We are currently in a volatile bear market, and the key mystery investors need to answer as to which stocks will deliver the best returns, even under today’s uncertain conditions. One market segment not to be missed is low-priced penny stocks. These stocks, often valued at under $5 per share, offer the best combination of risk and reward: minimal input costs and often triple-digit upside potential.
Going beyond the argument that you make more money, even a slight increase in price can lead to a large percentage gain. However, some investors want to avoid these stocks entirely, as the fact that the stock is trading at such a severe level could signal insurmountable difficulties or fundamental factors.
The key here is to find the difference between penny stocks that are undervalued because of poor fundamentals and those that are undervalued by bad luck or simple prevailing market conditions.
To help with the due diligence process, we used TipRanks database focus only on penny stocks that have received bullish support from the analyst community. We found two indicators supported by enough analysts to achieve a consensus rating of “Strong Buy”. Not to mention each offers great upside potential, as some analysts see them climbing to $14 or so.
Biotechnology PDS (PDSB)
The first coin stock we’ll be looking at is PDS Biotechnology, a biology company specializing in immuno-oncology that is working on new ways to ‘train’ a patient’s own immune system to attack. malignant tumors. The company’s Versamune platform, a proprietary technology, uses CD8+ killer T cells to attack cancer growth. This is a more powerful type of T cell that is normally activated by immune cancer treatments and is designed to overwhelm the ability of T cells to evade or block attacks. applications in the treatment of infectious diseases, which the company is pursuing using its second proprietary platform, Infectimune.
PDS currently has a leading drug candidate, PDS0101, which is being tested at the clinical stage as a combination therapy against several cancers. The main drug used in combination with PDS0101 is Merck’s Keytruda; PDS has just completed a phase 2 trial of this combination against HPV16-positive head and neck squamous cell carcinoma (HNSCC), and has another Phase 2 trial of the combination This approach is continuing against many other HPV-positive cancers, including pre-metastatic HPV-associated oropharyngeal cancer (OPSCC).
During the first mention, PDS recently announced a successful end-of-phase 2 meeting with the FDA, paving the way for additional clinical trials of the PDS0101/Keytruda combination against HNSCC. The company is preparing for a registration trial to follow up on the success of the Phase 2 study. The treatment combination was FDA-approved for Fast Track earlier this year.
“We believe this is good news and move the opportunity for PDS0101 forward,” analyst Cantor Louise Chen noted. “Instruction received from the FDA on clinical key factors will support the submission of a Biological Licensing Application (BLA) for the PDSB’s key asset, PDS0101. Interim data on safety and efficacy that are not available from the FDA. The PDSB presented to the FDA has allowed the company to move to a pre-registration trial ahead of its scheduled schedule.”
As a second step, against other HPV-related cancers, the company recently released positive interim data from a Phase 2 study conducted in conjunction with the Cancer Research Center at the National Institutes of Health. National Cancer. The interim data, based on 37 patients, are consistent with previous studies showing potential efficacy of PDS0101/Keytruda in the treatment of HPV-positive cancer.
“In our view, the extensive interim data continue to show clinical signs of efficacy, durability, and safety in CPI-refractory patients who do not have an accepted standard of care. favorable,” added Chen.
Finally, PDS is also pursuing its cornerstone technology in the field of infectious diseases, where a second drug candidate, PDS0202, is being studied as a potential universal flu vaccine. In the final update to this track, preclinical data shows progress in creating an effective vaccine treatment.
Given the company’s positive clinical progress, Chen rates PDSB stock as Overweight, with a $25 price target showing a strong one-year gain of 505%. (To see Chen’s achievements, click here)
Overall, the PDSB receives a Strong Buy consensus rating, based on 5 recently posted positive analyst reviews. The stock is currently trading at $4.04 and their $18 average price target implies a ~345% gain over the next year. (View PDSB stock forecast on TipRanks)
Apyx Medical Corporation (APYX)
Next up is another company in healthcare – but in a different niche. Apyx Medical has developed a helium-based plastic surgery technology, for use in skin tightening on and around the face. Apyx’s Renuvion is the only device approved by the FDA for cosmetic use in the sagging skin of the neck and chin. Advanced technology that combines helium plasma with RF energy enables high precision in cosmetic surgery procedures.
Apyx has actively pursued additional FDA regulations, and earlier this year announced that the Renuvion device was being used for dermatological resurfacing procedures involving the treatment of fine lines and wrinkles. severe, although limited to patients with certain specific skin types. The company is moving to ramp up these payments-based marketing activities, which it estimates could expand its patient base to more than 200,000.
Like many other advanced technology companies, Apyx typically has a net loss and can have fluctuating revenue results from quarter to quarter. The company’s most recent financial statement, for the second quarter of 2012, proves it. Revenue of $10.3 million was down 8% year-on-year and down 38% from the peak value of $16.8 million reached in the fourth quarter of 21. At the same time, the company’s OEM revenue grew 55 % to $1.9 million. The net loss for the quarter was $5.4 million, which translates to an EPS loss of 16 cents per share. EPS loss increased by 33% compared to the previous quarter.
Although the company is struggling to gain traction, JMP analyst David Turkaly see this more in the nature of ‘growing pain’ for a new and expanding tech company. He recently wrote about Apyx: “We continue to see Renuvion as a distinct helium-based plasma technology that can significantly save time and deliver superior clinical results in several surgical markets. great aesthetic art, highly developed. Additionally, with ~$20 million in cash, Apyx must have sufficient capital to: 1) support ongoing management efforts; 2) increasing its international footprint; 3) strengthen physician support and practice worldwide (through surgeon education) to drive adoption; and 4) margin expansion (both gross and operating, with margins previously driven by significant capital and segmentation improvements). “
Going forward, Turkaly added, “For the remainder of the year, APYX will focus on fully commercializing its two new clinical indications by year-end. Both indications bring up 200,000 potential procedures in the US, which the company will begin marketing to drive growth. “
Taking all of this together, Turkaly sees reason for an Outperform (i.e. Buy) rating on the stock and his price target of $13 implies strong upside potential over a year. is ~215%. (To see Turkaly’s achievements, click here)
Now turning to the rest of the Street, other analysts are on the same page. With 5 Buys and no Hold or Sell, the word on the Street is APYX is Strong Buy. The stock is currently trading for $4.12 and has an average target price of $14.75, indicating a one-year gain of 258%. (View APYX stock forecast at TipRanks.)
To find good ideas for trading penny stocks at attractive valuations, visit TipRanks ”Top Penny Stocks to Watch’ Page.
Disclaimer: The opinions expressed in this article are those of prominent analysts only. Content is used for informational purposes only. It is very important to do your own analysis before making any investments.
