Investing
Raymond James Has 5 Stocks Under $10 That Are Analysts Top Picks
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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. Often the biggest public companies, especially the technology giants, trade in the low-to-mid hundreds, 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.
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Every week, we screen our 24/7 Wall St. research database looking for stocks with Buy equivalent ratings at major firms and priced under the $10 level (last week’s picks included Chesapeake Energy and other energy stocks), and this week was no exception. We found five new stocks on the Raymond James Analysts Favorite Picks stock list that could provide investors with some solid upside potential. While more suited for aggressive accounts, they could prove exciting additions to portfolios looking for solid alpha potential.
Shares of this off-the-radar company hold big upside potential for aggressive accounts. BGC Partners Inc. (NASDAQ: BGCP) operates as a global financial intermediary to the financial and real estate markets. Its Financial Services segment provides brokerage of a broad range of products, including fixed income securities, interest rate swaps, foreign exchange, equities, equity derivatives, credit derivatives, commodities, futures and structured products.
The Real Estate Services segment offers commercial real estate tenants, owners, investors and developers a wide range of services, including leasing and corporate advisory, investment sales and financial services, consulting, project management, and property and facilities management.
Shareholders receive a massive 10.21% dividend. The Raymond James price target for the stock is $9, which compares to the consensus price target on Wall Street of $8.50. The shares traded on Friday’s close at $5.48.
This company is in the gaming business and could be an acquisition target. Everi Holdings Inc. (NYSE: EVRI) engages in the provision of technology solutions to the casino gaming industry. Its Games segment provides solutions directly to gaming establishments to offer patrons gaming entertainment-related experiences such as leased gaming equipment; sales and maintenance related services of gaming equipment; gaming systems; and ancillary products and services.
The FinTech segment includes gaming establishments to offer patrons cash access services and products including access to cash at gaming facilities via ATM cash withdrawals, credit card cash access transactions and point of sale debit card cash access transactions; check-related services; fully integrated kiosks and maintenance services; compliance, audit and data software; casino credit data; and reporting services and other ancillary offerings.
Raymond James sports a solid $14 price target, while the posted consensus target price is $13.67. The shares closed trading at $8.87 on Friday.
This oil industry services stock holds solid value as the sector is out of favor now. Helix Energy Solutions Group Inc. (NYSE: HLX) is an international offshore energy company that focuses on subsea construction, maintenance and salvage services to the offshore natural gas and oil industry.
The firm also provides specialty services to the offshore energy industry, with a focus on well intervention and robotics operations. The company operates through three segments: Well Intervention, Robotics and Production Facilities.
The $11 Raymond James price target for the shares is above the $10.29 consensus estimate. On Friday’s close, shares were changing hands at $8.30 apiece.
This telecommunications company once ruled the cell phone arena, until the advent of the smartphone in 2007. Nokia Corp. (NYSE: NOK) owns two main businesses: 1) Nokia Networks, a network infrastructure equipment supplier to global wireless and wireline operators, and 2) Technologies, its patent/IPR licensing activities.
Recently, Nokia, NTT Docomo and Omron agreed to conduct joint field trials using 5G at their plants and other production sites. As part of the trial, Nokia will provide the enabling 5G technology and Omron the factory automation equipment, while NTT Docomo will run the 5G trial.
The trial follows the increasing demand for wireless communications at manufacturing sites driven by the need for stable connectivity between Internet of Things devices. As background noise from machines and the movement of people have the potential to interfere with wireless communications, the trial will aim to verify the reliability and stability of 5G technology deployed by conducting radio wave measurements and transmission experiments.
Raymond James has set a $7.50 price target. The consensus price objective is $6.62, and the stock ended Friday’s session at $5.02 per share.
This remains a top oil services pick across Wall Street. Patterson-UTI Energy Inc. (NASDAQ: PTEN) is the second-largest land driller in North America and a large pressure pumping provider. Its operations are particularly focused in the Marcellus and in Texas.
Patterson-UTI and its subsidiaries operate land-based drilling rigs in oil and natural gas producing regions of the continental United States and western Canada. Universal Pressure Pumping and Universal Well Services provide pressure pumping services primarily in Texas and the Appalachian region.
It remains the fifth-largest pressure pumper, with a 1.5 million hydraulic horsepower frac fleet with exposure to ancillary rental equipment business through Great Plains Oilfield Rental. The 2018 acquisition of MS Energy (directional drilling) complements its contract drilling business and provides attractive growth opportunities for investors.
The company offers investors a 2.03% dividend. The Raymond James price target is a whopping $17. The posted consensus price objective is much lower at $11.71, and the shares were last trading at $8.26.
These are five stocks for aggressive accounts that look to get share count leverage on stocks 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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