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.
Each and every week, we screen our 24/7 Wall St. research database looking for stocks rated Buy at major firms and priced under the $10 level (last week’s picks included tech, energy and cannabis plays), and this week was no exception. We found five more stocks that could provide investors with some solid upside potential. While more suited for aggressive accounts, they could prove exciting additions to portfolios looking for solid alpha potential.
This micro-cap stock has the potential to double for investors. Civeo Corp. (NYSE: CVEO) engages in the provision of workforce accommodations, logistics and facility management services to the natural resource industry. Its Canada segment provides accommodation services through lodges, open camps and mobile assets, which supports workforces from oil sands and in a variety of oil and natural gas drilling, mining and related natural resource applications, as well as disaster relief efforts.
The Australia segment provides accommodations services on a day rate basis to mining and related service companies, such as construction contractors, while its U.S. segment provides open camp facilities and highly mobile smaller camps that follow drilling rigs and completion crews as well as accommodation, office and storage modules that are placed on offshore drilling rigs and products platforms.
Stifel has a giant $4.50 price target on the shares, and that compares to the Wall Street consensus target of $3.67. The stock has traded below $1.50 for the past week.
This company can benefit from increased construction around the country. Concrete Pumping Holding Inc. (NYSE: BBCP) engages in the provision of concrete pumping services and concrete waste management services. Its brands include US Concrete Pumping-Brundage-Bone, UK Concrete Pumping-Camfaud and Concrete Waste Management Services-Eco-Pan.
The company recently announced plans to acquire Capital Pumping, and the deal is expected to close in the second calendar quarter of 2019. On a pro forma basis giving effect to the acquisition of Capital Pumping expects its net leverage to decline by the end of its fiscal year 2019 to 3.5 times or below from approximately 4.4 times as of December 6, 2018, which is the date Capital Pumping consummated its business combination with Industrea Acquisition. The company believes that it will generate cash flows following the acquisition that will allow it to further reduce its net leverage ratio.
Stifel’s price target is a huge $9, while the consensus target is $8.33. Shares have traded below $4.50 for the past week.