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 new year 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.
Carnival
The travel sector roared back after the COVID-19 pandemic waned, and this stock is a leader in the industry. Carnival Corp. (NYSE: CCL) operates as a leisure travel company. Its ships visit approximately 700 ports under the Carnival Cruise Line, Princess Cruises, Holland America Line, P&O Cruises (Australia), Seabourn, Costa Cruises, AIDA Cruises, P&O Cruises (UK) and Cunard brand names.
The company also provides port destinations and other services, as well as owns and operates hotels, lodges, glass-domed railcars and motor coaches. It sells its cruises primarily through travel agents, tour operators, vacation planners and websites. The company operates in the United States, Canada, Continental Europe, the United Kingdom, Australia, New Zealand, Asia and elsewhere. It operates 87 ships with 223,000 lower berths.
Stifel has a $17 target price on Carnival stock, but the consensus target is much higher at $30.37. The stock traded on Friday for $9.00 per share.
Lucid
This electric vehicle (EV) company could be in the sights of a larger car maker. Lucid Group Inc. (NASDAQ: LCID) a technology and automotive company, develops EV technologies. The company designs, engineers and builds vehicles, EV powertrains and battery systems. As of December 31, 2021, it operated 20 retail studios in the United States.
Late last month, the company announced that it had completed its previously announced “at-the-market” equity offering program. Through the program, Lucid sold more than 56.2 million shares of its common stock for gross proceeds of approximately $600 million. The successful capital raise of approximately $1.515 billion, included approximately $915 million that Lucid expects to raise through the private placement of approximately 85.7 million shares to an affiliate of the Public Investment Fund, Ayar Third Investment Company.
The BofA Securities target price is $21, and Lucid stock has a consensus target of $15.20. The shares traded on Friday at $6.25.
Nikola
This is another casualty of the EV wars and another attractive take-over candidate. Nikola Corp. (NASDAQ: NKLA) operates as a technology innovator and integrator that works to develop energy and transportation solutions.
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