2 penny stocks with strong buy that could make 100% profit (or more)
In a recent review of current market conditions, JPMorgan strategist Eduardo Lecubarri sums up his view that stocks will generally see modest gains in 2021 – albeit outperforming the small / mid-cap sector. Lecubarri believes investors can find opportunities for a big uptrend in stocks in this class. Lecubarri is driving general inventory gains, citing recent manufacturing PMI pressures, which are at a 15-year high, as well as falling unemployment – both data points suggest solid foundations for economic recovery. In view of the rising consumer confidence and the relatively high savings, he sees tailwind for small / mid-cap companies in the course of the year. Of course, a general trend of rising small cap stocks should lead analysts and investors to look at the “Pennies” stocks, which are priced below $ 5 per share. While this is not a sure indicator, a low stock price usually comes with a low market cap – but it also brings with it the solid upside potential that Lecubarri mentions. Before Wall Street pros directly invest in a penny stock investment, however, they 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 with little long-term growth prospects due to weak fundamentals, recent headwinds, or even large stocks outstanding. With the risk in mind, we used TipRanks’ database to find two compelling penny stocks identified by Wall Street pros. Each has received a consensus rating of “Strong Buy” from the analyst community, bringing massive growth prospects to the table. We’re talking about 100% upside potential here. Biolase Technology (BIOL) We start with Biolase Technology, a leading designer, manufacturer and innovator in dental laser technology. Lasers offer dentists and their patients a number of benefits, including fewer aerosols and a gentler touch during the procedure, and more comfortable healing afterwards. Biolase products are used in periodontal, endodontic, hygienic and implantation procedures. The company markets online direct to dental offices. Biolase positively assessed its most recent fourth quarter 20 earnings report. Although revenue was down 16% year over year from $ 8.52 million, sequential quarterly earnings were impressive at 31%. The company benefited as dental clinics resumed the 2H20 economic recovery. Biolase saw two positive sales trends in the fourth quarter: 78% of sales came from new customers and 40% from dentists. Even better, the company released a first quarter revenue forecast of $ 7.5-8.0 million, a 60-70% year-over-year increase and a consensus of $ 7.0 million. Biolase shares, which currently cost $ 0.76 apiece, could see significant gains, according to some analysts. Among the bulls is Maxim analyst Anthony Vendetti, who noted that the company’s positive fourth-quarter results weren’t entirely due to Spin. “While the international market continues to lag the US in terms of the COVID recovery, BIOL delivered significant sequential revenue growth for the second straight quarter, driven by US sales to new customers, dentist specialists and dental service organizations (DSOs) The Specialists accounted for 40% of the company’s US laser sales in the fourth quarter of 20 and believe the company’s recent introduction of the Endo and Perio Academy will result in increased acceptance among ~ 5K endodontists and ~ 5K periodontists in The US will increase its focus on converting small DSOs (which can adopt BIOL technology more quickly), which we anticipate moving into in the short term as the company makes progress in converting larger DSOs such as Heartland Dental (private), “said 5 Star analyst. Vendetti summarized: “Based on the unique value proposition of BIOL products, continued advances in penetration of DSOs and increasing traction among dentists, we reiterate our recommendation to buy.” Along with this buy recommendation, the analyst sets a price target of USD 2, which indicates a share growth of 165% for the year 2021. (To see Vendetti’s track record, click here.) The rest of the street also sees plenty of upside potential. Based on only purchases – 4, in fact – the analyst community rates BIOL as a strong buy. The average target price is USD 1.94 and implies a potential increase of ~ 157% in the coming months. (See BIOL stock analysis on TipRanks) Fortress Biotech (FBIO) Fortress Bio is a pharmacological research company with a broad pipeline of 28 drug candidates in various stages of development from preclinical to phase 3 studies. In addition to the pipeline, Fortress has six approved drugs for a wide variety of dermatological conditions, including acne, skin fungal infections, burns and other surface wounds. These drugs are marketed by Journey Medical, Fortress’ partner company, and had net sales of $ 44.5 million in 2020. That’s up 28% over $ 34.9 million. Fortress ended 2020 with a solid cash position holding $ 235 million in cash. This is an increase of $ 15 million from the third quarter and an increase of 53% year over year. The company found that these positive results were achieved even when the COVID pandemic affected both supply and sales. Looking ahead, Fortress expects to add two new approved prescription products to its range in 2021. In another program update, Fortress is working with Cyprium Therapeutics and Sentynl Therapeutics on CUTX-101. Both companies have signed a development and purchase agreement for the drug candidate, a treatment for Menkes disease that is currently in phase 3 clinical trials. The company reported positive clinical efficacy results last August, including medial survival in the early treatment cohort of 14.8 years compared to 1.3 years in the untreated historical control cohort. In 2H21, Fortress will begin ongoing NDA filing for CUTX-101. 5-star analyst Mayank Mamtani covers this stock for B. Riley, pointing to the company’s fundamental solidity. “The FBIO’s differentiated business model, comprised of a diversified portfolio of marketed products and clinical-stage candidates, remains stable in the face of the challenges posed by the C-19 pandemic and is anticipated in the run-up to numerous regulatory, clinical and accounting turning points that are expected , well positioned The next few quarters served as an opportunity to re-evaluate the stock, “Mamtani wrote. To that end, Mamtani is rating the FBIO as a buy, and its target price of $ 10 suggests there is room for ~ 100% upside over the next 12 months. (To see Mamtani’s track record, click here.) In total, Fortress Bio has 4 ratings on record, and all of them are for sale, giving the stock a strong buy consensus rating. FBIO stock is priced at $ 4.48, and their average price target of $ 13 implies an uptrend of 190% for a year. (See FBIO stock analysis on TipRanks.) To find great ideas for 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. Disclaimer: The opinions expressed in this article are solely those of the presented analysts. The content is intended to be used for informational purposes only. It is very important that you do your own analysis before making any investment.