TipRanks
2 ‘Strong buy’ penny stocks with more than 200% upside down on the horizon
Let’s talk about risk and the big picture. This is an appropriate time, as the high risk posed by the COVID-19 pandemic is finally diminishing thanks to the ongoing vaccination program. COVID leaves behind an economy that was forced to shut down a year ago amid a major expansion fueled by deregulation policies. While the new Biden administration is reversing many Trump policies, the economy is at least returning. And that puts us in danger. A time of economic growth and recovery is a forgiving time to move towards risky investments, as general economic growth tends to lift everything. Two strategists from JPMorgan recently took a turn to promote the view that the fundamentals of the market are still healthy, and that the small to middle capitalization will continue to rise. First, on the terms and conditions, quantum strategist Dubravko Lakos-Bujas wrote: ‘Although the recent technical sell-out and short press are receiving a lot of attention, we believe the positive macro setup, which improves the basics and COVID-19 outlook, the strength of the US consumer, as well as the reflection theme, remain the biggest forces. It should not only drive further upward stocks, but it remains favorable for continued revolution to economic reopening … ‘On this, Eduardo Lecubarr, head of the Small / Mid-Cap Strategy team, now sees opportunity for investors, especially in the smaller value. shares. “We hold to our view that 2021 will be a paradise for the stock trader with great money-making opportunities if you are willing to work against the grain … Many macro indicators did fall in January, but SMid-Caps and stocks generally rising higher and higher, “Lecubarr noted. And if you tend to look at high-risk, small- to mid-cap stocks, you will be attracted to penny stocks. The risk associated with these plays scares the heart out. , because many real problems such as poor fundamentals or overwhelming headwinds can be masked by low stock prices.So, how should investors approach a potential penny stock investment? By taking an indication from the analyst community.These experts bring in-depth knowledge of the industries covering them and great experience ahead.If we keep this in mind, according to Wall Street analysts, we used TipRanks’ database to find two compelling penny stocks.Both tickets boast with a strong buying consensus rating and could climb more than 200% higher in the coming year. CNS Pharmaceuticals (CNSP) We will start CNS Pharmaceuticals, a biotechnology company focusing on the treatment of glioblastomas, a class of aggressive tumors that attack the plait and spinal cord. These cancers are, although rare, almost always terminal, and CNS is working on a new therapy designed to cross the blood-brain barrier more effectively to attack glioblastoma. Berubicin, CNS’s flagship drug candidate, is an anthracycline, a strong class of chemotherapy drugs derived from the Streptomyces bacterial strains, and is used in the treatment of a wide variety of cancers. Berubicin is the first drug in this class that shows promise against glioblastoma cancer. The drug candidate completed his Phase 1 clinical trial, in which 44% of patients responded clinically. This number included one patient who showed a ‘Sustainable Complete Response’, defined as a lack of detectable cancer. Following the success of the Phase 1 study, CNS applied for and received FDA approval for the investigation into new drugs. This gives the company the opportunity to conduct a Phase 2 study on adult patients, an important next step in the development of the drug. CNS plans to begin the midterm trial in 1Q21. Given the potential of the company’s asset in glioblastoma, and with its share price at $ 2.22, several analysts believe it’s time to buy. Among the bulls is Brookline 5-star analyst Kumaraguru Raja, who is taking a positive stance on CNSP shares. “So far, the inability of anthracyclines to cross the blood-brain barrier has prevented their use in the treatment of brain cancer. Berubicin is the first anthracycline to cross the blood-brain barrier in adults and have access to brain tumors. Berubicin has promising clinical data in a Phase 1 trial for recurrent glioblastoma (rGBM) and has orphan drug prescriptions for the treatment of malignant gliomas from the FDA. We model the approval of Berubicin for the treatment of recurrent glioblastoma in 2025 based on the Phase 2 data with 55% probability of success. We show a peak sales of $ 533 million in 2032, ‘says Raja. CNS pipeline also contains WP1244 (new DNA binding agent) which is 500 times stronger than daunorubicin to inhibit the spread of tumor cells, is expected to enter the clinic in 2021 … In vivo tests in orthotopic models of brain cancer have shown that the WP1244 was absorbed a lot by the brain following antitumor activity, ”the analyst added. For this purpose, Raja CNSP is considering a buy, and its $ 10 price target implies room for an incredible upward potential of 350% in the next 12 months. (Click here to look at Raja’s record.) What does the rest of the street have to say? 3 buy and 1 hold together with a strong buy consensus rating. Given the average price target of $ 8.33, stocks could climb by ~ 275% next year. (See CNSP stock analysis on TipRanks) aTyr Pharma (LIFE) The next stock we look at, aTyr Pharma, focuses on inflammatory diseases. The leading drug candidate, ATYR1923, is a neuropilin-2 (NRP2) agonist that works by the receptor proteins expressed by the NRP2 gene. These pathways are important for cardiovascular development and disease, and play a role in the inflammatory lung disease pulmonary sarcoidosis. In December, the company reported that the drug candidate had completed 36 patients in a phase 1b / 2a clinical study, which tested the drug in the treatment of pulmonary sarcoidosis. The results of the current study are expected in the third quarter of 21, and will inform further tests of ATYR1923, among others against other forms of inflammatory lung diseases. On a more immediate note, the company announced in early January top results from another Phase 2 clinic for ATRY1923 – this time in the treatment of hospitalized patients with severe respiratory complications of COVID-19. The results were positive, showing that a single dose of ATYR1923 (at 3 mg / kg) resulted in a median recovery time of 5.5 days. Overall, 83% of patients dosed in this way recovered in less than one week. 5-star analyst Zegbeh Jallah, who handles LIFE for Roth Capital, commented: ‘We like the risk profile here, with two shots on target, and the updated details of the COVID study are expected in the coming months. It was also recently announced that data from aTyr’s Pulmonary Sarcoidosis program will be reported in 3Q21 … the success of one of these studies could lead to a doubling or more of the market capitalization, as investors seem to be barely taking into account these opportunities. Consistent with its optimistic approach, Jallah LIFE shares give a buy rating and its price target of $ 15 indicates an impressive upward potential of 277% for the coming year. (Click here to see Jallah’s record.) Other analysts are on the same page. With two additional buy ratings, the word on the street is that LIFE is a strong buy. In addition, the average price target is $ 13.33, indicating robust growth of ~ 236% from the current price of $ 3.97. (See LIFE stock analysis on TipRanks.) To find great ideas for penny stocks at attractive valuations, visit TipRanks’ best-selling stocks, a newly launched tool that unites all TipRanks stocks. Disclaimer: The opinions expressed in this article are solely those of the proposed analysts. The content is for informational purposes only. It is very important to do your own analysis before investing.