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 Nokia and other Raymond James favorites), and this week was no exception. We found five new 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.
This stock has been battered and holds solid upside potential for those with somewhat lower risk tolerance. Archrock Inc. (NYSE: AROC) is a natural gas contract operations services company. It also provides natural gas compression services to customers in the oil and natural gas industry throughout the United States and supplies aftermarket services to customers that own compression equipment in the United States.
The company operates through two segments. The Contract Operations segment primarily provides natural gas compression services to meet specific customer requirements. It provides contract operations services, including the personnel, equipment, tools, materials and supplies to meet its customers’ natural gas compression needs.
The Aftermarket Services segment provides a range of services to support the compression needs of customers, from parts sales and normal maintenance services to full operation of a customer’s owned assets.
RBC has a massive $14 price target on the shares, while the Wall Street consensus target is $14.30. The stock traded at $9.68 per share on Friday’s close.
This under-the-radar stock holds huge potential upside for aggressive accounts. BrainsWay Ltd. (NASDAQ: BWAY) is a commercial-stage medical device company focused on the development and sale of non-invasive neuromodulation products using the company’s proprietary Deep Transcranial Magnetic Stimulation (Deep TMS) technology for the treatment of major depressive disorder and obsessive-compulsive disorder. BrainsWay received marketing authorization from the U.S. Food and Drug Administration (FDA) for the former disorder in 2013 and for the latter in August 2018.
BrainsWay is currently conducting clinical trials of Deep TMS in other psychiatric, neurological and addiction disorders, including smoking cessation and post-traumatic stress disorder, and it is planning trials for opioid addiction, fatigue in multiple sclerosis and post-stroke rehabilitation.
The Oppenheimer price objective is a gigantic $17 price target, and the posted consensus target price is $16.69. The stock ended the week trading at $8.84.