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 in March of 2022, has tripled since then.
While looking for more home runs, we screened all the companies that Cathie Wood’s ARK funds own, looking for stocks trading under $10 with big-time potential. Although all five of the following stocks are ARK holdings and rated Buy, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Adaptive Biotechnologies
Wood has bought almost 10 million shares of this stock for her ARK Genomic Revolution fund. Adaptive Biotechnologies Corp. (NASDAQ: ADPT) is a commercial-stage company that develops an immune medicine platform for the diagnosis and treatment of various diseases.
The company offers immunoSEQ, a platform and core immunosequencing product that is used to answer translational research questions, as well as to discover new prognostic and diagnostic signals. It also provides clonoSEQ, a clinical diagnostic product for the detection and monitoring of minimal residual disease in patients with multiple myeloma, B cell acute lymphoblastic leukemia and chronic lymphocytic leukemia, as well as available as a CLIA-validated laboratory developed test for patients with other lymphoid cancers.
In addition, Adaptive Biotechnologies offers a pipeline of clinical products and services that are used for the diagnosing, monitoring and treatment of diseases, such as cancer and autoimmune disorders. It offers products and services for life sciences research, clinical diagnostics and drug discovery applications. The company has strategic collaborations with Genentech for the development, manufacture and commercialization of neoantigen directed T cell therapies for the treatment of a range of cancers and with Microsoft to develop diagnostic tests for the early detection of various diseases from a single blood test.
Piper Sandler has a $15 target price on Adaptive Biotechnologies stock, while the consensus target is just $12.29. The shares traded on Friday at $6.25 apiece.
Archer Aviation
This company recently signed a potentially huge deal with the Air Force for air taxis. Archer Aviation Inc. (NYSE: ACHR) is an urban air mobility company that designs, develops, manufactures and operates electric vertical takeoff and landing (eVTOL) aircraft to carry passengers.
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