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. Many of the biggest companies in the world, including Apple and Amazon, traded in the single digits at one time.
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.
Brookdale Senior Living
Given the aging U.S. population, this looks like an outstanding idea for investors. Brookdale Senior Living Inc. (NYSE: BKD) owns and operates senior living communities in the United States. It operates through five segments.
The Assisted Living and Memory Care segment owns or leases communities consisting of freestanding multi-story communities and freestanding single-story communities, which offer housing and 24-hour assistance with activities of daily life to mid-acuity and frail elderly residents. This segment also operates memory care communities for residents with Alzheimer’s and other dementias.
The Independent Living segment owns or leases communities, comprising independent and assisted living units in a single community, that are primarily designed for middle- to upper-income seniors. The Continuing Care Retirement Communities segment owns or leases communities that offer various living arrangements, such as independent and assisted living, memory care and skilled nursing, as well as services to accommodate various levels of physical ability and health needs.
The Health Care Services segment provides home health, hospice and outpatient therapy services, while the Management Services segment operates communities under the management agreements.
As of December 31, 2020, the company owned 350 communities, leased 301 communities, managed 72 communities on behalf of third parties and three communities for which it has equity interest.
Stifel has a $9.80 price target on the shares, and the consensus target is lower at $8.26. Brookdale Senior Living closed Friday at $7.80.