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.
[in-text-ad]
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. Nvidia, which has exploded higher on AI semiconductor chips, traded under $10 for years. 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 rest of 2023 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.

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.

A year ago, insurance giant State Farm bought a 15% stake in the company. Analysts noted at the time that the partnership leveraged ADT’s smart home devices, including flood detection, smoke alarm and home intrusion devices, and related monitoring services to allow State Farm to offer lower homeowner insurance premiums to reflect risk mitigation efforts.

Citigroup’s price target for ADT stock is $9, which compares with a $9.38 consensus target. The shares last traded on Friday at $6.10.

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.
[in-text-ad]
An encouraging sign for investors is that the company restarted its quarterly dividend late last year and it initiated a share buyback program earlier this year. In addition, Nokia 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%.

Goldman Sach has a $5.90 target price, and Nokia stock’s consensus target is $5.99. The shares closed on Friday at $3.93.

Novavax

This small biotech stock has taken investors on a roller-coaster ride over the past three years but could be ready for a big move higher. Novavax Inc. (NASDAQ: NVAX) promotes improved health by discovering, developing and commercializing vaccines to protect against serious infectious diseases. It offers a vaccine platform that combines a recombinant protein approach, nanoparticle technology and its patented Matrix-M adjuvant to enhance the immune response.

Novavax focuses on urgent health challenges, which is evaluating vaccines for COVID-19 and influenza, as well as COVID-19 and influenza combined. The company is commercializing a COVID-19 vaccine, NVX-CoV2373 under the brand names of Nuvaxovid, Covovax and Novavax COVID-19 Vaccine, Adjuvanted for adult and adolescent populations as a primary series and for both homologous and heterologous booster indications. It is also focusing on product candidates for respiratory syncytial virus and malaria.

Note that a stunning 46% of the float is sold short.

H.C. Wainwright has set a $35 target price, well above the consensus target of $20.60. On Friday, Novavax stock last traded at $7.71 a share.

Sirius XM

Increasing numbers of people are using satellite radio, and this stock 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.
[in-text-ad]
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.

Sirius XM stock has a $7 price target at Benchmark, though that may be headed higher soon. The consensus target is $4.93, and shares closed on Friday at $3.99.

Tencent Music Entertainment

As China continues to open up, this is a very solid idea for aggressive growth investors. Tencent Music Entertainment Group Inc. (NYSE: TME) operates online music entertainment platforms to provide music streaming, online karaoke and live streaming services in the People’s Republic of China.

It offers QQ Music, Kugou Music and Kuwo Music, which enable users to discover music in personalized ways. Its WeSing enables users to sing from its library of karaoke songs and share their performances in audio or video formats with friends. Kugou Live and Kuwo Live provide an interactive online stage for performers and users to showcase their talent and engage with a diverse audience base, and Lazy Audio is an audio platform.

In addition, it sells music-related merchandise, including Kugou headsets, smart speakers, WeSing karaoke microphones and Hi-Fi systems, and it offers online music event ticketing services, as well as services to smart device and automobile makers to build and operate music services on devices and vehicles.

The BofA Securities target price is $8.80, higher than the $8.53 consensus target. Tencent Music Entertainment stock closed at $6.32 on Friday.

Get Our Free Investment Newsletter

I have read, and agree to the Terms of Use

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.

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