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.
Every week, we screen our 24/7 Wall St. research database looking for stocks with Buy equivalent ratings at major firms and priced under the $10 level (last week’s picks included Callon Petroleum and Tellurian), 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 was the first “smartphone” type company that was buried when Apple released the iPhone. BlackBerry Ltd. (NYSE: BB) continues transitioning from a mobile hardware provider to a mobile-focused security software and services company. Its portfolio of products includes BlackBerry Secure Unified Endpoint Management, crisis communication, corporate asset tracking, cybersecurity services and other secure collaboration software and communication technologies.
The company also licenses its brand/IP for mobile devices, and its QNX business provides leading embedded software systems. Earlier this year BlackBerry named Bryan Palma as president and chief operating officer. Palma was most recently Cisco’s senior vice president and general manager of customer experience for the Americas. Before joining Cisco, he was the vice president of cyber and security solutions at Boeing.
Scotia Bank has a $10 price objective. The Wall Street consensus target is $10.34, and the shares traded on Friday’s close at $7.54.
This venerable automotive giant remains a solid value play now, and demand could jump with a trade deal with China paving the way. Ford Motor Co. (NYSE: F) is one of the world’s largest vehicle producers, with over 6 million units manufactured and sold globally. The company has made significant progress executing on its One Ford plan and delivering best-in-class vehicles.
Ford also remains committed to positioning itself well within the evolving auto industry through balanced investments across electrification, autonomy and mobility services. Ford is among the car brands with the most loyal customers.
While Ford continues to struggle amid a volatile global market, exacerbated by some perceived critical missteps, some of that may partially abate this year. Recently Moody’s downgraded Ford’s credit rating from investment-grade (Baa3) to junk (Ba1) status, assigning an outlook of Stable. The rating downgrade impact is somewhat de minimis, but it may be a harbinger of future downgrades and challenges. Merrill Lynch did not disagree with the concerns raised by Moody’s but believe much of these are priced into Ford stock.
Shareholders receive an outstanding 6.47% dividend, though it may be lowered ahead. Merrill has a $13 price target and the consensus target is lower at $10.73. The shares closed on Friday at $9.17.