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 Chesapeake Energy and other energy stocks), and this week was no exception. We found five new stocks on the Raymond James Analysts Favorite Picks stock list 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.
Shares of this off-the-radar company hold big upside potential for aggressive accounts. BGC Partners Inc. (NASDAQ: BGCP) operates as a global financial intermediary to the financial and real estate markets. Its Financial Services segment provides brokerage of a broad range of products, including fixed income securities, interest rate swaps, foreign exchange, equities, equity derivatives, credit derivatives, commodities, futures and structured products.
The Real Estate Services segment offers commercial real estate tenants, owners, investors and developers a wide range of services, including leasing and corporate advisory, investment sales and financial services, consulting, project management, and property and facilities management.
Shareholders receive a massive 10.21% dividend. The Raymond James price target for the stock is $9, which compares to the consensus price target on Wall Street of $8.50. The shares traded on Friday’s close at $5.48.
This company is in the gaming business and could be an acquisition target. Everi Holdings Inc. (NYSE: EVRI) engages in the provision of technology solutions to the casino gaming industry. Its Games segment provides solutions directly to gaming establishments to offer patrons gaming entertainment-related experiences such as leased gaming equipment; sales and maintenance related services of gaming equipment; gaming systems; and ancillary products and services.
The FinTech segment includes gaming establishments to offer patrons cash access services and products including access to cash at gaming facilities via ATM cash withdrawals, credit card cash access transactions and point of sale debit card cash access transactions; check-related services; fully integrated kiosks and maintenance services; compliance, audit and data software; casino credit data; and reporting services and other ancillary offerings.
Raymond James sports a solid $14 price target, while the posted consensus target price is $13.67. The shares closed trading at $8.87 on Friday.