2 “Strong Buy” Penny stocks that could see big gains
It’s official. Joe Biden is now president, and he will – at least in the short term – be backed by democratic majorities in both Congress. Wall Street is targeting the new administration and sees among its first moves a boost in fiscal stimulus that is likely to go consumer spending, bump corporate profits and provide general financial support in the first half of 2021
. Covering the situation for Goldman Sachs is investment strategist David Kostin, who is bullish in the short term for the prospect of fiscal stimulus. Against this background, Kostin Goldman sets the 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 higher than the previously published 5.9% and 3.7%. To this end, Kostin sees the S&P 500 reaching 4,300 at the end of the year, which would be a gain of 12% from the current level. “Elections have consequences. Democratic control of Washington DC after January 20 will lead to greater fiscal spending, faster GDP growth, more inflation and higher interest rates than we had previously assumed, ”Kostin noted. When the markets look up, investors are looking for the stocks that are ready for gain. Penny stocks, stocks priced at less than $ 5 per share. Stock, is a natural place to look for potential winners. Their low price means that even a small incremental gain will translate into large percentages. However, before jumping right into investing in an earpiece, Wall Street professionals recommend looking at the bigger picture and considering other factors beyond just the price tag. For some names that fall into this category, you really get what you pay for and offer little in the way of long-term growth prospects thanks to weak fundamentals, recent headwinds or even large outstanding stock counts. Taking into account the risk, we used TipRanks’ database to find convincing ear shares with price images. The platform steered us toward two tickers that had sporting stock prices below $ 5 and “Strong Buy” consensus ratings from the analyst community. Not to mention a significant upward potential lies on the table. AzurRx BioPharma (AZRX) We start with a company that specializes in gastrointestinal disease, AzurRx. This company is focused on creating non-systemic, targeted recombinant therapies for stomach upset. AzurRx has a pipeline of three drug candidates at several levels in the development process. The main pipeline candidate, MS1819, is being investigated as a treatment for exocrine pancreatic insufficiency in patients also suffering 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 so that patients can absorb the broken down fats for nutritional value. The drug is currently in Phase 2 trials, which are scheduled for completion in the first half of this year. As of January 21, the first two patients in the Phase 2b OPTION 2 extension study were dosed with the treatment, and the Data Monitoring Committee (DMC) “remains supportive of the program.” In another important development, AzurRx announced earlier this month that it is partnering with First Wave Bio to study oral and rectal formulation of Niclosamide for the treatment of immunocontrol-associated colitis (ICI-AC) and COVID-19-related gastrointestinal infections. The estimated market for Niclosamide as a treatment for COVID-related gastrointestinal problems exceeds $ 450 million. Based on several potentially significant clinical catalysts as well as the stock price of $ 0.98, several members of Street believe now is the right time to pull the trigger. Jonathan Aschoff of Roth Capital is bullish on AzurRx and bases his long-term forecasts on the likely success of MS1819. “We base our valuation for AZRX on expected future sales in the US from MS1819 for the treatment of EPI due to CF and CP using an initial annual price of approx. $ 18,000, a price that is in line with currently available PERTs. We project MS1819 to be commercialized in the United States in 2023, generating sales of $ 272 million. By 2030. Past U.S. commercial success for MS1819 or commercial success from the early stages of the beta-lactamase program would give up on our valuation, ”Aschoff noted. The analyst also looks forward to the initial clinical results of Niclosamide in COVID-19 GI infection and in ICI-AC potential and notes: “Niclosamide was FDA approved in 1982 for the treatment of tapeworm infections and is on the World Health Organization’s list of important drugs. of the millions of patients who have taken the drug, the safety profile has largely been established, thereby lowering the risk of development. ”Given the above, Aschoff rates the AZRX as a purchase, and its $ 7 price target suggests a sky-high 608% increase for the coming year (To see Aschoff’s track record, click here) Overall, analysts’ consensus on AZRX stocks is a strong buy, with 4 recent reviews including 3 buys and a single team, and the average price target of $ 4 brings up 304%. (See AZRX stock analysis on TipRanks) ProQR (PRQR) ProQR is a biotechnology company focusing on treatments for congenital progressive blindness. the entity is working specifically with drugs to reverse a group of genetic visual disorders called hereditary retinal diseases. These diseases currently have no effective treatments. The company has a research pipeline with five drug candidates, in different phases of the research process. The two most advanced are QR-110 (Sepo farce) and QR-421. Of these two, the QR-110 is currently in Phase 2/3 studies. This candidate is an RNA therapy designed to correct the most common CEP290 gene mutation that causes Liver congenital amaurosis 10 (LCA10). This is a serious genetic retinal disease that affects as many as 3 out of 100,000 children. QR-421 is another RNA therapy, this one focused on exon 13 mutations 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 aim of restoring lost vision or preventing loss in the first place. Analyst Jonathan Wolleben, who covers the stock for JMP, points to Sepofarsen as a key component in his bullish dissertation. “We continue to feel good about the sepo farce’s chance of success in Illuminate for several reasons: 1) Phase 1/2 confirmed target dose and dosing interval (6 months); 2) patients had clinically significant and lasting BCVA improvements after 12 months – crucial primary endpoint; 3) supportive secondary impact measures (FST, mobility) 4) similar responses seen in second-line eyes; 5) long-term safety confirms positive risk / benefit; and 6) Enlightened patient population was enriched based on phase 1/2 results (baseline vision of> / = hand movement). We award sepofarsen a 60% POS and model LCA10 as a $ 300 million. Possibility of PRQR at peak penetration, “said Wolleben. In line with his optimistic outlook, Wolleben sets a price target of $ 20 on the stock, which implies a year of 384% up, along with an Outperform (ie Buy) rating. (For to see Wolleben’s track record, click here) Overall, PRQR receives a unanimous Strong Buy rating from the analyst’s consensus based on 3 positive stock reviews, shares are currently trading at $ 4.13 and their average price target of $ 20.67 is slightly more bullish than Wollebens, indicating a 400% rise for the next 12 months. (See PRQR stock analysis on TipRanks) To find great ideas for ear stocks that trade at attractive valuations, visit TipRanks’ Best Stocks to Buy , a recently launched tool that unites all of TipRanks’ insights into equity. Disclaimer: The opinions expressed in this article are solely those of the selected analysts. The content is for informational purposes only. really do your own analysis before making an investment.