Did markets hit a turning point? The past couple of months brought us a seven-week losing streak in stocks, the longest such streak in over a decade, but the week before the Memorial Day holiday weekend saw strong gains. The S&P 500 wiped out its May losses. Post-holiday trading shows that some of these gains are continuing.
If so, then it makes this the ideal time to buy the dip, to get in while stocks remain at low cost, with attractive entry points. Thats the view from investment firm JPMorgan, where Dubravko Lakos-Bujas of the equity macro research group tries to bring some clarity from the overall situation. Lakos-Bujas points out that certain sectors notably small-caps, defensive stocks, and biotechs are likely to benefit most from this dynamic, and writes, Biotech is one of the most attractive on valuation while Pharma is also trading at cheapest level in a decade.
These are bright spots in an otherwise dark picture, but they do point to a way forward for investors willing to shoulder the risk. The stock analysts at JPM are following that path, finding stocks in Lakos-Bujas favored sectors that feature cheap valuations. Weve opened up the TipRanks database to pull up the details on two such picks; heres a closer look.
Penumbra (PEN)
Stroke, aneurysms, and embolisms are dangerous conditions with a common denominator: damage or blockage of the vascular system. Penumbra is a medical device company specializing in this field, offering a line of devices for the treatment of strokes and other vascular-related conditions. The companys devices are used in the treatment of acute ischemic stroke, brain aneurysms, and deep vein thrombosis, among others.
Penumbras leading device is the Indigo Aspiration System, for use in vascular thrombectomy. Indigo is described as having had a significant impact on its US patient base; the device is designed to remove blood clots in the peripheral arterial and venous systems, and to treat pulmonary embolisms, with minimal bleeding and blood loss.
Story continues
The company announced in April that the Indigo system has now been launched in Europe. The opening of a European market is an important expansion for Penumbra. Currently the companys US base accounts for 71% of total revenue. That top line reached $203.9 million in 1Q22, a gain of 20% over the year-ago total. Sales of vascular products accounted for $122.8 million of the total, while the companys neuro products used in treating the vascular system of the head and brain brought in $81.1 million. Penumbra is preparing release of its latest system, Thunderbolt, which is expected next year.
Analyst Robbie Marcus, covering PEN for JPMorgan, sees reason for optimism on this stock. He writes, We feel incrementally more positive on the longer-term outlook given the strong early reception for Thunderbolt and progress made building out the Real VR platform, and see a high probability of accelerating growth in 2023. Along with healthy trends in Peripheral, we think this all supports an attractive long-term growth outlook... We view todays valuation as an attractive entry point into a multi-year growth story driven by leadership in a diverse set of highly attractive end markets.
Everything that PEN has going for it prompted Marcus to rate the stock an Overweight (i.e. Buy). The cherry on top? His $245 price target implies ~74% upside from current levels. (To watch Marcus track record, click here)
Overall, this medical device firm has picked up 6 reviews from the Wall Street analysts in recent weeks, and these include 5 Buys against a single Hold for a Strong Buy consensus rating. The shares are priced at $140 and their $250.40 average price target suggests a one-year upside of 78%. (See PEN stock forecast on TipRanks)
Rocket Pharmaceuticals (RCKT)
From medical devices well move on to the cutting edge of biopharma tech, gene therapy, and look at Rocket Pharmaceuticals. This clinical-stage firm is a leader in the gene therapy field, developing novel treatments for severe disease conditions with high unmet medical needs. Gene therapies adapt various viruses as delivery systems to insert genetic information directly into disease-affected cells, altering the condition at the genetic and molecular levels. These therapies offer the potential to cure, and not just to treat, the targeted diseases.
Rocket has an active research program, featuring gene therapies that target several pediatric conditions and terminal cancers, such as Danon Disease, Fanconi Anemia, Leukocyte Adhesion Deficiency (LAD-I), and Pyruvate Kinase Deficiency (PKD). Rockets research program uses both associated viral vector (AAV) andlentiviralvector (LVV)platforms to deliver the therapeutic agents.
Rocket has four programs currently undergoing human clinical trials. The most advanced of these is the LAD-I track, studying drug candidate RP-L201. In May, Rocket presented top line data from the Phase 2 pivotal trial, showing that RP-L201 was well-tolerated by all patients in the trial and demonstrated a 100% survival rate one year after the drug infusion. All patients showed a clinical reversal of the disease course. Based on these findings, Rocket is planning to continue with regulatory filings in 1H23.
