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 Honest Company and MultiPlan). 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.
Cogent Biosciences
This small biotech has been range-bound all year and looks ready to break out. Cogent Biosciences Inc. (NASDAQ: COGT) is focused on developing precision therapies to treat genetically defined diseases.
Its lead product candidates include CGT9486, a selective tyrosine kinase inhibitor designed to inhibit the KIT D816V mutation that drives systemic mastocytosis, as well as other mutations in KIT exon 17, which are found in patients with advanced gastrointestinal stromal tumors. The company has a licensing agreement with Plexxikon for the research, development and commercialization of CGT9486 and CGT0206 inhibitors.
One very good sign is that top hedge funds have piled into the company this year. The company was in 27 hedge fund portfolios at the end of March. The all-time high for this statistic is 28, and while some may have trimmed since then, that is still strong support for the company.
H.C. Wainwright started coverage recently with a $25 price target. The consensus target is $20.57. The stock closed on Friday at $9.24.
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