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 not only to 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 well-known companies that could very well offer patient investors some huge returns for the rest of 2022 and beyond. Skeptics of low-priced shares should remember that at one point both Amazon and Apple traded in the single digits. One stock we featured over the years, Zynga, recently was purchased by Take-Two Interactive. Cogent Biosciences, which we featured in March, has tripled.

While all five of these 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.

ADT

This top security company is a well-known protector of homes and businesses. ADT Inc. (NYSE: ADT) is the largest residential and second-largest commercial security monitoring company in North America. The company serves over 7 million customers, installing over a million systems per year. Roughly 94% of revenue is generated in the United States, with the remainder from Canada.

Google announced last year that it was buying a 6.6% stake in the home security firm for $450 million in a deal that will allow it to provide service to customers of its Nest home security devices. ADT said that the companies will work to combine Nest products like cameras, thermostats, doorbells and alarm systems with ADT’s installation, service and professional monitoring network.

Insurance giant State Farm announced earlier this week it would be acquiring a 15% stake in the company by investing $1.2 billion. The chief operating officer of the company, Paul Smith, will join ADT’s board of directors.

Citigroup has a $10.25 price target on ADT stock. The consensus target is $10.89, and the shares closed on Friday at $8.39 apiece.

This stock is trading well under $10, which gives aggressive investors a chance to really load up on the shares. Annaly Capital Management Inc. (NYSE: NLY), a diversified capital manager, engages in mortgage finance and corporate middle market lending.
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The company invests in agency mortgage-backed securities, mortgage-servicing rights, agency commercial mortgage-backed securities, non-agency residential mortgage assets, residential mortgage loans, credit risk transfer securities, corporate debts and other commercial real estate investments. It has elected to be taxed as a real estate investment trust (REIT).

The company posted massive second-quarter earnings and revenue results that beat analyst expectations. Trading at a tiny 2.6 times earnings, it offers aggressive investors a huge opportunity.

Annaly Capital Management stock investors receive a 13.44% dividend. The Barclays target price is $7, and the consensus target is $6.54. The shares closed on Friday at $6.65.

Navitas Semiconductor

This company has breakthrough chip technology that makes it a potential takeover candidate. Navitas Semiconductor Corp. (NASDAQ: NVTS) develops ultra-efficient gallium nitride (GaN) semiconductors, transforming the performance of power electronics. The company primarily sells its GaN integrated circuits (ICs) into mobile markets but is developing technology to supply high-growth areas such as automotive, solar and data centers.

The company was founded in 2014. GaN power ICs integrate GaN power with drive, control, sensing and protection to enable faster charging, higher power density and greater energy savings for mobile, consumer, enterprise, eMobility and new energy markets. Over 150 Navitas patents are issued or pending. Over 50 million units have been shipped with zero reported GaN field failures, and Navitas introduced the industry’s first and only 20-year warranty. Navitas is the world’s first semiconductor company to be CarbonNeutral-company certified.

Baird recently resumed coverage and has a $12 target price target, which is above the $10 consensus target for Navitas Semiconductor stock. The shares closed at $5.76 on Friday.

Transocean

This is an inexpensive way to buy a deepwater oil drilling stock. Transocean Ltd. (NYSE: RIG) provides offshore contract drilling services for oil and gas wells worldwide. It contracts its drilling rigs, related equipment and work crews to drill oil and gas wells.

As of February 22, 2021, the company owned or had partial ownership interests in and operated a fleet of 37 mobile offshore drilling units, including 27 ultra-deepwater and 10 harsh environment floaters. It serves integrated oil companies, government-owned or government-controlled oil companies, and other independent oil companies.
Over the past year, Transocean has seen some serious insider buying. In that time, the largest single purchase by an insider was when an independent director bought $21 million worth of shares at a price of $4.20 apiece. If the director was bullish at that level, then the current trading range offers a good entry point.

BTIG Research started coverage this past week and has an $8 target price. Transocean stock has traded as high as $5.56 a share in the past year but changed hands at $3.75 on Friday’s close.
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Two Harbors Investment

This off-the-radar small-cap company could provide the biggest total return capability to investors now. Two Harbors Investment Corp. (NYSE: TWO) operates as a REIT that focuses on investing in, financing and managing residential mortgage-backed securities (RMBS), non-agency securities, mortgage servicing rights and other financial assets in the United States.

The company’s target assets include agency RMBS collateralized by fixed-rate mortgage loans, adjustable-rate mortgage loans and hybrid adjustable-rate mortgages and other assets, such as financial and mortgage-related assets, including non-agency securities and non-hedging transactions.

Last month Two Harbors announced that Matrix Financial Services, a wholly owned subsidiary, has entered into a definitive stock purchase agreement to acquire RoundPoint Mortgage Servicing from Freedom Mortgage.

Matrix has agreed to engage RoundPoint as a subservicer prior to the closing date and expects to begin transferring loans to RoundPoint in the fourth quarter of 2022. Upon closing, all servicing licenses and capabilities will remain with RoundPoint, and RoundPoint will become a wholly owned subsidiary of Matrix. The parties expect to close the transaction in 2023, subject to the satisfaction of customary closing conditions and the receipt of required regulatory and government-sponsored entity approvals.

Two Harbors Investment comes with a 13.99% distribution. The $5.50 JMP Securities target price could head higher soon. The consensus target is $5.21, and a share price of $4.95 was seen on Friday’s close.

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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 history or liquidity, and major Wall Street firms have research coverage.

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