2 “Strong Buy” Penny Stocks That Could See Outrageous Gains
Well, it’s official. Joe Biden is now president, and he will be backed – at least in the short term – by Democratic majorities in both houses of Congress. Wall Street is taking the measure of the new administration and seeing, among its first steps, a fiscal stimulus that could lower consumer spending, boost corporate profits and provide general economic support in the first half of 2021. Goldman Sachs is investment strategist David Kostin, optimistic about the short-term outlook for fiscal stimulus. In light of this, Kostin sets Goldman’s outlook for this year at 6.4% GDP growth; he sees continued high growth next year and sets the forecast for 2022 at 4%. These outlook figures are up from the 5.9% and 3.7% previously published. To that end, Kostin predicts that the S&P 500 will reach 4,300 by the end of the year, which would represent a gain of 12% from current levels. “Elections have consequences. Democratic control of Washington, DC after January 20 will result in higher budget spending, faster GDP growth, more inflation, and higher interest rates than we previously assumed, ”Kostin noted. . With markets on the rise, investors are looking for stocks that are ready for gains. Penny’s stocks, stocks valued at less than $ 5 a share, are a natural place to look for potential winners. Their low price means that even a small extra payout will translate into big percentages. However, before jumping straight into a penny investment, Wall Street pros advise looking at the big picture and considering other factors beyond just price. For some names that fall into this category, you really get what you pay for, offering little prospect of long-term growth thanks to weak fundamentals, recent headwinds, or even a large number of shares outstanding. With the risk in mind, we used TipRanks’ database to find compelling penny stocks with great price tags. The platform directed us to two tickers with market prices below $ 5 and consensus ratings of “Strong Buy” from the analyst community. Not to mention a substantial upside potential on the table. AzurRx BioPharma (AZRX) We will start with a company specializing in gastrointestinal diseases, AzurRx. This company focuses on the creation of recombinant, non-systemic and targeted therapies for gastrointestinal conditions. AzurRx has a pipeline of three drug candidates, at several levels of the development process. The key pipeline candidate, MS1819, is being investigated as a treatment for pancreatic exocrine insufficiency in patients also with cystic fibrosis. MS1819 is a recombinant lipase, derived from a strain of yeast. The drug is designed to target fat molecules in the digestive tract, allowing patients to absorb broken down fats for their nutritional value. The drug is currently in phase 2 trials, with completion expected in the first half of this year. Since January 21, the first two patients in the phase 2b OPTION 2 extension study have received treatment and the Data Monitoring Committee (DMC) “continues to support the program”. In another important development, AzurRx announced earlier this month that it was entering a partnership with First Wave Bio to study the oral and rectal formulation of Niclosamide to treat colitis associated with immune checkpoint inhibitors (HERE- AC) and gastrointestinal infections linked to COVID-19. The estimated market for niclosamide as a treatment for gastrointestinal problems related to COVID exceeds $ 450 million. Based on several …
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