This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

10 Top Stocks Under $5 for 2012 Picked by Analysts

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

9. Sprint Nextel (S)

Company Profile: Sprint Nextel is the third-largest wireless provider in the U.S. by subscriber count, behind rivals AT&T (T) and Verizon (VZ).

Share Price: $2.69 (Dec. 2)

2011 Stock Performance: -36%

Analyst Consensus: Sprint is the one carryover from 2011's list of analysts' most loved stocks under $5, even though the stock plunged 36% this year on a number of developments. The company committed $15 billion to bring the Apple iPhone to its network. However, investors were flummoxed by Sprint's cloudy 4G expansion plan and were downright angry with a funding gap of as much as $7 billion.

Still, nine analysts believe in Sprint's prospects, although that's only about a quarter of all analysts following the stock. The average price target of about $3.39 implies upside of 25%, so there still could be room for this stock to run over the next year.

Bullish Case: Wells Fargo senior analyst Jennifer Fritzsche, who has an "outperform" rating on Sprint, says it is important for the company to successfully get the funding deal done for Clearwire (CLWR) by raising debt.

"There is much liquidity in the marketplace now that has been on the sidelines," Fritzsche wrote in a Nov. 4 research note. "While we realize this market is as much as driven up by macro headlines as anything and much can change on a daily basis, we believe this bodes well for Sprint's ability to get the deal done."

8. Gastar Exploration (GST)

Company Profile: Gastar is an independent energy company, engaged in the exploration, development and production of natural gas and oil in the U.S. and Australia.

Share Price: $3.45 (Dec. 2)

2011 Stock Performance: -20%

Analyst Consensus: Natural gas stocks have been a speculative play for traders because of the potential for M&A activity. With the stock down 20% this year, Gastar wasn't one of the lucky buyout targets. Analysts, though, say there is plenty of opportunity for a big winner, with 9 out of 12 analysts following the stock rating it a "buy." An average price target of $5.19 would mean a whopping 50% rally in the stock if that came to fruition over the next 12 months.

Bullish Case: KeyBanc Capital Markets analyst David Deckelbaum reiterated a "buy" rating and $5.75 price target on Gastar in November, saying that the company's third-quarter production miss obscured the potential for 2012.

"The pipeline issues in the Marcellus are temporary and do not affect our longer term thesis on the stock, as we see significant production growth in the Marcellus and Bossier shale plays providing significant upside in 2012 and beyond," Deckelbaum wrote in a Nov. 6 research report.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player
2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
LCC $0.00 0.00%
PWER $0.00 0.00%
MHR $0.15 0.00%
HERO $2.13 1.40%
HT $19.30 -3.70%


Chart of I:DJI
DOW 17,769.84 -60.92 -0.34%
S&P 500 2,065.48 -10.33 -0.50%
NASDAQ 4,776.4730 -28.8180 -0.60%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs