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.
Every week we screen our 24/7 Wall St. research database looking for stocks with research coverage at major firms priced under the $10 level, and this week was no exception. We found five new stocks that could provide investors with some solid upside potential. While much more suited for aggressive accounts, they could prove exciting additions to portfolios looking for solid alpha potential. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
If you have missed going to the movies and look forward to theatres reopening, this is a great contrarian idea. Cinemark Holdings Inc. (NYSE: CNK) engages in the motion picture exhibition business. As of February 10, 2020, it operated 548 theatres with 6,082 screens in 41 states of the United States, Brazil and Argentina, as well as 13 other Latin American countries.
This is one of the world’s largest and most influential movie theatre companies, and it has reopened approximately 75% of its U.S. circuit to overwhelmingly positive customer feedback. Some 97% of Cinemark moviegoers surveyed expressed satisfaction with Cinemark protecting their health and safety. Moreover, a resounding number of those moviegoers polled stated that they would return and also would recommend visiting Cinemark to a friend.
Loop Capital has a towering $16 price target, while the consensus target is $12. Cinemark stock plummeted recently below $8 a share.
Smart investors know that regardless of the economy, women will continue to buy makeup and fragrances, and this is a very solid play on that theme. Coty Inc. (NYSE: COTY) is number two globally in the fragrance category and number six in color cosmetics.
The company manufactures, markets, distributes and sells beauty products worldwide. It provides prestige fragrances, skincare and color cosmetics products through prestige retailers, including perfumeries, department stores, online retailers, direct-to-consumer websites and duty-free shops under the Alexander McQueen, Burberry, Bottega Veneta, Calvin Klein, Cavalli, Chloe, Davidoff, Escada, Gucci, Hugo Boss, Jil Sander, Joop!, Kylie Jenner, Lacoste, Lancaster, Marc Jacobs, Miu Miu, Nikos, philosophy and Tiffany brands.
Coty also offers mass color cosmetics, fragrance, skincare and body care products primarily through hypermarkets, supermarkets, drug stores, pharmacies, mid-tier department stores, traditional food and drug retailers, and e-commerce retailers under the Adidas, Beckham, Biocolor, Bozzano, Bourjois, Bruno Banani, CoverGirl, Enrique, Max Factor, Mexx, Monange, Nautica, Paixao, Rimmel, Risque, Sally Hansen, Stetson and 007 James Bond brands.
The $4 Jefferies price target is less than the $4.27 consensus target. Coty stock has rallied recently to around $3.30.