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 Freeport-McMoRan), 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.
Centennial Resource Development
Shares of this off-the-radar company could have solid upside potential. Centennial Resource Development Inc. (NASDAQ: CDEV) is a pure-play Permian oil and gas producer. The company holds 87.9 thousand net acres across the Delaware Basin, with its largest position in Reeves and Pecos, Texas, (76.1 thousand net acres) and recently acquired a position in Lea County, New Mexico, (11.9 thousand net acres). The company’s legacy position, which it has held since the time of its initial public offering in late 2016, covers 42.5 thousand net acres in Reeves, Pecos and Ward counties.
The company’s early 2019 production guidance was much lower than the Wall Street expectations, but some see the strategy as a solid move, and the firm still plans to complete 65 to 75 wells this year. In addition, the firm’s solid well results suggest good operational momentum.
Barclays just upgraded Centennial Resource Development shares to Overweight from Equal Weight, and the firm has set its price target at $6. That compares with the higher Wall Street consensus target of $8.27. The stock closed trading on Friday at $4.82 per share.
This Chicago-based public relations (PR) related company could very well be a takeover target. Cision Ltd. (NYSE: CISN) is a provider of PR software. It also provides media distribution, media intelligence and related professional services. The company’s products and services help manage, execute and measure strategic PR and communications programs.
The company’s Cision Communications Cloud is a cloud-based platform that integrates each of its point solutions into a single unified interface and arms brands with the insights they need to link their earned media to strategic business objectives while aligning it with owned and paid channels. Its platform enables companies and brands to build consistent, meaningful and enduring relationships with influencers and buyers in order to amplify their marketplace influence.
SunTrust has a Buy rating with a price target last seen at $9. That compares to the much higher posted consensus price target of $15.33. The stock closed trading at $6.92 a share on Friday.