2 “Potent Purchase” Penny Stocks With Multibagger Potential

Let’s talk about winning in the stock market. You tin make money no thing what the overall economical conditions are – whether stocks go up or down, in that location will be opportunities to profit by the moves. The fundamental, of course, is agreement when to buy in and when to sell. Every stock will come with the potential for both hazard and reward; successful investors know how to residual them.

Few stock segments offer a more interesting – and, potentially, more profitable – risk/reward contour than the penny stocks. These equities, typically priced nether $5 per share, offer a minimal toll of entry, and frequently triple-digit upside potential.

For some, yet, the risk poses too great a threat to ignore. When yous look under the hood of these low-priced names, you might find very real issues like poor fundamentals or looming headwinds.

So, how are investors supposed to spot the penny stocks poised to go from rags to riches? By turning to the pros.

Using TipRanks’ database, we pulled 2 penny stocks that accept clustered enough analyst support to earn a “Strong Buy” consensus rating. Not to mention each offers multi-bagger upside potential. Allow’southward take a closer await.

Aravive, Inc. (ARAV)

We’ll showtime with Aravive, a clinical-stage biopharmaceutical visitor with one major drug candidate, batiraxcept, under investigation in multiple, simultaneous human clinical trials against various cancers. The company’s goal is to transform targeted cancer therapeutics, using batiraxcept, its new chemical compound, in combination with canonical anticancer treatments, with the goal of improving the treatment of metastatic disease.

Batiraxcept is described as ‘an ultra-high affinity decoy poly peptide that binds to GAS6, the sole ligand that activates AXL, inhibiting metastasis, tumor growth, and restoring sensitivity to anti-cancer agents.’ The drug candidate has received Fast Track designation from the U.s.a. FDA also as an Orphan Drug designation from the European Commission, both in the treatment of platinum-resistant ovarian cancer (PROC).

Currently, batiraxcept is undergoing two Phase 1b/ii clinical trials, 1 in the handling of pancreatic adenocarcinoma and one in the treatment of articulate cell renal carcinoma. Both trials are testing the drug candidate every bit a combination therapy, and data readouts are expected in mid-2023.

The leading trial, nevertheless, the driver of investor interest in this visitor, is the ongoing Phase 3 written report of batiraxcept-plus-paclitaxel in the handling of PROC. Enrollment in this trial was begun terminal year, and the top-line information release is anticipated in the mid-part of this year. The study aims to enroll up to 350 patients with platinum resistant, loftier-form serous ovarian cancer, who have already tried 1 to 4 other lines of treatment. The company is currently on track to complete its BLA submission for batiraxcept in the treatment of PROC during 4Q23.

With multiple shots on goal, several analysts believe that at $1.80 per share, now is the fourth dimension to pull the trigger.

Among them is H.C. Wainwright analyst Joseph Pantginis, who has high hopes for Aravive. He writes, “We highlight Aravive as a top pick to keep an centre on as it continues to advance batiraxcept through its oncology-focused clinical pipeline. With several clinical milestones approaching in 2023, we believe now is an opportune time for investors to take a closer await at Aravive, with a particular emphasis on the upcoming top-line data from the registrational Phase 3 study AXLerate-OC of batiraxcept for the handling of platinum-resistant ovarian cancer (PROC).”

“In PROC, Aravive has potential for all-time-in-form potential with the differentiated mechanism of batiraxcept synergizing with current SOC chemotherapy regimens and providing significant quality of life improvements in patients,” the analyst added.

In line with this optimistic stance, Pantginis puts a Buy rating on ARAV stock. His $vii toll target suggests a 1-year upside potential of ~285%. (To watch Pantginis’ track record, click here)

That’s a bullish take, only the Street mostly leans even more to the bullish side on this stock. All five of the recent analyst reviews are positive, for a unanimous Strong Purchase consensus rating, and the average price target of $11.75 suggests a sky-high 545% upside potential on the 1-year horizon. (See ARAV stock forecast on TipRanks)

Bandbox Biosciences

We’ll now plough our attention to Spruce Biosciences, a biopharmaceutical company working on the handling of rare endocrinological disorders with significant unmet medical needs – that is, weather condition of the endocrine system that practise not currently accept constructive treatments available. Spruce’south leading drug candidate is tildacerfont, which is being investigated as a therapy for both adult and pediatric built adrenal hyperplasia (CAH), as well equally for polycystic ovary syndrome (PCOS).

Tildacerfont is a wholly-endemic drug candidate, and Spruce currently has it in several clinical trials. The leading studies, dubbed CAHmelia-203 and CAHmelia-204, are testing the drug confronting adult archetype congenital adrenal hyperplasia. These late-stage trials both have upcoming milestones. The -203 study, which is looking at patients with high levels of androstenedione (A4) while on their current glucocorticoid regimen, is currently l% enrolled with a target enrollment of 72. The company expects to release topline results in the second half of this year.

On the second avant-garde trial, CAHmelia-204, the company has recently passed 25% enrollment, with a total planned patient base of 90. The report is looking at patients on supraphysiologic doses of glucocorticoids at or above 30 mg/d hydrocortisone equivalent with normal or nearly normal levels of A4. Bandbox anticipates releasing topline results in 2H24.

In addition to these studies, Bandbox is also conducting a Phase ii trial series, the CAHptain clinical report, in pediatric classic CAH. This study volition follow three sequential cohorts, looking at adolescents ages 11 to 17 and children ages 2 to ten, and is looking to release topline data from the adolescent portion of the study – cohorts 1 and 2 – during 2H23.

On the PCOS plan, Bandbox is running the P.O.W.E.R. Phase two trial, a study designed to evaluate the safety and efficacy of tildacerfont at a dose of 200 mg in one case daily. The topline information release for this trial is expected during 1H23.

No companies human action in a vacuum, and Spruce faces competition in its inquiry niche from other biopharma researchers. Competitor NBIX’s drug candidate, crinecerfont, is under investigation in both developed and pediatric patients, and the visitor plans to study the registrational data in 2H23. The competition, however, has not stopped RBC analyst Gregory Renza from coming down in favor of Spruce.

“We continue to like the risk/reward at electric current levels going into CAHmelia 203 topline and believe the recent mural development improves SPRB’south positioning. With NBIX pushed out with a at present gear up pivotal topline of crinecerfont to 2H23, we believe the gap from data from the two CAHmelia studies accept improved SPRB’s positioning. Nosotros wait to CAHmelia 203 topline data in 2H2023 to appraise tildacerfont’s profile, as well equally to compare with crinecerfont to further approximate product differentiation,” Renza opined.

To this end, Renza gives SPRB an Outperform (i.e. Buy) rating with an $viii price target that suggests room for ~248% share appreciation over the coming twelvemonth. (To watch Renza’s track record, click here)

Overall, there are iv recent annotator reviews for SPRB, and their breakdown of three Buys and i Hold gives this penny stock a Strong Buy consensus rating. The shares are trading for $2.37, while their average target of $12 implies a strong gain of ~422% in the side by side 12 months. (See SPRB stock forecast at TipRanks)

To detect adept ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.

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