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.
Every week we screen our 24/7 Wall St. research database looking for stocks covered by top Wall Street analysts that are trading under the $10 level and could provide investors with some solid upside potential. While these stocks are much more suited for aggressive accounts, they could prove to be exciting additions to portfolios in need of solid alpha potential.
New Age Beverages
The marijuana industry is getting plenty of attention, and this company is as well. New Age Beverages Corp. (NASDAQ: NBEV) engages in the development, marketing, sales and distribution of Ready-to-Drink beverages. Its brand includes Coco Libre, Xing Tea, Xing Energy, Aspen Pure, Bucha Live Kombucha, Mellow Mood and One Drop.
At the end of 2018, the company launched its Noni+Collagen product and announced that, within its first two months of sales, it generated over $4 million in revenue in initial test markets. The product was created by the company’s Morinda division and currently offers the product in 50-milliliter glass bottle shots, positioned as a once-daily use, sold in three 10 packs for a 30-day supply. In addition to this new product, New Age announced in January an agreement to sell Marley branded cannabis-infused beverages.
Alliance Global has a Buy rating and an $8 price target on the shares. The consensus target price across Wall Street is even higher at $8.85, and the shares closed trading on Friday at $4.78.
Northern Oil and Gas
SunTrust analysts are very positive on this small-cap energy play. Northern Oil and Gas Inc. (NYSE: NOG) is engaged in the acquisition, exploration, development and production of oil and natural gas properties, primarily in the Bakken and Three Forks formations within the Williston Basin in North Dakota and Montana.
SunTrust pointed out in a recent report that Northern Oil and Gas is the largest non-operator in the Williston Basin. With Bakken returns continuing to improve to well above 50% and the company’s operating partners representing what many see as the best operators in the basin, and the analyst sees upside potential to current estimates.
Despite the greater difficulty in forecasting production owing to the non-operated business model, SunTrust anticipates that Northern Oil and Gas should benefit from record well results from operating partners and strong Bakken differentials.
After Northern Oil and Gas posted solid results recently, the SunTrust analysts raised its price target to $5 from $4, which compares to a $4.06 consensus target. The stock was trading at $2.68 on Friday’s close.