While most of Wall Street focuses on large-cap 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 is difficult 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 week we screen our 24/7 Wall St. research database looking for stocks rated Buy at major firms and priced under the $10 level, and this week we screened specifically for energy stocks. With West Texas Intermediate (WTI) crude trading near the $60 a barrel level, and expected to go even higher this summer, these could all have big-time upside potential. Plus, we found two master limited partnerships (MLPs) that both pay big distributions.
With the number of new equity traders skyrocketing over the past year due to the Robinhood and WallStreetBets popularity, locating good ideas to trade has become even more challenging. These five could all prove to be exciting additions for traders looking for solid alpha potential. While they are definitely better suited for aggressive investors, it is still important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Given the recent price of WTI, shares of this company in the Great White North may be a solid energy idea. Cenovus Energy Inc. (NYSE: CVE) develops, produces and markets crude oil, natural gas liquids (NGLs) and natural gas in Canada, the United States and the Asia Pacific region.
The Oil Sands segment develops and produces bitumen in northeast Alberta. Its bitumen assets include Foster Creek, Christina Lake and Narrows Lake, as well as other projects in the early stages of development. The Conventional segment holds assets primarily located in Elmworth-Wapiti, Kaybob-Edson and Clearwater operating areas of British Columbia and Alberta, as well as various interests in natural gas processing facilities.
The Refining and Marketing segment transports and sells crude oil, natural gas and NGLs. This segment owns a 50% ownership in Wood River and Borger refineries located in the United States, and it owns and operates a crude-by-rail terminal in Alberta.
CIBC has a massive $16 price target on the shares, while the Wall Street consensus target is just $10.85. Cenovus Energy stock has had a solid run and recently has been trading north of $7.50 a share.