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7 Stocks That Aggressive Investors Can Buy Now in 2020

7 Stocks That Aggressive Investors Can Buy NowPosted on Monday, May 4th, 2020 by MarketBeat Staff

There’s nothing like a steep market correction to test the risk appetite of even the most seasoned investor. With many investors seeing their 401k’s down 25%, 30% or more, it’s not surprising that many investors are taking money off the table.

And even during the most bullish market conditions, keeping some powder dry is a prudent decision.

But if you have an above-average risk appetite, then sitting on the sidelines is not your cup of tea. If you’re an investor with above-average risk tolerance, there are some opportunities to profit in this market. But you have to be looking in the right places.

At this time, the small-cap sector offers some interesting choices. Small-cap stocks are companies that have a market cap of less than $2 billion. Many of these stocks fall under the category of penny stocks, but that doesn’t make them bad. In some cases, they’re just obscure companies.

But right now, many investors will take growth wherever they can get it. And that’s why you should take a careful look at the 7 stocks we have in this presentation. The cost of entry is not high and the potential reward is worth your interest.

#1 - Endphase Energy (NASDAQ:ENPH)

Enphase Energy logo

Enphase Energy (ENPH) Year-to-date gain = 60%

The business model for Enphase Energy (NASDAQ:ENPH) is deceptively simple, but extremely necessary. The renewable energy company provides inverters that convert direct current (DC) to alternating current (AC). For the uninitiated, when power is generated using wind or solar it is converted to direct current. However, the U.S. electrical grid (as well as all homes and businesses) use alternating current.

Enphase inverters convert the direct current to alternating current so it can be used. As simple as it may sound, ENPH doesn’t have a lot of competitors in the field. This gives it a significant moat in both national and international markets. ENPH stock is up over 60% for the year. But analysts believe the stock has more room to grow. The consensus price target is over $52 a share, which gives the stock a gain of over 12% from current levels.

Recent analyst reviews suggest the stock may be in danger of falling demand in the energy sector. However, as the economy re-opens, it’s likely that demand will increase. The company reports earnings on May 5, so investors should pay close attention to the company’s guidance.

Enphase Energy is a recent addition to the select S&P Mid Cap 400 Index. The company has a market cap of over $6 billion.

About Enphase Energy
Enphase Energy, Inc., together with its subsidiaries, designs, develops, and sells home energy solutions for the solar photovoltaic industry in the United States and internationally. The company offers semiconductor-based microinverter that converts energy at the individual solar module level and combines with its proprietary networking and software technologies to provide energy monitoring and control services. It sells its solutions primarily to distributors, as well as directly to large installers, original equipment manufacturers, strategic partners, and homeowners. Enphase Energy, Inc. was founded in 2006 and is headquartered in Fremont, California.

Current Price: $58.19
Consensus Rating: Buy
Ratings Breakdown: 9 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $61.09 (5.0% Upside)



#2 - Drdgold (NYSE:DRD)

DRDGOLD logo

Drdgold (DRD) Year-to-date gain = 73%

During times of monetary easing, many investors make a flight to gold. Sure enough, ever since last summer when the Federal Reserve began lowering interest rates, the price of gold has been rising. And with the recent Fed interventions spawned by the Covid-19 pandemic, gold is rising to highs not seen since 2011. But there are many ways to invest in gold other than taking possession of the physical bullion.

Some investors will invest in mining stocks. But Drdgold (NYSE:DRD) may be a better, but less well-known option. Drdgold is a reclamation company, not a traditional miner. The company acquires or leases old gold mines and performs surface gold mining. The company does everything related to the mining and extraction of gold and more.  

Because of this, it can dial-up or scale back operations to move with the price of gold. And when gold prices are rising, as they are now, so does the company’s margins and profits.   

Drdgold has a market cap of $800 million and despite being up nearly 40% in 2020, it still pays investors a regular dividend. The current dividend yield is around 2.5%, and the company has increased its dividend in each of the last 7 years.

About DRDGOLD
DRDGOLD Limited, a gold mining company, engages in surface gold tailings retreatment business in South Africa. The company's activities include exploration, extraction, processing, and smelting. It recovers gold from surface tailings in the central and western Witwatersrand basin in Gauteng province. The company was founded in 1895 and is headquartered in Rosebank, South Africa.

