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 2018 and early 2019 sell-offs, these five look even better now.
This top company with a solid balance sheet makes sense for investors to consider now. Goldcorp Inc. (NYSE: GG) engages in the acquisition, exploration, development and operation of precious metal properties in Canada, the United States, Mexico and Central and South America. It primarily explores for gold, silver, copper, lead and zinc deposits.
Goldcorp’s principal mining properties include the Red Lake, Éléonore, Porcupine and Musselwhite gold mines in Canada; the Peñasquito and Los Filos mines in Mexico; the Marlin property in Guatemala; the Cerro Negro and Alumbrera mines in Argentina; and the Pueblo Viejo mine in the Dominican Republic.
Some Wall Street analysts feel that the company deserves a premium valuation to its peers due to its excellent balance sheet, growth profile with lower cost new mines, longer average mine life and a solid dividend yield. Over the past few years, Goldcorp has been altering its mine plans, cutting spending and disposing assets in order to reduce costs and focus on the most profitable production.
Shareholders are paid just a 0.57% dividend. The Merrill Lynch price target for the shares is $13, and the Wall Street consensus target is $13.88. The stock traded at Friday’s close at $9.71 a share.
PermRock Royalty Trust
This is a great bet for investors looking for Permian Basin energy exposure and income. PermRock Royalty Trust (NYSE: PRT) was formed to own a perpetual interest in oil and gas producing properties. The company was established in 2017 through a Trust Agreement between Boaz Energy II and Simmons Bank.
Owning PermRock Royalty’s units gives investors direct exposure to the Permian Basin with a monthly distribution and a 1099 status for taxes, but without the risk of dilution to unitholders, additional leverage and acquisition of additional acreage. Boaz Energy’s interests are directly aligned with unitholders through a retention of 5.9 million units and a 20% direct interest in net profits of the underlying properties.
Investors are paid a massive 18% distribution monthly. Stifel has a $12 price target, while the posted consensus target is $16. The shares closed at $9.11 on Friday.