Which stocks tend to polarize market watchers? Penny stocks. Out on Wall Street, investors have strong opinions when it comes to these divisive tickers, which trade for less than $5 per share.The penny stock critics make valid points when defending their stance. Sure, the price tag may look like a steal, but the fact that shares are trading at such low levels could reflect overwhelming headwinds or weak fundamentals.That being said, the fans offer up a solid argument as well. Not only does the low price mean you get more shares for your money, but hefty returns are also on the table. Even seemingly insignificant share price appreciation can result in colossal percentage gains that other more well-known or expensive names aren’t as likely to deliver.The nature of these investments presents somewhat of a dilemma. How are investors supposed to separate the penny stocks that are ready to take off on an upward trajectory from those set to remain down in the dumps?To help with the due diligence process, we used TipRanks’ database to zero in on only the penny stocks that have received bullish support from the analyst community. We found three inhabiting the healthcare sector that are backed by enough analysts to earn a “Strong Buy” consensus rating. Not to mention each offers outsized upside potential.Clearside Biomedical (CLSD)Using its patented SCS Microinjector that targets the suprachoroidal space (SCS), Clearside Biomedical develops treatments that could potentially be capable of restoring and preserving vision for people with serious back of the eye diseases. Given the strength of its platform and its $1.91 share price, several members of the Street believe that now is the time to pull the trigger.Representing Roth Capital, analyst Zegbeh Jallah cites its technology as a key component of his bullish thesis, calling the platform “undervalued." The microinjector is able to inject fluid into the SCS, which is between the choroid and sclera, so it can be effectively absorbed by adjacent tissues. This is important as it reduces off-target delivery.To provide evidence of the device’s efficacy, Jallah points to the clinical data from the pivotal studies evaluating XIPERE, its first drug using the microinjector. “The potential of Clearside's proprietary SCS microinjector to limit off-target delivery was evident by the lower rates of elevated IOP in patients treated with SC-injected triamcinolone due to lower concentrations of the drug flowing into the anterior chamber,” the analyst commented.According to Jallah, this makes it very likely that the therapy will get the FDA’s stamp of approval in mid-2021 after the company resubmits the NDA by year end 2020. It should be noted that XIPERE is currently licensed to Bausch and Artic Vision, with CLSD also finalizing a licensing agreement with Aura in July 2019 and REGENXBIO in August 2019. The analyst argues these agreements “highlight the attractiveness of Clearside's SCS microinjector.”Looking specifically at the REGENXBIO partnership, Jallah stated, “Despite some loss of that momentum due to the pandemic and the announced pushback of XIPERE's NDA resubmission date, we are bullish that promising data from the planned Phase 2 study by REGENXBIO, and Clearside's planned Phase 1 study of suprachoroidal delivery of axitinib (CLS-AX) for wet AMD, which could provide significant upside to Clearside's valuation, and make it a strong M&A target.”To this end, Jallah rates CLSD a Buy, while setting an $8 price target. This target suggests shares could soar 319% in the next year. (To watch Jallah’s track record, click here)Do other analysts agree with Jallah? As it turns out, most do. 3 Buy ratings and a single Hold add up to a Strong Buy analyst consensus. At $6.33, the average price target indicates 231% upside potential. (See Clearside stock analysis on TipRanks)Proteostasis Therapeutics (PTI)Proteostasis Therapeutics is developing CFTR modulator combinations to provide more drug options for people with cystic fibrosis (CF). As the company gears up for the release of clinical data in Q1 2021, some analysts believe that at $1.38 per share, its price tag reflects an attractive entry point. Writing for Cantor, analyst Kristen Kluska tells clients that PTI completed enrollment and collected rectal biopsies for the CHOICES study, which features patients with ultra-rare cystic fibrosis mutations, before COVID-19 started causing delays. Currently, samples are being stored in liquid nitrogen until the company can conduct the ex vivo testing, which may take a few weeks, and the organoids are being tested in four labs in Europe.Kluska noted, “Proteostasis is in weekly engagement with centers, and notes that timelines remain on track at this time… From our calculation, we think these timelines assume that labs will be able to re-open and complete the analysis by or around August.”Additionally, Kluska points out that data in Q1 2021 may include ppFEV1, sweat chloride and safety measures. Expounding on the implications of the data readout, she said, “We think this will be a major catalyst for PTI considering results could help frame