Current Price: $9.77
Consensus Rating: Buy
Ratings Breakdown: 1 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $9.25 (-5.3% Upside)



#3 - Envela (NYSEAMERICAN:ELA)

Envela logo

Envela (ELA) Year-to-date gain: 170%

Another stock that is a good play on gold stocks is Envela (NYSEAMERICAN:ELA). The company buys items such as jewelry, watches, diamonds and precious metals. It’s a pretty simple premise, as gold rises in value, customers look to sell their gold holdings. And if you take a look at the ELA stock chart, you can see that when gold prices spiked in the early 2000s and again around 2010, ELA stock reached its record high both times. Of course past history is not a guarantee of future performance, but there’s no reason to believe that the country will be tightening monetary policy anytime soon. And that bodes well for investors in ELA stock.

With many of these small-cap companies, market cap can be very fluid because they can increase quickly as the share price increases. That’s the case with Envela that has seen its stock has grown 170% this year and its market cap has also grown to $99 million.

About Envela
Envela Corporation, together with its subsidiaries, primarily buys and sells jewelry and bullion products to individual consumers, dealers, and institutions in the United States. It offers jewelry products, including bridal jewelry, fashion jewelry, custom-made jewelry, diamonds, and other gemstones, as well as watches and jewelry components. The company also buys and sells various forms of gold, silver, platinum, and palladium precious metals products, including United States and other government coins, private mint medallions, art bars, and trade unit bars; and numismatic items, such as rare coins, currency, medals, tokens, and other collectibles. In addition, it buys and sells scrap gold; and repairs jewelry and watches. As of December 31, 2018, the company marketed its products and services through five retail locations under various banners, including Charleston Gold & Diamond Exchange, and Dallas Gold & Silver Exchange, as well as through CGDEinc.com, DGSE.com, and USBullionExchange.com e-commerce sites. The company was formerly known as DGSE Companies, Inc. and changed its name to Envela Corporation in December 2019. Envela Corporation was founded in 1965 and is based in Dallas, Texas.

Current Price: $3.59
Consensus Rating: N/A
Ratings Breakdown: 0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: N/A



#4 - Orion Energy Systems (NASDAQ:OESX)

Orion Energy Systems logo

Orion Energy Systems (OESX) Year-to-date gain = 43%

There’s a big story that is moving the energy sector that has nothing to do with the price of oil. Orion Energy Systems (NASDAQ:OESX) provides energy-efficient lighting solutions for commercial applications. This extends into the emerging trend towards wireless control systems using smart technology.

Before many office spaces and warehouses got shut down due to sheltering in place orders, business owners were looking for ways to reduce energy costs. And one way to do that is by paying attention to the lighting you use. And as businesses slowly begin to re-open, I expect this trend to continue.

In the meantime, however, the show must go on. And that means that there are warehouses and distribution centers are being built to service the e-commerce needs of our nation. And that is another catalyst for OESX stock which is up 43% for the year yet still has an attractive price-earnings ratio of just fewer than 12.

Orion has posted three consecutive quarters of profitable earnings. Since the beginning of the year, Orion has been reviewed by four analysts and has a consensus 12-month price target of $7. That would be a nearly 50% gain from the stock’s current level.

About Orion Energy Systems
Orion Energy Systems, Inc. researches, designs, develops, manufactures, implements, markets, and sells energy management systems for the commercial office and retail, area lighting, and industrial markets in North America. The company operates in three segments: Orion U.S. Markets Division, Orion Engineered Systems Division, and Orion Distribution Services Division. It offers LED Troffer Door Retrofit for use in office or retail grid ceilings; and LED interior high bay lighting products, including Apollo class of LED interior fixtures designed for new construction and retrofit projects, as well as ISON class of LED interior fixtures. The company also provides an array of smart building control systems, which provide lighting control options and data intelligence capabilities for building managers under the InteLite brand or procured from third parties; and various other LED, HIF, and induction fixtures for lighting and energy management needs comprising fixtures for agribusinesses, parking lots, roadways, retail, mezzanine, outdoor applications, and private label resale. In addition, it offers lighting-related energy management services, such as site assessment, site field verification, utility incentive and government subsidy management, engineering design, project management, and installation; and sells and distributes replacement lamps and fixture components into the after-market. The company serves customers directly; and through independent sales agencies and distributors, and energy service companies and electrical contractors. Orion Energy Systems, Inc. was founded in 1996 and is headquartered in Manitowoc, Wisconsin.

Current Price: $4.48
Consensus Rating: Buy
Ratings Breakdown: 4 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $7.00 (56.3% Upside)



#5 - NantHealth (NASDAQ:NH)

NantHealth logo

NantHealth (NH) Year-to-Date gain: 180%

NantHealth (NASDAQ:NH) is an example of a company that was probably a little ahead of its time. The company has been on the vanguard of delivering personalized healthcare treatments. It uses technology to bring together patients, doctors, and insurers to develop optimized outcomes.

