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 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 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.
Navitas Semiconductor
This company’s breakthrough chip technology makes it a potential takeover candidate. Navitas Semiconductor Corp. (NASDAQ: NVTS) develops ultra-efficient gallium nitride (GaN) semiconductors, transforming the performance of power electronics. The company primarily sells its GaN integrated circuits (ICs) into mobile markets but is developing technology to supply high-growth areas such as automotive, solar and data centers.
The company was founded in 2014. GaN power ICs integrate GaN power with drive, control, sensing and protection to enable faster charging, higher power density and greater energy savings for mobile, consumer, enterprise, eMobility and new energy markets. Over 150 Navitas patents are issued or pending. Over 50 million units have been shipped with zero reported GaN field failures, and Navitas introduced the industry’s first and only 20-year warranty. Navitas is the world’s first semiconductor company to be CarbonNeutral-company certified.
Rosenblatt Securities has a $10 target price on Navitas Semiconductor stock, which is above the $8 consensus target. The shares traded on Friday at $3.40.
Rocket Companies
This fallen angel has been hammered, and savvy investors can scoop up the very cheap shares. Rocket Companies Inc. (NYSE: RKT) engages in the tech-driven real estate, mortgage, and e-commerce businesses in the United States and Canada.
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