While most of Wall Street focuses on large-cap and mega-cap stocks, which 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 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 the $10 level 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. Plus, after the huge fall sell-off, these five look even better now.
This energy play could be just the ticket for investors looking for a way to capitalize on the massive sell-off in the industry. Altus Midstream Co. (NASDAQ: ALTM) is a pure-play Permian Basin midstream C-corporation. The company owns gas gathering, processing and transportation assets in Alpine High, an unconventional resource play in the Delaware Basin.
The company also owns options for equity participation in five gas, natural gas liquids (NGL) and crude oil pipeline projects from the Permian Basin. Its assets include 150 miles of transmission and gathering pipelines, compressor stations, mechanical refrigeration units, cryogenic units and associated gas treatment facilities.
Barclays has a $10 price target on the shares, and the Wall Street consensus target was last seen at $12. Shares closed trading on Friday at $7.84 apiece.
This stock has been battered and holds solid upside potential for those with somewhat lower risk tolerance. Archrock Inc. (NYSE: AROC) is a natural gas contract operations services company. It also provides natural gas compression services to customers in the oil and natural gas industry throughout the United States, and it supplies aftermarket services to customers that own compression equipment in the United States.
Archrock operates through two segments. The Contract Operations segment primarily provides natural gas compression services to meet specific customer requirements. The company provides contract operations services, including the personnel, equipment, tools, materials and supplies to meet its customers’ natural gas compression needs.
The Aftermarket Services segment provides a range of services to support the compression needs of customers, from parts sales and normal maintenance services to full operation of a customer’s owned assets.
B. Riley FBR has a massive $16 price target, while the posted consensus target is $14.91. The stock traded at $9.30 a share on Friday’s close.