Also in May, Rocket released updates on its other three clinical tracks. RP-L102, a treatment for Fanconi Anemia, is at the Phase 2 pivotal stage and the clinical trial is underway. Top line data is expected for release in 3Q22. RP-A501, a treatment for Danon Disease, is also undergoing an active clinical trial, at Phase 1. The company is on schedule to release the pediatric patient cohort data during the third quarter of this year, and to initiate the pivotal Phase 2 trial in Q4. Finally, the PKD track, for RP-L301 in the treatment of Pyruvate Kinase Deficiency, is also progressing as anticipated. This trial is expected to release preliminary Phase 1 data during 4Q22, and at the same time to initiate activity in a Phase 2 pivotal trial.
All of this gives Rocket Pharmaceuticals an enviable position for any biopharma researcher: these many shots on goal provide plenty of potential for the company to deliver, even in a field as difficult as biopharmaceuticals.
JPMorgan analyst Eric Joseph looked under the hood of RP-L201 and wrote: RP-L201 treated patients also showed a significant reduction in prolonged hospitalization or severe infections relative to pre-treatment event rates, amounting to a meaningful improvement in their disease prognosis. There were no surprises on safety, with an overall well-tolerated profile consistent with earlier updates, seeing this drug candidate as the main driver for the company.
Joseph went on to add, about Rockets overall position: Along these lines, in view of multiple clinical readouts on track within 2022, including Danon pediatric efficacy data in 3Q22, we see current share levels as an attractive entry point to capture longer-term pipeline potential.
This reinforces the analyst's view that Rocket is a stock to "buy," and worth a $67 target price. At current levels, this target suggests a robust 462% upside for the coming year. (To watch Josephs track record, click here)
Some companies show a singularly strong outlook, and that can be seen when Wall Streets analysts who dont always agree come down unanimously in favor of a stock. RCKT has 9 recent positive analyst reviews, for a Strong Buy consensus rating. The shares are selling for $12.01 and have an average price target of $64.40, indicating a 12-month upside potential of 436%. (See RCKT stock forecast on TipRanks)
To find good ideas for 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.
Visit link:
J.P. Morgan Sees an Attractive Entry Point in These 2 Stocks - Yahoo Finance
- Carmelo Anthony makes the most of his return to the Garden - Yahoo Sports [Last Updated On: January 4th, 2020] [Originally Added On: January 4th, 2020]
- Direct-to-consumer entrepreneur explains the importance of physical stores - Yahoo Finance [Last Updated On: January 4th, 2020] [Originally Added On: January 4th, 2020]
- Inpixon's CEO Nadir Ali Interviewed Today on Yahoo! Finance LIVE On the Move Program - GlobeNewswire [Last Updated On: January 4th, 2020] [Originally Added On: January 4th, 2020]
- We're Denton Dammit: The one where some yahoo takes aim with an air rifle - Denton Record Chronicle [Last Updated On: January 4th, 2020] [Originally Added On: January 4th, 2020]
- Marshawn Lynchs Beast Quake, as told by a Saint who 'melted like soft butter' trying to tackle him - Yahoo Sports [Last Updated On: January 4th, 2020] [Originally Added On: January 4th, 2020]
- 2019 Yahoo Sports MMA Fight of the Year - Yahoo Sports [Last Updated On: January 4th, 2020] [Originally Added On: January 4th, 2020]
- For the Bears and Anthony Miller, the 2020 offseason already feels like dj vu - Yahoo Sports [Last Updated On: January 4th, 2020] [Originally Added On: January 4th, 2020]
- Oscar Colas, the Cuban Ohtani, is coming to MLB and everybody's going to want him - Yahoo Sports [Last Updated On: January 4th, 2020] [Originally Added On: January 4th, 2020]
- Domino's Pizza CEO: A shakeout is coming in the third-party food delivery space - Yahoo Finance [Last Updated On: January 4th, 2020] [Originally Added On: January 4th, 2020]
- Amanda Bynes resurfaces on Instagram with what appears to be a large face tattoo - Yahoo Celebrity [Last Updated On: January 4th, 2020] [Originally Added On: January 4th, 2020]
- One year later, AEW has disrupted pro wrestling and there's no plan to stop - Yahoo Sports [Last Updated On: January 4th, 2020] [Originally Added On: January 4th, 2020]
- Rep. Peter King: There was 'no offensive briefing of Congress' ahead of airstrike that killed Soleimani - Yahoo Finance [Last Updated On: January 4th, 2020] [Originally Added On: January 4th, 2020]
- Can Deshaun Watson rise to the challenge as Texans face Bills on Yahoo Sports app? - Yahoo Sports [Last Updated On: January 4th, 2020] [Originally Added On: January 4th, 2020]
- Sources: Jason Garrett is talking with players as if he's still going to be with the Dallas Cowboys - Yahoo Sports [Last Updated On: January 4th, 2020] [Originally Added On: January 4th, 2020]
- Quarterback Exit Interview: Can Lamar Jackson beat the regression bug? - Yahoo Sports [Last Updated On: January 4th, 2020] [Originally Added On: January 4th, 2020]
