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. Many of the biggest public companies, especially the technology giants, trade in the hundreds, all the way up to over $1,000 per share or more. 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.
We screened our 24/7 Wall St. research database looking for energy stocks that are likely to survive the current troubles and could very well offer investors some huge returns over the next year or so. With oil still trading near the $40 a barrel level, these could be great ideas for aggressive investors.
While all five stocks are rated Buy at top Wall Street firms, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
This stock has made a solid move off the lows but still has plenty of upside. Comstock Resources Inc. (NYSE: CRK) engages in the acquisition, development and exploration of oil and natural gas. This independent energy company operates primarily in the Haynesville shale, a premier natural gas basin located in East Texas and North Louisiana with economics and geographical proximity to the Gulf Coast markets.
Estimates for the company have been moving higher. The consensus for the third quarter has been increased to $0.01 per share from $0.00 per share, and the full-year estimate for next year has been raised to $0.71 per share from the previous consensus forecast of $0.69 per share. This consensus estimate is based on nine publicly distributed estimates incorporated in the current third quarter consensus estimate and nine for the full year 2021 estimate.
Citigroup has an $8 price target on the shares, while the Wall Street consensus target is slightly higher at $8.65. Shares slipped below $6 level this past week.
The top master limited partnership (MLP) could be a safe way for investors looking for energy exposure and income. Energy Transfer L.P. (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with a strategic footprint in all the major domestic production basins.
This publicly traded limited partnership has core operations that include complimentary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (NGLs) and refined product transportation and terminaling assets; NGL fractionation; and various acquisition and marketing assets.
Through its ownership of Energy Transfer Operating, formerly known as Energy Transfer Partners, the company also owns Lake Charles LNG, as well as the general partner interests, the incentive distribution rights and 28.5 million common units of Sunoco, and the general partner interests and 39.7 million common units of USA Compression Partners.
Investors receive an incredible 18.60% distribution, which appears to be safe for now. The BofA Securities price objective is a massive $12, and the consensus figure is $10.56. Energy Transfer stock traded mostly above $6.50 last week.