3 “Strong Buy” Stocks Under $10 That Are Poised to Take Off

COVID Is Declining And Markets Are Rising; These are the two trends that investors have most on their mind right now. It is perfectly reasonable for them to go together. With the economy reopening, money will circulate faster - and find its way into the stock market.

With economic conditions improving, investors are looking for the best returns in an expansive environment. A natural place for them: the small-caps market. While big names hit the headlines, the small-cap stocks offer the highest returns.

With that in mind, we used the TipRanks database to find three stocks that have a growth profile under the current conditions. We found three under $ 700 million worth of small-cap stocks in Strong Buy trading under $ 10. Not to mention significant upside potential.

Layer technologies (SFT)

Last but not least, among the changes we saw during the pandemic year, was the sharp shift towards online business and e-commerce. Shift Technologies brought e-commerce to the used car market with an end-to-end, hassle-free sales model to optimize the customer experience. Shift offers digital solutions that connect car owners and buyers, making it easy to find, test and buy a car. Shift currently operates in California, Oregon, Washington state, and Texas, primarily in urban centers.

Like many smaller tech-oriented companies, Shift went public last year through a SPAC merger. In this case, the Special Acquisition Company (SPAC) was the Insurance Acquisition Corporation. The merger was completed in October in a transaction valued at $ 340 million to $ 380 million. The SFT ticker was traded on the NASDAQ on October 15th. Since then, the stock has fallen 35%, giving the company a market cap of $ 602 million.

Despite the stock's depreciation after the merger was complete, Shift still had approximately $ 300 million of newly available capital to conduct operations. The company has plenty of leeway as the used car market is valued at more than $ 840 billion a year.

The story goes on

The company's Q4 report, Shift's first publicly traded company, saw strong year-over-year growth in revenue and units sold. Revenue for the quarter hit a company record of $ 73.4 million and was 168% higher than last year. Shift sold 4,666 units in the quarter, up 147% year over year. For the full year, sales of $ 195.7 million represented a gain of 18% year over year, while the total number of units sold reached 13,135, also up 18%. Sales tended strongly towards e-commerce, which accounted for 9,497 units of total sales for the year.

Shift has caught the attention of Benchmark's 5-star analyst Michael Ward, who sees higher levels of belief in growth in 2021 and 2022.

" Our assessment, positive trends in unit sales and cost development in early 2021 have put the company on a positive path ... and viewed it as a good time to buy, given the stock's recent decline. The used car market in the United States has a $ 1 trillion sales opportunity. Prices have risen in double digits since mid-2020. Given the price / inventory trend in the new car market, we expect the positive pricing environment to continue into the second half of 2021, ”said Ward.

Consistent with his bullish outlook, Ward is placing a buy on shares and his target price of $ 13 suggests an uptrend of ~ 74% for a year. (To view Ward's track record, Click here)

Wall Street tends to agree with Ward's confidence in the automotive e-commerce company as TipRanks' analysis shows SFT as a strong buy. SFT shares sell for $ 7.45 each, and the average target of $ 13.50 indicates a possible uptrend of ~ 81% by the end of the year. (See SFT stock analysis on TipRanks)

Casper sleep (CSPR)

The next stock we'll look at, Casper Sleep, is a $ 290 million company in the bedding business. In particular, the company sells mattresses, pillows, bed frames, and bed linen - household items that everyone needs. Casper mainly works online but also has showrooms.

The NYC-based company saw profits surge in the second half of 20, with fourth-quarter revenue hitting its highest level since going public in February 2020. These revenues were $ 150.3 million, more than 18% higher than the prior year. Total annual sales reached $ 497 million, a gain of 13% over the previous year. It's important to note that following the company's announcement in the third quarter, these profits came from agreements with four major retailers to ship Casper products. Ashley HomeStore, Denver Mattress, Mathis Brothers and Sam's Club began stocking Casper Sleep bedding, which earned the company a high profile among the largest mattress retailers in the country.

With regards to Casper for Piper Sandler, analyst Robert Friedner set an overweight (i.e. buy) rating and a target price of $ 12, which indicates scope for the stock to appreciate 70% from its current share price of $ 7.04. (To show Friedner's track record, Click here)

“CSPR has recovered from a difficult third quarter in which delays in the supply chain negatively impacted sales. The company appears to be operating at a higher level through 2021 as it has diversified its supplier base and has made steady progress in achieving positive EBITDA in the second half of 2021. With sales growth recovering, new product launches in 2021 and easy comparisons, we believe the sales multiple for CSPR ... will continue to increase, "Friedner said.

In general, the rest of the road CSPR is optimistic. The strong buy status of the stock results from the 3 buy and 1 hold issued in the last three months. The upside potential of 63% is slightly below Friedner's forecast. (See CSPR stock analysis on TipRanks)

Intellicheck Mobilisia (IDN)

The proliferation of online commerce - and the general increase in virtual interactions over the Internet - has increased the demand for technical security. Intellicheck is active in this area and offers a range of SaaS products based on an ID validation platform. Intellicheck has a high profile customer base including 5 top financial institutions and over 50 law enforcement agencies.

Intellicheck also has a strong presence in retail where ID validation is used to authenticate customer photo badges. The pandemic that has affected brick and mortar retail has hit the company hard, but the economic reopening has expanded the business.

The company posted record sales of $ 3.12 million in the first quarter of 2020, just before it suffered a major blow at the start of the coronavirus crisis. However, sales and revenue rebounded, and Intellicheck's fourth quarter revenue of $ 3.08 million was just 1.2% below that high - an increase of 6% from fourth quarter 19. The company's SaaS revenue rose year-on-year by 18% and sequentially by 23%. More importantly, the company posted positive EPS in the fourth quarter, posting earnings of 7 cents per share. This compared to the break-even result in the third quarter and the loss of 5 percent per share in the second quarter.

These are the facts behind 5-star analyst Scott Buck's optimistic view of the company. In his coverage for HC Wainwright, Buck sees Intellicheck in a strong position for long-term growth.

" Several large states have begun easing COVID-19-related restrictions, and younger people have been or may be vaccinated at this point. We expect scans in the same store to improve by the rest of 2021. New implementations are expected to include more retailers as well as more traditional financial services companies and potential new markets such as healthcare, real estate and standardized testing. While new customers are unlikely to have a significant impact on the results of the quarter, they will generate additional revenue over the next 12 months, "wrote Buck.

The analyst summarized: "With additional sales force, we believe the company will again be able to complete between 30 and 40 software implementations in 2021, which will result in significant revenue growth by 2022."

To that end, Buck gives IDN a buy rating and its target price of $ 18 implies an upside of 113% for the coming year. (To see Buck's track record, Click here)

Overall, Intellicheck's consensus rating for a strong buy is unanimous, based on three recent positive reviews. The stock has an average price target of $ 14.83, which is an upward trend of 75% for a year at a current price of $ 8.45. (See IDN stock analysis on TipRanks)

To find great ideas for trading small-cap stocks at attractive valuations, visit TipRanks 'Best Stocks to Buy, a newly launched tool that brings together all of TipRanks' stock insights.

Disclaimer: The opinions expressed in this article are solely those of the presented analysts. The content is intended to be used for informational purposes only. It is very important that you do your own analysis before making any investment.

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