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.
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.
Goldman Sachs is the premier investment bank in the world, so we screened its outstanding research database and found five stocks trading under the $10 level that could provide investors with upside potential ranging from over 10% to 70%. For those leery of low-priced shares, just remember that Amazon and Apple at one time traded in the single digits. Zynga, a stock we have featured over the years, recently was purchased by Take-Two Interactive Software.
While all five are rated Buy at Goldman Sachs, they are much better suited for very aggressive investors. It also is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
This stock has been crushed over the past year but may be poised to turn. Avaya Holdings Corp. (NYSE: AVYA) is a global business communications company, which engages in the provision of business collaboration and communication solutions.
The Products and Solutions segment includes unified communications and contact center platforms, applications and devices. The Services segment consists of three business areas: Global Support Services, Enterprise Cloud and Managed Services and Professional Services.
The Goldman Sachs price target is $12, while the consensus target is $7.17, and shares last traded on Friday at $4.52.
This stock has taken a beating over the past year and looks poised to rebound. Compass Inc. (NYSE: COMP) provides real estate brokerage services in the United States. The company specializes in high-margin, luxury homes in upscale markets, including New York, Philadelphia, Boston and San Francisco.
The Compass platform includes an integrated suite of cloud-based software for customer relationship management, marketing, client service, brokerage services and other critical functionality, all custom-built for the real estate industry. Compass agents utilize the platform to grow their business, save time and manage their business more effectively.
Goldman Sachs has a $9 price target, and the consensus target is $7.50. The shares closed on Friday at $5.34.