whether these assays are predictive in determining who best responds to PTI drugs (which could ultimately frame the basis for utilizing the personalized medicine approach across the MORE trial, which patients, physicians and regulators have encouraged).”The readout will also represent the first look at the triplet data beyond 28 days, which unlike the doublet, kept demonstrating an increased benefit in ppFEV1. “We think a trial double in length of eight weeks will provide more context on the amplifier's potential. Additionally, we believe there is a lower bar for efficacy for the ultra-rate mutation population (as patients are ineligible for all approved modulators), and results could help explain how many patients show some level of benefit,” Kluska stated.With its $57.1 million in cash expected to support the company’s operations into 2H21, the deal is sealed for Kluska. In line with her optimistic take, she reiterated an Overweight rating and $4 price target. Should the target be met, a twelve-month gain of 190% could be in store. (To watch Kluska’s track record, click here) Looking at the consensus breakdown, other analysts are on the same page. With 4 Buys and no Holds or Sells, the word on the Street is that PTI is a Strong Buy. The $5.50 average price target puts the upside potential at 299%. (See Proteostasis stock analysis on TipRanks)Exicure, Inc. (XCUR)Exicure develops a new class of immunomodulatory and gene regulating drugs that feature its spherical nucleic acid (SNA) architecture designed to unlock the potential of therapeutic oligonucleotides in a range of cells and tissues. Currently going for $2.72 apiece, the pros on the Street think that the share price presents investors with a unique buying opportunity.Part of the excitement surrounding XCUR is related to its Phase 2 dose expansion evaluating AST-008 in patients with advanced or metastatic Merkel cell carcinoma (MCC) or cutaneous squamous cell carcinoma (CSCC) who have progressed on a single-agent checkpoint therapy. The therapy will be used in combination with pembrolizumab in MCC or cemiplimab for CSCC. With trial sites already open and enrollment kicking off during Q2 2020, focus has locked in on XCUR ahead of its presentation of updated PD and safety data on AST-008 alone and in combination with pembrolizumab at the AACR meeting on June 22-24.Among the bulls is Ladenburg analyst Wangzhi Li. He tells clients the good news extends beyond AST-008's Phase 2 trial. IND-enabling studies of XCUR-FXN in Friedreich's Ataxia (FA), a rare autosomal recessive disorder that causes neural degeneration, especially affecting neural-muscular control, are expected to begin this calendar year. Given that there’s an estimated 5,000 patients in the U.S. and 15,000 patients worldwide suffering from FA and there aren’t any FDA-approved treatments, Li argues the therapy’s potential is significant.“We see FA as an attractive indication for SNA, given SNA's broad and extended distribution in brain and spine shown in prior studies. Exicure is also exploring additional neurological conditions, including spinocerebellar ataxia, Batten disease, amyotrophic lateral sclerosis (ALS) and Huntington’s disease,” Li explained. He also points out that XCUR will partner with Friedreich’s Ataxia Research Alliance (FARA) to advance the program.If that wasn’t enough, XCUR is collaborating with Allergan on an SNA treatment from two programs for hair loss disorders. As per the terms of the deal, XCUR will screen and identify SNA candidates against selected targets for treating hair loss, and Allergan will pay XCUR $25 million upfront, up to $725 million in milestones and mid-single digit to mid-teens royalties. In addition, preclinical R&D activities for XCUR's collaboration with Dermelix for Netherton Syndrome (NS) are progressing right on track.Based on all of the above, it’s no wonder Li reiterated his Buy recommendation. With an $18 price target, shares could climb 562% higher in the next twelve months. (To watch Li’s track record, click here) Like Li, other analysts also take a bullish approach. XCUR’s Strong Buy consensus rating breaks down into 4 Buys and zero Holds or Sells. Given the $10 average price target, the upside potential lands at 268%. (See Exicure stock analysis on TipRanks)To find good ideas for healthcare stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
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Whilst it may not be a huge deal, we thought it was good to see that the Northern Oil and Gas, Inc. (NYSEMKT:NOG…
