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 Accuray and Grab). 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 top security company is a well-known protector of homes and businesses. ADT Inc. (NYSE: ADT) is the largest residential and second-largest commercial security monitoring company in North America. The company serves over 7 million customers, installing over a million systems per year. Roughly 94% of revenue is generated in the United States, with the remainder from Canada.
Google announced last year that it was buying a 6.6% stake in the home security firm for $450 million in a deal that will allow it to provide service to customers of its Nest home security devices. ADT said that the companies will work to combine Nest products like cameras, thermostats, doorbells and alarm systems with ADT’s installation, service and professional monitoring network. The company also expects to offer certain Google devices to its customers and to expand the integration going forward.
Jefferies recently started coverage of ADT stock with a $10.50 price target, which is near the $10.75 consensus target. Shares closed trading on Friday at $7.89.