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2 “Strong Buy” Penny Stocks That Could See Outrageous Gains
Well, it’s official. Joe Biden is now president, and he will be backed – at least in the short term – by Democratic majorities in both houses of Congress. Wall Street takes the measure of the new administration and sees, among its first steps, a fiscal stimulus that could lower consumer spending, boost corporate profits and provide general economic support in the first half of 2021. The situation for Goldman Sachs is investment strategist David Kostin, who is optimistic about the near-term outlook for fiscal stimulus. In light of this, Kostin sets Goldman’s outlook for this year at 6.4% GDP growth; he sees continued high growth next year and sets the forecast for 2022 at 4%. These outlook figures are up from the 5.9% and 3.7% previously published. To that end, Kostin predicts that the S&P 500 will hit 4,300 by the end of the year, which would represent a gain of 12% from current levels. “Elections have consequences. Democratic control of Washington, DC after January 20 will result in higher budget spending, faster GDP growth, more inflation, and higher interest rates than we previously assumed, ”Kostin noted. . With markets on the rise, investors are looking for stocks that are ready for gains. Penny’s stocks, stocks valued at less than $ 5 a share, are a natural place to look for potential winners. Their low price means that even a little extra payoff will translate into big percentages. However, before jumping straight into a penny investment, Wall Street pros advise looking at the big picture and considering other factors beyond just price. For some names that fall into this category, you really get what you pay for, offering little prospect of long-term growth thanks to weak fundamentals, recent headwinds, or even a large number of shares outstanding. 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 market prices below $ 5 and consensus ratings of “Strong Buy” from the analyst community. Not to mention a substantial upside potential on the table. AzurRx BioPharma (AZRX) We will start with a company specializing in gastrointestinal diseases, AzurRx. This company focuses on the creation of recombinant, non-systemic and targeted therapies for gastrointestinal conditions. AzurRx has a pipeline of three drug candidates, at several levels of the development process. The key pipeline candidate, MS1819, is under investigation as a treatment for pancreatic exocrine insufficiency in patients also with cystic fibrosis. MS1819 is a recombinant lipase, derived from a strain of yeast. The drug is designed to target fat molecules in the digestive tract, allowing patients to absorb broken down fats for their nutritional value. The drug is currently in phase 2 trials, expected to be completed in the first half of this year. As of January 21, the first two patients in the phase 2b OPTION 2 extension study have received treatment and the Data Monitoring Committee (DMC) “continues to support the program”. In another important development, AzurRx announced earlier this month that it was entering a partnership with First Wave Bio to study the oral and rectal formulation of Niclosamide to treat colitis associated with immune checkpoint inhibitors (HERE- AC) and gastrointestinal infections linked to COVID-19. The estimated market for niclosamide as a treatment for gastrointestinal problems related to COVID exceeds $ 450 million. Based on multiple potentially important clinical catalysts as well as its stock price of $ 0.98, several members of the street believe now is the time to pull the trigger. Jonathan Aschoff of Roth Capital is bullish on AzurRx, basing his longer-term forecast on the likely success of MS1819. “We base our assessment for AZRX on expected future sales in the United States from MS1819 for the treatment of EPI due to CF and CP, using an initial annual price of approximately $ 18,000, a price that corresponds to PERT currently available. We expect MS1819 to be marketed in the United States in 2023, generating sales of $ 272 million in 2030. The commercial success of MS1819 in the United States, or the commercial success of the beta-lactamase program at a early stage, would add benefit to our assessment, ”noted Aschoff. The analyst is also anxiously awaiting the first clinical results of niclosamide in GI infection COVID-19 and potentially in ICI-AC, noting: “Niclosamide was approved by the FDA in 1982 to treat intestinal tapeworm infections. and is on the World Health Organization’s Essential Medicines List. Considering the millions of patients who have taken the drug, the safety profile has been widely established, thereby reducing the risk of development. Given all of the above, Aschoff rates AZRX as a buy, and its price target of $ 7 suggests a staggering 608% hike for the coming year (to look at Aschoff’s track record, click here) overall, analyst consensus on AZRX shares is a strong buy; the stock has 4 recent reviews, including 3 purchases and a single take. Additionally, the average price target of $ 4 brings the upside potential to 304%. (See AZRX stock review on TipRanks) ProQR (PRQR) ProQR is a biotechnology company specializing in the treatment of congenital progressive blindness. Specifically, she is working on drugs to reverse a group of genetic eye disorders called inherited retinal diseases. These diseases do not currently benefit from any effective treatment. The company has a research pipeline of five drug candidates at different stages of the research process. The two most distant are the QR-110 (Sepofarsen) and the QR-421. Of these two, QR-110 is currently in phase 2/3 studies. This candidate is an RNA therapy designed to correct the m most common CEP290 gene mutation causing Leber 10 congenital amaurosis (LCA10). This is a serious genetic disease of the retina that affects up to 3 in 100,000 children. QR-421 is another RNA therapy, which focuses on mutations of exon 13 in the USH2A gene. These mutations cause blindness due to retinitis pigmentosa and / or Usher syndrome. QR-421 is in phase 1/2 studies, with the goal of restoring lost vision or preventing the loss in the first place. Covering the action of JMP, analyst Jonathan Wolleben sees Sepofarsen as a key part of his bullish thesis. “We continue to be satisfied with the chances of success of sepofarsen in Illuminate for several reasons: 1) Phase 1/2 confirmed target registration dose and dosing interval (6 months); 2) the patients had clinically significant and lasting improvements in BCVA after 12 months – pivotal primary endpoint; 3) supporting secondary efficiency measures (FST, mobility); 4) similar responses observed in the second treated eyes; 5) long-term safety confirms the positive risk / benefit; and 6) The Illuminate patient population was enriched based on phase 1/2 results (baseline vision of> / = hand movement). We attribute Sepofarsen a 60% selling point and the LCA10 model as an approximately $ 300 million opportunity at PRQR at peak penetration, “Wolleben said. In line with his optimistic outlook, Wolleben is setting a price target of $ 20 on the stock, implying a 384% year on year (To see Wolleben history, click here) Overall, PRQR gets a unanimous Strong Buy rating from analyst consensus, based on 3 positive stock valuations. The stocks are currently trading for $ 4.13, and their average price target of $ 20.67 is slightly more bullish than Wolleben’s, suggesting a 400% rise for the next 12 months (see PRQR stock market analysis on TipRanks) For great ideas for penny stocks traded at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that brings together all the information about TipRanks stocks. Disclaimer: the The opinions expressed in this article are solely those of the 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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