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.
We screened our 24/7 Wall St. research database looking for smaller cap companies that could very well offer patient investors some huge returns the rest of 2021 and beyond. Patient investors that did that in 2008 and 2009 absolutely killed it over the next few years.
While all five of the following stocks are rated Buy, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Colony Capital
This stock has had a good run and looks to be headed for new all-time highs. Colony Capital Inc. (NASDAQ: CLNY) is a leading global investment firm with a heritage of identifying and capitalizing on key secular trends in real estate.
This real estate investment trust manages an approximately $47 billion portfolio of real assets on behalf of its shareholders and limited partners, including over $23 billion in digital real estate investments through Digital Colony, its digital infrastructure platform. The company is headquartered in Los Angeles, with key offices in Boca Raton, New York and London.
B. Riley Securities has an $11 price target on the shares, while the Wall Street consensus target is $8.44. The stock has pulled back a bit from last week’s 52-week high above $8 a share.
iPower
The recent initial public offering came at half the expected price but the stock has almost doubled. iPower Inc. (NYSE: IPW) supplies hydroponics equipment online in the United States. It offers various products, including advanced indoor and greenhouse grow-light systems, ventilation systems, activated carbon filters, nutrients, growing media, hydroponic water-resistant grow tents, trimming machines, pumps and accessories for hydroponic gardening, as well as other indoor and outdoor growing products, under the iPower and Simple Deluxe brands through its Zenhydro.com website and various third-party e-commerce channels.
D.A. Davidson was the lead underwriter and is very positive on the shares. The analyst contends that the company has “significant” share gain potential and an above-average financial growth outlook given its “differentiated” private label program and a strong first-party relationship with Amazon. iPower aimed to use the additional capital from its IPO to fund multiple strategic initiatives that will drive improved profitability on top of its access to 10 years of rich data history that supports product innovation to match consumer’s needs
The D.A. Davidson price target is $10. There is no consensus target yet due to the recent initial public offering. The shares traded above $8 late in the week.
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