NEW YORK (TheStreet) -- Stocks that trade for less than $10 per share can be intriguing to many investors. They also present a lot of upside potential. TheStreet's David Peltier, portfolio manager for Stocks Under $10, has been explaining his top stock picks in this category for 2015.

He has already examined Ballantyne Strong (BTN) and TherapeuticsMD (TXMD) , the latter of which Peltier says could double in price in 2015. Now Peltier is taking a closer look at Pacific Sunwear (PSUN) , also known as "PacSun."

Shares of PacSun now trade at just $2.16, down around 37% on the year. In mid-2013, the stock climbed as high as $4.50, but it has struggled since. 

PSUN Chart
Pacific Sunwear PSUN data by YCharts

Although the stock has stagnated, the retailer hasn't performed too poorly. Management continues to find ways to drive sales, using models such as Kendall and Kylie Jenner in an effort to attract more teen shoppers.

This comes at a time when other teen-oriented retailers, such as American Eagle Outfitters (AEO) , Aeropostale (ARO) and Abercrombie & Fitch (ANF) have struggled to retain market share. 

Lack of profitability continues to plague Pacific Sunwear. Peltier says, however, that the company can position itself to get closer to break-even operations. If this happens in 2015, look for shares to climb toward $3.

While that may not seem like a big move, the potential represents nearly 40% upside for investors. 

Elsewhere, Peltier has dug up plenty of interesting dividend plays for 2015. They include Lockheed Martin (LMT) , General Electric (GE) , Tompkins Financial (TMP) and Sonoco Products (SON) . 

-- Written by Bret Kenwell

Follow @BretKenwell

At the time of publication, Peltier's Stocks Under $10 portfolio held shares of BTN, PSUN, TXMD, while his Dividend Stock Advisor portfolio held shares of GE, LMT, TMP and SON.

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