While Most of Wall Street focuses on large 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 companies, especially the technology giants, trade in the low to mid hundreds, and all the way up to over $1,000 per share. At those steep prices, it’s pretty hard to get any decent share count leverage.
Many investors, especially more aggressive traders, look at lower-priced stocks as a way to not only 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 and found five stocks trading under the $10 level that could provide investors with some solid upside potential. While much more suited for aggressive accounts, they could prove exciting additions to portfolios looking for solid alpha potential.
Glu Mobile
This gaming stock could have some big upside for aggressive accounts. Glu Mobile Inc. (NASDAQ: GLUU) develops, publishes and markets a portfolio of mobile games. The company develops and publishes a portfolio of mobile games designed to appeal to a cross-section of the users of smartphones and tablet devices.
The company’s portfolio of games include Contract Killer, Cooking Dash, Covet Fashion, Deer Hunter, Design Home, QuizUp, Racing Rivals and Tap Sports Baseball, as well as games based on third-party licensed brands, including Gordon Ramsay DASH, Kendall & Kylie, and Kim Kardashian: Hollywood.
Stifel rates the stock a Buy and has a $6.50 price target. The Wall Street consensus target is $6.20. The shares traded on Friday at $5.50.
J.C. Penney
This old-school retail stock continues to fight for relevance in a tough environment. J.C. Penney Co. Inc. (NYSE: JCP) is a promotional department store that markets to value-oriented, middle-income customers. It offers apparel, footwear, jewelry and home goods at affordable prices and is based in Plano, Texas.
Most stores are located in shopping malls, but the company is expanding its fleet of smaller, freestanding units in regional lifestyle centers or strip malls. Approximately 50% of the company’s merchandise is private label or exclusive brands.
Merrill Lynch rates the stock a Buy and has a huge $5 price target. The consensus price target is $3.28. The stock traded on Friday at $2.75.
Ramaco Resources
This is a smaller cap coal play in which a sizable position could be built. Ramaco Resources Inc. (NASDAQ: METC) is a development-stage company. It is a developer of metallurgical coal in central and southern West Virginia, southwestern Virginia and southwestern Pennsylvania.
The company’s project portfolio includes Elk Creek, Berwind, RAM Mine and Knox Creek. As of December 29, 2016, the Elk Creek property in southern West Virginia consisted of approximately 17,128 acres of controlled mineral. The Berwind coal property sits on the border of West Virginia and Virginia. As of December 29, 2016, the Berwind coal property consisted of approximately 31,200 acres of controlled mineral.
Jefferies rates the stock Buy, and its price target is $10.50. The consensus target is $10.07. The shares traded on Friday at $8.00.
Viking Therapeutics
This small cap biotech could have monster upside potential. Viking Therapeutics Inc. (NASDAQ: VKTX) focuses on the development of therapies for metabolic and endocrine disorders. Its clinical program, VK5211, is an orally available drug candidate, which is in Phase 2 clinical trial for acute rehabilitation following non-elective hip fracture surgery. VK5211 is a non-steroidal selective androgen receptor modulator.
The company’s second program is focused on the development of orally available small molecule thyroid hormone receptor beta agonists. Its two molecules are VK2809 and VK0214. VK2809 is an orally available, tissue and receptor-subtype selective agonist of the thyroid beta receptor that is entering Phase 2 development for the treatment of patients with hypercholesterolemia and fatty liver disease.
Laidlaw has a Buy rating on the shares and a $15 price target. That compares with the consensus target of $9.13. The stock traded at $9.65 on Friday.
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Zynga
This is a very aggressive tech play that could have upside above the current price targets. Zynga Inc. (NASDAQ: ZNGA) is a leading developer of mobile and social games. In the company’s relatively short history, it has developed a broad portfolio of games that includes several games on Facebook and several top-grossing mobile apps. Key franchises include FarmVille, Zynga Poker, Hit It Rich Slots and Words With Friends.
With live events growing the company’s revenues, cost-cutting should drive margin expansion, which is very positive. The company also pops up in takeover chatter, and the low price makes it even more attractive.
The $5.25 Jefferies price target comes with a Buy rating. The consensus target is $4.64. The stock traded Friday at $4.40.
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These are five stocks for aggressive accounts that look to get shares count leverage on companies that have sizable upside potential. While not suited for all investors, these are not penny stocks with absolutely no track record or liquidity, and major Wall Street firms have research coverage.
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