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.
We screened our 24/7 Wall St. research database looking for smaller cap companies that could very well offer patient investors some huge returns for the rest of 2022 and beyond. 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.
While all five stocks are rated Buy, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Gambling.com
With sports betting exploding, this stock is a solid play that has been cut in half since late last year. Gambling.com Group Ltd. (NASDAQ: GAMB) is a multi-award-winning performance marketing company and a leading provider of digital marketing services active exclusively in the online gambling industry.
The company operates from offices in Ireland, the United States and Malta. Through its proprietary technology platform, it publishes a portfolio of premier branded websites, including Gambling.com and Bookies.com. Founded in 2006, it owns and operates more than 30 websites in six languages across 13 national markets, covering all aspects of the online gambling industry, including iGaming and sports betting.
Stifel has a $13 target price on the shares, while the consensus target is $12. The shares closed trading on Friday at $8.93.
Lulu’s Fashion Lounge
This small-cap retailer blew out earnings expectations this week and is looking ready to run much higher. Lulu’s Fashion Lounge Holdings Inc. (NASDAQ: LVLU) is an online fashion retailer of women’s apparel targeting millennial and Gen Z customers. It specializes in occasion dresses but also offers broader categories, including formal, bridal, lounge, vacation and basics. Lulus sells products on its website in the United States.
Its fiscal fourth-quarter adjusted diluted loss was smaller than analysts polled by Capital IQ had expected and much smaller than the loss in the year-ago period. Revenue was up year over year and also topped consensus estimates. Its projected net revenue for fiscal 2022 is greater than the analysts’ forecast as well, so an outstanding quarter for the company.
BofA Securities just reiterated its Buy rating and has a $14 target price. The consensus target is even higher at $20.43, and the stock was last seen at $7.75 on Friday up over 14%.
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