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.
CommScope
This technology play offers some serious upside for aggressive investors. CommScope Holding Co. Inc. (NASDAQ: COMM) provides infrastructure solutions for communications networks worldwide.
The company’s offerings include optical fiber and twisted pair structured cable solutions, intelligent infrastructure software, and network rack and cabinet enclosures under the SYSTIMAX, NetConnect, and Uniprise brands, as well as fiber management systems, patch cords and panels, pre-terminated fiber connectivity, complete cabling systems, and cable assemblies for use in offices and data centers.
It also provides fiber optic connectivity solutions, including hardened connector systems, fiber distribution hubs and management systems, couplers and splitters, plug and play multiport service terminals, hardened optical terminating enclosures, high-density cable assemblies, splices and splice closures that support video, voice and high-speed data services provided by telecommunications operators and multisystem operators.
Credit Suisse has a $13 target price on CommScope stock. The consensus target is just $8.31. The stock closed on Friday at $4.28 a share.
DoubleDown Interactive
This top gaming company could be a solid takeover target. DoubleDown Interactive Co. Ltd. (NASDAQ: DDI) engages in the development and publishing of web-based casual games and mobile applications in South Korea. The company offers DoubleDown Casino, DoubleDown Classic, DoubleDown Fort Knox and Undead World: Hero Survival games. Its games are primarily distributed, marketed and promoted through third-party platform providers.
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The CEO recently noted, after solid results for the quarter were posted, that DoubleDown Interactive continues to benefit from strong payer engagement in the company’s flagship social casino game, DoubleDown Casino. The company intends to continue to focus on growing player monetization through the development and introduction of new casino-wide features that provide players with great entertainment and excellent value. The company is also deploying capital to expand its business into new gaming categories, such as iGaming, through the previously announced acquisition of SuprNation, which is expected to close later this year.
Wedbush’s target price is $12.25, but the consensus target is even higher at $17.06. The stock closed on Friday near $8.89, up over 8% on the day.
Peloton Interactive
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.
The $16 Bank of America Securities target price compares with a $17.07 consensus target. Peloton Interactive stock closed at $6.94 on Friday.
24/7 Wall St.Rackspace Technology
This company returned to the publicly traded markets a few years ago after a stint in private equity land. Rackspace Technology Inc. (NYSE: RXT) operates as a multicloud technology services company worldwide.
Rackspace’s Multicloud Services segment provides public and private cloud-managed services that allow customers to determine, manage and optimize the right infrastructure, platforms and services. It also provides professional services related to designing and building multicloud solutions and cloud-native applications.
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Its Apps & Cross Platform segment includes managed applications; managed security services in the areas of security threat assessment and prevention, threat detection and response, rapid remediation, governance and risk and compliance assistance across multiple cloud platforms, as well as privacy and data protection services, including detailed access restrictions and reporting; data services; and professional services related to designing and implementing application, security and data services.
Credit Suisse has set its target price at $6.10. Rackspace Technology stock has a $2.29 consensus target, and shares closed at $1.13 on Friday.
24/7 Wall St.Zevia PBC
This is another micro-cap idea with incredible upside potential. Zevia PBC (NYSE: ZVIA) develops, markets, sells and distributes various carbonated and non-carbonated soft drinks in North America under the Zevia brand name.
The company offers soda, energy drinks, organic tea, mixers, kids beverages and sparkling water. Its products are offered through various retail channels, including grocery distributors, national retailers, warehouse club and natural products retailers, as well as e-commerce channels.
The company is focused on addressing the global health challenges resulting from excess sugar consumption by offering a broad portfolio of zero-sugar, zero-calorie, naturally sweetened beverages. All Zevia beverages are made with a handful of simple, plant-based ingredients, contain no artificial sweeteners, and are Non-GMO Project verified, gluten-free, Kosher, vegan and zero sodium.
An $8 target price at Stephens compares with a $5.41 consensus target and a closing price of $3.39 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, and major Wall Street firms have research coverage.
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