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.
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.
Each week we screen our 24/7 Wall St. research database looking for stocks rated Buy at major firms and priced under the $10 level. This week we found five new stocks that could provide investors with some solid upside potential.
While more suited for aggressive investors, and with the number of new traders skyrocketing over the past year and making good ideas to trade even harder to find, these could prove exciting additions for traders looking for solid alpha potential. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
9 Meters Biopharma
This low-priced, off-the-radar biotechnology stock is a great way to play the industry. 9 Meters Biopharma Inc. (NASDAQ: NMTR) is a clinical-stage biotechnology company focused on patients with rare disorders and unmet needs.
The company’s pipeline includes drug candidates for short bowel syndrome (SBS) and celiac disease. It is developing NM-002, a long-acting injectable GLP-1 agonist that is in a Phase 2 clinical trial for SBS, as well as Larazotide, a Phase 3-stage therapeutic in development for celiac disease. The company also develops NM-003, a proprietary long-acting GLP-2 agonist, and NM-004, a double-cleaved mesalamine with an immunomodulator for developing rare or orphan indications.
Oppenheimer just started coverage and believes many investors may be overlooking the opportunity for NM-002 to capture meaningful market share in patients not on parenteral support, a market not addressed by Takeda’s Gattex.
The Oppenheimer price target for the shares is a whopping $6. That compares with the Wall Street consensus target of $4.25. The shares were trading just north of $1 after a solid move.
Cenovus Energy
With oil rising above the $50 a barrel level, this could be a solid idea for investors. Cenovus Energy Inc. (NYSE: CVE) develops, produces and markets crude oil, natural gas liquids and natural gas in Canada and the United States. The company operates through the following segments.
The Oil Sands segment develops and produces bitumen in northeast Alberta. Its bitumen assets include Foster Creek, Christina Lake and Narrows Lake, as well as other projects in the early stages of development.
The Deep Basin segment holds assets primarily located in Elmworth-Wapiti, Kaybob-Edson and Clearwater operating areas of British Columbia and Alberta, as well as various interests in natural gas processing facilities. The Refining and Marketing segment transports, sells and refines crude oil into petroleum and chemical products.
Goldman Sachs has an $8 price target, but the consensus target is up at $10.95. Cenovus Energy stock has been trading just below $6 a share.
Century Casinos Management
Those investors looking for exposure to gaming, which is opening back up fast, could have a solid play here. Century Casinos Management Inc. (NASDAQ: CNTY) operates as a casino entertainment company worldwide. It develops and operates gaming establishments, as well as related lodging, restaurant, horse racing and entertainment facilities.
It owns, operates and manages casinos in North America, England and Poland, as well as a racetrack and casino in Canada and a pari-mutuel off-track betting network in southern Alberta, Canada. The company also manages cruise ship-based casinos and provides gaming-related services in Argentina.
Stifel’s $9 price target is less than the $9.50 consensus target. The stock has been trading near $7.
KushCo Holdings
For investors looking for an undiscovered marijuana idea, this may be the ticket. KushCo Holdings Inc. (NASDAQ: KSHB) markets and sells packaging products, vaporizers, solvents, accessories and branding solutions to customers operating in the regulated medical and adult recreational cannabis and hemp-derived cannabidiol (CBD) industries in the United States, Canada and internationally.
Its principal products include bottles, jars, bags, tubes, containers, vape cartridges, vape batteries and accessories, labels and processing supplies, solvents, natural products, stainless steel tanks and custom branded anti-counterfeit and authentication labels.
The company sells products to the business-to-business market, which includes brand owners, farmers, growers, processors, producers, distributors and licensed retailers in states with legal medical or adult recreational use cannabis programs and legal CBD programs through its direct sales force and e-commerce website.
The $2.50 Alliance Global price target is above the consensus target of $2.13. Recent trading has kept the share price right around $1.50.
Viveve Medical
This company’s products are very much in demand from women. Viveve Medical Inc. (NASDAQ: VIVE) designs, develops, manufactures and markets medical devices for the noninvasive treatment of vaginal introital laxity, sexual function, vaginal rejuvenation and stress urinary incontinence.
The Viveve System includes a radio frequency generator, reusable hand piece and treatment tip, as well as cryogen canister and other consumable components. The company markets its products through sales employees and distributors in the United States, Canada, the Asia Pacific, Europe, the Middle East and Latin America.
The noninvasive, endovaginal Viveve system has been cleared and is marketed (by distribution partners) in more than 50 countries for a variety of noninvasive female health indications. The system also gained FDA clearance in late 2016, but only with a general surgical label. As of the end of third quarter 2020, the company had an installed base of 479 systems in the United States and 386 internationally.
Alliance Global has set a giant $10.75 target price. That compares with the much higher consensus target of $22. The stock has traded near $3.50 recently.
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, these are not penny stocks with absolutely no track record or liquidity, and major Wall Street firms have research coverage.
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