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2 ‘Strong Buy’ penny stocks that can see exorbitant profits
Well, it’s official. Joe Biden is now president, and he will – at least for a short time – be supported by Democratic majorities in both Houses of Congress. Wall Street takes the measure of the new administration and sees under its first step a boost in the fiscal stimulus that is likely to increase consumer spending on the goose, boost corporate profits and provide general economic support in the first half of 2021. The situation for Goldman Sachs is investment strategist David Kostin, who is the prospect for fiscal stimulus in the short term. In light of this, Kostin sets the Goldman outlook for this year at 6.4% GDP growth; he sees sustained growth next year and sets the forecast for 2022 at 4%. The outlook is 5.9% and 3.7% higher. For this, Kostin sees that the S&P 500 will reach 4,300 by the end of the year, which would be a profit of 12% from current levels. “Elections have consequences. “Democratic control of Washington, DC after January 20 will result in greater fiscal spending, faster GDP growth, more inflation and higher interest rates than we previously assumed,” Kostin noted. As markets look up, investors are looking for the stocks ready for gains. Penny stocks, at less than $ 5 a share, are a natural place to look for potential winners. Their low price means that even a small incremental profit will translate into large percentages. However, before you jump straight into investing in a penny stock, Wall Street pros recommend looking at the bigger picture and considering other factors that are not just the price. For some names that fall into this category, you really get what you pay for, and do not offer the long-term growth prospects, thanks to poor fundamentals, recent headwinds or even large outstanding stocks. Taking the risk into account, we used TipRanks’ database to find compelling penny stocks with cheap price tags. The platform has led us in the direction of two $ 5 indicative prices and analysts ‘Strong Buy’ consensus ratings. Not to mention the significant upside potential is on the table. AzurRx BioPharma (AZRX) We start a company specializing in gastrointestinal diseases, AzurRx. This venture focuses on creating non-systemic, targeted recombinant therapies for stomach ailments. AzurRx has a pipeline of three drug candidates, at different levels of the development process. The major pipeline candidate, MS1819, is being investigated as a treatment for exocrine pancreatic insufficiency for 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 were completed in the first half of this year. As of January 21, the first two patients in the Phase 2b OPTION 2 extension study were admitted to treatment, and the Data Monitoring Committee (DMC) “continues to support the program.” In another major development, AzurRx announced earlier this month that it has partnered with First Wave Bio to study oral and rectal formulation of Niclosamide for the treatment of immune system inhibitor-related colitis (ICI-AC) and COVID-19 gastrointestinal intestinal infections. The estimated market for Niclosamide as a treatment for COVID-related GI problems exceeds $ 450 million. Based on multiple clinical catalysts, as well as the $ 0.98 share price, several members of the street think now is the right time to pull the trigger. Jonathan Aschoff, of Roth Capital, is strong on AzurRx and bases his long-term predictions on the likely success of MS1819. “We base our valuation for AZRX on projected US sales from 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 the currently available PERTs. We plan to commercialize MS1819 in the US in 2023, which will sell for $ 272 million in 2030. Commercial success in the early US for MS1819, or commercial success of the early beta-lactamase program, will boost our valuation, ‘Aschoff noted. . The analyst is also looking forward to the initial clinical results of Niclosamide in COVID-19 GI infection and in ICI-AC possible, noting: ‘Niclosamide was approved by the FDA in 1982 for the treatment of intestinal tapeworm infections and is on the World Health Organization’s list of essential medicines. Given the millions of patients who have used the drug, the safety profile has been largely established, which reduces the risk of development. Given all of the above, Aschoff considers AZRX a buy, and its price target of $ 7 indicates a sky-high of 608% upwards for the coming year. (To see Aschoff’s record, click here) Overall, the analyst’s consensus on AZRX shares is a strong buy; the stock has 4 recent reviews, including 3 buy and a single Hold. On top of that, the average price target of $ 4 brings the upside potential to 304%. (See AZRX stock analysis on TipRanks) ProQR (PRQR) ProQR is a biotechnology company focusing on treatments for congenital progressive blindness. The firm is working specifically on drugs to reverse a group of genetic disorders called hereditary retinal diseases. The diseases currently have no effective treatments. at different stages of the research process. The two that are furthest along are QR-110 (Sepofarsen) and QR-421. Of these two, QR-110 is currently in phase 2/3 studies. This candidate is an RNA therapy designed to correct the m a common CEP290 gene mutation that causes Liver congenital amaurosis 10 (LCA10). It is a serious genetic retinal disease that affects up to 3 in 100,000 children. QR-421 is another RNA therapy, this focuses 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 repairing lost vision or preventing loss in the first place. Analyst Jonathan Wolleben, who covers the stock for JMP, points to Sepofarsen as an important part of his bullish thesis. “We still feel good about Sepofarsen’s chances of success in Illuminate for several reasons: 1) Phase 1/2 confirmed the target registration dose and dosing interval (6 months); 2) patients had clinically significant and lasting BCVA improvements after 12 months – main endpoint; 3) supporting secondary efficacy measures (FST, mobility); 4) similar reactions seen in the second treated 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 give sepofarsen a 60% POS and the LCA10 model as an opportunity of ~ $ 300 million to bring PRQR to the highest level, “says Wolleben. In line with his optimistic outlook, Wolleben sets a price target of $ 20 on the stock, which implies that it means 384% one year upside down, together with a better performance (ie buy). (To see Wolleben’s record, click here) All in all, PRQR gets a unanimous strong buy rating of the analyst’s consensus, based on 3 positive stock ratings, shares are currently trading at $ 4.13, and the average price target of $ 20.67 is slightly more positive than that of Wolleben, indicating a 400% increase for the next 12 months. (See PRQR stock analysis at TipRanks) Visit TipRanks for great ideas for penny stocks trading at attractive valuations. Best Stocks to Buy, a new tool that combines all of TipRanks’ insights into equity. Disclaimer: The opinions expressed in this article, are exclusively those of the analysts who know best. The content is intended for informational use only. This is very impo It is important to do your own analysis before investing.