Most firms on Wall Street focus on large and mega cap stocks, as they provide a degree of safety and liquidity. Unfortunately, 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 much more suited for aggressive accounts, they could prove exciting additions to portfolios looking for solid alpha potential. Last week’s stock picks under $10 with gigantic upside potential included Hexo, Range Resources and more.
This micro-cap clinical-stage biopharmaceutical company could very well be a solid takeover candidate. Axovant Sciences Ltd. (NASDAQ: AXGT) is engaged in the acquisition, development and commercialization of novel therapeutics in the fields of neurology and psychiatry. Its therapeutic focuses are Parkinson’s disease and Lewy body dementia. It operates through the following geographical segments: United States, Switzerland, Bermuda, and Other.
The company’s current pipeline of gene therapy candidates targets GM1 gangliosidosis, GM2 gangliosidosis (including Tay-Sachs disease and Sandhoff disease), Parkinson’s disease, oculopharyngeal muscular dystrophy, amyotrophic lateral sclerosis (ALS) and frontotemporal dementia.
Axovant is focused on accelerating product candidates into and through clinical trials with a team of experts in gene therapy development and through external partnerships with leading gene therapy organizations.
Evercore ISI has a Buy rating and a $3 price target on the shares, but the Wall Street consensus target is much higher at $5.17. The shares were trading on Friday’s close at $1.13.
This may be the consummate play for aggressive accounts looking to buy size in energy. Lonestar Resources US Inc. (NASDAQ: LONE) engages in the acquisition, development and production of unconventional oil and natural gas properties. Its portfolio includes the Eagle Ford Shale.
The company announced recently that its board approved a capital-flexible budget that ranges from 17 gross per 15.6 net wells, which it estimates will cost $107 million, to a high of 20 gross per 18.6 net wells, which are budgeted to cost $130 million. As commodity prices fell precipitously in the fourth quarter of 2018, Lonestar suspended drilling operations pending the negotiation of contracts for drilling and completion operations, which gave the company sufficient flexibility to “dial-in” activity levels to react to commodity prices and expected cash flow generation capacity.
SunTrust has a massive $7 price target, and the consensus target was last seen at $6.50. Shares closed trading at $3.53 on Friday.