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, Apple and Netflix traded in the single digits. One stock we featured over the years, Zynga, was purchased by Take-Two Interactive. Cogent Biosciences, which we featured in 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 2022 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.
Carvana
This stock was a high-flier that has come back to earth and offers big upside potential. Carvana Co. (NASDAQ: CVNA) operates an e-commerce platform for buying and selling used cars in the United States. The company’s platform allows customers to research and identify a vehicle; inspect it using the company’s 360-degree vehicle imaging technology; obtain financing and warranty coverage; purchase the vehicle; and schedule delivery or pick-up from their desktop or mobile devices.
After being hammered over the past few months, shareholders got some good news recently after a Nov. 22 regulatory filing showed that Carvana Chief Product Officer Daniel Gill bought 133,000 shares on Nov. 21 for an average price of $7.62, or $1.01 million. That brings his total holdings to 263,415 shares, worth well over $2 million.
Needham’s $20 target price on Carvana stock compares with an $18.00 consensus target and a share price of $7.75 seen on Friday.
Fisker
This is an electric vehicle trade for investors looking to be in the space with the ability to get some strong share size. Fisker Inc. (NYSE: FSR) develops, manufactures, markets, leases and sells electric vehicles.
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