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 Aphria), 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.
Shares of this little-known health care company have been battered and offer an incredible entry point. Cerus Corp. (NASDAQ: CERS) engages in the research, development and manufacture of biomedical and surgical products. The company produces a blood system for platelets and plasma.
Cerus develops and markets the INTERCEPT Blood System and remains the only company in the blood transfusion space to earn both CE Mark and FDA approval for pathogen reduction of both platelet and plasma components. Cerus currently markets and sells the INTERCEPT Blood System in the United States, Europe, the Commonwealth of Independent States, the Middle East and selected countries in other regions around the world. The INTERCEPT Red Blood Cell system is in clinical development.
Stifel has a $7 price target on the shares, while the Wall Street consensus target is higher at $8. The shares were trading on Friday’s close at $4.64.
This small-cap medical devices company’s stock could explode higher for investors. Nephros Inc. (NASDAQ: NEPH) engages in developing and selling liquid purification filters and an online mid-dilution hemodiafiltration system. The company operates in two segments. The Water Filtration segment includes both the medical device and commercial filtration product lines.
The Renal Products segment is comprised of SRP, which is focused on the development of medical device products for patients with renal disease, including a second-generation HDF system for the treatment of patients with ESRD. Its ultrafilters are used in dialysis centers for the removal of biological contaminants from water, bicarbonate concentrate and blood.
Benchmark recently started coverage with a $16 price target, and the posted consensus target was last seen at $14. The stock was trading at $8.85 a share on Friday’s close.