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.
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.
We screened our 24/7 Wall St. research database looking for smaller cap gold-mining and royalty companies trading under $10 that could offer an inexpensive way to buy some portfolio insurance and a hedge in these very volatile and inflation-infused times. Five stocks hit our screens, and all are rated Buy at major Wall Street firms. 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 week, B2Gold reported adjusted earnings per share for the first quarter of 2022 that exceeded the consensus forecast, though the bottom line was down 33% year over year. Revenues of $366 million also exceeded expectations. A 5% increase in the average realized gold prices paved the way but was partly offset by a 4% decline in gold ounces sold.
B2Gold stock investors receive a 4.17% dividend. BofA Securities has a price target of $5.85, and the consensus target is $5.87. The shares traded on Friday at $3.85.
Eldorado Gold
This stock was crushed recently and is offering an excellent entry point. Eldorado Gold Corp. (NYSE: EGO) engages in the exploration, discovery, acquisition, financing, development, production, sale and reclamation of mineral products, primarily in Turkey, Canada, Greece, Brazil and Romania. The company primarily produces gold, as well as silver, lead and zinc.
The company holds a 100% interest in the Kisladag and Efemcukuru gold mines located in western Turkey, 100% interest in Lamaque gold mines located in Canada and 80.5% interest in Certej development projects located in Romania.
CIBC has an Outperform rating and an $18 price target. The consensus target is posted at $13.94. Eldorado Gold stock traded at $8.00 on Friday.
Kinross Gold
Investors who are more aggressive may want to consider this smaller cap mining company. Kinross Gold Corp. (NYSE: KGC) engages in the acquisition, exploration and development of gold properties principally in Canada, the United States, the Russian Federation, Brazil, Chile, Ghana and Mauritania.
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