While most of Wall Street focuses on large 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 low-to-mid hundreds, all the way up to over $1,000 per share. At those steep prices, it’s pretty hard to get any decent share count leverage.
Many investors, especially more aggressive traders, look at lower-priced stocks as a way to not only 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.
SunTrust has continued a solid rise in the brokerage and investment bank arena, and the firm’s merger with BB&T will make them the sixth largest bank in the United States. We screened the firm’s outstanding research database and found five energy stocks trading under the $10 level that could provide investors with some solid upside potential. While much better suited for aggressive accounts, they could prove exciting additions to portfolios looking for solid alpha potential and energy exposure.
This is among the small-cap stocks that the SunTrust team currently feels very comfortable about. Callon Petroleum Co. (NYSE: CPE) is an independent oil and natural gas company that is engaged in the exploration, development, acquisition and production of properties, with a focus on the acquisition and development of unconventional oil and natural gas reserves in the Permian Basin.
The company’s drilling activity focuses on the horizontal development of various prospective intervals in the Midland Basin, including multiple levels of the Wolfcamp formation and the Lower Spraberry shale. In addition, Callon made a huge $570 million acquisition of 29,000 net acres last May that more than doubled its Delaware Basin footprint.
The SunTrust price target for the shares is $11, and the consensus target is even higher at $12.13. The stock was trading on Friday at $7.75.
This has been one of the favorites around Wall Street among the smaller and more nimble companies. Gulfport Energy Corp. (NASDAQ: GPOR) is an independent oil and natural gas exploration and production company with its principal producing properties located in the Utica Shale of eastern Ohio and along the Louisiana Gulf Coast.
This week, the company reported earnings that fell short of consensus estimates, but revenues rose a solid 4.5% year over year and were better than Wall Street analysts had anticipated. The company also announced that budgeted 2019 total capital expenditures of $565 million to $600 million will be funded entirely within cash flow.
SunTrust has a whopping $13 price target, which compares to the posted consensus target of $11.63. The shares traded at $7.95 on Friday.