5 Former High-Flyer Stocks Trading Under $10 That Traders Are Pouncing On

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 Amazon, Apple and Netflix traded in the single digits. Nvidia, which has exploded higher on AI semiconductor chips, traded under $10 for years. One stock we featured over the years, Zynga, was purchased by Take-Two Interactive. Cogent Biosciences, which we featured last March, has tripled since then.

We screened our 24/7 Wall St. research database looking for smaller cap companies that could offer patient investors some huge returns for the rest of 2023 and beyond. While these five stocks are rated Buy and have a ton of Wall Street coverage, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

8X8

Just over two years ago, this former high-flier traded near the $40 level. 8X8 Inc. (NASDAQ: EGHT) provides voice, video, chat, contact center and enterprise-class application programmable interface software-as-a-service solutions for small and midsize businesses, mid-market and larger enterprises, government agencies and other organizations worldwide.

The company provides 8×8 Work, a self-contained end-to-end united communications solution that delivers enterprise voice with public switched telephone network connectivity, video meetings and unified messaging, as well as direct messages, public and private team messaging rooms and short and multimedia services. Its 8×8 Contact Center is a multichannel cloud-based contact center solution, and 8×8 CPaaS is a set of global communications platform-as-a-service.

ALSO READ: 7 Perfectly Priced ‘Strong Buy’ Dividend Blue Chip Stocks Yielding Up to 9.2%

8X8 also offers X1 through X4 and X5 through X8, which provide enterprise-grade voice, unified communications, and video meetings and team collaboration and contact center solutions. It markets its services to end users through industry conferences, trade shows, webinars and digital advertising channels.

Needham has a $6 target price for 8X8 stock. The consensus target is just $4.79, and on Friday shares traded at $2.65.

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