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 Ford and General Electric), 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 to be exciting additions to portfolios looking for solid alpha potential.
Applied Genetic Technology
This small-cap biotech company has huge upside potential. Applied Genetic Technology Corp. (NASDAQ: AGTC) engages in the development of gene therapy platforms to develop transformational genetic therapies for patients suffering from rare and debilitating diseases. It has clinical trials in the field of ophthalmology, optogenetics, adrenoleukodystrophy and otology.
Recently the company said data sets from the dose escalation groups of its Phase 1 and 2 XLRP program and a preliminary look at three-month data from its XLRP dose expansion group demonstrated a favorable safety profile with stability of visual function in peripherally dosed patients and improvement of visual function in 50% of centrally dosed patients.
The company’s president and chief executive, Sue Washer, said, “Taken together, we believe these data put our company in a favorable position to move its current clinical programs forward and bring important therapies to patients who today lack effective treatment options.”
Wedbush recently raised its price target to $12 from $11. That compares to the lower Wall Street consensus target of $10.58. The stock traded on Friday’s close at $3.99 a share.
Clear Channel Outdoor
This advertising play looks interesting at current trading levels. Clear Channel Outdoor Holdings Inc. (NYSE: CCO) is one of the world’s largest outdoor advertising companies, with a diverse portfolio of 450,000 print and digital displays in 31 countries across Asia, Europe, Latin America and North America, reaching millions of people monthly. Its growing digital platform includes over 14,000 digital displays in its international markets and more than 1,600 digital displays, including more than 1,300 digital billboards, in the United States.
It has two business divisions. Clear Channel International covers markets in Asia, Europe and Latin America. Clear Channel Outdoor Americas is the U.S. and Caribbean business division. The company employs 5,600 people globally.
Wells Fargo started the stock with at Outperform with a $4 price target earlier this week. The consensus target is $3.83, and the stock closed at $2.58 on Friday.