2 ‘Strong Buy’ stocks are too cheap to ignore

At least the current economic situation is tumultuous for investors. From the threat of a recession to high inflation, current market conditions mean that it is increasingly difficult for investors to predict what will happen next.

Still, Wall Street analysts are up to the task, and from BMO, chief investment strategist Brian Belski noted a number of key factors investors will need to consider.

First, in Belski’s view, the fact that bear markets often end in recessions and not after, and second, recession indicators are often lagging indicators. All in all, this means we probably won’t know exactly when a drop will end when it happens, but only a few months later. For Belski, this means that investors need to start preparing now for the return of bull market conditions.

“It is safe to say that the current tightening cycle is coming to an end, which has previously been a positive sign for US equity activity,” Belski commented.

So, let’s find some stocks that are likely to go up in price. use TipRanks database, we’ve identified two that have both low prices today – and solid upside potential next year. Not to mention each stock has received a “Strong Buy” consensus rating from the analyst community. Let’s dive in and find out what drives that lead.

international shock (TRMR)

The first is Tremor International, an ad technology company that provides users with a platform optimized for video, data, and CTV capabilities. The company focuses on providing end-to-end solutions in the world of video advertising. Tremor has a global reach and is rapidly expanding its footprint in the area of ​​connected TV.

Digital advertising has faced severe headwinds due to increasingly high and persistent inflation over the past two years. Advertisers have had to cut costs in the face of rising costs and have pulled back on their advertising budgets; Companies like Tremor are already feeling the impact. While we won’t see Tremor’s latest financial results until next week, when it reports Q4 22, we can look back at Q3 and see how the company has grown.

In the top and bottom lines, Tremor reported a drop. Revenue fell 19% year-over-year, to $70.1 million, while adjusted earnings came in at $30.1 million — down 28% year-over-year. That’s bad news headlines. On a positive note, the company maintained a strong margin in Q3 FY22, with an adjusted EBITDA margin of 43%. Tremor also has a large wallet, reporting a net cash position of $109.1 million as of September 30 of last year.

Sliding sales and earnings aren’t the only stories here, however. Last summer, with inflation soaring and corporate earnings dwindling, Tremor was confident enough to acquire the competitive global advertising platform, Amobee. The move, a strategic acquisition that combines Tremor and Amobee’s assets into one of the market’s largest CTV and video ad platforms, is valued at $239 million.

Also last summer, Tremor closed an investment in VIDAA, a smart TV operating system and streaming platform. Tremor’s move is a $25 million equity investment in VIDAA, financed by cash sources.

The story here is a company that is facing headwinds, but has the ability to survive tough times. Overall, over the past 12 months, Tremor’s stock has fallen 49%.

The vibration has been attracting positive attention from Wall Street analysts, who see the low price level as an attractive entry point.

Among the bulls is Lake Street analyst Eric Martinuzzi, who writes: “After a difficult 2022, as demand for Tremor International’s advertising services shrank and earnings dwindled. , we believe recent events will bring the company back to growth… We believe the company is on a sustainable growth path and expect the valuation gap to close as investors overestimate the possibility of price increases.

Ultimately, Martinuzzi rates Tremor stock as a Buy, while his $12 price target implies a 54% one-year gain for the stock. (To see Martinuzzi’s achievements, click here)

The Lake Street view isn’t the only bullish trend – there are three recent analyst reviews hosted here, and all positive, for the Strong Buy consensus rating. The stock is trading for $7.77 and an average price target of $12.33 suggests ~59% upside over the next 12 months. (See TRMR . stock forecast)

Nurix therapy (NRIX)

Next up is Nurix Therapeutics, a biopharmaceutical company currently in clinical trials. Nurix has a system of drug candidates designed to act on proteins, either through targeted proteolysis or through the reverse increase of the target protein. The company’s small molecule therapeutic agents are being studied for use in a variety of cancers; The company is currently conducting several Phase 1 clinical trials and several additional programs in preclinical testing.

Phase 1 clinical trials feature two leading drug candidates from the protein attenuator category, NX-2127 and NX-5948. The first of these studies, 2127, is the subject of a Phase 1a/1b clinical study in the treatment of adults with recurrent or persistent B-cell malignancies and is expected to have Clinical update from this study in 2H23. The company is also looking to define a regulatory strategy for this drug candidate, based on FDA feedback.

The second program, 5948, is also in Phase 1 for the treatment of adults with recurrent or persistent B-cell malignancies; however, the therapeutic action of the drug candidate differs from that of 2127 due to the lack of brain immunomodulatory activity. Data will be available from the Phase 1a section of this study in 2H23. Also later this year, Nurix is ​​expected to determine a dosage for the Phase 1b group of this program.

Also this year, Nurix is ​​expected to move another drug candidate from preclinical to clinical trials. And ultimately, the company hopes to hit many milestones in partnership deals with Sanofi and Gilead, which will boost the company’s bottom line.

All that said, we should note that the past 12 months have seen Nurix’s stock drop 46%. Still, in the view of Baird analyst Joel Beatty, this makes for an attractive stock. With a low price and more catalysts to come.

“We consider NRIX to be an attractively priced source of protein preparation platform, with strong scientific validation for its stage of development. We believe that clinical data updates in the second half of 2023 for each of the top three clinical programs will offer compelling risks/rewards… additional milestones will help provide support for the floor value in 2023 and add undiluted funds to expand the company’s cash runway operations,” Beatty said.

Specifically, this complements Beatty’s Outperform (i.e. Buy) rating and $31 price target that shows a strong one-year upside potential of 256 percent. (To see Beatty’s achievements, click here)

Overall, all 8 recent analyst reviews of this stock have been positive, leading to a consensus rating of Buy Strong. Nurix shares are priced at $8.7 and the median price target, currently at $33.75, is even higher than Beatty allows, implying a potential ~288% upside over the next year. (See nurix stock forecast)

To find great ideas for trading stocks at attractive valuations, visit TipRanks’ Best stocks to buyone tool that unifies all of TipRanks’ equity insights.

deny the responsibility: The opinions expressed in this article are those of prominent analysts only. Content is used for informational purposes only. It is very important that you do your own analysis before making any investment.


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