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4 Cheap Stocks to Buy on Signs of Coronavirus Slowdown
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There has been a slowdown in coronavirus-related deaths and new cases in some of the hardest-hit places across the globe. If we look at the data provided by worldometer, over the past five days, there were 32,284 new cases in the United States last Friday and 34,196 on Saturday. The number of new cases dropped to 25,316 on Sunday, before again increasing to 30,331 on Monday and modestly to 33,331 on Tuesday. New cases have been up just 3.2% in the past five days. New cases around the world declined 16.4% during the same time frame.
The market has reacted accordingly. The Dow, the S&P 500 and the Nasdaq Composite were up 8%, 7.5%, and 7%, respectively, in the past five days. All three indices surged a respective 7.7%, 7% and 7.3% on Monday, marking their best single-day gain since Mar 24.
President Trump on Monday said, “There’s tremendous light at the end of the tunnel,” expressing hope that coronavirus cases were "levelling off" in U.S. hotspots.
New cases and deaths have slowed down in Europe as well and leaders might start to look for lockdown-exit strategies if the trend continues.
Deborah Birx, a member of the President's coronavirus task force, noted on Sunday that the situation in Italy and Spain, where infections and deaths have dropped in recent days, was "giving us hope on what our future could be".
Fingers Crossed for a Market Recovery
Back-to-back rate cuts, liquidity swap-line arrangements and the most-recent $2-trillion coronavirus relief bill will act as key catalysts behind a V-shaped recovery if the pandemic continues to slow down. This is mainly because it was only COVID-19 that has caused the recession and rattled markets, otherwise, the United States had a robust economy.
At this stage, the highly oversold market offers 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 momentum in the mid-term, especially after the coronavirus crisis dissipates. So, let’s delve into the four stocks that we found today.
The chart below shows the year-to-date price performance of our four picks.
Trillium Therapeutics Inc.
This clinical-stage immuno-oncology company develops therapies for the treatment of cancer.
Trillium closed at $3.94 on Tuesday, while rallying 282.5% on a year-to-date basis. The Zacks Consensus Estimate for the company’s 2020 bottom-line number indicates a year-over-year surge of 76.8%. The consensus mark moved up 42.9% in the past two months.
At present, Trillium carries a Zacks Rank #2 (Buy) and its Momentum Score of A highlights the stock’s short-term attractiveness.
Nautilus, Inc.
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 $2.22 on Tuesday, while appreciating 26.8%, year to date. The Zacks Consensus Estimate for the company’s current-year bottom-line figure suggests a 38.2% improvement. The consensus estimate for this year moved up 37.3% over the past two months.
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 $2.49 on Tuesday, while soaring 111% year to date. The Zacks Consensus Estimate for the company’s ongoing-year earnings calls for 31.1% year-over-year growth. The consensus mark moved 7.8% north in two months’ time.
Aduro currently carries a Zacks Rank of 2 and has a Momentum Score of B.
The company engages in the discovery and development of oral recombinant protein vaccines.
Vaxart closed at $1.68 on Tuesday, while skyrocketing 379.3% in the year-to-date period. The Zacks Consensus Estimate for the company’s 2020 bottom-line number indicates a year-over-year jump of 97.7%. The consensus estimate for 2020 moved upward 33.3% over the past two months.
At present, Vaxart carries a Zacks Rank of 2 and has a Momentum Score of B.
Free: Zacks’ Single Best Stock Set to Double
Today you are invited to download our latest Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.
Image: Shutterstock
4 Cheap Stocks to Buy on Signs of Coronavirus Slowdown
There has been a slowdown in coronavirus-related deaths and new cases in some of the hardest-hit places across the globe. If we look at the data provided by worldometer, over the past five days, there were 32,284 new cases in the United States last Friday and 34,196 on Saturday. The number of new cases dropped to 25,316 on Sunday, before again increasing to 30,331 on Monday and modestly to 33,331 on Tuesday. New cases have been up just 3.2% in the past five days. New cases around the world declined 16.4% during the same time frame.
The market has reacted accordingly. The Dow, the S&P 500 and the Nasdaq Composite were up 8%, 7.5%, and 7%, respectively, in the past five days. All three indices surged a respective 7.7%, 7% and 7.3% on Monday, marking their best single-day gain since Mar 24.
President Trump on Monday said, “There’s tremendous light at the end of the tunnel,” expressing hope that coronavirus cases were "levelling off" in U.S. hotspots.
New cases and deaths have slowed down in Europe as well and leaders might start to look for lockdown-exit strategies if the trend continues.
Deborah Birx, a member of the President's coronavirus task force, noted on Sunday that the situation in Italy and Spain, where infections and deaths have dropped in recent days, was "giving us hope on what our future could be".
Fingers Crossed for a Market Recovery
Back-to-back rate cuts, liquidity swap-line arrangements and the most-recent $2-trillion coronavirus relief bill will act as key catalysts behind a V-shaped recovery if the pandemic continues to slow down. This is mainly because it was only COVID-19 that has caused the recession and rattled markets, otherwise, the United States had a robust economy.
At this stage, the highly oversold market offers 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 momentum in the mid-term, especially after the coronavirus crisis dissipates. So, let’s delve into the four stocks that we found today.
The chart below shows the year-to-date price performance of our four picks.
Trillium Therapeutics Inc.
This clinical-stage immuno-oncology company develops therapies for the treatment of cancer.
Trillium closed at $3.94 on Tuesday, while rallying 282.5% on a year-to-date basis. The Zacks Consensus Estimate for the company’s 2020 bottom-line number indicates a year-over-year surge of 76.8%. The consensus mark moved up 42.9% in the past two months.
At present, Trillium carries a Zacks Rank #2 (Buy) and its Momentum Score of A highlights the stock’s short-term attractiveness.
Nautilus, Inc.
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 $2.22 on Tuesday, while appreciating 26.8%, year to date. The Zacks Consensus Estimate for the company’s current-year bottom-line figure suggests a 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 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Aduro BioTech, Inc.
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 $2.49 on Tuesday, while soaring 111% year to date. The Zacks Consensus Estimate for the company’s ongoing-year earnings calls for 31.1% year-over-year growth. The consensus mark moved 7.8% north in two months’ time.
Aduro currently carries a Zacks Rank of 2 and has a Momentum Score of B.
Vaxart, Inc. (VXRT - Free Report)
The company engages in the discovery and development of oral recombinant protein vaccines.
Vaxart closed at $1.68 on Tuesday, while skyrocketing 379.3% in the year-to-date period. The Zacks Consensus Estimate for the company’s 2020 bottom-line number indicates a year-over-year jump of 97.7%. The consensus estimate for 2020 moved upward 33.3% over the past two months.
At present, Vaxart carries a Zacks Rank of 2 and has a Momentum Score of B.
Free: Zacks’ Single Best Stock Set to Double
Today you are invited to download our latest Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.
See 5 Stocks Set to Double>>