Investors are often loath to explore possibilities with hitherto unrecognized stocks.
However, with the potential of risk, there is also the possibility of great reward.
Although these four relatively small companies may not have the brawn of an Apple, Microsoft or Pfizer, they carry the potential for larger gains.
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1. Centrus Energy (LEU) - Get Report
Shares of this supplier of enriched uranium fuel for commercial nuclear power plants have more than tripled this year. A number of factors, such as Chinese demand for uranium, which is expected to nearly double by 2020, and new contracts with UT-Battelle, were behind the surge.
Centrus Energy is a much smaller company than Cameco or Denison Mines when it comes to uranium-linked stocks.
Analysts offering 12-month price forecasts for Centrus Energy have a median target of $44.60.
The clinical-stage drug developer is focused on explosive growth areas in its quest for state-of-the-art medicine.
The company's lead product candidate, Resunab, is a synthetic oral endocannabinoid-mimetic drug, targeting chronic inflammation and fibrotic processes.
It is important to remember that small-drug-company stock prices are extremely volatile because they fluctuate depending on trial results. So far, positive results from a phase 2 clinical trial have helped investors lock in fantastic returns.
Resunab is the only drug in the company's research pipeline, making it heavily reliant on the success of a single product.
The four analysts offering 12-month price forecasts for Corbus Pharmaceuticals Holdings have a median target of $18, which would represent a 110% gain.
The stock had a 1-for-6 reverse split to appeal to institutional investors.
4. Pershing Gold (PGLC) - Get Report
This emerging Nevada gold producer is rapidly advancing its spread across the Relief Canyon mine. The low-cost, small gold mining company boasts several key capabilities including solid leverage to rising prices, future-ready infrastructure, a low-risk location, an excellent production track record and zero debt.
With a potential production profile of almost 90,000 ounces of gold per year, Pershing Gold carries great potential.
After a 23%-plus dip over the past six months, the stock is set to bounce back.
The one-year median price target is $6.90, which would represent a 114.95% gain.
However, some analysts are concerned about the company's lack of clarity around commercial production time lines.
Plus, the risk of equity dilution linked to the frequent raising of funds is a possibility.
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The author is an independent contributor who at the time of publication owned none of the stocks mentioned.