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3 “Strong Buy” Healthcare Stocks Under $5 That Could See Outsized Gains

3 "Strong Buy" Healthcare Stocks Under $5 That Could See Outsized Gains

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The stock market just keeps going up, up and away. COVID-19 continues to have a choke hold on the economy, yet stocks have pulled off an incredible recovery, with the S&P 500 up 50% since its March low point. But can the index keep the rally alive?

Credit Suisse’s global equity strategy analyst Andrew Garthwaite says yes, noting that by the end of next year, the S&P 500 could “easily hit 3,500 on our models.” He believes there won’t be a major correction, and that “the key is whether you want to buy into dips or sell into rallies and we want to buy into dips.”

Why should investors keep buying? “We’re going to get a combination of easy money, easy fiscal, with yield curve control — i.e. fiscal QE [quantitative easing] — until unemployment returns to politically acceptable levels,” Garthwaite explained.

Against this backdrop, Wall Street pros argue that certain sectors are holding up substantially better than the rest, and within these areas, compelling plays can be found. Highlighting the healthcare space, the pros say there are names that have not only received a lot of love from the analyst community, but also stand to deliver hefty returns through 2020 and beyond.

As these stocks tend to be riskier in nature, we narrowed our search to include only the best of the best, according to the analyst community.

TipRanks’ database revealed three such stocks that won’t break the bank.; each one trades for less than $5 per share and has earned a “Strong Buy” consensus rating from the Street’s pros. If that wasn’t enough, plenty of upside potential is at play here.  

Gritstone Oncology Inc. (GRTS)

With the goal of stomping out cancer once and for all, Gritstone Oncology develops personalized immunotherapies to fight multiple cancer types. Currently going for $3.45 apiece, several members of the Street believe that the share price reflects an attractive entry point.

Looking at the company’s clinical activity, GRTS is conducting a Phase 1 dose escalation of its GRANITE (personalized vacccine targeting cancer neoantigens) and SLATE (off-the-shelf cancer vaccine targeting shared “hotspot” neoantigens) in patients with advanced cancer. Updated data from July indicated that some patients had experienced prolonged stable disease and/or tumor regression, but none had risen to the level of a RECIST response.

Weighing in on the results for H.C. Wainwright, analyst Sean Lee wrote, “In our view, GRANITE and SLATE are both safe and showed encouraging signs of efficacy, which should warrant further study in larger patient populations. Both GRANITE and SLATE are well-tolerated, and as of the June 30 data cut-off date, zero dose limiting toxicities (DLTs) have been reported in the GRANITE study and only two DLTs had been reported in the SLATE study... Therefore, we believe the 50% decline in GRTS stock price on July 13 to be an overreaction which has created an attractive buying opportunity.”

Going forward, GRTS will kick off single-arm Phase 2 studies for both GRANITE and SLATE in advanced cancer in 2H20. For GRANITE, the study will include two cohorts of MSS-CRC patients with prior FOLFOX/FOLFIRI therapy and GEA patients with prior chemotherapy. Based on the fact that checkpoint inhibitors have either no (MSS-CRC) or very little (GEA) activity in GI tumors, management has stated that if multiple responses in these cohorts are observed, it would demonstrate additive efficacy and could ultimately support accelerated approval.

As for SLATE, GRTS is set to evaluate the original cassette of SLATE (Cassette v1) in ovarian cancer patients with the TP53 mutation and NSCLC patients with prior immunotherapy/chemotherapy. A new version of the SLATE cassette (Cassette v2) designed to optimize the immune response to KRAS mutations will also be assed.

“The Phase 2 GRANITE study is expected to report data in 2H21, and the results from Phase 2 studies of SLATE Cassette v1 and Cassette v2 are anticipated in 1H21 and 2H21, respectively. In our view, all of these could be major catalysts for the stock,” Lee commented.

To this end, LEE rates GRTS a Buy along with a $16 price target. Should his thesis play out, a potential twelve-month gain of 365% could be in the cards. (To watch Lee’s track record, click here

Other analysts are also optimistic about the stock. GRTS' Strong Buy consensus rating breaks down into 3 Buys and no Holds or Sells. In addition, the $14 average price target brings the upside potential to 307%. (See GRTS stock analysis on TipRanks)

PDS Biotechnology Corporation (PDSB)

Using its patented Versamune platform, PDS Biotechnology develops innovative infectious disease (ID) vaccines and cancer immunotherapies. Based on its impressive technology platform and $4.35 share price, it’s no wonder this name is scoring the Street’s attention.

