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 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’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 looking for well-known companies that are likely to survive the current troubles and could very well offer patient investors some huge returns over the next year or so. Patient investors that did that in 2008 and 2009 absolutely killed it over the next few years.
While all five of these stocks are rated Buy at top Wall Street firms, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
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B2Gold
This is a small-cap gold stock for aggressive investors looking for sector exposure. B2Gold Corp. (NYSE: BTG) is a global, growth-oriented mid-tier gold producer whose primary assets include gold mines located in Nicaragua (La Libertad and El Limon), the Philippines (Masbate), Namibia (Otjikoto) and Mali (Fekola).
The company recently announced positive drill results from the Mamba zone, which is located within the Anaconda area approximately 20 kilometers from the Fekola Mine, as well as positive infill drill results from the Fekola mineral resource area and step out results north of the Fekola resource.
The BofA Securities price target for the shares is $6.40, and the Wall Street consensus target is just $3.50. B2Gold stock has traded just under $6 in recent days.
Barclays
Shares of this top broker-dealer offer some solid upside for investors. Barclays PLC (NYSE: BCS | BCS Price Prediction) provides various financial products and services in the United Kingdom, other European countries, the Americas, Africa, the Middle East and Asia.
The company operates through Barclays UK and Barclays International divisions. Its financial services include retail banking, credit cards, wholesale banking, investment banking, wealth management and investment management services.
Barclays also engages in securities dealing activities and issues credit cards. The company was formerly known as Barclays Bank Limited and changed its name in January 1985. Barclays was founded in 1690 and is headquartered in London.
BofA Securities has a $6.90 price target, which is the same as the consensus target. Barclays stock, just shy of $6 on last look, is still down around 38% since the beginning of the year.
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Earthstone Energy
SunTrust remains very positive on this small cap energy play. Earthstone Energy Inc. (NYSE: ESTE) is a growth-oriented independent oil and gas exploration and production company engaged in developing and acquiring reserves through an active and diversified program that includes acquiring, drilling and developing undeveloped leases, asset and corporate acquisitions and exploration activities. Its primary assets are located in the Midland Basin of West Texas, the Eagle Ford trend of south Texas and the Williston Basin of North Dakota.
SunTrust analyst Neal Dingmann recently upgraded Earthstone Energy stock to Buy from Hold. The company represents “deep value” and may be a potential “acquisition target,” the analyst told investors in a research note.
The SunTrust price target was lifted to $6 from $3 on the upgrade. The consensus target is $4.19, and Earthstone Energy stock has retreated 27% or so in the past month to near $2.50.
Goodyear
Even during a pandemic, and surely after one, people will need tires. Goodyear Tire & Rubber Co. (NYSE: GT) engages in the development, manufacture, distribution and sale of tires. Its products include lines of rubber tires for automobiles, trucks, buses, aircraft, motorcycles, farm implements, earth-moving and mining equipment, industrial equipment and various other applications.
One of the world’s largest tire companies in the world, Goodyear employs about 63,000 people and manufactures its products in 47 facilities in 21 countries around the world. Its two Innovation Centers in Akron, Ohio, and Colmar-Berg, Luxembourg, strive to develop state-of-the-art products and services that set the technology and performance standard for the industry. It also operates approximately 1,000 retail outlets, which offer products for retail sale and provide repair and other services.
The company recently announced that it will extend the full capabilities of its Commercial Total Solution to carriers of all sizes in Convoy’s Digital Freight Network. This is the first online discount program Goodyear has offered through its commercial e-commerce platform on the company’s website.
Shareholders are still being paid an 8.32% dividend. Nomura’s $11 price objective is well above the $8.25 consensus target. Goodyear Tire & Rubber stock popped more than 4% on Friday to nearly $9.
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Under Armour
This apparel leader has struggled mightily over the past few years and finally may be turning the corner. Under Armour Inc. (NYSE: UAA) bills itself as the originator of performance footwear, apparel and equipment that has revolutionized how athletes across the world dress. Designed to make all athletes better, the brand’s innovative products are sold worldwide to athletes at all levels.
The company reportedly is looking to sell MyFitnessPal, a smartphone app and website that tracks diet and exercise. Under Armour bought the app in 2015 for around $475 million, according to The Information, which cited two people familiar with the matter.
Founded in 2005, MyFitnessPal had 80 million users at the time it was purchased. The app uses gamification elements to motivate users, and in 2015 it introduced a premium subscription tier for its applications.
The analysts at Jefferies have an $11 price objective. The consensus target is $9.27. Under Armour has traded between $9 and $10 for the past few weeks.
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These five companies have all been sent to the single-digit midget penalty box. Some of them may have a difficult road back to prosperity, but given what we have seen in the past, and the massive liquidity being provided by Washington, D.C., the odds are good that each survives this downtown.
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