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.
CommScope
This company received a well-justified upgrade just this past week. CommScope Holding Co. Inc. (NASDAQ: COMM) provides infrastructure solutions for communications and entertainment networks. It operates through the following four segments.
The Broadband Networks segment provides converged cable access platforms, passive optical networking products, video systems, access technologies, fiber and coaxial cables, fiber and copper connectivity products, and hardened closures to the telco and cable provider broadband market.
The Outdoor Wireless Networks segment provides base station antennas, radio frequency filters, tower connectivity, microwave antennas, metro cell products, cabinets, steel towers, accessories, Spectrum Access System and Comsearch products to the macro and metro cell markets.
The Venue and Campus Networks segment offers Wi-Fi and switching, distributed antenna systems, licensed and unlicensed small cells, enterprise fiber, and copper infrastructures for campuses, venues, data centers and buildings.
The Home Networks segment provides devices and related software and management solutions that offer residential connectivity and services to subscribers, such as digital subscriber lines, cable modems and telephony and data gateways, as well as set top boxes and software that support cable, satellite and Internet protocol television content delivery, which include digital video recorders, high definition set top boxes and hybrid set top devices. It offers its products and services through specialized resellers and distributors, satellite video distributors and system integrators, as well as directly to customers in North America, Europe, Latin America, the Middle East and elsewhere.
BofA Securities just upgraded CommScope stock and has a $15 target price. The consensus target is $10.38, and shares traded on Friday at $8.90.
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