5-star analyst Geulah Livshits, of Chardan Capital, is even more optimistic after a recent call with PDSB’s CMO Dr. Lauren Wood.

Highlighting the takeaways from the call, Livshits points out that it’s important to consider the similarities between cancer and ID pathogens. Part of the problem when it comes to developing cancer-targeting vaccines is that many cancer antigens are also present in normal tissue, with the immune system failing to view these self-antigens as foreign. “As such, a key gating factor for developing cancer vaccines, which can translate over to ID vaccine development, is triggering innate immunity (specifically type I interferon signals),” the analyst explained.

According to Dr. Wood, T cell responses are often longer-lived than antibody responses. Livshits wrote, “Although the field does not yet fully understand what that means for immunity duration (or indeed what titer levels are sufficient for protection from SARS-CoV-2), the efficient induction of a high quality T cell response may promote longer lasting immune memory, potentially translating to longer protection or a milder disease course upon subsequent exposure.”

That’s where PDSB comes in. Versamune is an adjuvant designed to overcome the mechanisms that suppress the innate immune response, specifically triggering type I interferons. In both cancer and ID, Versamune triggers “excellent presentation of antigens” by both the class I and class II pathways, creating potent, broad and long-lived T cell responses, as well as antibody responses.

Also encouraging, the platform can stimulate the immune system locally (in the skin) when delivered, with Dr. Wood also noting that “Versamune's adjuvant tech can be co-formulated and delivered with other platforms beyond protein/peptides, including DNA or mRNA, to enhance immunogenicity.”

Looking at its performance in a clinical setting, there has been a documented triggering of type I interferons associated with HPV tumor regression in a clinical mouse model, verified immune memory demonstrated by mice resistant to tumor re-challenge, high levels of specific CD8 killer T cells within two weeks of a single dose of vaccine and T cell regression of virus-mediated lesions. Versamune has also been well tolerated.

Adding to the good news, in preclinical studies, when Versamune was co-delivered with Fluzone, a seasonal influenza vaccine, neutralizing antibody titers were 40x higher compared to Fluzone alone. Livshits added, “With regard to SARS-CoV-2, initial preclinical data in mice show the Versamune-based Covid-19 vaccine candidate induces robust neutralizing antibody response levels equivalent to those observed in recovering Covid-19 patients within 2 weeks of vaccination.”

It’s clear why Livshits continues to take a bullish stance. In addition to keeping a Buy recommendation on the stock, the price target remains at $10. The implication for investors? Upside potential of 150%. (To watch Livshits’ track record, click here)    

With 3 "buy" ratings against just 1 "hold," PDSB shares have earned their Strong Buy consensus rating. Meanwhile, the $7.32 average price target implies shares could climb 83% higher in the next twelve months. (See PDSB stock analysis on TipRanks)

GlycoMimetics (GLYC)

Hoping to improve the lives of patients with unmet medical needs, GlycoMimetics develops small-molecule glycomimetic product candidates. According to Wall Street analysts, at $3.86, its share price could present investors with an opportunity to get in on the action.

Standing squarely with the bulls is Roth Capital’s Zegbeh Jallah. Following the analyst’s virtual meeting with the management team, he is confident in GLYC’s long-term growth prospects.

Pointing to GLYC’s Phase 3 Rivipansel asset, which was designed as a treatment for patients with Sickle Cell, Jallah argues that there is a substantial market opportunity. In the U.S., there are roughly 100,000 sickle cell patients, with some of these hospitalized 1-3 times per year for painful vaso-occlusive crisis (VOCs). Opioids are the current standard of care, but there are significant concerns regarding dependency. “We believe that a need exists for treatment options that can lessen the risks associated with opioid use, without leaving patients in pain,” the analyst commented.

Currently, Rivipansel, an IV-delivered, pan-selectin antagonist, is the only therapy being clinically developed for this application. It differs from Novartis’ Crizanlizumab, a p-selectin antibody that is used to prevent VOCs, as p-selectin plays an earlier role than other selectins. “With Rivipansel more potent against e-selectin and with a half-life of 8 hours, Phase 1 data showed that its benefits were present after the onset of a VOC,” Jallah explained.

