These 2 penny stocks could rise by over 300%, according to analysts
Risk and reward often go hand in hand, which makes the stock market both lucrative and dangerous. The best examples of this axiom include the penny stocks, stocks priced at $ 5 or less. With this low price comes the potential for extreme profits, as even a small incremental price increase will result in a high percentage profit. JPMorgan’s small and midcap equity strategy leader Eduardo Lecubarri sees both the opportunities and the dangers in the current market environment – and the great potential of small-cap stocks that have room to run. “The first quarter could be difficult given the strong gains since November and the fact that valuations are at all-time highs. However, the outlook for the year is encouraging given the much stronger fundamental tailwind. Such a positive backdrop should lead investors to chase the few stocks that are still offering a big upside rebound as they appear to have started doing so since the start of the year. For this reason we encourage investors to build their portfolios now and look through things in the event of a period of consolidation in the first quarter, ”wrote Lecubarri. With the risk in mind, we used TipRanks’ database to produce compelling results on bargain penny stocks. The platform led us to two tickers with “Strong Buy” consensus ratings from the analyst community. Not to mention significant upside potential. According to analysts, we are talking about a return of at least 300% over the next 12 months. AcelRx Pharmaceuticals (ACRX) opioids have made headlines for the wrong reasons in recent years. These powerful pain relievers are also dangerously addicting – a factor that led to the opioid epidemic in the United States. AcelRx is a pharmaceutical company dedicated to developing safe treatments for acute pain, developing synthetic opioid drugs for sublingual (under the tongue) dosing. The company’s lead product, sufentanil, was approved by the FDA under the name Dsuvia in 2018 and by the EU as Dzuveo in the same year. A second sublingual sufentanil system under the name Zalviso has also been approved for use by the EU and is in the US phase 3 study. In its latest earnings report, the company reported $ 1.4 million in revenue from product sales of $ 1.3 million. Sales increased 433% sequentially and total sales increased 133% year over year. With that in mind, several members of the street believe that ACRX’s $ 1.40 stock price looks like a bargain. Cantor analyst Brandon Folkes is optimistic about Dsuvia’s prospects as an alternative to current opioid treatments and he believes the potential will boost the company’s stock. “With the introduction of Dsuvia, we believe that investors can now shift their focus to introducing metrics and maximizing the sales potential for the product. With ACRX launching a real alternative to IV opioids, we expect investors to start appreciating the value of the product. We believe that Dsuvia offers an advance in providing adequate pain management by eliminating the need for an invasive and time consuming IV facility in the emergency room, as well as an outpatient or postoperative facility. Although hospitals will take some time to roll out, we expect the Dsuvia launch to push revenue above current estimates of the street, which in turn could cause the stock to rise from current levels, ”said Follk. In keeping with its bullish stance, Folkes rates ACRX A Buy and its target price of $ 9 imply room for a staggering upside of 552% over the next 12 months. (To see Folkes’ track record, click here.) Turning to the rest of the street, there have been 3 buys and no holds or sells posted in the past three months. As a result, ACRX has a strong buy consensus rating. Based on the average target price of $ 7, stocks could rise 407% over the next year. (See ACRX stock analysis on TipRanks) NuCana (NCNA) NuCana is a biopharmaceutical company focused on new cancer treatments. The company’s goal is to provide effective treatments for biliary, breast, colon, ovarian and pancreatic cancers while avoiding the complications and side effects of current chemotherapy treatments. NuCana is using a phosphoramidate chemical technology called ProTide to develop a class of drugs that overcome the limitations of the existing nucleotide analogues behind many chemotherapy drugs. NuCanas ProTides have already been used in Gilead’s antiviral drug Sovaldi. In May of last year, NuCana announced the restart of its Phase III study of Acelarin, the drug candidate furthest down the company’s pipeline, for the treatment of biliary tract cancer. The study includes over 800 patients in 6 countries and is currently ongoing. In November, the company released data labeled “encouraging” from the Phase Ib study of the same drug. While Acelarin is the flagship in the pipeline, NuCana has two more prospects in development. NUC-3373 is in the Phase I trial for the treatment of solid tumors and colorectal cancer, and NUC-7738 is a second route of investigation for applications in advanced solid tumors. Of these three, the colorectal study is the most advanced. Robyn Karnauskas, Truist’s 5-Star Analyst, sees the pipeline as the key to NuCana’s investor potential: “We believe investors have overlooked the fact that NCNA is a platform company that we believe is validated, as defined by the manufacture of clinical products. We think it’s good that 3 products have been brought into the clinic, including a novel drug and two improved cornerstone chemos. The data suggests that the platform works and can produce better chemos […] While investors are primarily focused on Acelarin, we believe investors should also focus on NUC-3373, which is another core of our platform-based thesis, which is expected to have data in 1H2021, ”said Karnauskas. To that end, Karnauskas sets a price target of $ 22 on NCNA, which suggests the stock, along with a buy rating, still has 384% growth ahead of it. (To see Karnauskas’ track record, click here.) Overall, NCNA’s consensus rating for strong buy is unanimous based on 4 recent ratings. The stocks have an average target price of $ 17.33, indicating a year-long upward movement of 270% from the current trading price of $ 4.69. (See NCNA 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.