Sizzling Buy-Rated Biotechs Highlight 5 Top Stocks Under $10

24/7 Wall St.
24/7 Wall St.
 2021-10-16 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.

Each week we screen our 24/7 Wall St. research database looking for stocks rated Buy at major firms priced under the $10 level and this week was no exception ( last week's picks included Honest Company and MultiPlan). This week, we found five new stocks that could provide investors with some solid upside potential. Skeptics of low price shares should remember that at one point both Amazon and Apple traded in the single digits.

While more suited for aggressive investors, and with the number of new traders skyrocketing over the past year, making good ideas to trade even harder to find, these five stocks could prove exciting additions for traders looking for solid alpha potential. It is important to remember, though, that no single analyst report should be used as a sole basis for any buying or selling decision.

Cogent Biosciences

This small biotech has been range-bound all year and looks ready to break out. Cogent Biosciences Inc. (NASDAQ: COGT) is focused on developing precision therapies to treat genetically defined diseases.

Its lead product candidates include CGT9486, a selective tyrosine kinase inhibitor designed to inhibit the KIT D816V mutation that drives systemic mastocytosis, as well as other mutations in KIT exon 17, which are found in patients with advanced gastrointestinal stromal tumors. The company has a licensing agreement with Plexxikon for the research, development and commercialization of CGT9486 and CGT0206 inhibitors.

One very good sign is that top hedge funds have piled into the company this year. The company was in 27 hedge fund portfolios at the end of March. The all-time high for this statistic is 28, and while some may have trimmed since then, that is still strong support for the company.

H.C. Wainwright started coverage recently with a $25 price target. The consensus target is $20.57. The stock closed on Friday at $9.24.
ALSO READ: 2 Large Cap Biotech Leaders Pay Big Dividends and Have Huge Upside Potential

Harpoon Therapeutic

Aggressive biotech investors should probably take a look at this company. Harpoon Therapeutics Inc. (NASDAQ: HARP) is a clinical-stage immunotherapy company engaged in the development of a novel class of T cell engagers that harness the power of the body's immune system to treat patients suffering from cancer and other diseases in the United States.

The company's lead tri-specific t-cell activating construct (TriTAC) product candidate is HPN424, which is in Phase 1/2a clinical trials for the treatment of metastatic castration-resistant prostate cancer. It is also developing HPN536, which is in Phase 1/2a clinical trials for the treatment of ovarian cancer and other mesothelin-expressing tumors; HPN217, which is in Phase 1/2 clinical trials for the treatment of multiple myeloma; and HPN328, a product candidate in Phase 1/2 clinical trials for the treatment of small cell lung cancer and other Delta-like canonical Notch ligand 3-expressing tumors.

Harpoon Therapeutic has a discovery collaboration and license agreement with AbbVie Biotechnology to develop and commercialize products that incorporate its proprietary TriTAC platform technology together with soluble T cell receptors.

Citigroup recently upgraded the shares and has a $16 price target. The consensus target is much higher at $28.10. The stock closed trading on Friday at $6.92.
ALSO READ: Goldman Sachs Says Buy 3 Dividend-Paying Tower Stocks Into Weakness


This stock has been cut in half since going public back in late July. MarketWise Inc. (NASDAQ: MKTW) operates a multibrand platform of subscription businesses that provides financial research, software, education and tools for investors.

MarketWise provides a portfolio of independent investment research, as well as various software and analytical tools on a subscription basis. The company offers its research across various platforms, including desktop and laptop, as well as mobile devices, such as tablets and cell phones.

With more than 20 years of operating history, MarketWise is currently composed of 12 primary customer-facing brands, offering more than 160 products, and serving a community of 13 million free and paid subscribers. The company's products are a trusted source for high-value financial research, education, actionable investment ideas and investment software. MarketWise is a 100% digital, direct-to-customer company offering its research across a variety of platforms including mobile, desktops and tablets.

Needham began coverage of the stock last month, and it has a $13 price target. The consensus target is up at $15, and the stock was last seen on Friday at $7.08.

Puma Biotechnology

This is another micro-cap biotech that could be an outstanding idea for aggressive investors looking for names in the space. Puma Biotechnology Inc. ( NASDAQ: PBYI ) is a biopharmaceutical company focused on the development and commercialization of products to enhance cancer care in the United States and internationally.

The company's drug candidates include PB272 neratinib (oral) for the adjuvant treatment of adult patients with early-stage HER2-overexpressed/amplified breast cancer; PB272 (neratinib, oral) for the use of neratinib in combination with capecitabine for the treatment of adult patients with advanced or metastatic HER2-positive breast cancer; and PB272 (neratinib, oral) for HER2 mutation-positive solid tumors.

Puma Biotechnology has a license agreement with Pfizer and sublicense agreement with Specialised Therapeutics Asia, CANbridge Biomed, Pint Pharma International, Knight Therapeutics, Pierre Fabre Medicament and Bixink Therapeutics.

Citigroup recently upgraded the stock and has an $11 price target. The consensus target is $8.63. The stock closed trading at $6.05 on Friday.
ALSO READ: 5 Dividend-Paying Sin Stocks to Buy May Survive a Massive Market Sell-Off


This stock was cut in half over the past month, but it has started to bounce back nicely. Surrozen Inc. (NASDAQ: SRZN) is a biotechnology company that discovers and develops drug candidates to selectively modulate the Wnt pathway for tissue repair and regeneration. It is developing tissue-specific antibodies to engage the body's existing biological repair mechanisms with potential application across various disease areas, including diseases of the intestine, liver, retina, cornea, lung, kidney, cochlea, skin, pancreas and central nervous system.

Surrozen’s products in the pipeline include SZN-043, which stimulates hepatocyte regeneration, improves liver function and reduces fibrosis; and SZN-1326, a bi-specific full-length human antibody that directly modulates Wnt signaling in target tissue by binding to particular Frizzled and LRP receptors that are highly expressed in intestinal crypts.

BofA Securities started coverage recently with an $11 price target. The shares were last seen at $6.32 on Friday, much closer to the post-IPO low of $5.49 than the high of $14.00.

These are five stocks for aggressive investors looking to get share count leverage on companies that have sizable upside potential. While not suited for all investors, they are not penny stocks with absolutely no track record or liquidity, and major Wall Street firms have research coverage.

Comments / 0

Comments / 0