2 “Strong purchases” pennies that could receive 100% profit (or more)
In a recent review of current market conditions, JPMorgan strategist Eduardo Lecubari summed up his view that 2021 will see modest earnings from stocks in general – but better than the average sector. Lecubarri believes that investors can find opportunities for high growth among shares in this class. Stimulating overall earnings per share, Lecubarri points to PMI̵
7;s recent production footprints, which are at a 15-year high, and declining unemployment – both of which show a solid basis for economic recovery. With growing consumer confidence and relatively high savings, he sees the backwind for small / medium capitalization as the year progresses. A general upward trend with low-cap stocks should naturally make analysts and investors look at “pennies” worth less than $ 5 a share. Although not a reliable indicator, the low share price is usually combined with a low market capitalization – but it also comes with the solid upside potential that Lecubarri mentions. However, before investing directly in a penny, Wall Street professionals advise you to look at the bigger picture and consider other factors that are not just the price. For some names that fall into this category, you really get what you pay for by offering little in the way of long-term growth prospects due to weak foundations, recent winds or even large exclusive shares. Considering the risk, we used the TipRanks database to find two irresistible pennies, as determined by Wall Street professionals. Everyone has won a consensus Strong Buy rating from the analyst community and offers massive growth prospects. Here we are talking about over 100% potential for increase. Biolase Technology (BIOL) We will start with Biolase Technology, a leading designer, manufacturer and innovator in dental laser technology. Lasers bring many benefits to dentists and their patients, including fewer aerosols and a gentler touch during procedures and a more comfortable cure afterwards. Biolase products are used in periodontal, endodontic, hygienic and implant procedures; the company sells online directly to dental practices. Biolase made a positive development in its recent earnings report for 4Q20. Although revenue of $ 8.52 million was down 16 percent from a year earlier, the consecutive quarterly profit was impressive at 31 percent. The company is benefiting as dental clinics have returned to work in the economic recovery of 2H20. Biolase reported two positive sales trends in Q4, with 78% of sales coming from new customers and 40% going to dentists. Even better, the company provided first-quarter revenue guidance for $ 7.5- $ 8.0 million, up 60-70% year-over-year and above the consensus of $ 7.0 million. Currently at $ 0.76 in cash, shares of Biolase could make big gains, 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 a spin. “While the international market continues to lag behind the United States in recovering COVID, BIOL has secured for the second consecutive quarter significant consistent revenue growth driven by U.S. sales to new customers, dentists and dental organizations (DSOs). We are encouraged that specialists accounted for 40% of U.S. laser product sales in 4Q20 and expect the recent launch of the Academy’s Endo and Perio academies to contribute to greater acceptance by ~ 5K endodontists and ~ 5K periodontists in the United States. In addition, BIOL has placed increased emphasis on converting small DSOs (which can implement BIOL technology faster), which we expect to boost 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 BIOL’s unique value proposition, its continued advances in DSO penetration, and its growing grip with dental professionals, we reaffirm our buying rating.” Along with this buying rating, the analyst sets a price. of $ 2, which shows a 165% increase in shares in 2021 (To watch the Vendetti record, click here) The rest of the street seems to be seeing a lot higher. Based on Buys only – 4, in fact – the analyst community rates BIOL as a strong purchase. The average price price reaches $ 1.94 and suggests a potential increase of ~ 157% in the coming months. (See TipRanks BIOL inventory analysis) Fortress Biotech (FBIO) Fortress Bio is a pharmacological research company with a wide range of 28 drug candidates, in various stages of development from preclinical to phase 3. In addition to the pipeline, Fortress has six approved medicines on the market for various dermatological conditions, including acne, skin fungal infections and burns and other superficial wounds. These drugs are marketed by Journey Medical, a partner company of Fortress, and in 2020 net revenue of $ 44.5 million. This compares well – 28% – to $ 34.9 million n netted in 2019. The fortress ended 2020 with a stable monetary position with $ 235 million in cash and cash equivalents. This increased by $ 15 million compared to the third quarter and increased by 53% on an annual basis. The company noted that these positive results came even when the COVID pandemic affected both supply and sales. In the future, Fortress expects to add two new approved prescription products to its range in 2021. In another program update, Fortress has partnered with Cyprium Therapeutics and Sentynl Therapeutics on CUTX-101. Both companies have signed an agreement to develop and purchase assets for the applicant for a drug that treats Menkes’ disease, which is currently in phase 3 clinical trials. The company reported positive clinical efficacy results last August, including median survival in the early treatment cohort of 14.8 years, compared with 1.3 years for the untreated historical control cohort. In 2H21, Fortress will begin filing an NDA for CUTX-101. Covering this stock for B. Riley, 5-star analyst Mayank Mamtani notes the company’s fundamental stability. “FBIO’s differentiated business model, comprising a diversified portfolio of marketed products and clinical candidates, remains resilient to the challenges posed by the C-19 pandemic, thus creating a favorable precedent for numerous regulatory, clinical data and inflection points. balance sheet expected over the next few quarters, serving as opportunities for revaluation of shares, “wrote Mamtani. To that end, Mamtani is valuing the FBIO for a purchase, and its price tag of $ 10 suggests there is room for ~ 100% up over the next 12 months. (To watch Mamtani’s record, click here) Overall, Fortress Bio has 4 recorded reviews and everyone should buy, giving the stock a strong rating for a strong purchase. Shares of FBIO are valued at $ 4.48, and their target for an average price of $ 13 implies a one-year growth of 190%. (See FBIO stock analysis for TipRanks.) To find good penny ideas that are traded at attractive rates, visit TipRanks, the Best Buy Stock, a recently launched tool that brings together all the insights into TipRanks ownership. Disclaimer: The views expressed in this article are those of the analysts only. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.