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 trade 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. Last week’s picks included Vonage and SRC Energy.
This is a popular stock in the fast-expanding marijuana/cannabis segment. Hexo Corp (NYSE: HEXO) is a diversified cannabis company, selling a portfolio of cannabis and related products. The company is based in Quebec, where it is a preferred supplier to the province’s provincial cannabis purchaser. Hexo also has national distribution, with plans to expand internationally, and it made our list of the 2018 list of the 10 largest marijuana companies.
Through its hub and spoke business strategy, Hexo is partnering with Fortune 500 companies, bringing its brand value, cannabinoid isolation technology, licensed infrastructure and regulatory expertise to established companies, leveraging their distribution networks and capacity. As one of the largest licensed cannabis companies in Canada, Hexo operates with 1.8 million square feet of facilities in Ontario and Quebec and a foothold in Greece to establish a eurozone processing, production and distribution center. The company serves the Canadian adult-use and medical markets.
Merrill Lynch recently started coverage with a Buy rating and a $10 price target. The Wall Street consensus target for the stock was not available. Shares were trading on Friday’s close at $7.79 apiece.
This company may be poised to strike it rich with the new “Avengers: Endgame” movie having just opened, and no doubt on its way to becoming one of the top Marvel movies. iPic Entertainment Inc. (NASDAQ: IPIC) engages in the operation of dine-in theaters. It provides visionary entertainment escapes, chef-driven culinary and mixology offerings that include movie theaters plus a bar and restaurant.
The analysts at Alliance Global are very positive on the company and noted this in a recent report:
We expect IPIC will benefit from the Avengers blockbuster. Last year, Avengers: Infinity Wars generated $258 million in box office sales during its opening week and went on to generate $679 million in box office sales, the fourth highest grossing movie of all-time. Avengers: Endgame is the culmination of 21 superhero movies and to capture the demand, theaters are extending their hours of operation and dedicating many screens per theater. Given few other solid movies to compete that are currently in theaters, IPIC is also dedicating 4-5 screens per theater to Endgame, based on our checks.
Alliance Global has a $7 price target, though the consensus target is even higher at $8.33. The stock closed Friday at $3.68 a share.