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Analysts say ‘buy the setback’ on these three stocks
The seasoned investor knows that the best time to buy is when a stock is low – it’s just the old game of ‘buy low and sell high’, the old advice on making money. But with S&P at near-record levels, it’s hard to say when a stock is low. The key is to consider them as individuals. The stock market is the world’s largest real-time experiment for averaging large mass numbers. The markets as a whole may rise, while some individual stocks are falling. And when a stock hits rock bottom, as long as its fundamentals are solid, it becomes a buying opportunity. Wall Street analysts build their reputation by finding these opportunities and bringing them to our attention. Using the TipRanks database, we were able to find 3 stocks that are below their recent peaks, while some analysts are recommending ‘buy the setback’. Let’s take a closer look. Iovance Biotherapeutics (IOVA) We will start with Iovance Biotherapeutics, a mid-cap biotechnology company in the field of immunoncology, developing tumor infiltrating lymphocyte (TIL) therapies for the treatment of cancer. Basically, the technology aims to use the patient’s own immune system to attack cancer. The company’s leading drug candidate, lifileucel, is on its way to a biological license application with the FDA, the next step in the ongoing approval process. The drug has shown promise as a treatment for metastatic melanoma, and follow-up studies are ongoing in Phase 2 clinical studies. In addition, lifileucel is under investigation for application against cervical cancer; the program is enrolling patients in the Phase 2 study and enrollment of patients in Cohorts 1 and 2 has been completed. This track record, along with the 40% drop in shares since its recent peak in February, combined to draw the attention of 5-star analyst Joseph Pantginis at HC Wainwright. “[We] they believe the retraction in stocks will create an attractive entry point again for investors ahead of the BLA filings planned for 2021 for their TILs in melanoma and cervical cancer. Remember, most importantly, that melanoma has RMAT status and the cervix is labeled Breakthrough Therapy … “The analyst added:” We believe that the recent encouraging data and trial modifications are indications of the clinical promise of the lifileucel and strengthen the case of its commercialization before the anticipated BLA “Pantginis supports these comments with a Buy rating and a target price of $ 50, which implies an increase of 57% in the next 12 months. (To see the history of Pantginis, click here) State-of-the-art medical technology has attracted the attention of Pantginis’ colleagues, too. The stock has 5 recent reviews and all must be purchased, resulting in a strong consensus rating from the strong purchasing analyst. IOVA has an average target price of $ 54.80, suggesting a 12-month increase of 72% over the share price of $ 31.88. (See IOVA’s stock analysis at TipRanks) Quidel Corporation (QDEL ) The next ‘kickback’ action that we are s analyzing is Quidel, a $ 5.9 billion diagnostic health company. Quidel, headquartered in Southern California lifornia, has operations worldwide, offering products in a variety of point-of-care diagnostic testing niches. The company won a major victory last year when it received FDA approval for a COVID-19 antigen test. Earlier this month, Quidel announced emergency use authorization for its Quickvue at-home COVID-19 test kit, available to patients with a prescription. In February, the company released its fourth quarter 2020 results, showing $ 809.2 million in total revenue, an increase of 69% over the previous quarter – and an even more impressive gain of 431% over the previous year. The increase was driven by products related to COVID-19, which generated US $ 678.7 million in quarterly sales. Earnings per share were $ 10.78, compared to earnings of 71 cents in the same quarter last year. The corona pandemic was a blessing for the medical examination industry, and Quidel saw much of that benefit. The company reported earnings for the entire year similar to the results for the fourth quarter. For 2020, Quidel posted revenue of $ 1.66 billion, an increase of 211% year on year, with COVID-19 revenue of $ 1.16 billion. EPS for the year was $ 18.60, compared to $ 1.73 in 2019. Ironically, the success of medical efforts against COVID-19 has boosted Quidel – and prepared him for the current downturn. As the vaccination program continues and expands and the spread of the virus decreases, the need for rapid, mass testing will decrease. Quidel is unlikely to see his COVID business completely evaporate in the short term, but in the medium term he is likely to start returning to normal pre-pandemic. This perspective makes investors wonder if the current high valuation of shares can last. This thesis has Craig-Hallum analyst Alexander Nowak optimistic about QDEL. Looking at the company’s recent success, he writes: “This stock almost came around during COVID, but the business accelerated enormously during the same period. QDEL increased its customer base by 60% in a single year, more than doubled its placements, signed long-term test contracts, 5x capacity to support more tests, markets, geographies, moving to alternative care channels , building the domestic test market and generated significant cash. ”And looking to the future, the 5-star analyst adds:“ But when COVID is completely finished, we still see QDEL generating $ 10 in normalized earnings + $ 47 in cash / share and that’s worth more than double the current assessment. For investors who can look beyond what will be volatility, the setback is an excellent point of purchase. ”To this end, Nowak classifies QDEL’s shares as Buy and sets a price target of $ 341, which implies an increase of 148% for the following year. (To see Nowak’s history, click here) Moving now to the rest of the street, where QDEL receives mostly purchases from Nowak’s colleagues – 3, by chance. An additional sale of 1 cannot affect a moderate Purchase consensus rating. Given the average price target of $ 239, analysts expect the stock to rise 71% from current levels. (See QDEL stock analysis at TipRanks) Sunrun, Inc. (RUN) Shifting gears, we’ll take a look at an alternative energy company, Sunrun. This company specializes in solar power generation configurations for home use. Customers who want to install and operate solar panels on residential roofs can choose between buying or renting options and can use the energy generated in a variety of ways, either for home use or to sell it to their local power provider. Sunrun’s shares have fallen 40% since their recent peak in January. Decline comes from feeling, more than anything else. The solar sector in general has risen since the November election, in the belief that the Biden government will provide regulatory incentive for the industry – but this recent increase has made investors a little concerned that, from now on, Sunrun will not perform as well. of the hype. However, the decline was certainly not caused by performance failures. At the end of February, Sunrun reported $ 320 million in revenue in 4Q20, a 31% year-over-year gain. The strong revenues were driven by an 18% annual increase in the customer base, giving the company a total of 550,000 customers. Among these customers, the average life of the contract has another 17 years remaining and the annual recurring revenue is $ 668 million. Taken together, these factors led Truist analyst Tristan Richardson to reiterate his Buy rating. “[We] I think the setback represents an attractive opportunity leading to a profile of accelerated growth in 2021 and customer margin winds (storage, VSLR synergies). We have modestly increased our short-term installation forecast and expect growth of more than 20% year on year, ”said Richardson. The analyst continued: “In the midst of a scenario in recent weeks of sales of growth stocks and risky assets (including solar energy) as interest rates showed volatility, we stress the importance of a mathematical perspective on the capacity of the largest installer of the US to generate an accelerated growth profile so as not to accentuate the problem from a fundamental perspective. “Richardson supports his position with a target price of $ 95, indicating confidence in a 66% upward potential in one year. (To view Richardson’s history, click here) The Truist view of Sunrun is no different; there are 14 reviews of this stock, and they include 11 purchases against just 3 holds, giving the stock a strong buy consensus rating. The shares are quoted at $ 57.28 and their average price target of $ 82.10 suggests an increase of 44%. (See TipRanks RUN Stock Analysis) To find good ideas for stock trading with attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that brings together all TipRanks stock insights. Disclaimer: The opinions expressed in this article are exclusively those of the analysts presented. The content should be used for informational purposes only. It is very important to do your own analysis before making any investment.