3 Shares traded at very low prices; Analysts say ‘buy’
Investing is all about profits, and part of generating profits is knowing when to start the game. The old saying goes to buy low and sell high, and although it is tempting to ignore it. clichés like this, they have passed into the common currency because they embody a fundamental truth. Buying at a low price is always a good start in building a portfolio. The trick, however, is to recognize the right actions to buy low. Prices go down for a reason, and sometimes that reason is a fundamental flaw. Thankfully, Wall Streets analysts are busy separating the wheat from the chaff among low-priced stocks in the market, and some top stock market experts have marked several stocks for big gains. We used the TipRanks database to extract data and reviews from three stocks that are currently low in price, but may be poised to make gains. They have received positive reviews and, despite their stock depreciating, they hold buy ratings and show upside potential of over 80%. Vapotherm, Inc. (VAPO) First and foremost, Vapotherm is a medical device manufacturer specializing in heated, humidified, high-flow nasal cannulas. These are therapeutic breathing aids designed to deliver oxygenated air directly to the patient’s nose. Heating and humidifying the air reduces the discomfort of delivering dry oxygen. As you would expect, during a respiratory illness pandemic, Vapotherm has seen strong sales in recent months – but the share price has retreated since early February. Paradoxically, the two events are linked. First, on the bright side, Vapotherm’s 1Q21 financial results have been strong. The company’s revenue, at $ 32.3 million, grew 69% year-over-year, and worldwide, Precision Flow base unit installations grew by 73% during the same period. The company’s net loss in the quarter of $ 5.2 million was an improvement over the loss of $ 10.2 million in the quarter last year. On the negative side, VAPO shares are down from their early February high. The drop is substantial; the stock is down 50% from its peak and 34% since the start of the year. The decline in the share’s value reflects fears that the company’s flagship is oversold, that customers, fearing COVID-related respiratory emergencies, have bought more units than they would need in ordinary times. This is the case presented by Jason Bednar, analyst at Piper Sandler. “Stocks have been significantly underperforming since early February as many investors questioned the dynamics of using the bolus of Precision Flow systems that were sold to hospitals last year … We understand the logic here, especially for investors with a shorter time horizon, but with much of this concern seemingly already reflected in the stock at current levels, we believe the upside opportunity significantly outweighs the risk of a further decline, ”noted Bednar. The analyst added, “We also believe that investors who wait for usage trends to bottom out will end up missing an initial upward movement that could occur as HVT 2.0 starts contributing with a later rollout this. year and as 2022 begins to take a more defined form (especially EMS and home care). To that end, Bednar rates VAPO an overweight (i.e. buy), and its price target of $ 32 implies a sharp rise of 81% in the coming year. (To see the track record of Bednar, click here) Overall, the unanimous Strong Buy consensus rating on this stock, backed by 4 recent analyst reviews, makes it clear that Bednar is not the only one with a bullish outlook. average price here, $ 39, is even more bullish, suggesting a rise of around 122% from the current price of $ 17.65. (See VAPO market analysis on TipRanks) Emergent Biosolutions (EBS) The next stock that we are reviewing, Emergent, is a biopharmaceutical company that has several products on the market, including a NARCAN nasal spray for use on opioid overdose patients and vaccines against smallpox, anthrax and other diseases. Emerging’s development pipeline includes a pediatric cholera vaccine, Vaxchora, currently in a phase III trial. Several programs, including an anthrax vaccine candidate, a chikungunya vaccine and a seasonal influenza vaccine, have all completed phase II and are in preparation for phase III. One of Emerging’s most important programs is its contract development and manufacturing service, a service extended to other pharmaceutical companies for the manufacture of vaccines they have developed. As part of a CDMO plan, Emergent is part of Johnson & Johnson’s production line for a COVID-19 vaccine. The latter is a key point. The J&J vaccine has been linked – at least in some reports – to serious adverse events, particularly blood clots in otherwise healthy recipients. This resulted in a suspension of the manufacture of the vaccine and, consequently, a delay in receiving payments from J&J. Which, in turn, impacted the company’s financial results in 1Q21, resulting in lower than expected revenue and profit. Investors are worried and the stock has fallen 33% since the start of the year. Despite the setback, benchmark analyst Robert Wasserman maintains a buy rating on EBS shares, along with a price target of $ 120. If correct, the analyst’s target could generate one-year returns of 101%. (To see Wasserman’s track record, click here) “EBS remains solidly profitable, and even with lower expectations for J&N and AZ vaccine contracts, is expected to post solid revenue growth for this year. These stocks remain a good deal. in our CDMO / bioprocessing group and could offer a significant advantage for value-oriented investors if circumstances change or if new business can be obtained in the short term, “Wasserman said. Overall, the street currently has cautiously bullish outlook for the stock. Analyst consensus rates EBS as a moderate buy based on 3 buy and 2 take. Stocks are priced at $ 59.59, and the average price target is $ 89.67 suggests an upside potential of around 50% for the next 12 months. (See EBS stock analysis on TipRanks) Haemonetics Corporation (HAE) For the last stock on our list, we’ll stick to the metal industry. dicale. Haemonetics produces a range of products for the collection and separation of blood and plasma, as well as software for operating the machines and service contracts for maintenance. In short, Haemonetics is a one stop shop for blood donor centers and hospital blood banks. Blood products represent a $ 10.5 billion market in the United States alone, with plasma accounting for 80%, and Haemonetics has been an integral part of that business. Haemonetics was steadily recovering from declining revenues during the height of the corona crisis, and its fiscal 2021 third quarter results showed strong results: revenue of $ 240 million and EPS of 62 cents. While revenue was down 7.3% yoy, EPS was up 6.8%. Even with that, however, the stock fell sharply between April 15 and April 20, losing 42% of its value in a short period of time. The reason was simple. One of Haemonetics’ biggest clients, CSL Pharma, has announced that it has no plans to renew its contract with HAE. The contract, for the supply, use and maintenance of Haemonetics’ PCS2 plasma collection system, was worth $ 117 million and represented approximately 12% of the company’s revenue. The cancellation is accompanied by a one-time charge of $ 32 million for other related losses. Fortunately for HAE, the CSL contract does not expire until June 2022, giving the company time to plan and prepare. Covering the title of JMP Securities, analyst David Turkaly noted, “The notice gives HAE some time (~ 15 months) to prepare for the expiration, and we note that management has consistently strengthened its financial position in using levers such as complexity reduction and product. optimization to achieve significant cost savings, and more of these will likely be used in the future to help compensate for lost customers. The analyst continued, “While this disappointing decision may impact the positioning of HAE plasma with other fractionators, we continue to believe that giving customers the ability to collect more plasma in less time is beneficial. a very compelling value proposition – and HAE still has contracts and maintains a large market. share with a large number of the most relevant plasma players. As a result, Turkaly rates HAE outperforming (i.e. buying) and sets a price target of $ 110. That figure implies an 86% increase from current levels. (To see Turkaly’s track record , click here) Overall, HAE has a moderate buy consensus rating, based on 7 reviews that break down from 5 to 2 in favor of buying over taking. The stock is trading at $ 59.02 and carries an average price target of $ 108.67, which suggests an increase of around 84% year-on-year. (See analysis of HAE stocks on TipRanks) attractive, visit TipRanks Best Stocks To Buy, a newly launched tool that brings together all information about TipRanks stocks. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. Content is intended for use at for informational purposes only. It is very important However, you should do your own analysis before making any investment.