear, and accessories for a range of athletic activities. The company’s products are sold through various channels, including wholesale, retail, and e-commerce.
UBS has a $12 target price for Under Armour, while the consensus target is $13. Shares were trading at $6.60 on Friday.
These five under $10 stock picks offer opportunities for investors seeking share count leverage and substantial upside potential. While these stocks may not be suitable for all investors, they are not penny stocks and are backed by significant research coverage from major Wall Street firms. When exploring these opportunities, it’s essential for investors to conduct their due diligence and consider their risk tolerance.
Disclaimer:
The information presented in this article is for informational purposes only and should not be considered as financial or investment advice. Any investment decisions should be made after consulting with a qualified financial advisor and considering your unique financial situation and risk tolerance. Investing in stocks carries inherent risks, and past performance is not indicative of future results. The author and the website are not responsible for any investment decisions or actions taken by readers based on the information provided.
