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2 “strong buy” cents shares that can generate oversized earnings
Well, it’s official. Joe Biden is now president and will have the support – at least for the short term – of the Democratic majorities in both houses of Congress. Wall Street is evaluating the new government and sees, among its first moves, an increase in fiscal stimulus that is likely to increase consumer spending, increase corporate profits and provide general economic support in the first half of 2021. Covering the Goldman Sachs situation is investment strategist David Kostin, who is optimistic about the prospects for fiscal stimulus in the short term. 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 2022 forecast at 4%. These perspective numbers are above the 5.9% and 3.7% previously published. To this end, Kostin predicts S&P 500 reaching 4,300 at the end of the year, which would be a 12% gain from current levels. “The elections have consequences. Democratic control of Washington, DC after January 20 will bring greater fiscal spending, faster GDP growth, more inflation and higher interest rates than we had previously assumed, ”noted Kostin. With markets on the rise, investors are looking for stocks that are ready for gains. Penny stocks, stocks with prices below $ 5 per share, are a natural place to look for potential winners. Its low price means that even a small incremental gain will translate into large percentages. However, before jumping straight into a low-cost equity investment, Wall Street professionals advise looking at the bigger picture and considering factors other than just price. For some names that fall into this category, you really get what you pay for, offering little in the way of long-term growth prospects thanks to weak fundamentals, recent headwinds or even large outstanding stock counts. Taking risk into account, we use the TipRanks database to find attractive stocks at bargain prices. The platform led us to two tickers with stock prices below $ 5 and consensus ratings of “strong buy” from the analyst community. Not to mention that the potential for substantial appreciation is at stake. AzurRx BioPharma (AZRX) We will start with a company specialized in gastrointestinal diseases, AzurRx. This company is focused on creating non-systemic recombinant therapies aimed at gastrointestinal diseases. AzurRx has a pipeline of three drug candidates, at various levels in the development process. The main pipeline candidate, MS1819, is being investigated as a treatment for exocrine pancreatic insufficiency in patients who also suffer from cystic fibrosis. MS1819 is a recombinant lipase, derived from a yeast strain. The drug is designed to target fat molecules in the digestive tract, allowing patients to absorb broken fats for nutritional value. The drug is currently undergoing Phase 2 testing, with completion scheduled for the first half of this year. As of January 21, the first two patients in the Phase 2b OPTION 2 extension study received treatment, and the Data Monitoring Committee (DMC) “continues to support the program”. In another important development, AzurRx announced earlier this month that it is entering into a partnership with First Wave Bio to study the oral and rectal formulation of Niclosamide to treat colitis associated with immune control point inhibitor (ICI-AC) and infections gastrointestinal disorders related to COVID-19. The estimated market for nicosamide as a treatment for COVID-related gastrointestinal problems exceeds $ 450 million. Based on a number of potentially significant clinical catalysts, as well as the $ 0.98 share price, several Street members feel that now is the right time to pull the trigger. Jonathan Aschoff of Roth Capital is optimistic about AzurRx, basing his long-term predictions on the likely success of MS1819. “We based our assessment for AZRX on projected future US sales of MS1819 for the treatment of PPE due to CF and CP, using an annual starting price of around $ 18,000, a price that is consistent with the currently available PERTs. We project that MS1819 will be marketed in the USA in 2023, generating sales of $ 272 million in 2030. The commercial success of MS1819 in the United States or the commercial success of the early beta-lactamase program would provide an advantage for our assessment ”, observed Aschoff. The analyst also awaits the initial clinical results of Niclosamide in the GI COVID-19 infection and potentially in the ICI-AC, noting: “Niclosamide was approved by the FDA in 1982 to treat intestinal tapeworm infections and is on the World Organization’s list of essential drugs. Given the millions of patients who took the drug, the safety profile has been largely established, thereby reducing the risk of development. ”Taking all of the above into account, Aschoff evaluates AZRX as a purchase, and its price target of $ 7 suggests an increase of 608% for next year. (To see Aschoff’s track record, click here) In general, analysts’ consensus on AZRX’s shares a strong buy; the stock has 4 recent ratings, including 3 purchases and a single wait. In addition, the $ 4 average price target brings the potential for up to 304%. (See AZRX stock analysis at TipRanks) ProQR (PRQR) ProQR is a biotechnology company with a focus in treatments for congenital progressive blindness. Specifically, the company is working on drugs to reverse a group of genetic vision disorders called inherited retinal diseases. These diseases currently have no effective treatments. The company has a research line of five drug candidates, at various stages of the research process. The two most distant are QR-110 (Sepofarsen) and QR-421. Of these two, QR-110 is currently in Phase 2/3 studies. This candidate is an RNA therapy designed to correct the most common mutation of the CEP290 gene causing Leber congenital amaurosis 10 (LCA10). This is a serious genetic retinal disease that affects up to 3 in 100,000 children. QR-421 is another RNA therapy, focused on the exon 13 mutations in the USH2A gene. These mutations cause blindness due to retinitis pigmentosa and / or Usher syndrome. The QR-421 is in Phase 1/2 studies, with the goal of restoring lost vision or preventing loss in the first place. Covering the JMP’s shares, analyst Jonathan Wolleben points to Sepofarsen as a key component of his bullish thesis. “We continue to feel good about the chance of successful sepofarsen in the Illuminate for several reasons: 1) Phase 1/2 confirmed the target registration dose and dosing interval (6 months); 2) patients had clinically significant and durable BCVA improvements after 12 months – the primary primary outcome; 3) secondary supportive effectiveness measures (FST, mobility); 4) similar responses observed in second treated eyes; 5) long-term security confirms a positive risk / benefit; and 6) Enlighten the patient population was enriched based on the results of Phase 1/2 (baseline visualization of> / = hand movement). We attributed sepofarsen 60% POS and the LCA10 model as a ~ $ 300 million PRQR opportunity at peak penetration, “said Wolleben. In line with his optimistic outlook, Wolleben places a $ 20 price target on inventory, implying 384% in an upside year, along with an Outperform rating (ie Buy). (To view Wolleben’s track record, click here) In all, PRQR obtains a unanimous Strong Buy rating from the analyst consensus, based on 3 stock ratings The stock is currently trading at $ 4.13, and its average target price of $ 20.67 is slightly more optimistic than Wolleben’s, suggesting an increase of 400% over the next 12 months. (See analysis PRQR shares in TipRanks) Best Stocks to Buy, a newly launched tool that brings together all the capital insights from TipRanks. Disclaimer: The opinions expressed in this article are exclusively those of the analysts presented. The content is intended to be used only P for informational purposes. It is very important It is important to do your own analysis before making any investment.