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.
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We screened our 24/7 Wall St. research database looking for smaller cap companies that could very well offer patient investors some huge returns the rest of 2021 and beyond. Many of the biggest companies in the world, including Apple and Amazon, traded in the single digits at one time.
While all four of the following stocks are rated Buy, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
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) and Namibia (Otjikoto) and Mali (Fekola).
Last year, the company 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.
Investors receive a solid 4.04% dividend. The BofA Securities team has a $5.45 price target on the shares. The posted consensus target is much lower at $3.50. The shares closed Friday at $3.96 down almost 7%.
Lloyds Banking
Those who know European financials are very familiar with this top company. Lloyds Banking Group PLC (NYSE: LYG) provides a range of banking and financial services in the United Kingdom and internationally.
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The company operates through three segments:
- The Retail segment offers a range of financial service products, including current accounts, savings accounts, mortgages, motor finance, unsecured loans, leasing solutions, credit cards and other financial services to personal and small business customers.
- The Commercial Banking segment provides lending, transactional banking, working capital management, risk management and debt capital market services to small and medium-sized entities, corporates and financial institutions.
- The Insurance and Wealth segment offers life, home and car insurance products, as well as pension, investment and wealth management products and services. It also provides digital and mobile banking, telephone services and advisory services for savings, investments and planning for retirement.
The company offers its products and services under the Lloyds Bank, Halifax, Bank of Scotland, Scottish Widows, MBNA, Schroders Personal Wealth, Black Horse, Lex Autolease, Birmingham Midshires, LDC, IWeb and Agricultural Mortgage brands.
The Morningstar price target of $3.40 is well above the consensus target of $2.23. The last trade for Friday came in at $2.46.
Nokia
This telecommunications company once ruled the cell phone arena, until the advent of the smartphone in 2007, but it has re-emerged as a top meme stock. 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.
The company posted some good news when it recently indicated it expects to revise its fiscal 2021 guidance upward, citing continued strength in its business supported by “good cost control” and strength in several of the company’s end markets. JPMorgan was impressed and said this:
We believe this is just the start of the upgrade cycle, driven by upside to mobile network gross margin. The market is currently overstating the extent of sales losses from currency, China exposure and its lost contracts with Verizon. We believe investors should position for the upgrade cycle that is likely to continue to play out over the next 12 months, with 30% upside implied.
JPMorgan upgraded the stock to Overweight last week and has a $7.80 price target. The consensus target is $6.03. The shares were last seen Friday at $5.68.
Sirius XM
More and more people are using satellite radio, and this is a solid idea for aggressive investors. Sirius XM Holdings Inc. (NASDAQ: SIRI) is the world’s largest radio company measured by revenue, and it has approximately 33.1 million subscribers. The company creates and offers commercial-free music; premier sports talk and live events; comedy; news; exclusive talk and entertainment; and a wide-range of Latin music, sports and talk programming. Sirius XM is available in vehicles from every major car company and on smartphones and other connected devices as well as online.
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Sirius XM is also a leading provider of connected vehicles services, giving customers access to a suite of safety, security and convenience services, including automatic crash notification, stolen vehicle recovery assistance, enhanced roadside assistance and turn-by-turn navigation.
The $7.50 BofA Securities price target may be going higher soon. The consensus price target is $7.16. Friday’s final trade hit the tape at $6.39.
Southwestern Energy
This stock has traded sideways all year long and could be ready to run. Southwestern Energy Co. (NYSE: SWN) is one of the largest U.S. natural gas producers. Its primary producing locations are in the Fayetteville region and the Marcellus Shale. The company has acquired acreage in southwest Appalachia, is exceeding expectations and provides a runway to growth.
The company’s estimated proved natural gas, oil and natural gas liquid reserves comprise 12,721 billion cubic feet of natural gas equivalent (Bcfe) and 929 Bcfe of proved undeveloped reserves. It also engages in marketing of natural gas, oil and natural gas liquids. Southwestern Energy serves energy companies, utilities and industrial purchasers of natural gas.
Mizuho started coverage this past week and has a $7 price target. That compares with a consensus target of $6.08. The last trade to hit the tape Friday was reported at $4.81, a drop of over 4%.
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, they are not penny stocks with absolutely no track record or liquidity, and major Wall Street firms have research coverage.
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