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.
Azul
The largest airline in Brazil emerged from the pandemic as one of the top airlines in Latin America. Azul S.A. (NYSE: AZUL) provides scheduled air transportation services in Brazil. As of December 31, 2022, the company operated approximately 1,000 daily departures to 158 destinations through a network of 300 nonstop routes with an operating fleet of 177 aircraft and a passenger contractual fleet of 194 aircraft.
Azul is also involved in cargo transportation, loyalty programs, travel packages, funding, logistics solutions and aircraft financing activities.
Goldman Sachs recently upgraded the airline and named the stock its top pick in the region. The company was founded in 2008 by the former CEO of JetBlue, David Neeleman.
The $18.30 Goldman Sachs target price on Azul stock is well above the consensus target of $15.90. The shares traded on Friday at $8.80.
Bausch Health Companies
Shares of this well-known health care name have big upside potential, and the company could post $8.5 billion in revenue this year. Bausch Health Companies Inc. (NYSE: BHC) operates as a diversified pharmaceutical company. It develops, manufactures and markets a range of products primarily in gastroenterology, hepatology, neurology, dermatology, international pharmaceuticals and eye health.
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