New Top Stocks to Buy Under $10 with Big Upside

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The Wall Street firms that handle the bulk of retail accounts are always very careful about recommending stocks priced in the single digits. Typically they are fallen angels, or sometimes just the victim of a business model that fell out of favor. With a wide array of coverage here at 24/7, we are able to scan the list of stocks to buy from all the major Wall Street firms. Surprisingly, many of the firms are covering more and more names priced in the single-digit range. We have gone through the buy lists to find the top stocks to buy priced under $10.

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Nokia Corp. (NOK) is a top single-digit name to buy at Merrill Lynch. A former mega cap European leader, Nokia recently sold its handset business to Microsoft for what was considered a low 5.5 billion euros. Even though it is selling a business representing half of its sales, Nokia's share price has doubled since the deal's announcement in early September. Investors may well be more optimistic, but they also have big questions over the future direction of the new Nokia. Merrill Lynch has a $9.65 price target on the stock. The Thomson/First Call estimate was not available. Nokia closed Friday at $8.

ON Semiconductor Corp. (ONNN) is another tech name to buy at Merrill Lynch. The company is driving energy efficient innovations, empowering design engineers to reduce global energy use. The company offers a comprehensive portfolio of energy efficient power and signal management, logic, discrete and custom solutions to help customers solve their unique design challenges in automotive, communications, computing, consumer, industrial, LED lighting, medical, military/aerospace and power supply applications. The Merrill Lynch price target for the stock is $9, and the consensus is at $8.80. ON closed Friday at $7.10.

Glu Mobile Inc. (GLUU) is a top mobile gaming stock to buy at Cowen & Company. The company releases its video games internationally via multiple platforms, including iOS, Android, Amazon, Windows Phone and Google Chrome. Embodying the "freemium" model, games created by Glu are typically free to play. Glu generates revenue through in-game micro-transactions consisting of $1.99 or less. The Cowen price target for the stock is $5 and is the highest on Wall Street. The consensus target is posted at $4. Glu Mobile closed Friday at $3.37. A move to the Cowen target would represent a 45% gain for investors.

Himax Technologies Inc. (HIMX) is another chip play from Merrill Lynch. This play has a twist. Himax designs, develops and markets semiconductors for flat panel displays, which are in huge demand. The company also pays investors a 2.7% dividend. High-demand products with a dividend is an interesting small cap total return play for investors. The Merrill Lynch price target for the stock is $12.62, and the consensus target is at $12. Himax closed Friday at $9.20.

Zogenix Inc. (ZGNX) is a top new name to buy at Oppenheimer. The U.S. Food and Drug Administration (FDA) recently approved its top new drug Zohydro. The drug is a timed-release form of hydrocodone, which is one of the most highly prescribed pain medications in the world. The Zogenix drug contains no acetaminophen, which has been proven to cause liver damage. This is a boon to patients suffering from oncology-related pain, as often radiation therapy weakens or damages the liver. The Oppenheimer price target for the stock is set at $5. The consensus price target is also at $5. Zogenix closed on Friday at $2.95.

Two Harbors Investment Corp. (TWO) is one of the many battered mortgage real estate investment trusts (REITs) that were hit hard when interest rates started to rise last May. The Merrill Lynch analysts think that its diversified portfolio and move to a more defensive posture on rates makes it a top name to buy. Investors are paid an outstanding 11.86% dividend as well. The Merrill Lynch price target for the stock is $11, and the consensus was not posted. Two Harbors closed Friday at $9.44.

Novavax Inc. (NVAX) is a top stock to buy at Lazard. This clinical-stage biopharmaceutical company uses recombinant nanoparticle technology to develop vaccines for a wide variety of infectious diseases. The company presently has six vaccine candidates undergoing clinical trials, with a seventh (rabies) being readied for a Phase 1 study later this year. The Lazard price target for this stock is a staggering $11, far and away the highest target on Wall Street. FBR also recently started the stock at Buy with the same $11 target. A trade to that level would be almost a 300% gain. The consensus estimate is at $4. The stock closed Friday at $3.04.

Galena Biopharma Inc. (GALE) may be the home run that biotech investors are looking for. With an FDA-approved pain medication, a partnership with generic giant Teva and a superior pipeline, the company may be an acquisition target. Aegis Capital has a $5 price target on the stock, while the consensus is at $4.50. Galena closed on Friday at $2.92. In recent trading, the stock has seen huge volume increases. Big investors may be building a big position.

Broken IPOs, fallen angels and all sorts of special situations show up in the stocks to buy under $10 list. Whether trading or owning these stocks for the long haul, investors can take a substantial position. This can go a long way if one of these stocks has a large upswing. We will continue to scan our Wall Street coverage for more top stocks to buy under $10

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