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. Often 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 screen our 24/7 Wall St. research database every week looking for stocks trading under the $10 level that could provide investors with some solid upside potential (last week’s picks focused on cannabis stocks). While more suited for aggressive accounts, these stocks could prove exciting additions to portfolios looking for solid alpha potential. Plus, considering the May sell-off, these five look even better now.
This small-cap name could have big upside for aggressive investors. Adaptimmune Therapeutics PLC (NASDAQ: ADAP) is a clinical-stage biotechnology company focused on the development of novel T-cell therapies to treat cancer. Adaptimmune proprietary technology platform engineers novel T-cell receptors to target and destroy cancer cells.
The company ended the first quarter with $168.2 million in cash, cash equivalents and marketable securities, which management expects should fund operations into the third quarter of 2020. Research and development expense was $22 million in the first quarter, which decreased 14% year over year, primarily due to the transfer of the NY-ESO program to GlaxoSmithKline.
Citigroup analysts assumed coverage recently with a Buy rating and an $8 price target, which is in contrast to the higher Wall Street consensus target price of $11. The stock was trading on Friday’s close at $3.46 a share.
This stock has taken a beating over the past two months and now offers a prime entry point. Cloudera Inc. (NYSE: CLDR) is a leading next-generation data management company, calling itself “the modern platform for machine learning and advanced analytics.”
Cloudera co-created and commercialized open-source Apache Hadoop, a data management ecosystem. Hadoop introduced a new way of storing and processing data, dramatically reducing the economics of data. Cloudera has developed proprietary enterprise-grade solutions on top of Hadoop.
Cloudera is a high-quality company disrupting the software data management market, currently addressing an addressable market according to its own estimates of more than $22 billion. Cloudera’s platform approach is unique in the marketplace, and many see a clear path to above $1 billion in revenues, once execution improves.
Nomura Instinet rates the shares a Buy and has a $14 price objective. The posted consensus target for the stock is even higher at $18.19, but the stock closed trading at $9.17 a share on Friday.