As for the Phase 2 study, the results were also encouraging. However, in the Phase 3 study, the drug failed to meet its primary endpoint of time to readiness-to-discharge. That being said, Jallah still has high hopes. Expounding on this, the analyst stated, “Encouragingly, recent post-hoc analysis showed that patients treated early in their VOC achieved a significant benefit, and management noted that similar trends were observed in the Phase 2 study where there was also a significant reduction (83%) in IV opioid use. In line with the outcomes of the post-hoc analysis, an important difference between the Phase 2 and Phase 3 studies was that patients were treated earlier in their VOC in Phase 2 than in Phase 3.”

Now that Rivipansel is wholly-owned by GLYC (the company had previously partnered with Pfizer on the program), management will discuss the next steps with the FDA as well as offer additional analysis of the Phase 3 study.

When it comes to Phase 3 Uproleselan, which has received Breakthrough Designation, Jallah believes it “could be an excellent backbone therapy to multiple agents and in multiple treatment settings of AML, with its balanced efficacy and safety profile.” He added, “...novel drugs that can allow patients to become eligible for curative transplants would be a major value-add. GlycoMimetics’ Uproleselan has the potential to do just that, as it can impair signaling that leads to resistance, allowing for multiple treatment combinations to result in deeper remissions and long-term effectiveness.” Its GMI-1359 candidate, which is currently in Phase 1, “could have potential in multiple tumor types including leukemias and solid tumors.”

With upcoming catalysts from these clinical programs and a cash runway of two years, the deal is sealed for Jallah. To this end, he maintained a Buy recommendation and $9 price target, suggesting 133% upside potential. (To watch Jallah’s track record, click here)  

Looking at the consensus breakdown, other analysts have also been impressed. Based on 4 Buys and no Holds or Sells, the word on the Street is that GLYC is a Strong Buy. Not to mention the $11 average price target is more aggressive than Jallah’s and implies 187% upside potential. (See GlycoMimetics stock analysis on TipRanks)

To find good ideas for healthcare stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

The post 3 "Strong Buy" Healthcare Stocks Under $5 That Could See Outsized Gains appeared first on TipRanks Financial Blog.

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Survey Shows Declining Concerns Among Americans About COVID-19

Survey Shows Declining Concerns Among Americans About COVID-19

A new survey reveals that only 20% of Americans view covid-19 as "a major threat"…

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Survey Shows Declining Concerns Among Americans About COVID-19

A new survey reveals that only 20% of Americans view covid-19 as "a major threat" to the health of the US population - a sharp decline from a high of 67% in July 2020.

(SARMDY/Shutterstock)

What's more, the Pew Research Center survey conducted from Feb. 7 to Feb. 11 showed that just 10% of Americans are concerned that they will  catch the disease and require hospitalization.

"This data represents a low ebb of public concern about the virus that reached its height in the summer and fall of 2020, when as many as two-thirds of Americans viewed COVID-19 as a major threat to public health," reads the report, which was published March 7.

According to the survey, half of the participants understand the significance of researchers and healthcare providers in understanding and treating long COVID - however 27% of participants consider this issue less important, while 22% of Americans are unaware of long COVID.

What's more, while Democrats were far more worried than Republicans in the past, that gap has narrowed significantly.

"In the pandemic’s first year, Democrats were routinely about 40 points more likely than Republicans to view the coronavirus as a major threat to the health of the U.S. population. This gap has waned as overall levels of concern have fallen," reads the report.

More via the Epoch Times;

The survey found that three in ten Democrats under 50 have received an updated COVID-19 vaccine, compared with 66 percent of Democrats ages 65 and older.

Moreover, 66 percent of Democrats ages 65 and older have received the updated COVID-19 vaccine, while only 24 percent of Republicans ages 65 and older have done so.

“This 42-point partisan gap is much wider now than at other points since the start of the outbreak. For instance, in August 2021, 93 percent of older Democrats and 78 percent of older Republicans said they had received all the shots needed to be fully vaccinated (a 15-point gap),” it noted.

COVID-19 No Longer an Emergency

The U.S. Centers for Disease Control and Prevention (CDC) recently issued its updated recommendations for the virus, which no longer require people to stay home for five days after testing positive for COVID-19.

The updated guidance recommends that people who contracted a respiratory virus stay home, and they can resume normal activities when their symptoms improve overall and their fever subsides for 24 hours without medication.

“We still must use the commonsense solutions we know work to protect ourselves and others from serious illness from respiratory viruses, this includes vaccination, treatment, and staying home when we get sick,” CDC director Dr. Mandy Cohen said in a statement.

