In a recent review of current market conditions, JPMorgan strategist Eduardo Lecubarri summed up his view that 2021 will see moderate gains across stocks in general – but better performance among the small / medium cap sectors. Lecubarri believes that investors can find opportunities for big profits among stocks in this class. Boosting general share gains, Lecubarri pointed to the recent manufacturing PMI report, which is at a 15-year high, and the decline in unemployment – both data points suggest a solid foundation for the economic recovery. With consumer confidence also improving, and saving relatively high, it sees a decline for small / medium cap as the year progresses. The general trend of rising small stocks will naturally encourage analysts and investors to look to ‘pennies,’ stocks that are priced at under $ 5 per share. While not a definite indicator, a low share price usually goes hand in hand with a low market capitalization – but also comes with a solid upside potential as noted by Lecubarri. Before jumping right into penny-stock investing, however, Wall Street experts suggest looking at the bigger picture and considering other factors beyond the price tag. To name a few that fall into this category, you actually get what you pay for, offering few long-term growth prospects thanks to weak fundamentals, recent bottlenecks, or even a large number of shares outstanding. Considering the risks, we used the TipRanks database to find two interesting penny stocks, as determined by Wall Street professionals. Each has earned a “Buy Strong” consensus rating from the analyst community and presents the prospect of massive growth. We’re talking about a 100% upside potential here. Biolase Technology (BIOL) We will start with Biolase Technology, a leading designer, manufacturer and innovator in dental laser technology. Lasers provide many benefits to dentists and their patients, including fewer aerosols and a softer touch during the procedure, and a more comfortable healing afterward. Biolase products are used in periodontal, endodontic, hygienic and implant procedures; the company markets online directly to practice dentistry. Biolase put a positive spin on the recent 4Q20 earnings report. Although top-line revenue of $ 8.52 million fell 16% year-on-year, sequential quarterly gains were impressive, at 31%. The company benefits as the dental clinic returns to work in the 2H20 economic recovery. Biolase reported two positive trends in sales in Q4, with 78% of sales coming from new customers and 40% from dental specialists. Even better, the company provided guidance on Q1 earnings of $ 7.5 – 8.0 million, up 60-70% yoy, and above consensus of $ 7.0 million. Currently moving up to $ 0.76 each, Biolase shares could see big gains, according to some analysts. Among the bulls was analyst Maxim Anthony Vendetti who noted that the company’s positives in Q4 were not just spinning. “While the international market continues to lag behind the US in the COVID-19 recovery, BIOL delivered significant sequential revenue growth in the second straight quarter, driven by US sales to new customers, dental specialists and Dental Service Organization (DSO) specialists comprising 40%. of the company’s US laser sales in 4Q20, and expects the recent launch of the company’s Endo Academy and Perio to contribute to increased adoption by ~ 5K endodontists and ~ 5K periodontists in the US In addition, BIOL has placed increased emphasis on small DSO conversions ( who could adopt BIOL technology more quickly), which we expect could increase short-term earnings as companies make progress in converting larger DSOs, such as Heartland Dental (private), “the 5-star analyst argues. Vendetti concludes, “Based on the unique value proposition of BIOL products, continuous advances in DSO penetration, and its growing appeal with dental specialists, we are reiterating our Buy rankings.” Alongside the Buy rankings, the analyst set a $ 2 price target indicating 165% growth for the stock in 2021. (To see Vendetti’s track record, click here) It seems that the whole Way also saw a lot of gains.just – 4, in fact – the analyst community rate BIOL with Strong Buying. Average target price is up to $ 1.94, and implies a ~ 157% potential increase over the coming months. (See BIOL stock analysis on TipRanks) Fortress Biotech (FBIO) Fortress Bio is a pharmacological research firm with 28 candidate drugs, in various stages of development from preclinical testing to phase 3. Apart from the pipeline, Fortress has six drugs approved in the market for a variety of dermatological conditions including acne, fungal skin infections, and burns and other surface wounds. by Journey Medical, a Fortress partner company, and generated $ 44.5 million in net revenue in 2020. These numbers are compared – up 28% – with $ 34.9 million netted in 2019. Fortress ended 2020 on a good cash basis, holding $ 235 million in cash and cash equivalents. This is up $ 15 million from Q3, and is up 53% year-on-year. The company noted that these positive results came even as the COVID pandemic affected supply and sales. Going forward, Fortress hopes to add two new approved prescription products to its lineup by 2021. In another program update, Fortress is partnering with Cyprium Therapeutics and Sentynl Therapeutics on CUTX-101. The two companies have signed an Asset Purchase and Development agreement for the drug candidate, a treatment for the Menkes disease 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 years. 8 years, compared with 1.3 years for the untreated historical control cohort. In 2H21, Fortress will begin shipping the NDA for the CUTX-101 on a rolling basis. Covering this stock for B. Riley, 5 star analyst Mayank Mamtani noted the fundamental health of the company. “The differentiated FBIO business model, comprising a diverse portfolio of marketed products and clinical stage candidates, remains resilient amid the challenges posed by the C-19 pandemic, thus preparing well in advance of the various regulations, clinical data, and balance sheet change points anticipated during the next few quarters serve as opportunities to revaluate stocks, “Mamtani wrote. To this end, Mamtani rated FBIO as Buy, and its $ 10 price target shows that it has room for ~ 100% increase in the next 12 months. (To see Mamtani’s track record, click here) Overall, Fortress Bio has a record of 4 reviews, and all of them should be a Buy, giving the stock a Strong Buy consensus rating. FBIO shares are priced at $ 4.48, and their $ 13 median target price implies a one-year increase of 190%. (Check out FBIO stock analysis at TipRanks) To find great ideas for trading penny stocks with an eye-catching rating, visit TipRanks ‘Best Stocks to Buy, a recently launched tool that brings together all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are those of top analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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