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Investing
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.
Skeptics of low-priced shares should remember that at one point both 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 in March, has tripled since then.
Raymond James is one the premier investment banks in the world, so we screened the firm’s outstanding research database and found five stocks trading for less than $10 a share with the firm’s highest Strong Buy rating that could provide investors with some massive upside potential, ranging from 160% to almost 1,000%.
While all five are rated Outperform at Raymond James, 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.
Arlo Technologies
This company provides the kind of technology that is in big demand and forward growth could be remarkable. Arlo Technologies Inc. (NYSE: ARLO) provides a cloud-based platform in the Americas, Europe, the Middle East and elsewhere. It combines an intelligent cloud infrastructure and mobile app with various smart connected devices.
The company offers Arlo essential indoor camera; Arlo Go 2 LTE/Wi-Fi security camera; Arlo Q and Arlo Q Plus, an indoor wired solution that allows users to monitor their surroundings; and Arlo Go, an LTE-enabled wire-free camera that provides untethered mobile security.
It also provides Arlo Baby, a baby monitor with air quality and temperature sensors, motion and audio detection, and advanced night vision; Arlo Chime that pairs with the Arlo Video Doorbell to play a variety of ringtones or act as a siren; Arlo Ultra, an integrated spotlight and crystal-clear two-way audio with advanced noise cancellations camera; Arlo Pro 3, an integrated spotlight with color night vision camera; Arlo Video Doorbell delivers direct-to-mobile video calls and personalized alerts; Arlo Floodlight Camera, a wire-free variant LED camera, as well as Arlo Essential Spotlight; Arlo Ultra 2; Arlo Essential XL Spotlight; Arlo Essential Wire-Free Video Doorbell; and Arlo Pro 4 Wire-Free Spotlight.
In addition, it provides Arlo accessories, such as charging accessories, device mounts and device skins. Further, it offers Arlo app for iOS and Android devices that allow users to connect various devices, and Arlo Secure, with coverage for unlimited cameras and enhanced emergency response solutions. The company offers its products through retailers, wholesale distributors, broadcast channels, wireless carriers and security solution providers, as well as through its website.
The Raymond James target price is $11, while the consensus target is $9.50. The stock traded on Friday at $3.40, so hitting the Raymond James target would be around a 230% winner.
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