The CDC said that while the virus remains a threat, it is now less likely to cause severe illness because of widespread immunity and improved tools to prevent and treat the disease.

Importantly, states and countries that have already adjusted recommended isolation times have not seen increased hospitalizations or deaths related to COVID-19,” it stated.

The federal government suspended its free at-home COVID-19 test program on March 8, according to a website set up by the government, following a decrease in COVID-19-related hospitalizations.

According to the CDC, hospitalization rates for COVID-19 and influenza diseases remain “elevated” but are decreasing in some parts of the United States.

Tyler Durden Sun, 03/10/2024 - 22:45

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International

Rand Paul Teases Senate GOP Leader Run – Musk Says “I Would Support”

Rand Paul Teases Senate GOP Leader Run – Musk Says "I Would Support"

Republican Kentucky Senator Rand Paul on Friday hinted that he may jump…

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Rand Paul Teases Senate GOP Leader Run - Musk Says "I Would Support"

Republican Kentucky Senator Rand Paul on Friday hinted that he may jump into the race to become the next Senate GOP leader, and Elon Musk was quick to support the idea. Republicans must find a successor for periodically malfunctioning Mitch McConnell, who recently announced he'll step down in November, though intending to keep his Senate seat until his term ends in January 2027, when he'd be within weeks of turning 86. 

So far, the announced field consists of two quintessential establishment types: John Cornyn of Texas and John Thune of South Dakota. While John Barrasso's name had been thrown around as one of "The Three Johns" considered top contenders, the Wyoming senator on Tuesday said he'll instead seek the number two slot as party whip. 

Paul used X to tease his potential bid for the position which -- if the GOP takes back the upper chamber in November -- could graduate from Minority Leader to Majority Leader. He started by telling his 5.1 million followers he'd had lots of people asking him about his interest in running...

...then followed up with a poll in which he predictably annihilated Cornyn and Thune, taking a 96% share as of Friday night, with the other two below 2% each. 

Elon Musk was quick to back the idea of Paul as GOP leader, while daring Cornyn and Thune to follow Paul's lead by throwing their names out for consideration by the Twitter-verse X-verse. 

Paul has been a stalwart opponent of security-state mass surveillance, foreign interventionism -- to include shoveling billions of dollars into the proxy war in Ukraine -- and out-of-control spending in general. He demonstrated the latter passion on the Senate floor this week as he ridiculed the latest kick-the-can spending package:   

In February, Paul used Senate rules to force his colleagues into a grueling Super Bowl weekend of votes, as he worked to derail a $95 billion foreign aid bill. "I think we should stay here as long as it takes,” said Paul. “If it takes a week or a month, I’ll force them to stay here to discuss why they think the border of Ukraine is more important than the US border.”

Don't expect a Majority Leader Paul to ditch the filibuster -- he's been a hardy user of the legislative delay tactic. In 2013, he spoke for 13 hours to fight the nomination of John Brennan as CIA director. In 2015, he orated for 10-and-a-half-hours to oppose extension of the Patriot Act

Rand Paul amid his 10 1/2 hour filibuster in 2015

Among the general public, Paul is probably best known as Capitol Hill's chief tormentor of Dr. Anthony Fauci, who was director of the National Institute of Allergy and Infectious Disease during the Covid-19 pandemic. Paul says the evidence indicates the virus emerged from China's Wuhan Institute of Virology. He's accused Fauci and other members of the US government public health apparatus of evading questions about their funding of the Chinese lab's "gain of function" research, which takes natural viruses and morphs them into something more dangerous. Paul has pointedly said that Fauci committed perjury in congressional hearings and that he belongs in jail "without question."   

Musk is neither the only nor the first noteworthy figure to back Paul for party leader. Just hours after McConnell announced his upcoming step-down from leadership, independent 2024 presidential candidate Robert F. Kennedy, Jr voiced his support: 

In a testament to the extent to which the establishment recoils at the libertarian-minded Paul, mainstream media outlets -- which have been quick to report on other developments in the majority leader race -- pretended not to notice that Paul had signaled his interest in the job. More than 24 hours after Paul's test-the-waters tweet-fest began, not a single major outlet had brought it to the attention of their audience. 

That may be his strongest endorsement yet. 

Tyler Durden Sun, 03/10/2024 - 20:25

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Government

The Great Replacement Loophole: Illegal Immigrants Score 5-Year Work Benefit While “Waiting” For Deporation, Asylum

The Great Replacement Loophole: Illegal Immigrants Score 5-Year Work Benefit While "Waiting" For Deporation, Asylum

Over the past several…

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The Great Replacement Loophole: Illegal Immigrants Score 5-Year Work Benefit While "Waiting" For Deporation, Asylum

Over the past several months we've pointed out that there has  been zero job creation for native-born workers since the summer of 2018...

