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7 Analyst Stocks Under $10 for Massive Upside Projections

The week of November 4 was dominated by investors selling stocks. Despite high valuations, a Federal Reserve that wants to raise interest rates, election uncertainty and even declining earnings, the bull market still seems far from dead. Investors have found a reason to buy every major market pullback for over five years, and the bull market is now closer to being eight years old than seven, since that V-bottom in 2009.

What still stands out to 24/7 Wall St. is that investors are looking for new ideas to generate gains or income ahead. Even with the selling of late, and a nine-day losing streak, the Dow and S&P indexes are still close to their all-time highs. Small cap stocks have not held up as well, but they are where investors can still find some potentially uncovered gems and extreme value. This brings us to stocks trading under $10.

Before blindly following any analyst calls, particularly in small-cap or low-priced stocks, investors need to be very honest with themselves here. Traditional analyst upside projection of 8% to 15% in Dow and S&P 500 stocks may not sound very exciting these days. If the upside projection is too low, then it might even come with less implied upside than there is downside.

These small-cap and low-priced stocks come with many more obvious risks than large cap stocks. Unfortunately, they also come with hidden risks that investors might not think of in well-heeled stocks.

What should stand out the most is that there may even be existential risk for many small companies. Biotechs and small tech stocks can literally implode with nothing left but a goose-egg. These stocks often come with very few analysts following them, and if they are covered it may be by brokerage firms and research outfits that are far from being household names.

If you see upside projections of 35% or 50%, you might as well assume there is more risk than usual. If you see upside of 75%, 100% or even 200% ahead, then you have to know there could be an all-or-none risk profile.

Now that you have been warned about the risks, and have considered that this stock market strength is in a sell-mode, here are seven analyst picks with massive upside calls from the week ending November 4 with share prices under $10.

Array BioPharma Inc. (NASDAQ: ARRY) was started with an Outperform rating and assigned a $10 price target at Cowen on November 4. It closed down 7.7% at $5.38 close ahead of this call, but closed up 8.9% at $5.86 on Friday. Cowen is looking past drug price...