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.
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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.
Skeptics of low-priced shares should remember that at one point Amazon, Apple and Netflix traded in the single digits. One stock we featured over the years, Zynga, was purchased by Take-Two Interactive. Cogent Biosciences, which we featured last March, has tripled since then.
We screened our 24/7 Wall St. research database looking for smaller cap companies that could offer patient investors some huge returns for the new year and beyond. While these five stocks are rated Buy and have a ton of Wall Street coverage, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Carnival
The travel sector roared back after the COVID-19 pandemic waned, and this stock is a leader in the industry. Carnival Corp. (NYSE: CCL) operates as a leisure travel company. Its ships visit approximately 700 ports under the Carnival Cruise Line, Princess Cruises, Holland America Line, P&O Cruises (Australia), Seabourn, Costa Cruises, AIDA Cruises, P&O Cruises (UK) and Cunard brand names.
The company also provides port destinations and other services, as well as owns and operates hotels, lodges, glass-domed railcars and motor coaches. It sells its cruises primarily through travel agents, tour operators, vacation planners and websites. The company operates in the United States, Canada, Continental Europe, the United Kingdom, Australia, New Zealand, Asia and elsewhere. It operates 87 ships with 223,000 lower berths.
Stifel has a $17 target price on Carnival stock, but the consensus target is much higher at $30.37. The stock closed trading on Friday at $9.20 per share.
24/7 Wall St.Lucid
This electric vehicle (EV) company could be in the sights of a larger car maker. Lucid Group Inc. (NASDAQ: LCID) a technology and automotive company, develops EV technologies. The company designs, engineers and builds vehicles, EV powertrains and battery systems. As of December 31, 2021, it operated 20 retail studios in the United States.
Late last month, the company announced that it had completed its previously announced “at-the-market” equity offering program. Through the program, Lucid sold more than 56.2 million shares of its common stock for gross proceeds of approximately $600 million. The successful capital raise of approximately $1.515 billion, included approximately $915 million that Lucid expects to raise through the private placement of approximately 85.7 million shares to an affiliate of the Public Investment Fund, Ayar Third Investment Company.
The BofA Securities target price is $21, and Lucid stock has a consensus target of $15.20. The shares closed on Friday at $6.36.
Nikola
This is another casualty of the EV wars and another attractive take-over candidate. Nikola Corp. (NASDAQ: NKLA) operates as a technology innovator and integrator that works to develop energy and transportation solutions.
Nikola’s Truck business unit develops and commercializes battery hydrogen-electric and battery-electric semi trucks to the trucking sector. The Energy business unit develops and constructs a network of hydrogen fueling stations, and it offers battery electric vehicle (BEV) charging solutions for its fuel cell electric vehicle and BEV customers, as well as other third-party customers. The company also assembles, integrates, and commissions its vehicles in collaboration with its business partners and suppliers.
Recently, Nikola said it received a Zero Emission Powertrain executive order from the California Air Resources Board for its truck. That means that the vehicle meets the emissions standards required for zero-emission powertrains to be sold in California.
BTIG Research has set a $12 target price, though the consensus target is down at $6.44. Nikola stock closed at $2.13 on Friday.
Peloton
This cycling and exercise platform was a huge pandemic winner but has been hammered this past year. Peloton Interactive Inc. (NASDAQ: PTON) operates interactive fitness platforms in North America and internationally. The company offers connected fitness products with touchscreens that stream live and on-demand classes under the Peloton Bike, Peloton Bike+, Peloton Tread and Peloton Tread+ names.
The company also provides connected fitness subscriptions for various household users and access to various live and on-demand classes. Its Peloton Digital app for connected fitness subscribers provides access to its classes. As of June 30, 2022, it had approximately 6.9 million members. The company markets and sells its interactive fitness products directly through its retail showrooms and online.
Peloton announced a partnership with Dick’s Sporting Goods to sell its exercise bikes through the retail giant. Peloton’s exercise hardware (minus its new rowing machine) were to be available for sale at 100 Dick’s Sporting Goods locations in time for the holidays.
Peloton Interactive stock has a $14 target price at Bank of America Securities. The consensus target is $13.39, and shares closed on Friday at $8.92.
24/7 Wall St.Snap
Shares of this once red-hot social media company have been absolutely destroyed and offer aggressive investors some huge upside potential. Snap Inc. (NYSE: SNAP) actually operates as a camera company in North America, Europe and elsewhere.
The company offers Snapchat, a camera application with various functionalities, such as Camera, Communication, Snap Map, Stories and Spotlight that enable people to communicate visually through short videos and images.
Snap also provides Spectacles, an eyewear product that connects with Snapchat and captures photos and video from a human perspective. Its advertising products include AR ads and Snap ads, comprised of a single image or video ads, story ads, collection ads, dynamic ads and commercials.
New Street just started coverage this week, and its $12 target tops the $11.63 consensus target. Snap stock closed at $9.22 on Friday.
These are five stocks for aggressive investors looking to get share count leverage on companies that have sizable upside potential. While not suited for all investors, they are not penny stocks with absolutely no track record or liquidity.
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Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
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