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 priced under the $10 level and this week was no exception (last week’s picks included GoHealth and Talkspace). This week, we found five new stocks that could provide investors with some solid upside potential. Skeptics of low price shares should remember that at one point both Amazon and Apple traded in the single digits.
While more suited for aggressive investors, and with the number of new traders skyrocketing over the past year, making good ideas to trade even harder to find, these five stocks could prove exciting additions for traders looking for solid alpha potential. It is important to remember, though, that no single analyst report should be used as a sole basis for any buying or selling decision.
CareMax
This is a very intriguing idea for aggressive investors looking for alpha. CareMax Inc. (NASDAQ: CMAX) is a health care organization providing medical services through physicians and health care professionals. The company offers a suite of health care and social services to its patients, including primary care, specialty care, telemedicine, health and wellness, optometry, dental, pharmacy and transportation. As of June 30, 2021, it owned and operated 36 multi-specialty medical care centers throughout Miami-Dade, Broward and Orange Counties in Florida.
Earlier this month the company closed the previously announced acquisition of DNF Medical Centers, a leading medical practice in the Orlando Metro area. DNF operates six conveniently located medical centers serving approximately 4,000 Medicare Advantage members in its network. With this acquisition, CareMax now operates 42 medical centers, serving approximately 66,000 patients, including approximately 26,000 Medicare Advantage members. CareMax intends to use DNF as the foundation to further expand in the Central Florida and Tampa Bay region, a market with more than 2 million Medicare-eligible beneficiaries.
Piper Sandler recently upgraded the stock to Overweight from Neutral and has a $14 price target. The consensus price objective is $14 as well. The shares closed Friday at $9.46.
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