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. 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.
Holley
Do-it-yourself car enthusiasts know this old-school company well. Holley Inc. (NYSE: HLLY) designs, manufactures and markets automotive aftermarket products for car and truck enthusiasts in the United States, Canada, Europe and China.
The company’s products include carburetors, fuel pumps, fuel injection systems, nitrous oxide injection systems, superchargers, exhaust headers, mufflers, distributors, ignition components, engine tuners, automotive performance plumbing products and exhaust products, as well as shifters, converters, transmission kits, transmissions, tuners and automotive software. It also offers wheels, chassis and suspension products, helmets, head and neck restraints, seat belts, firesuits, and electronic control and monitoring systems.
The company sells its products under the Holley, Holley EFI, APR, MSD, Flowmaster, Powerteq, Accel and Simpson brands to retailers directly, as well as through distributors and online channels.
Last fall, the stock was added to the small-cap Russell 2000, which is a huge advantage as index funds that replicate the index in its entirety have to buy the shares.
Truist Financial’s target price of $6 is higher than the $5.75 consensus target. Shares traded on Friday at $3.10.
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