But a technologically forward company like NR is not resting on its laurels. NR announced earlier this year, that it was launching AI-based software that will be used to better diagnose lung cancer. But more importantly, it is selling its connected care business (which is getting crowded) so that it can focus on this new software diagnostic tool.

Many investors may think that all health care stocks are good investments at this point. That’s simply not the case. But for the long term, NantHealth appears to be occupying a space that will be growing as AI makes its way into the health care system.  

The company has a market cap of just over $318 million and the stock has gained a whopping 180% in 2020. If you’re interest in investing in NH be advised that the company has not posted positive earnings since going public in 2016. The company has not been analyzed in 2020 but is currently well above its consensus price target of $1.

About NantHealth
NantHealth, Inc., together with its subsidiaries, operates as a healthcare technology company in the United States and internationally. The company engages in converging science and technology through an integrated clinical platform to provide health information at the point of care. It develops NantHealth solutions, including molecular profiling solutions, software, and hardware systems infrastructure, which integrates patient data management, bioinformatics, and molecular medicine to enable value-based care and evidence-based clinical practice. The company's products include GPS Cancer, a molecular profile that integrates whole genome sequencing of tumor and normal germline samples, as well as whole transcriptome sequencing; GPS Cancer Report, a GPS cancer solution; GPS in rare diseases and chronic illnesses; Liquid GPS, a blood-based molecular test; and Eviti, a decision support solution. It also provides Web-based and mobile software solutions, such as Device Connectivity Suite, a device connectivity and near real-time biometric software and hardware suite; DeviceConX, a device data normalization software; HBox, an Internet of Medical Things and Internet of Things hardware hub; and VitalsConX, a tablet-optimized application. In addition, NantHealth, Inc. offers NaviNet Open, a payer-provider collaboration platform comprising plan central, eligibility and benefit, claims status inquiry, claims management, referral, authorization, document exchange, and AllPayer services; and cloud-based computing, storage, and transport infrastructure-as-a-service solutions. The company was formerly known as Nant Health, LLC and changed its name to NantHealth, Inc. in June 2016. The company was founded in 2010 and is headquartered in Culver City, California. NantHealth, Inc. is as a subsidiary of NantWorks, LLC.

Current Price: $2.64
Consensus Rating: Buy
Ratings Breakdown: 1 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $1.00 (-62.1% Upside)



#6 - PolyOne (NYSE:POL)

PolyOne logo

PolyOne (POLY)

Year-to-date loss: - 30.6%

PolyOne (NYSE:POL) is a global provider of specialized polymer materials and services. The company is on the forefront of developing sustainable plastics solutions. It had 2018 revenue of $2.9 billion. PolyOne is posting a loss in 2020. However, analysts remain bullish on the stock. And despite POLY stock falling to a low of just over $10 in mid-March, the stock has rallied. In the last six weeks, it’s up over 130%.

The company recently posted higher earnings per share than analysts had expected. For growth investors, revenue is not as important as earnings. And PolyOne has among the fastest earnings growth.

And investors can not only benefit from solid earnings growth, but PolyOne also pays out a stable dividend. The company has a dividend yield of 3.44%. The dividend has increased its dividend in each of the last 8 years. The average increase has been 11.78% every year. And PolyOne’s payout ratio is 47.93% which means its dividend looks very sustainable.

About PolyOne
PolyOne Corporation provides specialized polymer materials, services, and solutions in the United States, Canada, Mexico, Europe, South America, and Asia. It operates in four segments: Color, Additives and Inks; Specialty Engineered Materials; Performance Products and Solutions; and Distribution. The Color, Additives and Inks segment offers specialized color and additive concentrates in solid and liquid form for thermoplastics; dispersions for thermosets; and specialty inks, plastisols, and vinyl slush molding solutions. The Specialty Engineered Materials segment provides specialty polymer formulations, services, and solutions for designers, assemblers, and processors of thermoplastic materials; and long glass and carbon fiber technology, and thermoset and thermoplastic composites. The Performance Products and Solutions segment offers products and services for vinyl molding and extrusion processors to manufacturers of durable plastic parts and consumer-oriented products. It also provides materials testing, component analysis, custom formulation development, colorant and additive, part design assistance, structural analysis, process simulation, mold design, and flow analysis and extruder screw design services, as well as contract manufacturing and outsourced polymer manufacturing services to resin producers and polymer marketers. The Distribution segment distributes approximately 4,000 grades of engineering and commodity grade resins to custom injection molders and extruders. The company sells its products through direct sales personnel, distributors, and commissioned sales agents. PolyOne Corporation was founded in 1927 and is headquartered in Avon Lake, Ohio.

