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.
We screened our 24/7 Wall St. research database looking for smaller cap technology companies that could very well offer patient investors some huge returns the rest of 2021 and beyond. Such investors that did that in 2008 and 2009 absolutely killed it over the next few years.
It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
A10 Networks
Though they had been on a solid upside roll since early October in 2020, the shares have backed up and are offering an excellent entry point. A10 Networks Inc. (NASDAQ: ATEN) offers the Thunder application delivery controller, which provides advanced server load balancing. The Lightning application delivery controller is a cloud-native software-as-a-service platform to boost the delivery and security of applications and micro services. Plus, its Thunder carrier-grade networking product offers standards-compliant address and protocol translation services for service provider networks.
A10 Networks also provides Thunder threat protection system for the protection of networks and server resources against massive distributed denial of service attacks. Its Thunder secure sockets layer (SSL) insight solution decrypts SSL-encrypted traffic and forwards it to a third-party security device for deep packet inspection. And the Thunder convergent firewall addresses various critical security capabilities in one package by consolidating various security and networking functions in a single appliance.
In addition, the company offers intelligent management and automation tools including a harmony controller that provides intelligent management, automation and analytics for secure application delivery in a multi-cloud environment, and its aGalaxy TPS is a multi-device network management solution.
Sidoti has a Buy rating and a $15 price objective, and the Wall Street consensus target is $14.75. Shares have traded mostly between $9 and $10 for the past two months.
Everspin Technologies
This stock has backed up in price as well, and it looks like a very solid idea for aggressive investors at this trading level. Everspin Technologies Inc. (NASDAQ: MRAM) manufactures and sells magnetoresistive random access memory (MRAM) products in the United States, Hong Kong, Japan, China, Germany and elsewhere.
The company offers Toggle MRAM, spin-transfer torque MRAM, and tunnel magnetoresistance sensor products, as well as foundry services for embedded MRAM. The company provides its products for applications, including data center, industrial, medical, automotive, aerospace and transportation markets. It serves original equipment manufacturers and original design manufacturers through a direct sales channel and a network of representatives and distributors.
Needham’s Buy rating comes with a $10 price target. That compares with a $9 consensus. The stock has traded mostly between $5 and $6 this month.
Limelight Networks
This stock looks to have bottomed recently, and it could be ready for a sizable move higher. Limelight Networks Inc. (NASDAQ: LLNW) offers services and solutions for businesses to deliver their digital content across the internet, mobile, social and other digital initiatives. It operates edge services platform that provides content delivery services, video content management services, performance services for website and web application acceleration and security, professional services, cloud storage and edge computing services, as well as sells equipment.
Limelight Networks also offers professional services and other infrastructure services, such as transit and rack space services. It serves media companies operating in the television, music, radio, newspaper, magazine, movie, gaming, software and social media industries, as well as enterprises, technology companies and government entities conducting business online.
Lake Street Capital has set a Buy rating and has a $6 price objective. The posted consensus target is $4.11 a share. Limelight Networks stock has near $3.50 for at least a month.
Sequans Communications
This off-the-radar play has among the biggest upside potential in the Roth Capital technology universe. Sequans Communications S.A. (NYSE: SQNS) develops and provides 5G and 4G chips and modules for massive, broadband and critical Internet of Things (IoT) markets.
For 5G/4G massive IoT applications, the company provides a comprehensive product portfolio based on its flagship Monarch LTE-M/NB-IoT and Calliope Cat 1 chip platforms featuring low power consumption, a set of integrated functionalities and deployment capability.
For 5G/4G broadband and critical IoT applications, Sequans Communications offers a product portfolio based on its Cassiopeia Cat 4/Cat 6 4G and high-end Taurus 5G chip platforms optimized for residential, enterprise and industrial applications.
A huge $13 price target accompanies B. Riley’s Buy rating, and the consensus target is $12.60. The stock has traded below $6 recently.
Zix
This company has gone through numerous transformations over the past 20 years and is poised for potential strong growth. Zix Corp. (NASDAQ: ZIXI) provides email encryption, data loss prevention, threat protection and archiving for the secure exchange of email in the United States.
Zix’s Advanced Email Threat Protection is a cloud-based service that defends organizations from zero-day malware, ransomware, phishing, CEO fraud, W-2 phishing attacks, spam and viruses in email. Information Archive is a cloud-based email retention solution that enables user retrieval, compliance and e-discovery, while Email Encryption Service allows a user to send encrypted email to any email user anywhere and on any internet-enabled device. The company offers cloud-based cybersecurity solutions, e-signatures and secure file sharing solutions. It serves the health care, financial services, insurance and government sectors.
Stephens has a Buy rating and an $11 price target. That is less than the $12 consensus figure. The stock has traded mostly between $7 and $8 in recent weeks.
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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