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2 “strong buy” penny stocks that could generate massive returns
There is a strong growing feeling among investors – of relief – that the new year will have less volatility than 2020. That would be enough to boost the mood, but even better, there is also the perception that the markets will rise in the new year. . Marko Kolanovic, a well-known quant expert at JPMorgan, sees the early stages of a positive feedback loop, with less volatility and systematic investment strategies coming together to generate earnings, attract more investors – and, in Kolanovic’s view, boost the S&P 500 to 4,600 by the end of the year. This will represent a 25% increase for the index. A general market environment like this tends to produce many stock winners, and Wall Street analysts are busy pointing this out. Among other things, they are exploring penny stocks, stocks with prices below $ 5 per share. Its minimum starting price makes cents the logical place to look for great returns on investment. Although its risk factor is high, even a small gain in absolute numbers will turn into a massive percentage gain in stock prices. Using the TipRanks database, we identified two penny stocks that traders believe could see explosive gains in the coming months. Not to mention that each receives a “strong buy” consensus rating from the analyst community.9 Meters Biopharma (NMTR) Some biopharmaceutical companies take a broad approach, while others focus on a niche. 9 Meters is one of the last, aimed at the unmet needs of gastrointestinal patients. The company’s development pipeline features drug candidates under investigation as treatments for short bowel syndrome (SBS) and celiac disease (CeD), two conditions that are dangerous and difficult to treat. Drilling for details of the pipeline, flagship product of 9 Meters, Larazotide, is under development 3 for the treatment of CeD. CeD affects about 1% of the population, but there are no approved therapies. First line data from the study is expected for the second half of 2021. In addition, last December, the company announced that it had signed an agreement with EBRIS, the European Institute for Biomedical Research in Salerno, to investigate larazotide as a potential treatment for respiratory complications due to COVID-19. The other important drug in the company’s pipeline is NM-002, for SBS. The company recently announced positive Phase 1b / 2a results, with a measurable impact on the disease symptoms of a compound that was well tolerated by patients. The NMTR’s strong pipeline and $ 0.89 stock price have yielded substantial praise from Wall Street professionals. of these NMTR bulls is Srikripa Devarakonda de Truist. Citing Larazotide as a key component of his optimistic thesis, the analyst noted: “We recognize that investors are likely to see a crucial test in a difficult-to-break as high-risk celiac disease program, despite encouraging Ph2b data. We modeled $ 705M / $ 353M in unadjusted / adjusted peak sales and we see the potential for a 400% – 1650% increase in positive Ph3 reading. ”Devarakonda also sees“ significant unmet need in SBS ”and continues to believe that“ NM-002 has a differentiated profile vs. SOC. ”His main conclusions from the recent Phase 1b / 2a results include:“ 1) we believe that the drug showed early activity in patients with SBS; all 9 patients showed a significant reduction in the total volume of stool output; the average reduction in TSO was 42% from the baseline; 2) responses occur quickly, with effects on TSO observed within 48 hours after dosing; 3) the safety profile seems favorable, we would like to see greater durability. To this end, Devarakonda ranks NMTR shares a purchase along with a $ 5 price target. This figure conveys its confidence in the NMTR’s ability to increase 462% next year. (To follow the history of Devarakonda, click here) Moving now to the rest of the street, other analysts are on the same page. With 4 purchases and no waiting or selling, what is said is that the NMTR is a strong purchase. Given its average price target of $ 4.33, an increase of 386% may be reserved for investors. (See NMTR stock analysis at TipRanks) Orchard Therapeutics (ORTX) Orchard Therapeutics takes a broad approach to the biopharmaceutical industry. The company is involved in the development of genetic therapies for rare, often terminal diseases, including neurometabolic disorders, primary immune deficiencies and blood disorders. The gene therapy approach uses blood stem cells to provide corrected genetic information directly in the patient’s body. Orchard’s pipeline demonstrates the diversity of disorders amenable to gene therapy – the company has at least 12 drug candidates in development. Among these candidates, Libmeldy (OTL-200) stands out. Libmeldy is being marketed as a treatment for MLD (metachromatic leukodystrophy), a rare genetic disease of the nervous system, based on mutation. Libmeldy, which is designed to treat children suffering from infantile forms for juveniles of MLD, replacing the defective ARSA gene, received its approval for medical use in the EU in December 2020. Wedbush analyst David Nierengarten notes Libmeldy’s European approval, and its implication for Orchard’s progress. He writes: “We look forward to the company’s commercial execution in the EU and eventual approval in 2022 in the USA. Last month, ORTX received IND authorization from the FDA for the program, paving the way for discussions with US regulators to decide a suitable path for BLA filing. “” Net-net, with possibly two gene therapies approved in the next 12-18 months and a fundamental study starting in a third (MPS-I), we think that ORTX’s actions are undervalued at these levels “, concluded the analyst. with his optimistic comments, Nierengarten classifies ORTX as Outperform (that is, purchase), and its target price of $ 15 indicates a growth potential of 241% next year. (To see Nierengarten’s history, click here ) Do other analysts agree with Nierengarten? They do. Only the Buy, 3 ratings, in fact, were issued in the last three months. Therefore, ORTX gets a Strong Buy consensus rating. At $ 15, the average price target indicates that stocks may appreciate 241% next year. (See the ORTX stock analysis at TipRanks) To find good ideas for trading cents in attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that brings together all insig hts of TipRanks shares. Disclaimer: The opinions expressed in this article are only 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 investments.