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 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.
Equitrans Midstream
This energy stock offers a solid dividend and good exposure to the sector, and it may be poised to be a big winner. Equitrans Midstream Corp. (NYSE: ETRN) owns, operates, acquires and develops natural gas gathering, transmission and storage, and water services assets in the Appalachian Basin.
It operates through these three segments:
- Gathering System: This segment includes 1,130 miles of high-pressure gathering lines with compression of approximately 485,000 horsepower and multiple interconnect points, as well as approximately 910 miles of Federal Energy Regulatory Commission (FERC) low-pressure gathering lines.
- Transmission and Storage System: This segment comprises 950 miles of FERC-regulated interstate pipeline that connects to seven interstate pipelines and local distribution companies.
- Water Service System: This segment includes two independent systems, comprising approximately 200 miles of pipeline that deliver fresh water from the Monongahela River, the Ohio River, local reservoirs and various regional waterways.
Shareholders receive a 6.22% dividend. Royal Bank of Canada has a $13 price target on Equitrans Midstream stock, while the consensus target is $10.80. The shares traded on Friday at $9.70.
Sponsored: Tips for Investing
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