2 Stocks To Watch That Are Under $10
Everyone loves a great deal, especially when it is on the stock market. Are all stocks that are trading for less than $10.00 cheap? Absolutely not. You also have to look at things like the fundamentals, past growth, and industry sentiment. But some stocks are worth considering that do check most of the right boxes. Are they a bargain at $10.00 or less? Maybe! You’ll have to make that decision yourself. Here are two stocks that are currently less trading in the single digits that I believe have some relative upside from their current prices.
Direxion Daily TSLA Bull 2X Shares (NASDAQ: TSLL)
I know I know, this is a leveraged ETF and not a stock. But TSLL does track a company: Tesla (NASDAQ: TSLA). This is the leveraged bull ETF that allows you to get double the returns on Tesla if it rises, and also if it falls. To say this is a volatile ETF is putting it lightly. Not surprisingly, it’s down 50% so far this year which is generally about double what Tesla has done. So why do I think this is getting close to a screaming good buy?
Look, I wrote about Tesla recently and said that I’m not quite ready to buy into this recovery. The earnings report was awful and we’re really just investing in hope and speculation at this point. Musk had some aggressive timelines with the Cybercab, FSD, and the lower-priced Model 2. But nothing is concrete yet, not even the Optimus robot. So we have to take his word for it for now.
Do I think Tesla will recover? Absolutely. The company has such a strong brand presence and is the undisputed leader in electric vehicle technology. It also has a budding energy segment and a promising step forward in the AI industry. There’s too many positive catalysts to ignore this company forever. Do I believe it should be priced as a car company? No. Do I think it should be priced as an AI company? Nope! But I do believe that one day Tesla will get all of its ducks in a row. The stock should be much higher in a few years and buying the leveraged 2X bull ETF that even pays a dividend at less than $10 is a steal.
Olo (NYSE: OLO)
For this second stock, I really wanted to write about Matterhorn (NASDAQ: MTTR) again but it was recently acquired. Then I wanted to write about SoFi (NASDAQ: SOFI) but enough people have been doing that lately. So I wanted to shed some light on a small company that doesn’t get much attention. Olo is a software company that creates reservation and ordering platforms for restaurants. It currently has an average analyst price target of $8.50 which is nearly double its current price of about $5.00.
Olo is already a profitable company and works with some of the largest restaurant chains in America. It’s trading at just 3.5x sales which is fairly cheap for a software company and has decreased its forward earnings multiple from 74x to just 26x in two years. I also think it is a candidate to get acquired. I’m not sure by who but someone like Uber (NYSE: UBER) or DoorDash (NASDAQ: DASH) could certainly use its customer data.
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