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.
Green Brick Partners
This is one of the top home builders in the Dallas/Ft. Worth metroplex. Green Brick Partners Inc. (NASDAQ: GRBK) engages in residential land development and home building. It offers customization options and builds energy-efficient homes located in the metropolitan areas of Dallas and Atlanta.
The company operates through two segments. The Builder Operations segment consists of Texas, Georgia, Corporate and Other units. The Land Development segment sells finished lots or option lots from third-party developers to their controlled builders for homebuilding operations and provides them with construction financing and strategic planning.
The largest Green Brick Partners shareholder is Greenlight Capital’s David Einhorn.
Deutsche Bank just started the stock with a Buy rating and an $11 price target. The Wall Street consensus target is $8.63, and the shares were trading at $8.65 on Friday’s close.
This stock has been on a roll so far this year and looks poised to go higher. Sirius XM Holdings Inc. (NASDAQ: SIRI) is the world’s largest radio company, measured by revenue, and has approximately 33.1 million subscribers.
Sirius creates and offers commercial-free music; premier sports talk and live events; comedy; news; exclusive talk and entertainment; and a wide range of Latin music, sports and talk programming. Sirius is available in vehicles from every major car company and on smartphones and other connected devices as well as online.
Late in December, Sirius announced that a definitive proxy statement/prospectus has been filed with the Securities and Exchange Commission in connection with its pending merger with Pandora Media. Pandora’s special meeting of stockholders to vote on the transaction is scheduled to be held on January 29, 2019. Stockholders of record as of the close of business on November 30, 2018, will be entitled to vote at the special meeting in person or by proxy.
Merrill Lynch has an $8 target price, which compares to the consensus estimate of $6.89. The stock closed on Friday at $5.82.