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 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 off-the-radar small cap has been hammered this fall and looks like a potential winner. Internap Corp. (NASDAQ: INAP) engages in the provision of information technology infrastructure services. The company operates through two segments.
The INAP COLO segment consists of colocation, managed services and hosting, and network services. The INAP CLOUD segment offers compute and storage services via an integrated platform that includes servers, storage and network.
Recently, Blade, which is the creator of Shadow, the high-performance gaming computer, accessible from multiple devices, selected the company for its mission-critical data center needs on space and power. Blade selected Internap’s Dallas Data Center for strategic location, data security and low latency, enabled by the company’s route-optimized Performance IPTM technology.
Jefferies rates the shares a Buy and has a $7.50 price target. That compares with a Wall Street consensus price objective last seen $13.11. The stock was last seen trading at $4.42 per share.
This is a solid energy exploration and production play. Kosmos Energy Ltd. (NYSE: KOS) is a conventional oil and gas exploration and production company focused on the Atlantic margin. The company’s focus is on unlocking new hydrocarbon systems and growing and maturing discovered basins through follow-on exploration success, development and production.
Although many companies in the sector 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.
RBC has an Outperform rating and a $10.50 target price for the shares, while the posted consensus target is $10.41. The shares closed trading on Friday at $4.28.