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 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.
Antero Midstream
With shares trading at just under $10 apiece, this well-run company offers a huge total return package. Antero Midstream Corp. (NYSE: AM) owns, operates and develops midstream energy infrastructure. It operates through two segments.
The Gathering and Processing segment includes a network of gathering pipelines and compressor stations that collects and processes production from Antero Resources’ wells in West Virginia and Ohio.
The Water Handling segment delivers fresh water and offers other fluid handling services, such as wastewater transportation, disposal and treatment, as well as high-rate transfer services.
Investors receive an 8.96% distribution. Wells Fargo has a $13 target price on Antero Midstream stock. The consensus target on Wall Street is $11.29. The shares closed on Friday at $10.00.
Carnival
The travel sector roared back after the COVID-19 pandemic waned, and this company 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 an $18 target price, and Carnival stock has a $10.81 consensus target. Shares closed on Friday at $9.23.
24/7 Wall St.iQiyi
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 a 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.
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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 Jefferies target price is $9, while the consensus target is $8.47. iQiyi stock closed at $6.84 on Friday.
Robinhood
This stock was the birthplace for a large part of the meme stock revolution and has continued to attract big trading volume. Robinhood Markets Inc. (NASDAQ: HOOD) operates a financial services platform in the United States that allows users to invest in stocks, exchange-traded funds ETFs), options, gold and cryptocurrencies.
The company also offers various learning and education solutions. Snacks is a digest of business news stories; Learn is a collection of approximately 650 articles, including guides, feature tutorials and a financial dictionary; Newsfeeds offers access to free premium news from various sites, such as Barron’s, Reuters and The Wall Street Journal; and Lists allow users to create custom watchlists to monitor securities, ETFs and cryptocurrencies, as well as cash management services.
Robinhood Markets stock has a $25 price target at JMP Securities, which is well above the $11.86 consensus target and a trading price of $8.68 on Friday’s close.
Transocean
This is an inexpensive way to buy a deepwater oil drilling stock. Transocean Ltd. (NYSE: RIG) is a leading international provider of offshore contract drilling services for oil and gas wells. Transocean specializes in technically demanding sectors of the global offshore drilling business with a particular focus on deepwater and harsh environment drilling services and operates the highest specification floating offshore drilling fleet in the world.
Transocean owns or has partial ownership interests in and operates a fleet of 37 mobile offshore drilling units, consisting of 27 ultra-deepwater floaters and 10 harsh environment floaters. In addition, Transocean is constructing one ultra-deepwater drillship and holds a noncontrolling ownership interest in a company that is constructing one ultra-deepwater drillship.
Compass Point just raised its rating to Buy and has a $7.50 target price. The consensus target is $6.85. On Friday, Transocean stock closed at $5.69.
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, and major Wall Street firms have research coverage.
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