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2 “Strong buy” penny stocks that can get 100% profit (or more)
In a recent review of current market conditions, JPMorgan strategist Eduardo Lecubarri reiterates his view that 2021 will generally bring modest gains in equities – but outperform the small and mid-cap sector. Lecubarri believes investors can find opportunities for big upside among the stocks in the class. As a result of the general stock increases, Lecubarri points to recent PMI prints in manufacturing, which are at 15-year highs, and the declining unemployment rates – both data points indicate a good basis for economic recovery. With the increasing consumer confidence and relatively high savings, he sees a tailwind for the small / middle capitalization as the year unfolds. A general trend of rising small-cap stocks, of course, should force analysts and investors to look at the ‘pennies’ that are below $ 5 a share. While not a sure indicator, the low share price is usually associated with a low market capitalization, but it also holds the solid upside potential that Lecubarri mentions. 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 it offers little to the long-term growth prospects, thanks to poor fundamentals, recent headwinds or even large outstanding stock counts. Taking into account the risk, we used TipRanks’ database to find two compelling penny stocks, as determined by Wall Street professionals. Each has achieved a ‘Strong Buy’ consensus rating from the analyst community and brings great growth prospects to the fore. We are talking here about more than 100% upward potential. Biolase Technology (BIOL) We will start with Biolase Technology, a leading designer, manufacturer and innovator in dental laser technology. Lasers hold dentists and their patients many benefits, including fewer aerosols and a softer touch during procedures, and easier healing thereafter. Biolase products are used in periodontal, endodontic, hygienic and implant procedures; the company markets directly online to dental practices. Biolase showed its recent 4Q20 earnings report positively. Although top-of-the-year revenue of $ 8.52 million fell by 16% year-on-year, successive quarterly earnings were impressive at 31%. The company benefited as dental clinics got back on track in the economic recovery of 2H20. Biolase showed two positive trends in sales in the fourth quarter, with 78% of new customer sales and 40% for dental specialists. Even better, the company provided revenue for the first quarter for $ 7.5 – 8.0 million, an increase of 60-70% per year, and higher than the consensus of $ 7.0 million. According to some analysts, Biolase shares could currently be $ 0.76 apiece. Among the bulls is Maxony analyst Anthony Vendetti, who noted that the company’s positive results in the fourth quarter did not just turn around. “While the international market continues to slow the U.S. in COVID recovery, BIOL delivered its second consecutive quarter with significant consecutive revenue growth, driven by U.S. sales to new clients, dental specialists and dental service organizations (DSOs). We encourage dental dentistry 40 % of U.S. laser sales in the U.S. were in the fourth quarter, and they expect the recent launch of the Endo and Perio Academies to contribute to greater adoption by ~ 5K endodontists and ~ 5K periodontists in the U.S. In addition, BIOL an increasing emphasis on the conversion of small DSOs (which can use BIOL’s technology faster), which we expect to strengthen short-term revenue as the company makes progress in converting larger DSOs, such as Heartland Dental (private) , “says the 5-star analyst. Vendetti concluded: “Based on the unique value proposition of BIOL’s products, the continuous progress with the penetrating DSOs and the increasing traction with dental specialists, we are repeating our purchase rating.” Along with the Buy rating, the analyst sets a price target of $ 2 which indicates the stock growth of 165% in 2021. (Click here to see the Vendetti record) It seems that the rest of the street is also looking very upside down . Based on Buys only – 4, the analyst community rates BIOL a strong buy. The average price target reaches $ 1.94 and implies a possible increase of ~ 157% over the coming months. (See BIOL stock analysis on TipRanks) Fortress Biotech (FBIO) Fortress Bio is a pharmacological research company with a wide pipeline of 28 drug candidates, in various stages of development from preclinical to phase 3. In addition to the pipeline, Fortress has six approved drugs on the market for a variety of dermatological conditions, including acne, fungal infections of the skin, and burns and other surface wounds. This drug is marketed by Journey Medical, Fortress’ partner company, and had revenue of $ 44.5 million in 2020. This compares with 28% – compared to the $ 34.9 million n seat in 2019. Fortress ends 2020 with a healthy cash position with $ 235 million cash and cash equivalents. It was $ 15 million higher than in the third quarter and 53% higher than in the year-on-year. The company noted that these positive results came, even as the COVID pandemic affected both supply and sales. Looking ahead, Fortress expects to add two new approved prescription products to its range by 2021. In another software update, Fortress is working with Cyprium Therapeutics and Sentynl Therapeutics on CUTX-101. Both companies have entered into an agreement for the development and benefit of the drug candidate, a treatment for Menkes disease that is currently in phase 3 clinical trials. The company had positive clinical efficacy results last August, including medial survival in the 14.8-year early treatment group, compared with 1.3 years for the untreated historical control group. In 2H21, Fortress launches the NDA for CUTX-101. 5-star analyst Mayank Mamtani, who covers these shares for B. Riley, takes note of the fundamental health of the company. “The differentiated business model of FBIO, which consists of a diversified portfolio of marketed products and candidates at the clinical stage, remains resilient amid the challenges posed by the C-19 pandemic, thus setting up favorably before numerous regulatory, Clinical data and balance sheets expected over the next few quarters serve as opportunities to re-evaluate the stock, ‘Mamtani wrote. For this purpose, Mamtani FBIO is reviewing a buy, and its $ 10 price target indicates that in the next 12 months will have room for ~ 100% upside down. (To view Mamtani’s record click here. Overall Fortress Bio has 4 reviews, and it’s all for sale, giving the stock a strong buy consensus rating. FBIO stocks cost $ 4.48, and their average price target of $ 13 implies an upward one year of 190%. (See FBIO stock analysis on TipRanks.) To find great ideas for penny stocks at attractive valuations, visit TipRanks se best stocks to buy, a newly launched tool that unites all the TipRanks equity insights. 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.