- What the Iran strike means for gas prices - Yahoo Finance [Last Updated On: January 4th, 2020] [Originally Added On: January 4th, 2020]
- Carson Wentz faces another 'biggest game' as Eagles face Seahawks on Yahoo Sports app - Yahoo Sports [Last Updated On: January 4th, 2020] [Originally Added On: January 4th, 2020]
- The best fantasy players of the last decade, according to 'The People' - Yahoo Sports [Last Updated On: January 4th, 2020] [Originally Added On: January 4th, 2020]
- Why Trump will lose in 2020 - Yahoo Finance [Last Updated On: January 4th, 2020] [Originally Added On: January 4th, 2020]
- Dalvin Cook's return could be huge for Vikings as they face Saints on Yahoo Sports app - Yahoo Sports [Last Updated On: January 4th, 2020] [Originally Added On: January 4th, 2020]
- Iran has the capability to launch cyber attacks on very short notice, expert says - Yahoo Finance [Last Updated On: January 4th, 2020] [Originally Added On: January 4th, 2020]
- One Million Moms starts petition against 'irresponsible and tasteless' Burger King ad featuring a curse word - Yahoo Food [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- Canada's Trudeau: Iran plane victims would be alive had there been no regional tensions - Yahoo News [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- During impeachment trial, Trump will be chilling in Swiss resort - Yahoo News [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- 10 insights into Netflixs Aaron Hernandez documentary from executive producer - Yahoo Sports [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- Odell Beckham Jr. handing out wads of cash to LSU players is one of the best celebrations ever - Yahoo Sports [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- Why US Attorney General William Barr's attacks on Apple are being ignored by investors - Yahoo Finance [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- How Ed Orgeron persevered through all the jokes, firings and failure to win it all at LSU - Yahoo Sports [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- Chicago Bears get Jake Fromm in the latest Mock Draft from Yahoo Sports - Windy City Gridiron [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- 'Jeopardy! GOAT': James Holzhauer and Ken Jennings battle it out down to the final clue - Yahoo Celebrity [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- Parnas said he is speaking out because he is afraid of William Barr - Yahoo News [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- Robert Downey Jr. explains why he picked 'Dolittle' for his first non-Marvel movie in 6 years - Yahoo Celebrity [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- The economy is continuing to catch up to the stock market: Morning Brief - Yahoo Finance [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- 'You have not seen anything yet,' climate activist Greta says ahead of Davos - Yahoo News [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- Kyrie Irving is back, but what does it mean for the Nets? - Yahoo Sports [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- Rand Paul Slams the Bidens over Alleged Corruption: It Smells to High Heaven - Yahoo News [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- Trump should 'absolutely' get credit for changing the China conversation: analyst - Yahoo Finance [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- Why traders playing oil like its 2010 are 'getting their heads handed to them' - Yahoo Finance [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- Israel's F-35I Adir Is Taking America's Stealth Fighter To A Whole Other Level - Yahoo News [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- Consumers are starting to feel streaming fatigue, analyst says - Yahoo Finance [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- Damn straight the NBA needs him: Why Zion Williamsons debut is so important - Yahoo Sports [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- Baby dies after eating dishwashing powder while mum went on partying spree - Yahoo News Australia [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- A.J. Styles on 2016 WWE debut: 'It couldn't have been any better' - Yahoo Sports [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- Curt Schilling doesn't deserve to be in the baseball Hall of Fame - Yahoo Sports [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- Trump's Apple threat would put every iPhone on Earth at risk - Yahoo Finance [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- Crypto Exchange Binance to Partner With Yahoo's Japanese Divisions - Bitcoinist [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- Verizon introduces OneSearch a new privacy-focused search engine - The Verge [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- Trump has discredited the American experiment: Robert Kennedy Jr. - Yahoo Finance [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- Shopify, Bed Bath & Beyond, Google, Apple: Companies to Watch - Yahoo Finance [Last Updated On: February 14th, 2020] [Originally Added On: February 14th, 2020]
- Trump is elevating judges who could gut the Voting Rights Act - Yahoo News [Last Updated On: February 14th, 2020] [Originally Added On: February 14th, 2020]
