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 EnLink Midstream and Extraction Oil and Gas), 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 is one of the only marijuana stocks that actually makes money. Aphria Inc. (NASDAQ: APHA) engages in the production and supply of medical cannabis. Its Cannabis Operations segment produces, distributes and sells both medical and adult-use recreational cannabis.
The Distribution Operations segment is carried out through its wholly owned subsidiaries ABP, FL Group and CC Pharma. The Distribution Under Development segment includes operations in which the firm has not received final licensing or has not commenced commercial sales from operations.
Jefferies has a Buy rating and an $8.30 price objective. No Wall Street consensus price target was available. The shares traded on Friday’s close at $5.60.
This off-the-radar company has huge upside to the posted target prices. AudioEye Inc. (NASDAQ: AEYE) provides digital accessibility technology solutions. It develops patented, internet content publication and distribution software, enabling the conversion of any media into an accessible format and allowing for real-time distribution to end-users on any internet-connected device.
The company invents, manufactures and distributes mobile, advertising and internet technologies that enable users to transact, communicate and engage with products, brands and content using networked interactive voice browsing technology.
AudioEye also focuses on providing solutions to the internet, print, broadcast and other media, irrespective of an individual’s network connection, device, location or impairment. The company provides e-learning and e-commerce systems, as well as internet publishing products and services.
National Securities has a Buy rating and a massive $11 price target. The posted consensus target is even higher at $11.13, and the stock traded at $3.40 on Friday’s close.
Playa Hotels and Resorts
This is a solid vacation travel play for investors. Playa Hotels and Resorts N.V. (NASDAQ: PLYA) engages in the ownership, operation and development of all-inclusive resorts in beachfront location destinations in Mexico and the Caribbean.
Playa owns or manages a total portfolio consisting of 21 resorts (7,936 rooms) located in Mexico, Jamaica and the Dominican Republic. In Mexico, Playa owns and manages Hyatt Zilara Cancun, Hyatt Ziva Cancun, Panama Jack Resorts Cancun, Panama Jack Resorts Playa del Carmen, Hilton Playa del Carmen and others. In Jamaica, Playa owns and manages Hyatt Zilara Rose Hall and Hyatt Ziva Rose Hall, Hilton Resort & Spa Rose Hall, Jewel Dunn’s River Beach Resort, Jewel Grande Montego Bay and others.
SunTrust’s Buy rating comes with an $11 price target. The consensus target is $10.10. Shares closed trading at $8.14.
If you want to plan something big, this company is there to help. Target Hospitality Corp (NASDAQ: TH) engages in the provision of rental accommodations with premium catering and value-added hospitality services. Its services include catering, housekeeping and maintenance, recreation and leisure, fitness, security and transportation.
Back in the summer, the company’s board of directors approved a $75 million share buyback program. In addition, a new chief financial officer recently was brought on as the company continues to build a strong executive team.
A $15 price target accompanies the Stifel Buy rating, while the consensus target is $11.80. The shares ended the week at $5.61.
This Chinese company has a massive footprint and its shares offer significant upside. Wanda Sports Group Co. Ltd. (NASDAQ: WSG) operates as a sports events, media and marketing platform worldwide.
The company engages in the rights distribution, broadcast hosting, digital media and entertainment, program production, event operations and licensing, and brand development and sponsorship activities. The stock has sputtered since the IPO, and is offering investors a very solid entry level.
Deutsche Bank has a Buy and an $11 price target, which is above the consensus figure of $9.32. The stock last traded at $3.53.
These are five stocks for aggressive accounts that look to get share count leverage on stocks that have sizable upside potential. While not suited for all investors, these are not penny stocks with absolutely no track record or liquidity, and major Wall Street firms have research coverage.