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. Many of the biggest public companies, especially the technology giants, trade in the hundreds, all the way up to over $1,000 per share or more. 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.
We screened our 24/7 Wall St. research database looking for companies that are likely to survive the current troubles and could very well offer patient investors some huge returns over the next year or so. Investors that did that in 2008 and 2009 absolutely killed it over the next few years.
While all five of the stocks are rated Buy at top Wall Street firms, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
This is one of the few marijuana stocks that isn’t losing money. Aphria Inc. (NASDAQ: APHA) engages in the production and supply of medical cannabis. It operates through the following segments.
The Cannabis Operations segment produces, distributes and sells both medical and adult-use cannabis. The Distribution Operations segment’s operations are carried out through its wholly owned subsidiaries: ABP, FL Group and CC Pharma. The Business Under Development segment includes operations in which the firm has not received final licensing or has not commenced commercial sales from operations.
As of late last year, it had $500 million Canadian on the balance sheet and an additional $100 million Canadian raised from a strategic investor. Additionally, the company has reported positive adjusted earnings before interest, taxes, depreciation, and amortization the past three quarters, while most of the large cannabis companies continue to report notable losses.
Alliance Global Partners has a Buy rating on the shares and an impressive $9 price target. No consensus target was available. Aphria stock slipped below $5 on Friday.
The banks have been mauled, though many of the second-quarter earnings results have been solid. Cadence Bancorp. Inc. (NYSE: CADE) is a bank holding company that engages in the provision of corporations, middle-market companies, small businesses and consumers with banking and financial solutions.
Its Banking segment offers deposit products and lending services through its commercial banking, retail banking and private banking business lines. The Financial Services segment includes trust, retail brokerage and investment services. The Corporate segment consists of parent-only activities, including debt and capital raising and intercompany eliminations.
The Raymond James Buy rating comes with a $12 price target. That compares to a $9.83 consensus target, and shares have traded mostly above $8 in recent days.