Current Price: $24.78
Consensus Rating: Buy
Ratings Breakdown: 5 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $32.00 (29.1% Upside)



#7 - GW Pharmaceuticals (NASDAQ:GWPH)

GW Pharmaceuticals PLC- logo

GW Pharmaceuticals (GWPH) Year-to-date gain: Flat

Biopharmaceutical stocks can be among the most volatile stocks because it’s all about the pipeline. Such is the risk-reward proposition for GW Pharmaceuticals (NASDAQ:GWPH). The company is a pioneer in developing drugs from marijuana.

No matter where you stand on the medical marijuana debate, there’s no doubt that there is growing interest in the therapeutic effects of marijuana. This is only growing in the shadow of the opioid crisis that is still enveloping our country.

GW Pharmaceuticals has a product, Epidiolex, which has become a legitimate lead product candidate that is specifically targeted to treat Dravet Syndrome and Lennox-Gastaut Syndrome. Another drug, Sativex, is used to treat multiple sclerosis spasticity, is already available in the market.

GWPH stock is trading flat for the year, but has increased nearly 25% since mid-March. The stock has been reviewed by 14 analysts in the past few months and it has a 12-month price target of over $190. This suggests that the stock may have up to a 90% upside from its current price.

But keep in mind, another reason why investors should consider some of the more volatile stocks is that they are frequently good takeover targets. And if GW Pharmaceuticals can get these products to market, the company will likely become a tempting takeover target. And that could send the stock even higher than analysts predict.

About GW Pharmaceuticals PLC-
GW Pharmaceuticals plc, a biopharmaceutical company, focuses on discovering, developing, and commercializing cannabinoid prescription medicines using botanical extracts derived from the Cannabis plant. Its lead product is Epidiolex, an oral medicine for the treatment of refractory childhood epilepsies, as well as for the treatment of Dravet syndrome, Lennox-Gastaut syndrome, tuberous sclerosis complex, and infantile spasms. The company also develops and markets Sativex, an oromucosal spray for the treatment of spasticity due to multiple sclerosis. In addition, it develops various product candidates for the treatment of glioblastoma, neonatal hypoxic-ischemic encephalopathy, and schizophrenia. Further, the company has license and development agreements with Almirall S.A.; Bayer HealthCare AG; Ipsen Biopharm Ltd; and Neopharm Group. It primarily operates in Europe, the United Kingdom, the United States, Canada, and Asia. GW Pharmaceuticals plc was founded in 1998 and is based in Cambridge, the United Kingdom.

Current Price: $122.75
Consensus Rating: Buy
Ratings Breakdown: 11 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $187.00 (52.3% Upside)

 

In this market, a traditional buy-and-hold investing strategy is being put to the test. As the record bull market of the last decade has come to a screeching halt, some of the top blue-chip stocks are finding it hard to deliver capital growth.

The good news is that more risk-tolerant investors have options for finding growth. Small-cap stocks can be a good area to find hidden gems. Many of these stocks are not household names, and many operate as niche players within their sectors.

An aggressive investment strategy is marked by high turnover. You’re not buying these stocks for the long haul, but you don’t want to settle for business as usual. And with these stocks, you don’t have to.

Keep in mind; these are fast-growing stocks. Most of these stocks don’t offer dividends. However, if you are limiting your exposure to these aggressive stocks, you can more than make up for the dividend with capital appreciation.

20 Stocks to Sell Now

Most people know that brokerage rankings are overstated because of pressure from publicly-traded companies. No investor relations person wants to see "hold" and "sell" ratings issued for their stock. In reality, a "buy" rating really means "hold." "Hold" ratings really mean "sell" and "sell" ratings mean get out while you still can.

If Wall Street's top analysts are consistently giving "hold" and "sell" ratings to a stock, you know there's a serious problem. We've compiled a list of the companies that Wall Street's top equities research analysts are consistently giving "hold" and "sell" ratings too. If you own one of these stocks, consider getting out while there's still time.

This slide show lists the 20 companies that have the lowest average analyst recommendations from Wall Street's equities research analysts over the last 12 months.

View the "20 Stocks to Sell Now" Here.






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