Southwest Airlines Co. (LUV) said it has priced its public offering of $1.8 billion of debt in two tranches.The U.S. carrier will offer to sell $500 million aggregate principal amount of 4.750% notes due 2023 and $1.3 billion aggregate principal amount of 5.125% notes due 2027. The 2027 notes will be issued at par value.Southwest Airlines said it expects to use the net proceeds from the offering to repay all of its outstanding debt under its 364-day credit agreement and for general corporate purposes. Upon repayment, it will terminate the credit agreement. The offering is expected to close by June 8, 2020, subject to customary closing conditions.The U.S. carrier added that the 2023 bonds are being offered as an additional issuance of its 4.750% notes due 2023, of which it sold $750 million aggregate principal amount on May 4. The notes are part of the same class as the initial notes of that series and have identical terms, other than the issue date and issue price.Stringent travel restrictions tied to the coronavirus pandemic have brought travel demand to an almost halt, slashing the value of Southwest Airlines’ shares in half this year. U.S. airlines have been burning through billions of dollars in the first quarter incurring huge losses and implementing cost-cutting plans, as well as taking steps to shore up its cash buffers to cope with the financial fallout.Over the past month, Southwest Airlines stock has seen some relief after reporting that in the month through May 18, it recorded net positive bookings reversing net negative booking trends prevalent during most of March and April, where trip cancellations outpaced new passenger bookings.Furthermore, Southwest Airlines expects to bring down average daily cash burn in June to be in the low-$20 million compared with average daily core cash spending of $30 million to $35 million in the second quarter.Last week, five-star analyst Myles Walton at UBS lifted his rating on the stock to a Buy, saying that the U.S. carrier offers the “best risk/reward” for a recovery.Meanwhile, Cowen & Co. analyst Helane Becker reiterated a Buy rating on the shares, citing Southwest’s financial strength and leisure focus.Becker believes that looking ahead to a reopening of the aviation industry, consumers are more likely to take a short-haul domestic flight than to book a trip to Europe.“The industry may still be able to salvage some of the summer season,” Becker said.Overall, Wall Street analysts are cautiously optimistic on the stock. The 13 analyst ratings are divided between 9 Buys and 4 Holds adding up to a Moderate Buy consensus. The $40.22 average price target indicates 10% upside potential in the shares in the coming 12 months. (See Southwest Airlines stock analysis on TipRanks).Related News: S&P Cuts American Airlines’ Credit Rating To ‘B-‘ from ‘B’ On Cash Flow Deficit Concern Billionaire Investor Dan Loeb’s Fund Lists Boeing As Top Winner In May Amazon Leases 12 Boeing Cargo Aircraft To Meet Online Orders Surge More recent articles from Smarter Analyst: * AstraZeneca Partners With Accent To Develop Novel Cancer Treatments * Nio Rising On Record-High Monthly Deliveries, Goldman Sachs Upgrade * Inovio Suing Suppliers Over Covid-19 Vaccine Production * S&P; Cuts American Airlines’ Credit Rating To 'B-' from 'B' On Cash Flow Deficit Concern
Pilgrim’s Pride CEO and 3 other chicken producer executives have been indicted over allegations of price-fixing. Yahoo Finance’s Heidi Chung joins Zack Guzman to discuss.China’s electric vehicle maker Nio Inc (NIO) has revealed that it delivered 3,436 vehicles in May 2020, representing a strong 215.5% growth year over year. Shares are now rising 3% in Thursday’s pre-market trading.The deliveries consisted of 2,685 ES6s, the company’s 5-seater high-performance premium smart electric SUV, and 751 ES8s, the company’s 7-seater high-performance premium smart electric SUV and its 6-seater variant.As of May 31, 2020, cumulative deliveries of the ES8 and the ES6 reached 42,342 vehicles, of which 10,429 were delivered in 2020, NIO said.“In May, we achieved record-high monthly deliveries in our history” cheered William Bin Li, founder and CEO of NIO. He stated that the company “will further increase our production capacity and expand our sales network to support our future growth.”Meanwhile Steven Feng, chief financial officer of NIO, added, “We are pleased to see the strong monthly deliveries despite fewer working days due to the public holiday in May. We expect to achieve the delivery goal for the second quarter 2020, while continuously improving gross margin and narrowing operating loss.”In a further bullish signal NIO rallied 19% on June 3 after the stock received an upgrade from Goldman Sachs analyst Fei Fang. This comes on the back of rating upgrades from JP Morgan and Merrill Lynch.Fang boosted the stock from hold to buy with a $6.40 price target (14% upside potential). “We believe ES6 and ES8 volume strength has transitioned from being promotion-driven to reputation-driven,” Fang told investors, adding that never before has a domestic premium Chinese auto brand had a waiting list.With NIO stock enjoying a 39% year-to-date gain, analysts have a cautiously optimistic Moderate Buy consensus and an average analyst price target of $5.70 (2% upside potential). (See Nio stock analysis on TipRanks).Related News: Lyft Rises 5% After-Hours On Strong May Performance Can Tesla Provide the Million Mile EV Battery? Top Analyst Weighs In Uber In Partnership With MoneyGram For Driver Discount During Pandemic More recent articles from Smarter Analyst: * AstraZeneca Partners With Accent To Develop Novel Cancer Treatments * Inovio Suing Suppliers Over Covid-19 Vaccine Production * S&P; Cuts American Airlines’ Credit Rating To 'B-' from 'B' On Cash Flow Deficit Concern * FedEx Adding Temporary Surcharges As Covid-19 Pressures Mount
