Cheap stocks can be a smart choice for investors, as there are serious bargains to be found. The stocks below may be cheap, but they all offer impressive value for money and big upside potential.
Furthermore, all 10 of these cheap stocks to buy have significant support from Wall Street's best-performing analysts. While it may be difficult to find compelling stocks for under $10, I've selected 10 gems that I certainly believe are worth exploring.
To pinpoint these top stocks, I turned to TipRanks' unique stock screener . I used this screener, which covers over 5,000 stocks, to find only the best stocks with a 'Strong Buy' analyst consensus rating. This is based on all the ratings that a stock has received in the last three months alone.
From the results, I quickly scanned for stocks trading at $10 or under, while also looking for those with compelling analyst price targets. Most of the stocks listed below are small-cap or micro-cap stocks, but as one analyst says "For those who can look small, this could be big."
Let's take a closer look at these 10 intriguing stock picks now:
Cheap Stocks to Buy: Glu Mobile (GLUU)Garry Knight via Flickr
San Francisco-based Glu Mobile Inc. (NASDAQ: GLUU ) is a developer and publisher of popular mobile games for smartphone and tablet devices. Most noteworthy is its latest move - an app collaboration with pop megastar Taylor Swift.
The stock has the Street's seal of approval with a Strong Buy consensus from top analysts. In the last three months, GLUU has received 4 buy ratings and 1 hold rating from analysts. Interestingly, Chinese internet giant Tencent Holdings Ltd (OTCMKTS: TCEHY ) has already acquired a 15% stake in GLUU back in 2015.
Top Benchmark Co analyst Mike Hickey is the latest convert to the GLUU bull story. He upgraded his rating on GLUU to buy with a $6 price target (40% upside potential) on Oct. 12. Hickey believes a turnaround is beginning to materialize and it is "cautiously optimistic" on the upcoming launch of "The Swift Life." This is a social platform from Taylor Swift that aims to bring together all her several hundred million social followers into an online community where they can collect "Taymojis, stickers, pics, and more."
Cheap Stocks to Buy: Amarin (AMRN)
Amarin Corporation plc (ADR) (NASDAQ: AMRN ) is an innovative biopharma developing and marketing medicines for cardiovascular disease. The stock is currently trading at just $3.40, but analysts see the stock spiking to $8.25 (142% upside potential). Meanwhile, in the last three months AMRN has received four back-to-back buy ratings from the Street. The result: an overall 'Strong Buy' consensus rating.
One bullish analyst is Cantor Fitzgerald's Louise Chen . She is encouraged about the progress of Amirin's lead product, Vascepa, a purified type of omega-3 for decreasing high triglyceride levels. Amarin is currently testing the effectiveness of Vascepa through its REDUCE-IT study. She notes that there are plenty of international expansion opportunities for Vascepa, including in Canada (through its exclusive agreement with HLS Therapeutics), the Middle East and its advanced registration filings for clinical studies in China.
Chen believes "that a potential positive read-out from the REDUCE-IT outcomes study, expected in mid-2018, may not only expand the indicated patient population of ~4M to ~75M." Even more intriguingly, the study could, for the first time, "draw a straight line between triglyceride levels and cardiovascular risk, possibly changing how cardiovascular risk is managed and treated and potentially creating a multi-billion-dollar market opportunity."
Cheap Stocks to Buy: Ardelyx (ARDX)
Ardelyx Inc (NASDAQ: ARDX ) is a biopharma focused on the massive opportunity presented by irritable bowel syndrome with constipation (IBS-C). From the current share price of $5.35, analysts see the stock soaring all the way to $15.40. This represents huge upside potential of 187%. We can also see from TipRanks that ARDX has a 'Strong Buy' analyst consensus with five straight buy ratings in the last three months.
Cantor Fitzgerald's Mara Goldstein has just ramped up her price target on ARDX from $12 to $14 (161% upside). She applauds Ardelyx's recent study for its lead product candidate tenapanor for the treatment of IBS-S. Not only did the study show statistically significant results, it even beat investor expectations. She is now looking for a new drug application (NDA) submission to the Food and Drug Administration in 2H18. Furthermore, Goldstein believes the stock "has a commercial opportunity above the current valuation."
