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 marketing, outsourced services and robotics plays). 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.
Smart investors know that regardless of the economy, Americans will continue to buy makeup and fragrances and this is a very solid play on that theme. Coty Inc. (NYSE: COTY) is number two globally in the fragrance category and number six in color cosmetics.
The company manufactures, markets, distributes and sells beauty products worldwide. The company provides prestige fragrances, skincare and color cosmetics products through prestige retailers, including perfumeries, department stores, e-retailers, direct-to-consumer websites, and duty-free shops under the Alexander McQueen, Burberry, Bottega Veneta, Calvin Klein, Cavalli, Chloe, Davidoff, Escada, Gucci, Hugo Boss, Jil Sander, Joop!, Kylie Jenner, Lacoste, Lancaster, Marc Jacobs, Miu Miu, Nikos, philosophy, and Tiffany & Co. brands.
Coty also offers mass color cosmetics, fragrance, skincare, and body care products primarily through hypermarkets, supermarkets, drug stores, pharmacies, mid-tier department stores, traditional food and drug retailers, and e-commerce retailers under the Adidas, Beckham, Biocolor, Bozzano, Bourjois, Bruno Banani, CoverGirl, Enrique, Max Factor, Mexx, Monange, Nautica, Paixao, Rimmel, Risque, Sally Hansen, Stetson, and 007 James Bond brands.
Deutsche Bank has a $10 price target on Coty stock, while the Wall Street consensus target is up at $11.07. The shares last traded on Friday at $8.48.