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.
We screened our 24/7 Wall St. research database looking for smaller cap companies that could very well offer patient investors some huge returns for the rest of 2022 and beyond. Skeptics of low-priced shares should remember that at one point both Amazon and Apple traded in the single digits.
While all five stocks are rated Buy, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Ginkgo Bioworks
This microcap biotech has strong upside potential for investors looking for ideas in the space. Ginkgo Bioworks Holdings Inc. (NYSE: DNA) develops a platform used to program cells to enable biological production of products, such as novel therapeutics, food ingredients and chemicals derived from petroleum.
The company serves various end markets, including specialty chemicals, agriculture, food, consumer products and pharmaceuticals. Ginkgo Bioworks has a partnership with Selecta Biosciences to advance treatments for orphan and rare diseases.
BofA Securities started coverage of Ginkgo Bioworks stock this week with an $8 price target. The consensus target is much higher at $13.25. The stock closed trading on Friday at $4.97 up almost 7%.
Grab
This stock has been cut in half since early November, and it appears to have stabilized enough to jump in. Grab Holdings Ltd. (NASDAQ: GRAB) operates a transportation and fintech platform in Southeast Asia. It offers a range of services, including mobility, food, package and grocery delivery services, as well as mobile payments and financial services.
Anthony Tan, Group CEO and co-founder, said this after the company’s successful conversion from SPAC status:
Our evolution into a superapp was guided by the everyday problems we wanted to solve for the people we care about, and accelerated by the growing appetite for digital services in a rapidly transforming landscape. From on-demand mobility and deliveries to digital financial services, enterprise services and more, we believe we are only scratching the surface of the opportunity ahead of us. While there’s no doubt this is an exciting moment, we’re grounded in the knowledge that this is just day one. Our calling remains the same – to unlock greater opportunity for all Southeast Asians to participate in the digital economy.
Goldman Sachs recently started coverage with a $7.90 price target. The consensus target for Grab stock is $8.76, and the shares last traded on Friday at $5.51.
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