"Because of a positive second Phase III trial for tenapanor in IBS-C, we think investors will begin to re-evaluate tenapanor as a viable commercial drug for IBS-C," says Goldstein. "The IBS-C market, in spite of new drugs, is still underserved, in our view, and we believe tenapanor will be able to gain share. With confirmatory data now in hand, we see opportunities for the company to explore partnerships."
Cheap Stocks to Buy: Asure Software (ASUR)PRONEC Corporation via Flickr
Asure Software Inc (NASDAQ: ASUR ) is a software company offering Software As A Service solutions to approximately 5,000 clients worldwide. "For those who can look small, this could be big" says five-star Canaccord Genuity analyst David Hynes . He has a buy rating and $18 price target on the stock. This is a big 60% upside from the current share price of just $11.28. In fact, in the last three months the stock has received four straight buy ratings, three of which are from top analysts.
In an Oct. 16 report, Hynes writes that "Asure is a rarity in micro-cap - it's growing, nicely profitable, has experienced leaders, and plans to rapidly scale through a uniquely qualified M&A pipeline." The company is conducting an aggressive growth strategy, which involves buying customers that are already users of the technology. This leads Hynes to conclude: "We think ASUR sees $20+ in the next 18 months, which makes it a top pick for clients who can traffic in micro-cap stocks."
Cheap Stocks to Buy: Invuity (IVTY)
Invuity, Inc. (NASDAQ: IVTY ) is a medical technology pioneer with 100% buy ratings from the Street. The company is attracting attention for its patented Intelligent Photonics® devices, which provide a direct view of the surgical cavity. The company says this helps surgeons achieve better precision, efficiency and safety. Currently, the stock is trading just under $10 at $8.95. Now analysts are forecasting upside of over 15% for the next 12 months.
Four-star Northland Securities analyst Suraj Kalia is feeling particularly bullish about the relaunch of the PhotonBlade electrosurgical device. He has the highest price target on IVTY of $13 (45% upside potential). Most of all, Kalia notes that "The U.S. electrosurgery market is currently around $1.8B, growing @ CAGR of 6 - 7%."
Invuity has "done things smartly" says Kalia by making the device affordable and giving it some unique selling points. For example, he likes the PhotonBlade's innovative design as "it is the only monopolar RF handheld with intracavity illumination," while the "electrode tip design & insulation "could" prevent collateral thermal damage."
Note that on Invuity stock specifically, Kalia has an impressive 100% success rate and an 18.3% average return, making him a top analyst to track on this stock's outlook.
Cheap Stocks to Buy: KEYW Holding (KEYW)
KEYW Holding Corp. (NASDAQ: KEYW ) operates on multiple fronts. KEYW describes itself as a total solutions company, solving challenges in the Intelligence, Cyber and Counter-terrorism industries such as preventing cyber threats, transforming data into intelligence and combating terrorism.
The best part is that in the last three months this stock has only received buy ratings from analysts. These four analysts are projecting (on average) upside for KEYW of 60% from the stock's current share price of just $7.55. Even the lowest analyst price target of $11 still translates into upside potential.
First of all, Maxim Group's Brian Kinstlinger explains why he thinks KEYW can soar to $13: "Our target is based on an EV/ adjusted EBITDA multiple of 15x using our slightly revised 2018 estimate of $58.9 million (from $58.3 million). We argue the above-average multiple is warranted given the company's stronger growth prospects relative to the peer group. We believe its pipeline supports this thesis, which contains mostly new business and prime contract roles."
Similarly, Noble Financial's Mark Jordan recently reiterated KEYW from Hold to Buy. He says: "Meaningful success on the new business front could deliver double digit revenue growth in 2018 and 2019. This potential upside, in our opinion, is not reflected in the stock's price."
Cheap Stocks to Buy: Seres Therapeutics (MCRB)Pixelbay (Modified)
This groundbreaking biotech has huge potential according to the Street. Seres Therapeutics Inc (NASDAQ: MCRB ) is working on the idea that you can treat infectious and inflammatory diseases by adding 'good' bacteria to your digestive tract. According to analysts, its lead product candidate, SER-109 (made up of microbial spores) could revolutionize the treatment of diseases like inflammatory bowel disease.
