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.
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 2023 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.
This company has battery technology for the new age of electric vehicles that could be a total game changer in the industry. Enovix Corp. (NASDAQ: ENVX) is the leader in advanced silicon-anode lithium-ion battery development and production.
The company’s proprietary 3D cell architecture increases energy density and maintains high cycle life. Enovix is building an advanced silicon-anode lithium-ion battery production facility in the United States for volume production.
Enovix’s initial goal is to provide designers of category-leading mobile devices with a high-energy battery so they can create more innovative and effective portable products. Enovix is also developing its 3D cell technology and production process for the electric vehicle and energy storage markets to help enable widespread utilization of renewable energy.
Oppenheimer has a $36 target price, while the consensus target is lower at $30.50. The stock closed on Friday at $8.86.
Shares of this wireless tower giant have been crushed and offer huge upside potential. IHS Holding Ltd. (NYSE: IHS) owns, operates and develops shared telecommunications infrastructure in Africa, Latin America, Europe and the Middle East. It offers colocation and lease agreement, build-to-suit, fiber connectivity and rural telephony solutions. The company serves mobile network operators, internet service providers, broadcasters, security functions and private corporations.
Including the approximately 5,700 towers subject to the imminent completion of its pending deal in South Africa, IHS will own nearly 39,000 towers across 11 countries, making the company the third largest independent multinational tower company by tower count. This geographic scale helps diversify the revenue stream, and also positions IHS in some of the largest emerging markets in the world, including the three largest countries in Africa and the largest Latin American country by gross domestic product.
Goldman Sachs has set its target price at $13, but the consensus target is higher at $15.75. The stock closed on Friday at $7.41.
Many top analysts feel that shares of this company could explode higher soon. iQIYI Inc. (NASDAQ: IQ) provides online entertainment services under the iQIYI brand in the People’s Republic of China. The company offers various products and services, including internet video, online games, live broadcasting, online literature, animations, e-commerce and social media platform.
The company operates a platform that provides a collection of internet video content, including professionally produced content licensed from professional content providers and self-produced content. iQIYI also provides membership, content distribution and online advertising services.
In addition, it operates iQIYI Show, a live broadcasting service that enables users to follow their favorite hosts, celebrities and shows in real-time through live broadcasting; and iQIYI Lite, an easy and quick access to the personalized videos based on their user preferences. Further, it is involved in the talent agency and IP licensing activities, as well as engages in developing a video community app.
The $9 Jefferies target price is well above the $6.42 consensus target. Friday’s closing share price was $7.37.
Started by Silicon Valley legend Peter Thiel, this company may offer the largest upside potential of all the stocks in this group, and it is also a takeover candidate. Palantir Technologies Inc. (NYSE: PLTR) builds and deploys software platforms for the intelligence community in the United States to assist in counterterrorism investigations and operations.
Palantir Gotham is the company’s software platform for government operatives in the defense and intelligence sectors that enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants, as well as facilitates the handoff between analysts and operational users, helping operators plan and execute real-world responses to threats that have been identified within the platform.
The company also provides Palantir Foundry, a platform that transforms the ways organizations operate by creating a central operating system for their data, and it allows individual users to integrate and analyze the data they need in one place.
Raymond James’s Strong Buy rating is accompanied by a Wall Street high $15 target price. The consensus target is $9.09. On Friday, shares last traded at $8.09 apiece.
This company took the SPAC route for its IPO and remains a millennial trader favorite. SoFi Technologies, Inc. (NASDAQ: SOFI) provides digital financial services that allow its members to borrow, save, spend, invest and protect their money. The company offers student loans; personal loans for debt consolidation and home improvement projects; and home loans.
SoFi also provides cash management, investment and other related services. In addition, it operates Galileo, a technology platform that offers services to financial and non-financial institutions, and Apex, a technology-enabled platform that provides investment custody and clearing brokerage services.
Raymond James has a Strong Buy rating and a $15 price target on this one too. The consensus target is $7.58, and shares closed at $6.38 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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