While most of Wall Street focuses on large 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. Often the biggest public companies, especially the technology giants, trade in the low-to-mid hundreds, all the way up to over $1,000 per share. At those steep prices, it’s pretty hard to get any decent share count leverage.
Many investors, especially more aggressive traders, look at lower-priced stocks as a way to not only 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.
Each and every week, we screen our 24/7 Wall St. research database looking for stocks with Buy equivalent rating at major firms and priced under the $10 level (the most recent picks included BlackBerry and Nokia), and this week was no exception. We found five energy stocks that could provide investors with some solid upside potential. While more suited for aggressive accounts, they could prove exciting additions to portfolios looking for solid alpha potential.
This company with big potential for investors got tagged recently and is offering a nice entry point. Antero Resources Corp. (NYSE: AR) is engaged in the exploration, development and acquisition of natural gas, natural gas liquids and oil properties located in the Appalachian Basin. Other activities include water handling and treatment, and marketing of excess firm transportation capacity.
The company’s subsidiary, Antero Midstream Partners, is a master limited partnership that owns, operates and develops midstream energy infrastructure primarily to service its production and completion activity. Its natural gas gathering and compression assets support the exploration and development activities. The combination of the two makes this a solid pick for investors.
TD Securities has a Buy rating and a $7.50 price objective on the shares, while the Wall Street consensus price target is $8.45. The shares traded on Friday’s close at $3.53 apiece.
This has been one of the favorites around Wall Street among the smaller and more nimble companies. Gulfport Energy Corp. (NASDAQ: GPOR) is an independent oil and natural gas exploration and production company with its principal producing properties located in the Utica Shale of eastern Ohio and along the Louisiana Gulf Coast.
The company reported second-quarter net income of $235 million, or $1.47 per share. Adjusted earnings results exceeded Wall Street expectations. The independent oil and gas company posted revenue of $459 million in the period as well, also topping Street forecasts.
Stifel has a $6.80 price target, though the consensus target is higher at $7.61. The shares closed trading at $3.28 on Friday.