"Seres is an innovator operating at the forefront of scientific discovery, which has contributed to some setbacks in product development. However, we believe the company's pivotal ECOSPOR III trial of SER-109 is thoughtfully designed to avoid the shortcomings from the drug's Phase 2 experience," writes Oppenheimer analyst Mark Breidenbach . He initiated coverage on Seres on Oct. 12 with a $19 price target.
Additionally, Breidenbach adds that Seres recently reported compelling top-line data in ulcerative colitis (UC). He thinks this could reinvigorate investor interest in microbiome medicine. And Breidenbach isn't the only analyst with a bullish take on the stock's prospects. TipRanks reveals that in the last three months, MCRB has received buy ratings from six different analysts. Their average Seres price target: $18.80. Given that the stock is currently trading at roughly $10, this translates into remarkable upside opportunity this top stock.
Cheap Stocks to Buy: Oclaro Software (OCLR)
Oclaro Inc (NASDAQ: OCLR ) is a leader in the world of optical components. Its solutions are a crucial part of the fast-optical networks and high-speed interconnects behind the next wave of streaming video and cloud computing. For investors, Oclaro offers a favorable risk/ reward ratio. Indeed, OCLR has received an impressive nine straight buy ratings in the last three months. No analyst has a recent hold or sell rating in the stock. What they do have is a $12.56 price target, which suggests big upside potential of over 50% from the current share price of $8.27.
Shares have stayed low due to concern about the strength of Chinese demand. But top B Riley analyst Dave Kang isn't too concerned. He has a buy rating on OCLR with an $11.75 price target. Kang says that "while China continues to be soft, based on our most recent checks, we now believe China 100G demand could double in 2018."
Excess inventories should be depleted by the end of 2017. As a result "the optical component industry should experience strong growth from Chinese customers in 2018."
Cheap Stocks to Buy: CareDx (CDNA)
CareDx Inc (NASDAQ: CDNA ) is a relatively niche 'Strong Buy' healthcare company. CDNA develops, markets and delivers a diagnostic surveillance solution for heart transplant recipients. The purpose of the surveillance is to help clinicians make personalized treatment decisions throughout a transplant patient's lifetime. Right now CDNA is trading at $5.85, but analysts believe it can reach $6.50 (11% upside) in the next few months.
In the last three months, the stock has received three buy ratings from analysts. This even includes an upgrade from Raymond James last month. But most interesting is the recent rating from top Craig Hallum analyst Kevin Ellich . On Oct. 9, he ramped up his price target significantly from $4 all the way to $10 (78% upside).
According to Ellich, the company's recently completed equity offering should help bridge the gap as the company commercializes AlloSure. CDNA describes AlloSure as the first and only non-invasive test which assesses organ health by directly measuring allograft injury. Ellich is confident that the company will see solid uptake of the non-invasive kidney transplant surveillance test. As a result, the stock could reach profitability in the next 12 months.
Cheap Stocks to Buy: GenMark (GNMK)
GenMark Diagnostics, Inc (NASDAQ: GNMK ) develops state of the art molecular diagnostic testing systems. Its eplex system has just been released and it has already won an award for medical design excellence. Right now, the system can only test for and identify the most common respiratory viral and bacterial organisms. However, other panels in development will test for blood diseases, gastrointestinal bacteria and central nervous system infections.
"We maintain our Buy rating since we believe that the SPT market remains underpenetrated and expect ePlex adoption to accelerate as its test menu expands," says five-star Needham analyst Michael Matson . "While ePlex is currently handicapped by a limited menu in the US, we expect its menu to expand in 2018 and believe this should make it more competitive with FilmArray," explains Matson. His survey reveals that breadth of menu is the most important criteria for labs performing molecular diagnostic testing.
As GenMark is currently trading at just $7.45, his $15 price target translates into impressive upside potential of 101%. In fact, the average price target from all five analysts who have rated the stock in the last three months is only marginally lower at $14.88.
TipRanks offers investors the latest insight into eight different sectors. We track the activity of 4,500 analysts, 5,000 financial bloggers and even 37,000 corporate insiders. As of this writing, Harriet Lefton did not hold a position in any of the aforementioned securities.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.