2 penny stocks with a strong buy and a plus of over 200% on the horizon
Let’s talk about the risk and the bigger picture. It is a fair time as the great risk posed by the COVID-19 pandemic is finally receding thanks to the ongoing vaccination program. COVID leaves an economy that was forced to stall a year ago during a major expansion fueled by deregulation policies. While the new Biden administration is busy reversing many Trump policies, the economy is recovering, at least for now. And that puts us at risk. A period of economic growth and recovery is a forgiving time for venture investing as overall economic growth tends to lift everything up. Two JPMorgan strategists recently got in touch, arguing that market fundamentals are still solid and that the small to mid-cap sector will continue to rise. Initially, on the general terms and conditions, quant strategist Dubravko Lakos-Bujas wrote: “Although the recent technical sell-off and short squeeze are getting a lot of attention, we believe the positive macro setup, improvement in fundamentals and COVID-19 outlook is the strength the US are consumers and reflation remains the bigger forces at work. This should not only drive the share capital higher, but it also remains favorable for a further rotation towards economic reopening … ”Building on this, Eduardo Lecubarr, head of the small / mid-cap strategy team, now sees opportunities for investors, especially with regard to this on the lesser value stocks. “We hold to our view that if you are willing to go against the grain, 2021 will be a stock picker paradise with great money making opportunities … Many macro indicators fell in January, but SMid caps and stocks are in General continued to rise. ” Lecubarr noticed. And if you tend to look at risky small to mid-cap stocks, penny stocks will attract you. The risk associated with these games puts the faint of heart off, as very real issues such as weak fundamentals or overwhelming headwinds could be masked by the low stock prices. How should investors approach a potential penny stock investment? By aligning with the analyst community. These experts bring in-depth knowledge of the industries they cover and extensive experience. With that in mind, according to Wall Street analysts, we used TipRanks’ database to find two compelling penny stocks. Both tickers have a strong buy consensus rating and could rise by over 200% in the coming year. CNS Pharmaceuticals (CNSP) We’re starting out with CNS Pharmaceuticals, a biotechnology company focused on the treatment of glioblastoma, a class of aggressive tumors that attack the plexus and spinal cord. These cancers are rare, but almost always fatal, and the CNS is working on a new therapy that will help cross the blood-brain barrier more effectively to attack glioblastoma. The CNS’s flagship drug candidate, berubicin, is an anthracycline, a potent class of chemotherapy drugs derived from strains of Streptomyces bacteria that are used to treat a wide variety of cancers. Berubicin is the first drug in its class to show promise against glioblastoma cancer. The drug candidate has completed its Phase 1 clinical trial, in which 44% of the patients showed a clinical response. This number included one patient who had a “sustained complete response” defined as a demonstrated lack of detectable cancer. Following the success of the Phase 1 study, the CNS applied for and received FDA approval for its application for a new investigational drug. This gives the company the opportunity to conduct a phase 2 study in adult patients. This is an important next step in the development of the drug. CNS plans to start the intermediate trial in the first quarter of 21. Based on the company’s potential for glioblastoma assets and a share price of $ 2.22, several analysts believe now is the time to buy. Among the bulls is Brooklines 5-star analyst Kumaraguru Raja, who is bullish on CNSP stocks. “Previously, the inability of anthracyclines to cross the blood-brain barrier prevented their use in the treatment of brain tumors. Berubicin is the first anthracycline that crosses the blood-brain barrier in adults and has access to brain tumors. Berubicin has promising clinical data in a Phase 1 study in recurrent glioblastoma (rGBM) and has the orphan drug designation from the FDA for the treatment of malignant gliomas. We are modeling berubicin’s approval for the treatment of recurrent glioblastoma in 2025 based on phase 2 data with a 55% chance of success for approval. We anticipate peak sales of $ 533 million in 2032, ”said Raja. The CNS pipeline also includes WP1244 (novel DNA binding agent), which is 500x more effective than daunorubicin in inhibiting tumor cell proliferation. It is expected to come to the clinic in 2021. In vivo testing in orthotopic models of brain tumors showed high brain uptake of WP1244 and subsequent antitumor activity, ”added the analyst. To that end, Raja rates CNSP as a buy and his $ 10 price target implies room for an impressive upside of 350% over the next 12 months. (To see Raja’s track record, click here.) What does the rest of the street have to say? 3 buys and 1 hold results in a strong buy consensus rating. Given the average target price of $ 8.33, stocks could rise ~ 275% over the coming year. (See CNSP stock analysis on TipRanks) aTyr Pharma (LIFE) The next stock we look at, aTyr Pharma, focuses on inflammatory disease. Its lead drug candidate, ATYR1923, is a neuropilin-2 (NRP2) agonist that works on 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 sarcoid. In December, the company reported that the drug candidate had completed enrollment in 36 patients in a Phase 1b / 2a clinical trial testing the drug for the treatment of pulmonary sarcoid. The results of the current study are expected in the third quarter of 21 and will inform further studies on ATYR1923, also against other forms of inflammatory lung diseases. In early January, the company announced the key results of another Phase 2 clinical trial of ATRY1923 – this time in the treatment of patients with severe respiratory disease due to COVID-19. The results were positive and showed that a single dose of ATYR1923 (3 mg / kg) resulted in a mean recovery time of 5.5 days. Overall, 83% of the patients dosed this way recovered in less than a week. The 5-star analyst Zegbeh Jallah reported on LIFE for Roth Capital: “We like the risk profile here with two shots on goal. Updated data from the COVID study are expected in the coming months. It was also recently announced that data from aTyr’s pulmonary sarcoid program will be released in Q3 21. The success of any of these studies could lead to a doubling or more of the market capitalization as these opportunities seem to be barely considered by investors. “Consistent with its bullish approach, Jallah is rating LIFE shares as buy and its target price of $ 15 suggests an impressive upside of 277% for the year ahead. (To view Jallah’s track record, click here.) Other analysts are on the same page. With 2 additional buy reviews, the word is on the street that LIFE is a strong buy. Additionally, the average price target is $ 13.33, which indicates robust growth of ~ 236% from the current price of $ 3.97. (See LIFE 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 analysts presented. 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.