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 covered by top Wall Street analysts that are trading under the $10 level and could provide investors with some solid upside potential. While much more suited for aggressive accounts, they could prove exciting additions to portfolios looking for solid alpha potential.
This stock has been on a roll and is close to breaking out. Harmonic Inc. (NASDAQ: HLIT) engages in the development and sale of video delivery software, products, system solutions and services. The Video segment, one of the two through which it operates, sells video processing and production and playout services to cable operators, satellite and telecommunications pay-TV service providers, and broadcast and media companies, including streaming new media companies.
The other is the Cable Edge segment, which markets cable access solutions and related services, such as CableOS software-based Converged Cable Access Platform (CCAP) solutions.
Stifel has a $7 price target on the shares, but the Wall Street consensus target is just $5.88. The stock was trading at Friday’s close at $5.42 per share.
This small-cap oil and gas exploration company came in with some strong quarterly results. Rosehill Resources Inc. (NASDAQ: ROSE) engages in the acquisition, exploration, development and production of unconventional oil and associated liquids-rich natural gas reserves in the Permian Basin.
Last week the company announced it grew average net production to 22,779 barrels of oil equivalent per day (73% oil and 87% total liquids), an increase of 15% compared to the third quarter of 2018. In addition, the company reported net income attributable to Rosehill of $50.2 million, or $2.35 per fully diluted share, for the fourth quarter of 2018, which included a $199.4 million noncash, pretax gain on commodity derivative instruments.
The SunTrust analyst has a $6 price target for the shares. The posted consensus figure was last seen at $6.73, and the stock closed at $3.40 on Friday.