All three major indices fell more than 3% on Friday as the turbulent ride of equities continues amid intensifying coronavirus fears. Per the Centers for Disease Control and Prevention, the total number of infected people in the United States was 122,653, as of Mar 29, with 2,112 deaths.
The Market Pandemonium Continues
On Mar 27, markets faced yet another setback as the three major stock indices — the Dow, the S&P 500 and the Nasdaq Composite — plummeted 4.1%, 3.4% and 3.8%, respectively. Over the past month, the Dow, S&P 500 and Nasdaq Composite have declined 20.1%, 18.8% and 16.3%, respectively.
Meanwhile, the COBE VIX, a real-time indicator of the market's expectation of the 30-day forward-looking volatility, closed at 65.54, up 63.4% over the past month and significantly higher than its historical average range of 19 to 20. Notably, a VIX value higher than 30 is generally associated with large volatility resulting from rising uncertainty, risk and investors’ fears.
Back-to-back rate cuts, liquidity swap-line arrangements and the most recent $2-trillion coronavirus relief bill have bought nothing more than just interim bounce backs. With too much uncertainty about the duration and extent to which the mayhem can weigh on the economy and the market, Wall Street experts have warned investors for a bumpy road ahead.
The Bearish Trend Offers Cheap Stocks With Solid Prospects
At a time when uncertainty bars us from closely predicting when stocks will rebound and a sustained rally prevail; the market has to offer some ultra-cheap stocks with stellar prospects.
While these stocks trade under $10 and can be more volatile than their costlier peers, strong bottom-line projections, positive estimate revisions and impressive share-price rally in recent times point toward a momentum in the mid-term, especially after the COVID-19 mayhem ends. So, let’s delve deep into the four stocks that we found today.
The chart below shows the price performance of our four picks in the past three months.
Sharps Compliance Corp. SMED
The company provides medical, pharmaceutical, and hazardous waste-management services in the United States.
Sharps closed at $6.77 on Friday, while surging 60.4% over the past three months. The Zacks Consensus Estimate calls for the company’s fiscal 2020 earnings to skyrocket 800% to 9 cents. The consensus estimate for the fiscal year moved upward 28.6% over the past two months.
At present, Sharps sports a Zacks Rank #1 (Strong Buy) and its
Momentum Scoreof A highlights the stock’s short-term attractiveness. You can see the complete list of today’s Zacks #1 Rank stocks here . Nautilus, Inc. NLS
This fitness solutions company designs, develops, sources, and markets cardio and strength fitness products and related accessories for personal and commercial use in the United States, Canada, and internationally.
Nautilus closed at $2.8 on Friday, while appreciating 60% over the past three months. The Zacks Consensus Estimate for the company’s 2020 bottom-line figure suggests 38.2% improvement. The consensus estimate for this year moved up 37.3% over the past two months.
Nautilus currently flaunts a Zacks Rank of 1 and has a Momentum Score of B.
Kaleido BioSciences, Inc. ( KLDO Quick Quote KLDO - Free Report)
The developer of microbiome metabolic therapies offers treatment for hyperammonemia, chronic kidney disease, atherosclerotic cardiovascular disease, infections caused by multi-drug resistant bacteria, and drug or disease-induced diarrhea.
Kaleido closed at $6.05 on Friday, while rallying 20.5% over the past three months. The Zacks Consensus Estimate for the company’s current-year bottom-line number indicates year-over-year growth of 31.9%. The consensus mark moved up 4.6% in the past two months.
At present, Kaleido carries a Zacks Rank #2 (Buy) and has a Momentum Score of B.
Aduro BioTech, Inc. ADRO
This clinical-stage biopharmaceutical company engages in development and commercialization of therapies to strengthen the body's natural immune system for the treatment of challenging diseases.
Aduro closed at $2.55 on Friday, while soaring 116.1% in the past three months. The Zacks Consensus Estimate for the company’s ongoing-year earnings suggests 31.1% year-over-year improvement. The consensus mark moved 17.4% north in two months’ time.
Aduro currently carries a Zacks Rank of 2 and has a Momentum Score of B.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>