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3 Under-$10 Drug Stocks Wall Street Analysts Recommend Buying
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The year 2022 has been a mixed ride for the Medical sector, which played a pivotal role in getting the global economy on track following the COVID-19 pandemic by making successful vaccines and medicines.
Current Market Dynamics of the Medical Sector
The current year started off on a high note as the COVID-19 pandemic started to lose its steam thanks to high vaccination and immunization rates. As the pandemic eased out, demand for key drugs normalized and the focus shifted to developing new drugs and pipelines. However, the demand for COVID-19 treatments declined, impacting the top line of the companies that had immensely benefited from the same in the last year.
The supposed transition to pre-pandemic behavior also exposed the world to several macroeconomic headwinds, like rising inflation and currency rate fluctuations, all leading toward signs of a recession in the near future. Moreover, COVID-19 cases have again started to rise in the United States and China, increasing the chances of another mass coronavirus outbreak.
As we approach a New Year and the current market is highly volatile, it is a good idea to invest in low-priced stocks with the potential for a healthy return. One of the safest options to capitalize on money-making opportunities is to adhere to Wall Street recommendations and follow their experts’ advice.
Our Choices
We have chosen three small biotechs priced below $10 with solid Zacks Rank and robust average broker ratings. We have taken the help of the Zacks Stock Screener to select the stocks. Below is a list of three such low-priced stocks in random order.
Adaptimmune Therapeutics is a biotech company that develops novel cell therapies for cancer patients. The company does not have any marketed drugs. It has three key pipeline candidates in several mid to late-stage studies. Last week, Adaptimmune announced that it had initiated a rolling BLA submission with the FDA seeking marketing approval for its TCR T-cell therapy afami-cel to treat advanced synovial sarcoma. Management plans to complete this filing by mid-2023.
Adaptimmune currently sports a Zacks Rank #2 (Buy). In the past 60 days, estimates for Adaptimmune’s 2022 loss per share have narrowed from $1.15 to $1.10. Currently, ADAP has an average brokerage recommendation (ABR) of 1.80 on a scale of 1 to 5 (Strong Buy to Strong Sell). ABR is the calculated average of actual recommendations made by brokerage firms and portends the future potential of the stock. Based on these analyst projections, we expect an average price target of $6.25, suggesting a 359.56% upside to the current closing price of $1.36.
Kamada Ltd. , an Israel-based biotech company, focused on developing specialty plasma-derived therapeutics. The company has multiple marketed products in its portfolio and a late-stage pipeline candidate for treating Alpha-1 Antitrypsin deficiency (AATD). For the full year 2022, Kamada expects to record total revenues in the range of $125-$135 million, a 20-30% year-over-year growth.
The company currently has a Zacks Rank #1. In the past 60 days, estimates for Kamada’s 2022 loss per share have narrowed from 14 cents to 7 cents. Kamada has an ABR of 1.00. Based on analyst estimates, we expect a 180.61% upside to the current closing price of $3.92, indicating an average price target of $11.00.
Zymeworks, Inc. (ZYME - Free Report) is a clinical-stage biopharmaceutical company focused on developing next-generation multifunctional biotherapeutics. Last week, partner Jazz Pharmaceuticals exercised an exclusive option and now holds exclusive development and commercialization rights to Zymeworks’ lead pipeline candidate, zanidatamab, in all territories except in Asia/Pacific territories. In consideration for exercising the option, Jazz will pay an upfront payment of $325 million to Zymeworks in fourth-quarter 2022.
Zymeworks currently carries a Zacks Rank #2. In the past 60 days, estimates for Zymeworks’ 2022 earnings per share have improved from a loss of $1.96 per share to a profit of 9 cents. The company has an ABR of 1.73. Based on these analyst projections, we expect an average price target of $12.86, indicating a 59.95% upside to the current closing price of $8.04.
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3 Under-$10 Drug Stocks Wall Street Analysts Recommend Buying
The year 2022 has been a mixed ride for the Medical sector, which played a pivotal role in getting the global economy on track following the COVID-19 pandemic by making successful vaccines and medicines.
Current Market Dynamics of the Medical Sector
The current year started off on a high note as the COVID-19 pandemic started to lose its steam thanks to high vaccination and immunization rates. As the pandemic eased out, demand for key drugs normalized and the focus shifted to developing new drugs and pipelines. However, the demand for COVID-19 treatments declined, impacting the top line of the companies that had immensely benefited from the same in the last year.
The supposed transition to pre-pandemic behavior also exposed the world to several macroeconomic headwinds, like rising inflation and currency rate fluctuations, all leading toward signs of a recession in the near future. Moreover, COVID-19 cases have again started to rise in the United States and China, increasing the chances of another mass coronavirus outbreak.
As we approach a New Year and the current market is highly volatile, it is a good idea to invest in low-priced stocks with the potential for a healthy return. One of the safest options to capitalize on money-making opportunities is to adhere to Wall Street recommendations and follow their experts’ advice.
Our Choices
We have chosen three small biotechs priced below $10 with solid Zacks Rank and robust average broker ratings. We have taken the help of the Zacks Stock Screener to select the stocks. Below is a list of three such low-priced stocks in random order.
Adaptimmune Therapeutics is a biotech company that develops novel cell therapies for cancer patients. The company does not have any marketed drugs. It has three key pipeline candidates in several mid to late-stage studies. Last week, Adaptimmune announced that it had initiated a rolling BLA submission with the FDA seeking marketing approval for its TCR T-cell therapy afami-cel to treat advanced synovial sarcoma. Management plans to complete this filing by mid-2023.
Adaptimmune currently sports a Zacks Rank #2 (Buy). In the past 60 days, estimates for Adaptimmune’s 2022 loss per share have narrowed from $1.15 to $1.10. Currently, ADAP has an average brokerage recommendation (ABR) of 1.80 on a scale of 1 to 5 (Strong Buy to Strong Sell). ABR is the calculated average of actual recommendations made by brokerage firms and portends the future potential of the stock. Based on these analyst projections, we expect an average price target of $6.25, suggesting a 359.56% upside to the current closing price of $1.36.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Kamada Ltd. , an Israel-based biotech company, focused on developing specialty plasma-derived therapeutics. The company has multiple marketed products in its portfolio and a late-stage pipeline candidate for treating Alpha-1 Antitrypsin deficiency (AATD). For the full year 2022, Kamada expects to record total revenues in the range of $125-$135 million, a 20-30% year-over-year growth.
The company currently has a Zacks Rank #1. In the past 60 days, estimates for Kamada’s 2022 loss per share have narrowed from 14 cents to 7 cents. Kamada has an ABR of 1.00. Based on analyst estimates, we expect a 180.61% upside to the current closing price of $3.92, indicating an average price target of $11.00.
Zymeworks, Inc. (ZYME - Free Report) is a clinical-stage biopharmaceutical company focused on developing next-generation multifunctional biotherapeutics. Last week, partner Jazz Pharmaceuticals exercised an exclusive option and now holds exclusive development and commercialization rights to Zymeworks’ lead pipeline candidate, zanidatamab, in all territories except in Asia/Pacific territories. In consideration for exercising the option, Jazz will pay an upfront payment of $325 million to Zymeworks in fourth-quarter 2022.
Zymeworks currently carries a Zacks Rank #2. In the past 60 days, estimates for Zymeworks’ 2022 earnings per share have improved from a loss of $1.96 per share to a profit of 9 cents. The company has an ABR of 1.73. Based on these analyst projections, we expect an average price target of $12.86, indicating a 59.95% upside to the current closing price of $8.04.