... and that since Joe Biden was sworn into office, most of the post-pandemic job gains the administration continuously brags about have gone foreign-born (read immigrants, mostly illegal ones) workers.

And while the left might find this data almost as verboten as FBI crime statistics - as it directly supports the so-called "great replacement theory" we're not supposed to discuss - it also coincides with record numbers of illegal crossings into the United States under Biden.

In short, the Biden administration opened the floodgates, 10 million illegal immigrants poured into the country, and most of the post-pandemic "jobs recovery" went to foreign-born workers, of which illegal immigrants represent the largest chunk.

Asylum seekers from Venezuela await work permits on June 28, 2023 (via the Chicago Tribune)

'But Tyler, illegal immigrants can't possibly work in the United States whilst awaiting their asylum hearings,' one might hear from the peanut gallery. On the contrary: ever since Biden reversed a key aspect of Trump's labor policies, all illegal immigrants - even those awaiting deportation proceedings - have been given carte blanche to work while awaiting said proceedings for up to five years...

... something which even Elon Musk was shocked to learn.

Which leads us to another question: recall that the primary concern for the Biden admin for much of 2022 and 2023 was soaring prices, i.e., relentless inflation in general, and rising wages in particular, which in turn prompted even Goldman to admit two years ago that the diabolical wage-price spiral had been unleashed in the US (diabolical, because nothing absent a major economic shock, read recession or depression, can short-circuit it once it is in place).

Well, there is one other thing that can break the wage-price spiral loop: a flood of ultra-cheap illegal immigrant workers. But don't take our word for it: here is Fed Chair Jerome Powell himself during his February 60 Minutes interview:

PELLEY: Why was immigration important?

POWELL: Because, you know, immigrants come in, and they tend to work at a rate that is at or above that for non-immigrants. Immigrants who come to the country tend to be in the workforce at a slightly higher level than native Americans do. But that's largely because of the age difference. They tend to skew younger.

PELLEY: Why is immigration so important to the economy?

POWELL: Well, first of all, immigration policy is not the Fed's job. The immigration policy of the United States is really important and really much under discussion right now, and that's none of our business. We don't set immigration policy. We don't comment on it.

I will say, over time, though, the U.S. economy has benefited from immigration. And, frankly, just in the last, year a big part of the story of the labor market coming back into better balance is immigration returning to levels that were more typical of the pre-pandemic era.

PELLEY: The country needed the workers.

POWELL: It did. And so, that's what's been happening.

Translation: Immigrants work hard, and Americans are lazy. But much more importantly, since illegal immigrants will work for any pay, and since Biden's Department of Homeland Security, via its Citizenship and Immigration Services Agency, has made it so illegal immigrants can work in the US perfectly legally for up to 5 years (if not more), one can argue that the flood of illegals through the southern border has been the primary reason why inflation - or rather mostly wage inflation, that all too critical component of the wage-price spiral  - has moderated in in the past year, when the US labor market suddenly found itself flooded with millions of perfectly eligible workers, who just also happen to be illegal immigrants and thus have zero wage bargaining options.

None of this is to suggest that the relentless flood of immigrants into the US is not also driven by voting and census concerns - something Elon Musk has been pounding the table on in recent weeks, and has gone so far to call it "the biggest corruption of American democracy in the 21st century", but in retrospect, one can also argue that the only modest success the Biden admin has had in the past year - namely bringing inflation down from a torrid 9% annual rate to "only" 3% - has also been due to the millions of illegals he's imported into the country.

We would be remiss if we didn't also note that this so often carries catastrophic short-term consequences for the social fabric of the country (the Laken Riley fiasco being only the latest example), not to mention the far more dire long-term consequences for the future of the US - chief among them the trillions of dollars in debt the US will need to incur to pay for all those new illegal immigrants Democrat voters and low-paid workers. This is on top of the labor revolution that will kick in once AI leads to mass layoffs among high-paying, white-collar jobs, after which all those newly laid off native-born workers hoping to trade down to lower paying (if available) jobs will discover that hardened criminals from Honduras or Guatemala have already taken them, all thanks to Joe Biden.

Tyler Durden Sun, 03/10/2024 - 19:15

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