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 with Buy equivalent rating at major firms and priced under the $10 level (last week’s picks included Antero Resources and Northern Oil and Gas), 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 stock has pulled back sharply since May and is offering an outstanding entry point. Encana Corp. (NYSE: ECA) is an energy producer focused on developing its multibasin portfolio of natural gas, oil and natural gas liquids (NGLs) producing plays. Its operations also include the marketing of natural gas, oil and NGLs. All of its reserves and production are located in North America.
Its Canadian Operations segment includes the exploration for and development and production of natural gas oil and NGLs and other related activities within Canada. This includes Montney in northeast British Columbia and northwest Alberta and Duvernay in west central Alberta. The USA Operations segment includes the exploration for and development and production of natural gas, oil and NGLs and other related activities within the United States.
Raymond James analysts remain positive on the stock and have a $10 price target. The Wall Street consensus target is $8.76, but the shares were trading on Friday’s close at $4.22.
This is an interesting way to play the expanding health care arena. Evolent Health Inc. (NYSE: EVH) engages in the provision of health care delivery and payment services. Its solutions include population health management, health plan and third-party administration, network performance management, risk adjustment, pharmacy benefit management, analytics and performance improvement, and technology and electronic medical record integration.
The firm’s Services segment includes three types of services designed to help partners manage patient health: value-based care services, specialty care management services and comprehensive health plan administration services.
Its True Health segment, which operates a health plan in New Mexico and provides reinsurance to New Mexico Health Connections, takes on certain insurance and underwriting costs in pricing its premiums.
Cowan has a massive $18 price target for the shares. The consensus target price is $17.08, and the shares were last seen trading at $7.30 apiece.