Most firms on Wall Street focus on large and mega-cap stocks, as they provide a degree of safety and liquidity. Unfortunately, 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 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.
We screened our 24/7 Wall St. research database and found five stocks trading under $10 that could provide investors with some solid upside potential. While these are more suited for aggressive accounts, they could prove exciting additions to portfolios looking for solid alpha potential.
Caesars Entertainment
This well-known old-school gaming company offers solid upside. Caesars Entertainment Corp. (NASDAQ: CZR) provides casino-entertainment and hospitality services. Its segments include Caesars Entertainment Resort Properties, Caesars Growth Partners, and Other. The company’s resorts operate primarily under the Harrah’s, Caesars and Horseshoe brand names.
Caesars facilities include gaming offerings, food and beverage outlets, hotel and convention space, and non-gaming entertainment options. Caesars Entertainment is one of the largest gaming companies in the world and currently owns or operates 49 casino properties in 13 U.S. states and in four other countries.
The SunTrust price target for the shares is $16, and the Wall Street consensus target is lower at $13.71. The stock closed Friday’s trading at $10.00 a share.
Cidara Therapeutics
This small-cap biotech company has big-time potential. Cidara Therapeutics Inc. (NASDAQ: CDTX) clinical-stage biotechnology company is engaged in the discovery, development and commercialization of anti-infectives. It is developing a pipeline of product and development candidates with a focus on serious fungal infections.
The company’s product portfolio consists of over two formulations of its echinocandin. CD101 IV is a long-acting therapy for the treatment and prevention of serious, invasive fungal infections. CD101 topical, its second product candidate, is being developed for the treatment of vulvovaginal candidiasis (VVC) and recurrent VVC, a prevalent mucosal infection.
Citigroup has a Buy rating on the stock and an $8 price target, but the consensus target is up at $13.19. The shares closed most recently at $4.35.
Ford
This is a solid value play now and a great dividend play as well. Ford Motor Co. (NYSE: F) is one of the world’s largest vehicle producers, with over 6 million units manufactured/sold globally. The company has made significant progress executing on its One Ford plan and delivering best-in-class vehicles. It also remains committed to positioning itself well within the evolving auto industry through balanced investments across electrification, autonomy and mobility services.
The company posted light second-quarter numbers and lowered the overall 2018 outlook. Some analysts on Wall Street are concerned about a lack of direction at Ford, and more recently the postponement of its September analysts day. Despite the setbacks, the F-100 remains the best-selling truck in the United States.
Ford shareholders are paid an outstanding 6.31% dividend. The Jefferies Buy rating is accompanied by a $13.40 price target. The posted consensus target is $11.05, and the shares closed at $9.55 on Friday.
Kosmos Energy
This is a solid energy exploration and production play. Kosmos Energy Ltd. (NYSE: KOS) is a conventional oil and gas E&P company focused on the Atlantic margin and on unlocking new hydrocarbon systems and growing and maturing discovered basins through follow-on exploration success, development and production.
Although many of its peers have scaled back exploration, Kosmos believes this is the best route to generating value, seeking to replicate its discovery and development of the Jubilee field in Ghana.
Jefferies has a Buy rating and a $9.50 price objective here. The consensus target was last seen at $9.29, and the shares closed trading on Friday at $7.88.
24/7 Wall St.Rigel Pharmaceuticals
The Jefferies team has covered this company for years, and the low price makes it an attractive target. Rigel Pharmaceuticals Inc. (NASDAQ: RIGL) is engaged in the discovering, developing and providing novel small molecule drugs that improve the lives of patients with immune and hematological disorders, cancer and rare diseases.
The company’s pioneering research focuses on signaling pathways that are critical to disease mechanisms. Its clinical programs include clinical trials of fostamatinib, an oral spleen tyrosine kinase inhibitor, in a number of indications.
The $7 Jefferies price target compares to the $7.92 consensus target and to the most recent close at $2.62 a share.
These are five stocks for aggressive accounts that look to get share-count leverage on companies that have sizable upside potential. While they are not suited for all investors, these are not penny stocks with absolutely no track record or liquidity, and major Wall Street firms have research coverage on all of them.
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