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 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. Investors that did that in 2008 and 2009 absolutely killed it over the next few years.

While all five of the 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.

Aphria

This is one of the few marijuana stocks that isn’t losing money. Aphria Inc. (NASDAQ: APHA) engages in the production and supply of medical cannabis. It operates through the following segments.

The Cannabis Operations segment produces, distributes and sells both medical and adult-use cannabis. The Distribution Operations segment’s operations are carried out through its wholly owned subsidiaries: ABP, FL Group and CC Pharma. The Business Under Development segment includes operations in which the firm has not received final licensing or has not commenced commercial sales from operations.

As of late last year, it had $500 million Canadian on the balance sheet and an additional $100 million Canadian raised from a strategic investor. Additionally, the company has reported positive adjusted earnings before interest, taxes, depreciation, and amortization the past three quarters, while most of the large cannabis companies continue to report notable losses.

Alliance Global Partners has a Buy rating on the shares and an impressive $9 price target. No consensus target was available. Aphria stock slipped below $5 on Friday.

Cadence Bancorp

The banks have been mauled, though many of the second-quarter earnings results have been solid. Cadence Bancorp. Inc. (NYSE: CADE) is a bank holding company that engages in the provision of corporations, middle-market companies, small businesses and consumers with banking and financial solutions.

Its Banking segment offers deposit products and lending services through its commercial banking, retail banking and private banking business lines. The Financial Services segment includes trust, retail brokerage and investment services. The Corporate segment consists of parent-only activities, including debt and capital raising and intercompany eliminations.

The Raymond James Buy rating comes with a $12 price target. That compares to a $9.83 consensus target, and shares have traded mostly above $8 in recent days.

This marijuana company had a major international company take a large position late in 2018. Cronus Group Inc. (NASDAQ: CRON) is a global cannabis company founded in 2012 and based in Ontario, Canada, with a presence across five continents. Its principal activities are the production and sale of cannabis and cannabis-derived products in federally legal jurisdictions.

Back in December of 2018 Altria agreed to buy a 45% stake in Cronos for about $1.8 billion, a sign of the new world in which the tobacco company must compete. This strategic partnership provided Cronos with additional financial resources, product development and commercialization capabilities, and deep regulatory expertise to better position it to compete, scale and lead the rapidly growing global cannabis industry. The $1.8 billion investment in Cronos, and 45% stake, also gives Altria the option to increase to full ownership if it so chooses down the road.

A gigantic $13.52 price target accompanies the Raymond James Outperform rating. No consensus target was available. The shares have mostly traded between $6 and $7 for the past month.

Nokia

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.

Last year, 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.

Note that this technology stock routinely appears in the under $10 category and analysts who have been bullish on Nokia long term have been wrong for years, with their upside targets rarely coming close to fruition.

Northland Securities has a Buy rating and a $6 price target. The posted consensus target is $4.66, and Nokia stock has traded above $4 since the beginning of June.

Sorrento Therapeutics

This is among the many companies in the race for a COVID-19 vaccine. Sorrento Therapeutics Inc. (NASDAQ: SRNE) engages in the research, development and manufacture of biopharmaceutical products. It focuses on therapies to treat specific stages in the evolution of cancer, from elimination to equilibrium and escape, which include biosimilars, immuno-oncology antibodies, cellular therapy, cell internalizing antibodies and antibody drug conjugates.

Last week the company received clearance from the FDA to initiate a Phase 2 trial of abivertinib in patients with COVID-19 who have moderate to severe pulmonary symptoms. Back in May, Sorrento announced that it had entered into a binding term sheet for an exclusive license to ACEA Therapeutics’ abivertinib across all indications for all territories outside of China. The parties have since entered into an exclusive license agreement.

Since abivertinib targets multiple cytokines simultaneously, Sorrento anticipates that the effects of abivertinib will be incremental to the initial published findings by others for IL-6 inhibitors targeted for COVID-19 trials, and the clinical benefits will be more pronounced given the broader range of anti-cytokine activity.

H.C. Wainwright has a stunning $24 price target and a Buy rating. The consensus price objective is $23. The shares slipped below $8 late in the week.

Get Our Free Investment Newsletter

I have read, and agree to the Terms of Use

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 downturn.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.