Wall Street loves to back a winner. Nvidia (NASDAQ:NVDA) just became the most valuable stock on the market with a $3.33 trillion valuation and at least one analyst thinks it can add another 50% by next January.
But even after a 10-for-1 stock split, shares of the artificial intelligence (AI) chipmaker have raced up to $135 per share. It might not be long before they cross the $1,000 per share threshold again.
Yet there are a number of companies Wall Street loves that aren’t so expensive but have been given a stamp of approval. The three companies below are strong buy stocks under $10. They might not be the next Nvidia but they are still worth your consideration.
Grab Holdings (GRAB)
Ride-hailing and third-party delivery are not just a phenomenon in the U.S. It is a global growth market and Singapore-based Grab Holdings (NASDAQ:GRAB) is grabbing hold of the opportunity. Trading at around $3.50 per share, Grab is driving higher by integrating AI and machine learning into its operations to make the company more efficient and profitable.
Grab’s first-quarter earnings report saw revenue jump 24% from last year with adjusted EBITDA hitting a record $62 million. On-demand gross merchandise value (GMV) surged 21% on a constant currency basis. GMV represents the total dollar value of transactions from Grab’s products and services.
The performance allowed Grab to boost its profit outlook for the full year. It now forecasts EBITDA in the range of $250 million to $270 million, a big leap forward from its prior guidance of $180 million to $200 million.
All seven analysts covering Grab Holdings stock rate it a buy. With a one-year consensus price target of over $5 a share, Wall Street sees a 44% upside in the stock.
Airship AI (AISP)
Analysts see Airship AI (NASDAQ:AISP) tripling in value over the next 12 months. At around $4.70 per share, it’s not approaching Nvidia levels yet, but the AI-driven edge computing surveillance company could be like the chipmaker in performance.
Wall Street pegs its target price at $12 a stub, which would obviously put it over the $10 threshold, and it just might make it.
Airship AI primarily targets government agencies for its products. It recently won its third sole-source contract from the Justice Department. Although these six-figure contracts are only for one year they can be extended a year at a time for up to an additional four years.
Its Acropolis platform enables customers to manage devices and sensors across their entire digital ecosystem. The AI platform can monitor cameras at the edge to identify potential security threats. Human interaction can then perform an analysis to see if the threat is real.
Only two analysts are tracking the stock but they have given it a strong buy recommendation. As it grows in size, expect more analysts to weigh in on AISP stock.
Melco Resorts & Entertainment (MLCO)
Casino operator Melco Resorts & Entertainment (NASDAQ:MLCO) might be more familiar to investors than the previous two strong buy stocks under $10. Operating resorts in Macau, China, the only place it is legal to gamble in the country, Melco was devastated by the global pandemic. China was far more authoritarian in its restrictions on travel, preventing people from even going to the store to buy food. But travel to Macau was completely shut down for months and all the world-class casino operators there suffered as a result.
However, Macau’s gaming revenue in May rose to its highest level since the pandemic, surging 30% to 20.2 billion patacas, the local currency, or about $2.5 billion. Visits also rocketed 23% higher, though it remains 24% below pre-pandemic levels.
Melco Resorts & Entertainment is benefiting from the ongoing recovery. First-quarter revenue rose 67% to $972.5 million while it reported an operating profit of $79.8 million. That’s a major reversal from the $12.4 million loss it recorded last year.
All six analysts covering the casino operator have a buy rating on the stock. With a one-year price target of $13.25 on MLCO stock, Wall Street is implying that there is 72% upside in its shares.
It is still slow-going in China. However, with Melco Resorts trading at just $7.70 per share, there is plenty more growth to come.
On the date of publication, Rich Duprey did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
