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These 2-cent stocks could rise more than 300%, analysts say
Risk and reward often go hand in hand, making the stock market both lucrative and dangerous. Some of the best examples of this axiom are penny stocks, those stocks priced at $ 5 or less. With that low price comes the potential for extreme gains, as even a smaller and smaller price increase will translate into a high payout percentage. JPMorgan’s Head of Small and Mid Cap Equity Strategy, Eduardo Lecubarri , sees both the opportunities and the dangers in today’s market environment – and the great potential of small-cap stocks that have room for maneuver. “The first quarter could be difficult following the strong gains since November and the fact that valuations are at all-time highs. However, the outlook for the year is encouraging with much stronger fundamental tailwinds. Such a positive backdrop will likely cause investors to pursue the few stocks that still offer a strong upside rally as they appear to have started doing YTD. It is for this reason that we encourage investors to build their portfolios now and to see things through in the event of a phase of consolidation that could occur in the first quarter, ”Lecubarri wrote. With the risk in mind, we used TipRanks’ database to find compelling penny stocks with great price tags. The platform directed us to two tickers with “Strong Buy” consensus ratings from the analyst community. Not to mention a substantial upside potential on the table. There is talk of returns of at least 300% over the next 12 months, analysts say. AcelRx Pharmaceuticals (ACRX) opioids have grabbed the headlines in recent years, and for all the wrong reasons. These powerful pain relievers are also dangerous addictive – a factor that led to the opioid epidemic in the United States. AcelRx is a pharmaceutical company dedicated to creating safer treatments for acute pain, developing synthetic opioid drugs for sublingual (under the tongue) dosing. The company’s main product, Sufentanil, has been approved by the FDA under the name of Dsuvia in 2018, and by the EU as Dzuveo in the same year. A second Sufentanil sublingual system, under the name Zalviso, has also been approved for use by the EU, and is in trial phase 3 in the U.S. In its latest earnings report, the company said 1 , $ 4 million at the top line, driven by $ 1.3 million in product sales. Revenue grew 433% sequentially, and total revenue increased 133% year-over-year. Against this background, several members of the Street believe the price of the ACRX stock at $ 1.40 looks like a bargain. Cantor analyst Brandon Folkes is bullish. Prospects for Dsuvia as an alternative to current opioid treatments, and he believes that potential will boost the company’s stock. “With the launch of Dsuvia, we believe investors can now focus on launching metrics and peaking product sales. As ACRX launches a real alternative to IV opioids, we expect investors to begin to appreciate the value of the product. We believe that Dsuvia offers a breakthrough in providing adequate pain treatment by eliminating the need for an invasive and time-consuming IV set-up in the emergency room, as well as outpatient or post-surgery. Although hospital launches take time, we predict that adoption of Dsuvia will increase revenues beyond current Street estimates, which in turn could push the stock higher from current levels ”, Follked said. buy, and its price target of $ 9 leaves room for an impressive upside potential of 552% over the next 12 months. (To look at Folkes’ track record, click here) Turning to the rest of the street now, 3 buys and no takes or sells have been posted in the past three months. Therefore, ACRX has a Strong Buy consensus rating. Based on the average price target of $ 7, stocks could climb 407% next year. (See ACRX stock market analysis on TipRanks) NuCana (NCNA) NuCana is a biopharmaceutical company specializing in novel cancer treatments. The company’s goal is to provide effective treatments for biliary, breast, colorectal, ovarian and pancreatic cancers – while avoiding the complications and side effects of current chemotherapy treatments. NuCana is using a phosphoramidate chemistry technology called ProTide to create a class of drugs that will overcome the limitations of existing nucleotide analogues behind many chemotherapy drugs. NuCana’s ProTides have previously been used in Gilead’s antiviral drug Sovaldi. In May last year, NuCana announced the restart of its Phase III trial of acelarin, the furthest drug candidate in the pipeline. the company, as a treatment for bile duct cancer. The study encompasses more than 800 patients in 6 countries and is currently ongoing. In November, the company published data it described as “ encouraging ” from the Phase Ib study of the same drug.Although acelarin is the flagship drug in development, NuCana has two other prospects underway. of development. NUC-3373 is in a Phase I trial as a treatment for solid tumors and colorectal cancers, and NUC-7738 is a second pathway under investigation for advanced solid tumor applications. Of the three, the Colorectal Study is the most advanced. Written by Truist, 5-star analyst Robyn Karnauskas sees the pipeline as key to NuCana’s investor potential. “We think investors have overlooked the fact that NCNA is a platform company that we believe to be validated, as defined by the production of clinical products. We appreciate the fact that she brought 3 products to the clinic, including a new drug and two improved chemotherapy drugs. Data suggests that the platform works and may produce better chemotherapy drugs […] While investors primarily focus on Acelarin, we believe investors should also focus on NUC-3373, another core of our platform-based thesis whose data is expected in 1H2021, ”noted Karnauskas. , suggesting that the stock has a 384% growth margin ahead of it, with a buy rating. (To view Karnauskas’ track record, click here) Overall, NCNA’s Strong Buy consensus rating is unanimous and based on 4 recent ratings. The shares have an average price target of $ 17.33, which suggests a 270% year-over-year increase from the current price of $ 4.69. (See NCNA Stock Analysis on TipRanks) To find great ideas for trading penny stocks at attractive valuations, visit TipRanks Best Stocks to Buy, a newly launched tool that brings together all the information about TipRanks stocks . only those of featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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