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 and under the $10 level (last week’s picks included Canoo and Gol Linhas). This week was no exception as we found five new stocks that could provide investors with some solid upside potential. Skeptics of low-priced 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 and making good ideas to trade even harder to find), they could prove exciting additions for traders looking for solid alpha potential. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
This off-the-radar gem spiked big-time in the fall but has come back in to offer a very solid entry point. Accuray Inc. (NASDAQ: ARAY) develops, manufactures and sells radiotherapy systems for alternative cancer treatments in the Americas, Europe, the Middle East, India, Japan, China and elsewhere.
The company offers the CyberKnife System, a robotic stereotactic radiosurgery and stereotactic body radiation therapy system used for the treatment of various types of cancer and tumors in the body, such as prostate, lung, brain, spine, liver, pancreas and kidney. Accuray also provides the TomoTherapy System, including the Radixact System, which consists of an integrated radiation therapy system designed for the treatment of a range of cancer types. In addition, it offers post-contract customer support, installation, training and other professional services.
The company primarily markets its products directly to customers, including hospitals and stand-alone treatment facilities through its sales organization, as well as to customers through sales agents and group purchasing organizations in the United States, as well as to customers directly and through distributors and sales agents internationally.
Loop Capital has a $7.50 target price for Accuray stock. The Wall Street consensus target is even higher at $8.30. The stock ended trading on Friday at $4.77 a share.