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.
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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.
Bright Health
This healthcare company’s recent IPO stumbled out of the gate, but the stock looks poised to bounce back smartly. Bright Health Group Inc. (NYSE: BHG) is an integrated care delivery company engaged in the delivery and financing of health insurance plans in the United States. It operates in two segments, NeueHealth and Bright HealthCare. The company offers individual and family, Medicare and employer insurance plans. It also operates 28 managed and affiliated risk-bearing primary care clinics.
Top analysts feel that the company’s strategy to combine a managed care organization business and provider assets will serve the company well as the market continues to shift towards value-based care. While some see competitive risk in the individual market, and acknowledge that the company’s NeueHealth business is relatively nascent, most believe those risks are accounted for in the company’s current valuation multiple.
Citigroup analysts started coverage this past week and have a strong $12 price target. Because it had a recent initial public offering, there is no consensus target yet. Bright Health stock has traded between $7.98 and $17.93 since the IPO, and shares closed at $8.92 on Friday.
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