Starting June 8, FedEx (FDX) has announced that it will start implementing a number of surcharges, including a temporary surcharge on FedEx SmartPost packages of $0.4/ package, as it deals with the fallout from Covid-19.For customers at the enterprise level, U.S. domestic residential FedEx Express and FedEx Ground packageswill face a surcharge of $0.3/ package, while Oversize U.S. domestic FedEx Express and FedEx Ground packages will now need to cough up an extra $30/ package.“As the impact of the virus continues to generate a surge in residential deliveries and has also generated a surge in oversize, hard-to-handle packages, we have experienced increased operating costs across our network” the company explained.“To continue providing our customers with strong levels of service during this time, we are implementing temporary peak surcharges” FedEx stated, arguing that it provides an essential business keeping commerce moving and delivering critical shipments during this challenging time.Indeed, FedEx rival UPS (UPS) has already implemented peak surcharges on certain U.S. domestic packages starting from May 31, and effective until further notice. “Our goal is to ensure businesses and customers are able to meet their shipping needs while demand has increased for shipping services” the company explained at the time.A $0.30 peak surcharge now applies to certain UPS Ground Residential and UPS SurePost packages if customer’s (like Amazon, Best Buy and Target) average weekly volume exceeds 25,000 packages.Shares in FedEx are currently trading down 9% year-to-date. Analysts have a cautiously optimistic Moderate Buy consensus on the stock, with 10 recent buy ratings offset by 8 hold ratings. More worryingly, the average analyst price target of $135 indicates 2% downside potential from current levels. (See FDX stock analysis on TipRanks).Morgan Stanley’s Ravi Shanker has just reiterated his hold rating on FedEx, citing unprecedented pressures from Covid-19 including sharp declines in B2B and International volumes, elevated costs and one fewer working day.Related News: Zoom Lifts Full-Year Sales Guidance As Quarterly Revenue Balloons 169% Billionaire Ackman Exits Berkshire Hathaway, Blackstone To Fund Opportunities Amazon Leases 12 Boeing Cargo Aircraft To Meet Online Orders Surge More recent articles from Smarter Analyst: * AstraZeneca Partners With Accent To Develop Novel Cancer Treatments * Nio Rising On Record-High Monthly Deliveries, Goldman Sachs Upgrade * Inovio Suing Suppliers Over Covid-19 Vaccine Production * S&P; Cuts American Airlines’ Credit Rating To 'B-' from 'B' On Cash Flow Deficit Concern
Inovio Pharmaceuticals (INO) has now initiated legal proceedings as an emergency action to compel the technology transfer required for the planned large-scale manufacture of its COVID-19 vaccine candidate.The company has an ambitious goal of producing one million doses of INO-4800 by the end of 2020, with its existing capacity and contract resources, for further clinical trials or emergency use.To fulfil this goal, INO has filed a complaint in Pennsylvania to compel VGXI, Inc. and GeneOne Life Science to facilitate the transfer of manufacturing methods, using VGXI’s technology, to the company’s new engaged contract manufacturers.“The Company believes that widespread availability of its potential COVID-19 vaccine, which can only be achieved through accelerated large-scale manufacture following clinical trials and regulatory approval, is essential to combat the ongoing global coronavirus pandemic” INO states.Under the companies’ Supply Agreement, VGXI produces and supplies the DNA plasmids for the INO’s research and early clinical trials for its product candidates.However VGXI allegedly informed Inovio that it did not have the capacity to manufacture the full order of DNA plasmids on the requested timeline, nor would it be able to manufacture plasmids for the commercial sale of INO-4800, if the vaccine were approved.It subsequently refused to transfer the technology to INO’s third party contract manufacturers.In January 2020, INO began preclinical studies of INO-4800, and in April it received approval from the U.S. FDA to begin a Phase 1 clinical trial of INO-4800. If the initial safety and immunogenicity data from the Phase 1 trial are acceptable, INO plans to advance the development of INO-4800 into later-stage efficacy trials in the second half of 2020.In a further dose of bad news, Inovio has not been selected by the Trump administration as one of the five companies picked to develop a COVID-19 vaccine as part of the government’s Warp Speed operation. The companies selected will receive additional government funding, assistance in clinical development and manufacturing to ensure the availability of two hundred million doses by YE2020.