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 not only to 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 Energy Transfer and Zynga). 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.
Digital Bridge
This stock caught an upgrade this past week from a big Wall Street bank. DigitalBridge Group Inc. (NASDAQ: DBRG) is a leading global digital infrastructure real estate investment trust (REIT). With a heritage of over 25 years investing in and operating businesses across the digital ecosystem, including towers, data centers and fiber, small-cell and edge infrastructure, the DigitalBridge team manages a $35 billion portfolio of digital infrastructure assets on behalf of its limited partners and shareholders.
The company recently announced the expansion of the Vantage SDC (stabilized data centers) platform with the acquisition of CA22, a 24-megawatt hyperscale data center serving the strategic Santa Clara, California, market. The transaction is valued at $539 million and will be funded primarily through existing and new Vantage SDC debt facilities and cash on hand.
Raymond James just raised the shares to Strong Buy. Its $9 price target compares with a consensus target of $9.67. The stock closed on Friday at $6.70 per share up over 4%.
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