- Tesla Bruises Another Hedge Fund With Bearish GMT Facing Losses - Yahoo Finance [Last Updated On: February 14th, 2020] [Originally Added On: February 14th, 2020]
- How to fix the Lions: Keep Matthew Stafford and draft Tua Tagovailoa - Yahoo Sports [Last Updated On: February 14th, 2020] [Originally Added On: February 14th, 2020]
- Lululemon exec: Mental health is the 'next major step in our journey' - Yahoo Finance [Last Updated On: February 14th, 2020] [Originally Added On: February 14th, 2020]
- How Barbie has survived for over 60 years in a 'volatile' toy industry - Yahoo Finance [Last Updated On: February 14th, 2020] [Originally Added On: February 14th, 2020]
- Olivia Wilde wants to change the way sex scenes are filmed: 'Demand this new standard' - Yahoo Celebrity [Last Updated On: February 14th, 2020] [Originally Added On: February 14th, 2020]
- Did Iran Manage to Find a Weak Spot in the F-35's Stealth? - Yahoo News [Last Updated On: February 14th, 2020] [Originally Added On: February 14th, 2020]
- Cans suck the THC buzz out of pot drinks. Where does that leave Canopy Growth? - Yahoo Sports [Last Updated On: February 14th, 2020] [Originally Added On: February 14th, 2020]
- Coronavirus updates: The latest from around the world - Yahoo Finance [Last Updated On: February 14th, 2020] [Originally Added On: February 14th, 2020]
- The 10 richest Americans are just beginning to take sides in the 2020 presidential race - Yahoo News Canada [Last Updated On: February 24th, 2020] [Originally Added On: February 24th, 2020]
- Coronavirus in China may have severely stunted one of Walmart's hottest businesses - Yahoo Finance [Last Updated On: February 24th, 2020] [Originally Added On: February 24th, 2020]
- 3 NFL teams that should try to sign Teddy Bridgewater - Yahoo Sports [Last Updated On: February 24th, 2020] [Originally Added On: February 24th, 2020]
- Kate Middleton Is Reportedly 'So Happy' to Have More Royal Duties - Yahoo Lifestyle [Last Updated On: February 24th, 2020] [Originally Added On: February 24th, 2020]
- Lakers eke out win over Celtics by a pinkie - Yahoo Sports [Last Updated On: February 24th, 2020] [Originally Added On: February 24th, 2020]
- Pope appears to give thumbs down to Trump's Mideast peace plan - Yahoo News [Last Updated On: February 24th, 2020] [Originally Added On: February 24th, 2020]
- The 'skull breaker challenge' is trending on TikTok. Why doctors say it could be fatal. - Yahoo Food [Last Updated On: February 24th, 2020] [Originally Added On: February 24th, 2020]
- Packers aggressively committed to bringing future NFL draft to Green Bay - Yahoo Sports [Last Updated On: February 24th, 2020] [Originally Added On: February 24th, 2020]
- What will the coronavirus do to cruise ships - Yahoo Finance [Last Updated On: February 24th, 2020] [Originally Added On: February 24th, 2020]
- Tyson Fury holds all the power in heavyweight division after crowning performance - Yahoo Sports [Last Updated On: February 24th, 2020] [Originally Added On: February 24th, 2020]
- Warren Buffett reveals a big change to this year's annual shareholder meeting - Yahoo Finance [Last Updated On: February 24th, 2020] [Originally Added On: February 24th, 2020]
- Coronavirus, consumer sentiment, GDP, retail earnings: What to know in the week ahead - Yahoo Finance [Last Updated On: February 24th, 2020] [Originally Added On: February 24th, 2020]
- Rohrabacher tells Yahoo he discussed pardon with Assange for proof Russia didn't hack DNC email | TheHill - The Hill [Last Updated On: February 24th, 2020] [Originally Added On: February 24th, 2020]
- Yahoo Sports rips on Indy, arguing All-Star Game should be moved - Fox 59 [Last Updated On: February 24th, 2020] [Originally Added On: February 24th, 2020]
- Here's what makes the coronavirus similar to and deadlier than SARS - Yahoo Finance [Last Updated On: February 24th, 2020] [Originally Added On: February 24th, 2020]
- Pete Davidson Revealed Why He and Kaia Gerber Broke Up - Yahoo Lifestyle [Last Updated On: February 27th, 2020] [Originally Added On: February 27th, 2020]
- Beyond Meat, Best Buy earnings: What to know in markets Thursday - Yahoo Finance [Last Updated On: February 27th, 2020] [Originally Added On: February 27th, 2020]
- Lost ancient kingdom uncovered in Turkey after farmer finds stone with strange inscriptions - Yahoo News UK [Last Updated On: February 27th, 2020] [Originally Added On: February 27th, 2020]
- No, the Astros' league-leading HBPs in spring training are not retaliation for their cheating - Yahoo Sports [Last Updated On: February 27th, 2020] [Originally Added On: February 27th, 2020]
- The 25 best-performing large cities in the US: Milken Institute - Yahoo Finance [Last Updated On: February 27th, 2020] [Originally Added On: February 27th, 2020]
- Yahoo Sports rips on Indy, urging for All-Star game to be moved - CBS 4 Indianapolis [Last Updated On: February 27th, 2020] [Originally Added On: February 27th, 2020]
- Joe Burrow's hand measurement is going to be a big topic of conversation - Yahoo Sports [Last Updated On: February 27th, 2020] [Originally Added On: February 27th, 2020]