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 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 2023 and beyond. All five of this week’s stocks are owned by Cathie Wood’s Ark Investments, which in and of itself is a huge endorsement.
However, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Adaptive Biotechnologies
Cathie Wood has bought almost 10 million shares of this stock for her Ark Genomic Revolution fund. Adaptive Biotechnologies Corp. (NASDAQ: ADPT) is a commercial-stage company that develops an immune medicine platform for the diagnosis and treatment of various diseases.
The company offers immunoSEQ, a platform and core immunosequencing product that is used to answer translational research questions, as well as to discover new prognostic and diagnostic signals. It also provides clonoSEQ, a clinical diagnostic product for the detection and monitoring of minimal residual disease in patients with multiple myeloma, B cell acute lymphoblastic leukemia and chronic lymphocytic leukemia, as well as available as a CLIA-validated laboratory developed test for patients with other lymphoid cancers.
In addition, Adaptive Biotechnologies offers a pipeline of clinical products and services that are used for the diagnosing, monitoring and treatment of diseases, such as cancer and autoimmune disorders. It offers products and services for life sciences research, clinical diagnostics and drug discovery applications. The company has strategic collaborations with Genentech for the development, manufacture and commercialization of neoantigen directed T cell therapies for the treatment of a range of cancers and with Microsoft to develop diagnostic tests for the early detection of various diseases from a single blood test.
Piper Sandler has a $15 target price on Adaptive Biotechnologies stock. The consensus target is $12.29, and shares traded on Friday at $8.45.
CareDx
This off-the-radar clinical play has solid upside Goldman Sachs objective. CareDx Inc. (NASDAQ: CDNA) discovers, develops and commercializes diagnostic solutions for transplant patients and caregivers. As of earlier this year Cathie Wood owned over 6 million shares of the company.
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