“Given INO’s notable omission from this list, we see these developments as a negative read-through to INO shares, though we would await a formal announcement, given INO’s need for external funding in further clinical development and manufacturing scale-up of their ph.I candidate, INO-4800” commented RBC Capital analyst Gregory Renza. Indeed, shares fell 13% on June 3, and are now falling 5% in Thursday’s pre-market trading.However the anlayst adds “While the news can be seen as initially disappointing… we think the announcement would not preclude INO from an ultimately successful development of a COVID-19 vaccine as they continue to leverage external funding support funding and maintain active engagement with gov’t agencies and other funders.”Renza reiterated his Hold rating on the stock with a $10 price target (20% downside potential) on June 3. INO stock has exploded over 270% year-to-date, and analysts have a cautiously optimistic Moderate Buy consensus on the stock’s outlook. That’s with a $17 average analyst price target for further upside potential of 34%. (See INO stock analysis on TipRanks).Related News: 5 Covid-19 Vaccines Picked For Trump’s Operation Warp Speed Inovio’s COVID-19 Vaccine Candidate Has the Edge Over Moderna’s, Says 5-Star Analyst Novavax Seeks To Make 1 Billion Covid-19 Vaccine Doses More recent articles from Smarter Analyst: * S&P; Cuts American Airlines’ Credit Rating To 'B-' from 'B' On Cash Flow Deficit Concern * FedEx Adding Temporary Surcharges As Covid-19 Pressures Mount * Uber CEO Reveals Pickup In May Rides As Covid-19 Restrictions Ease * Billionaire Investor Dan Loeb’s Fund Lists Boeing As Top Winner In May
(Bloomberg) — Oil traders and analysts scrutinizing U.S. inventory data for signs of a market recovery are being confronted by an odd situation: the math just doesn’t add up.Various government data sets including stockpiles, production, imports and exports are signaling that current official figures on at least some supplies are excessive. While it’s unclear where exactly the discrepancy lies, the difference could potentially signal a more bullish outlook for crude prices as they claw their way back after diving below zero in April.The excess is showing up in the U.S. Energy Information Administration’s so-called crude supply adjustment factor — the difference between stockpile numbers and those implied by production, refinery demand, imports and exports. That has averaged negative 980,000 barrels daily over the past four weeks — the largest in records going back to 2001, and equivalent to more than 27 million barrels.The adjustment factor tends to swing back and forth, depending on irregularities in various surveys the EIA pulls from for its reports. For these weekly reports, the EIA is not able to collect domestic crude oil production, instead estimating it from its short-term energy outlook model.Some investors lay the blame for the current discrepancy on U.S. oil production numbers. While daily output fell 700,000 barrels to 11.2 million in May, they believe oil’s plunge into negative territory in April should have led to a steeper decline.Just last month, consultancy IHS Markit said that U.S. oil producers are in the process of curtailing 1.75 million barrels a day of existing output by early June due to operating cash losses, lack of demand and storage capacity and an unwillingness to sell resources at low prices. Some of that lower production is already becoming evident, according to information disclosed in various company announcements and state data.Read: No One Expected U.S. Shale Oil Output Cuts to Happen So FastWhile output may be a factor, it’s unlikely the full answer. According to the EIA’s Robert Merriam, the accuracy of its production modeling compared to subsequent monthly data has been good, often within 1-2% in most months.Since prices started tumbling in March following the collapse of the OPEC+ deal to cut output, the EIA’s weekly data has recorded a production decline of 1.9 million barrels, which he said was substantial compared with historical numbers. And while he’s also seen a wide range of analyst estimates on current production volumes, it’s not clear whether those are comprehensive or extrapolated.“The adjustment reflects the aggregate uncertainty around each of the supply and disposition elements, and the crude production estimate certainly remains but one potential factor,” Merriam, the director of the Office of Energy Production, Conversion, and Delivery at the EIA, said.He said that there have also some large weekly swings in reported inventory levels and refinery runs, so all the elements within the crude data are moving around far more than they usually do, adding that “the timing of reporting those could also be driving the adjustment lately, as they always do.”A year ago, the crude adjustment factor caught the attention of energy enthusiasts when the figure was more than 800,000 barrels a day for four weeks, implying the reverse — that something in the data was undercounted. The EIA, at the time, had suspected that besides understating oil production, one of the reasons was plant condensate that was associated with natural gas output, but blended into the crude oil stream.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.