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.
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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.

Skeptics of low-priced shares should remember that at one point Amazon, Apple and Netflix traded in the single digits. One stock we featured over the years, Zynga, was purchased by Take-Two Interactive. Cogent Biosciences, which we featured last March, has tripled since then.

We screened our 24/7 Wall St. research database looking for smaller cap companies that could offer patient investors some huge returns for the new year and beyond. While these five stocks are rated Buy and have a ton of Wall Street coverage, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Barings BDC

This off-the-radar business development company offers solid total return potential. Barings BDC Inc. (NYSE: BBDC) is a publicly traded, externally managed investment company that has elected to be treated as a BDC under the Investment Company Act of 1940. Barings BDC seeks to invest primarily in senior secured loans to private U.S. middle-market companies that operate across a wide range of industries.

The company specializes in mezzanine, leveraged buyouts, management buyouts, ESOPs, change of control transactions, acquisition financings, growth financing and recapitalizations in lower-middle market, mature and later-stage companies. Barings BDC’s investment activities are managed by its investment adviser, Barings, a leading global asset manager based in Charlotte, N.C., with over $335 billion of assets under management firmwide.

Shareholders receive an 11.10% dividend. Oppenheimer’s $12 price target is well above the $10.61 consensus target, and shares closed at $8.89 on Friday.

This telecommunications company once ruled the cell phone arena, until the advent of the smartphone in 2007, but has reemerged 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.
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In a positive sign for investors, earlier this year, the company resumed its quarterly dividend and initiated a share buyback program. The company reported solid second-quarter comparable operating earnings and revenues that came in above market estimates as the telecom equipment maker kept costs in check. Nokia also has forecast annual revenue that was largely ahead of projections and set a long-term target for operating margins of at least 14%, replacing its earlier 2023 target of between 11% and 13%.

Nokia stock investors receive a 1.68% dividend. Raymond James has a $7 target price. The consensus target is $6.84, and shares closed on Friday at $4.79.

Rithm Capital

While well off the proverbial radar screen, this stock may have the largest total return potential of them all. Rithm Capital Corp. (NYSE: RITM) provides capital and services to the real estate and financial services industries in the United States. Its investment portfolio includes mortgage-servicing-related assets, residential securities and loans and consumer loans. It qualifies as a real estate investment trust (REIT) for federal income tax purposes.

The company generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as New Residential Investment and changed its name in August 2022. Back in December, the company authorized a new stock repurchase program of up to $200 million of the common stock and $100 million of the preferred stock.

Investors receive a 10.44% dividend. The B. Ruler target price of $12 compares with an $11.36 consensus target and a final Friday share price of $9.46.

Telefonica

Being the largest telecommunications company in Spain makes this a great idea for conservative growth and income investors. Telefonica S.A. (NYSE: TEF) provides telecommunications services in Europe and Latin America.
Telefonica’s mobile and related services and products include mobile voice, value added, mobile data and internet, wholesale, corporate, roaming, fixed wireless and trunking and paging services. Its fixed telecommunication services include PSTN lines; ISDN accesses; public telephone services; local, domestic and international long-distance and fixed-to-mobile communications; corporate communications; supplementary value-added services; video telephony; intelligent network; and telephony information services. It also leases and sells handset equipment.
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The company also provides internet and broadband multimedia services, including internet service provider, portal and network, retail and wholesale broadband access, narrowband switched access, high-speed Internet through fiber to the home, and voice over internet protocol services. In addition, it offers leased line, virtual private network, fiber optics, web hosting and application, outsourcing and consultancy, desktop, and system integration and professional services.

The dividend yield here is 8.11%. The $5.13 Goldman Sachs tops the $5.01 consensus target. On Friday, shares last traded at $3.76.

United Microelectronics

BofA Securities initiated coverage of this Taiwanese semiconductor company in January with a Buy rating. United Microelectronics Corp. (NYSE: UMC) operates as a semiconductor wafer foundry in Taiwan, Singapore, China, Hong Kong, Japan, the United States, Europe and elsewhere. The company provides circuit design, mask tooling, wafer fabrication and assembly and testing services. It serves fabless design companies and integrated device manufacturers.

Like many chip companies, United Microelectronics has seen some tough sledding, but many think that the supply chain issues that have dogged the industry for the past year are finally starting to ease. Some on Wall Street feel the stock has the potential that industry powerhouse Taiwan Semiconductor has shown.

Shareholders receive a 6.31% dividend. The BofA Securities target price is $8.50, while the consensus is $7.38. Shares closed at $8.40 on Friday.

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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 track record or liquidity.

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