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. In fact, 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 new stocks that are rated Buy by the analysts at Jefferies, are trading under the $10 level, and which could provide investors with some solid upside potential. While they are much better suited for aggressive accounts, these stocks could prove exciting additions to portfolios looking for solid alpha potential.
This top consumer food stock makes sense for more conservative investors. Dean Foods Co. (NYSE: DF) processes and distributes fluid milk, and other dairy and dairy case products in the United States. It is engaged in manufacturing, marketing, selling and distributing a range of branded and private label products, including fluid milk, ice cream, cultured dairy products, creamers, ice cream mix and other dairy products to retailers, distributors, foodservice outlets, educational institutions and governmental entities across the United States.
Dean Foods sells its products under approximately 50 national, regional and local proprietary or licensed brands and private labels, including DairyPure, TruMoo, Alta Dena, Berkeley Farms, Country Fresh, Dean’s, Friendly’s, Garelick Farms, LAND O LAKES, Lehigh Valley Dairy Farms, Mayfield, McArthur, Meadow Gold, Oak Farms, PET, T.G. Lee, Tuscan and others.
Shareholders of Dean Foods are paid a 1.9% dividend. The Jefferies price target for the shares is $13, and the Wall Street consensus target was last seen at $8.54. The stock traded on Friday at $7.05 a share.
This company has been the target of short sellers, but it could be ready for a big bounce. Insys Therapeutics Inc. (NASDAQ: INSY) is a specialty pharmaceutical company that develops and commercializes innovative drugs and novel drug delivery systems of therapeutic molecules that improve the quality of life of patients. Using proprietary sublingual spray technology and capabilities to develop pharmaceutical cannabinoids, Insys addresses the clinical shortcomings of existing commercial products.
The company markets Subsys, a sublingual fentanyl spray for breakthrough cancer pain in opioid-tolerant adult patients, and Syndros, an orally administered liquid formulation of dronabinol for the treatment of chemotherapy-induced nausea and vomiting, as well as anorexia, associated with weight loss in patients with AIDS. It is also developing Cannabidiol Oral Solution, which has completed a pediatric study for the treatment of pediatric epilepsy; has completed Phase 2 study to treat West syndrome; and is in Phase 2 study for the treatment of childhood absence epilepsy, as well as Buprenorphine Sublingual Spray that has completed Phase 3 study to treat acute pain.
Jefferies has a $10 price target on the stock, which compares with a consensus target posted at $9.60. The shares were trading on Friday at $8.85 apiece.