2 penny stocks with strong buy that could generate oversized profits
Well it’s official. Joe Biden is now President and is supported – at least for a short time – by Democratic majorities in both houses of Congress. Wall Street is taking action from the new administration and sees a surge in fiscal stimulus among its first steps, which is expected to boost consumer spending, weigh on corporate earnings and provide general economic support in the first half of 2021 The situation for Goldman Sachs is investment strategist David Kostin who is optimistic about the near-term outlook for fiscal stimulus. With this in mind, Kostin sets the Goldman outlook for this year at 6.4% GDP growth. He sees continued high growth in the next year and sets the forecast for 2022 at 4%. These outlook figures are above the previously published 5.9% and 3.7%. To that end, Kostin sees the S&P 500 hit 4,300 by the end of the year, which is a 12% gain over current levels. “Elections have consequences. Democratic control of Washington DC after January 20 will bring higher budget spending, faster GDP growth, more inflation and higher interest rates than we previously anticipated, ”noted Kostin. As the markets look up, investors look for stocks that are ready for profit. Penny stocks, stocks priced less than $ 5 per share, are a natural place to look for potential winners. Their low price means that even a small increment will result in large percentages. Before investing directly in an investment in a penny stock, however, Wall Street pros recommend looking at the bigger picture and considering other factors beyond price. Some names that fall into this category really get what you pay for and bid thanks to poor funda mental data, recent headwinds, or even large numbers of stocks outstanding, have little long-term growth prospects. With the risk in mind, we used TipRanks’ database to find compelling penny stocks with cheap price tags. The platform drew us to two ticsers with stock prices below $ 5 and consensus ratings of « Strong Buy » from the analyst community. Not to mention significant upside potential. AzurRx BioPharma (AZRX) We’re starting out with a company that specializes in gastrointestinal disorders, AzurRx. This company focuses on the development of non-systemic, targeted recombinant therapies for GI diseases. AzurRx has a pipeline of three drug candidates at multiple levels of the development process. The key candidate for the pipeline, MS1819, is currently being investigated for the treatment of exocrine pancreatic insufficiency in patients with cystic fibrosis. MS1819 is a recombinant lipase derived from a strain of yeast. The drug targets fat molecules in the digestive tract and allows patients to absorb the broken down fats for nutritional value. The drug is currently in phase 2 trials, which are expected to be completed in the first half of this year. By January 21, the first two patients in the Phase 2b OPTION 2 extension study had received treatment and the Data Monitoring Committee (DMC) « continues to support » the program. In another key development, AzurRx announced earlier this month that it is partnering with First Wave Bio to develop the oral and rectal formulations of niclosamide for the treatment of Immune Checkpoint Inhibitor Associated Colitis (ICI-AC) and COVID-19 – to investigate gastrointestinal infections caused by the disease. The estimated market for niclosamide for treating COVID-related GI problems exceeds 450 million en US dollars. Based on several potentially significant clinical catalysts as well as the $ 0.98 stock price, several members of the street believe now is the right time to pull the trigger. Roth Capital’s Jonathan Aschoff is bullish about AzurRx and bases his longer-term projections on the likely success of MS1819. “We are basing our assessment for AZRX on projected future US sales of MS1819 for the treatment of EPI due to CF and CP using an initial annual price of approximately $ 18,000, a price that is in line with currently available PERTs. We expect MS1819 to commercialize in the United States in 2023 and sales of $ 272 million in 2030. Ex-USA. The commercial success of MS1819 or the commercial success of the early stage beta-lactamase program would have a positive impact on our assessment, ”said Aschoff. The analyst is also looking forward to the first clinical results of niclosamide in COVID-19 GI infections and ICI-AC, noting, « Niclosamide was approved by the FDA in 1982 for the treatment of tapeworm infections in the intestine and is on the list of major drugs With all of these factors in mind, Aschoff rates AZRX as a buy, and its target price of $ 7 points to a sky-high positive, given the millions of patients who have taken the drug, the safety profile has been largely determined, reducing the risk of development up 608% for the year ahead. (To see Aschoff’s track record, click here.) Overall, analyst consensus on AZRX stock is a strong buy; the stock has 4 recent valuations including 3 buys and a single hold The average target price of USD 4 brings the upside potential to 304%. (See AZRX stock analysis on TipRanks) ProQ R (PRQR ) ProQR is a biotechnology company focused on treatments for congenital progressive blindness. In particular, the company is working on 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 of five drug candidates. The two furthest away are QR-110 (Sepofarse) and QR-421. Of these two, QR-110 is currently in phase 2/3 studies. This candidate is RNA therapy to correct the m The most common CEP290 gene mutation that causes congenital liver 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 that focuses on exon 13 mutations in USH2A g. 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 it from happening at all. Analyst Jonathan Wolleben covers the stock for JMP, pointing to Sepo arsenic as a key component of his bullish thesis. “We still see the chance of success of sepofarse at Illuminate as good for several reasons: 1) Phase 1/2 confirmed the targeted registration dose and the dosing interval (6 months); 2) patients had clinically significant and sustained BCVA improvements after 12 months – key primary endpoint; 3) supporting secondary effectiveness measures (FST, mobility); 4) similar reactions in second treated eyes; 5) long-term safety confirms positive risk / benefit; and 6) The illuminated patient population was enriched based on the Phase 1/2 results (baseline vision of & gt; / = hand gesture). We assign sepofarsen a 60% POS and the LCA10 model as a ~ 300 million USD opportunity for PRQR with maximum penetration, « said Wolleben. According to his optimistic forecast, Wolleben sets a price target of 20 USD for the stock, which is a year of 384% means Up, along with an Outperform (i.e. Buy) rating. (To see Wolleben’s track record, click here.) Overall, PRQR receives a unanimous Strong Buy rating from analyst consensus based on 3 positive stock valuations. Stocks are currently traded $ 4.13, and the average target price of $ 20.67 is a little more bullish than Wolleben’s, indicating an upward move of 400% for the next 12 months. (See PRQR stock analysis at TipRanks) To find trading penny stocks at attractive valuations, visit TipRanks ‘Best Stocks to Buy, a newly launched tool that brings together all of the insights into TipRanks’ stocks. The opinions expressed in this article are solely those of the presented analysts. The content is intended for informational purposes only. It is important that you do your own research before making any investment.