While most of Wall Street focuses on large-cap 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 is difficult 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.
Each week we screen our 24/7 Wall St. research database looking for stocks rated Buy at major firms and priced under the $10 level. This week we found five new stocks that could provide investors with some solid upside potential.
With the number of new equity traders skyrocketing over the past year due to the Reddit/WallStreetBets popularity, locating good ideas to trade has become even more challenging. These five could all prove to be exciting additions for traders looking for solid alpha potential. While they are definitely better suited for aggressive investors, it is still important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Cerus
This little-known health care stock has been battered and offers an incredible entry point. Cerus Corp. (NASDAQ: CERS) engages in the research, development and manufacture of biomedical and surgical products. The company produces blood systems 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 a CE Mark and FDA approval for pathogen reduction of both platelet and plasma components. The company currently markets and sells the INTERCEPT Blood System in the United States, Europe, the Middle East and elsewhere. The INTERCEPT Red Blood Cell system is in clinical development.
Stifel has a huge $10 price target on the shares. That compares to the lower Wall Street consensus target of $8.00. The shares dipped below the $6 level late in the week.
Kosmos Energy
This is a solid energy exploration and production play, and with oil and gas prices rising, it could be an outstanding idea now. Kosmos Energy Ltd. (NYSE: KOS) is a deepwater independent oil and gas exploration and production company focused along the Atlantic Margins. The company’s primary assets include production offshore Ghana, Equatorial Guinea and the U.S. Gulf of Mexico, as well as a gas development offshore Mauritania and Senegal. It also maintains a proven basin exploration program.
Kosmos Energy’s focus is on unlocking new hydrocarbon systems and growing and maturing discovered basins through follow-on exploration success, development and production.
The Goldman Sachs price target is $4.50 target, and the consensus target is $3.27. The stock has traded above $3 a share for the past week or so.
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