2 “Strong Buy” Penny stocks that can see 100% gain (or more)
In a recent review of the market’s current conditions, JPMorgan strategist Eduardo Lecubarri reiterates his view that 2021 will generally see modest gains across equities – but outperformance among small / medium-sized companies. Lecubarri believes that investors can find opportunities for large upside among stocks in this class. Due to the overall stock gains, Lecubarri points to recent PMIs in manufacturing, which are at 1
5-year highs, and declining unemployment figures – both data points indicate a solid foundation for economic recovery. As consumer confidence also rises, and relatively high savings, he sees tailwinds for the small / mid-cap as the year unfolds. A general trend of rising small-cap stocks should, of course, encourage analysts and investors to look at ‘ear’ stocks priced below $ 5 per share. Shares. While not a sure indicator, low stock prices usually go hand in hand with low market value – but it also comes with the solid upside potential that Lecubarri mentions. 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 two compelling earbuds, as determined by Wall Street professionals. Each has achieved a “Strong Buy” consensus rating from the analyst community and brings massive growth prospects to the table. We are talking about over 100% upward potential here. Biolase Technology (BIOL) We start with Biolase Technology, a leading designer, manufacturer and innovator in dental laser technology. Lasers provide a number of benefits to dentists and their patients, including fewer aerosols and a gentler touch during procedures and more comfortable healing afterwards. Biolase products are used in periodontal, endodontic, hygienic and implantation procedures; the company markets online directly to dental practices. Biolase put a positive spin on its recent 4Q20 earnings report. Although top revenue of $ 8.52 million fell 16% year-over-year, the sequential quarterly gain was an impressive 31%. The company benefited when dental clinics returned to work in the financial recovery of 2H20. Biolase reported two positive trends in sales in the 4th quarter, with 78% of sales coming from new customers and 40% going to dentists. Even better, the company delivered quarterly revenue guidance to $ 7.5 – 8.0 million, an increase of 60-70% year-on-year and above consensus of $ 7.0 million. Currently, Biolase shares are going for $ 0.76 per share. Piece, according to some analysts. Among the bulls is Maxim analyst Anthony Vendetti, who noted that the company’s positive results in Q4 are not just spin. “While the international market continues to delay the US in COVID recovery, BIOL delivered its second consecutive quarter with significant sequential revenue growth, driven by US sales to new customers, dentists and dental organizations (DSOs). We encourage dental specialists to constitute 40% of the company’s US laser sales in Q4 20, and expects the company’s recent launch of both Endo- and Perio Academies to contribute to increased adoption of ~ 5K endodontists and ~ 5K periodontists in the US In addition, BIOL has placed an increased emphasis on conversion of small DSOs (which can more quickly use BIOL’s technology), which we expect to strengthen short-term revenue as the company makes progress in converting larger DSOs, such as Heartland Dental (private), “said the 5-star analyst. Vendetti summed up: “Based on the unique value proposition of BIOL’s products, its continued progress in penetrating DSOs and its increasing traction with dentists, we reiterate our Buy rating.” Along with that buy rating, the analyst sets a price target of $ 2, indicating a 165% growth in 2021. (To see Vendetti’s track record, click here) It looks like the rest of the street is also seeing plenty of upward. Based on Buys only – 4, in fact – the analyst community rates BIOL as a strong buy. The average price target reaches $ 1.94 and implies a potential rise of ~ 157% in the coming months. (See BIOL stock analysis on TipRanks) Fortress Biotech (FBIO) Fortress Bio is a pharmacological research company with a broad pipeline of 28 drug candidates in various stages of development from preclinical to phase 3. In addition to the pipeline, Trials has six approved drugs on the market for a variety of dermatologicals. conditions including acne, fungal infections and burns and other surface ulcers. These drugs are marketed by Journey Medical, Fortress’ partner company, and had sales of $ 44.5 million in 2020. This compared well – an increase of 28% – to $ 34.9 million n the net in 2019. Fortress ended 2020 with a healthy liquidity of $ 235 million in cash and cash equivalents. This increased $ 15 million from Q3 and increased 53% the year before. The company noted that these positive results came even when the COVID pandemic affected both supply and sales. Looking ahead, Fortress expects to add two new approved prescription products to its lineup in 2021. In another software update, Fortress is partnering with Cyprium Therapeutics and Sentynl Therapeutics on CUTX-101. Both companies have signed a development and asset purchase agreement for the drug candidate, a treatment for Menke’s disease that is currently in phase 3 clinical trials. The company reported positive clinical efficacy results in August last year, including median survival in the early treatment cohort of 14.8 years compared to 1.3 years for the untreated historical control cohort. In 2H21, Fortress begins rolling submission of NDA to CUTX-101. Covering this stock for B. Riley, 5-star analyst Mayank Mamtani notes the company’s fundamental health. “FBIO’s differentiated business model, which constitutes a diversified portfolio of marketed products and clinical phase candidates, remains resilient among challenges from the C-19 pandemic, favorably setting out in advance several regulatory, clinical data and balance bending points expected. over the next few quarters serves as opportunities to revalue the stock, “Mamtani wrote. For this purpose, Mamtani FBIO is considering a purchase and its price target of $ 10 suggests that it has room for ~ 100% upward in the next 12 months. ( To see Mamtani’s track record, click here) Overall, Fortress Bio has 4 reviews on record, all of which must be purchased, giving the stock a strong Buy consensus rating.FBIO shares are priced at $ 4.48, and their average price target of $ 13 implies a one-year upside of 190%. (See FBIO stock analysis on TipRanks) To find great ideas for penny stocks trading at attractive valuations, visit TipRanks’ Best S tocks to Buy, a recently launched tool that unites all of TipRanks’ stock insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended for informational purposes only. It is very important to do your own analysis before making an investment.