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 Coty 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.
This off-the-radar play is cheap and holds a ton of potential. Benson Hill Inc. (NASDAQ: BHIL) operates as a food technology company that unlocks natural genetic diversity of plants. The company offers CropOS, a technology platform, which uses artificial intelligence, data and various advanced breeding techniques that combine data, plant and food sciences to deliver crops optimized for nutrition, flavor and yield.
The company’s technology is applied in soybeans and yellow peas. It serves breeders and seed producers, farmers, logistics/consolidates, processors/wholesale suppliers, food/beverage companies, food service providers/retailers and consumers.
Barclays initiated coverage with a $10 price target, the same as the consensus target. The stock closed on Friday at $6.75 a share.