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Analysts say “buy the pullback” in these 3 stocks
The savvy investor knows that the best time to buy is when a stock is low – it’s just the old buy low and sell high game, age-old advice on how to make money. However, with the S&P near record highs, it’s hard to tell when a stock is going to be low. The key is just to take them as individuals. The stock exchange is the world’s largest real-time experiment for averaging over large mass numbers. The markets as a whole can rise while some individual stocks slide down. And when a stock hits bottom, it becomes a buying opportunity as long as its fundamentals are solid. Wall Street analysts are making a name for themselves by finding these opportunities and bringing them to our attention. Using the TipRanks database, we were able to find 3 stocks that are off their recent highs while some analysts recommend buying the pullback. Let’s take a closer look at that. Iovance Biotherapeutics (IOVA) We’re starting with Iovance Biotherapeutics, a medium-sized immuno-oncology biotech company developing tumor-infiltrating lymphocyte (TIL) therapies for cancer treatment. Basically, the technology aims to use the patient’s own immune system to attack the cancer. Lifileucel, the company’s lead drug candidate, is on the way to filing for a biologics license with the FDA, the next step in the ongoing approval process. The drug has shown promise in the treatment of metastatic melanoma, and follow-up studies are ongoing in Phase 2 clinical trials. In addition, it is currently being investigated whether Lifileucel can be used against cervical cancer. The program includes enrollment of patients in the Phase 2 study and enrollment of patients in Cohorts 1 and 2 has been completed. That backdrop, and the stock’s 40% decline since its most recent high in February, caught the attention of H.C. 5-star analyst Joseph Pantginis. Wainwright. “[We] believe the stock withdrawal ahead of the BLA filings scheduled for 2021 for its TILs in both melanoma and cervical cancer will again be a compelling entry point for investors. Most importantly, remember that melanoma has RMAT status and the cervix is labeled ‘breakthrough therapy’ … “The analyst added,” We believe that the latest encouraging data and modifications to the study are indications of clinical promise are from Lifileucel and are strengthening the case for its commercialization ahead of the expected BLA filings. “Pantginis backs these comments with a Buy recommendation and a price target of $ 50, implying an upward movement of 57% over the next 12 months. (To see Pantginis’ track record, click here.) Colleagues too. The stock has 5 current ones Reviews and all are for buy, resulting in a unanimous consensus rating for analysts with a strong buy. IOVA has an average price target of $ 54.80, indicating a 12-month upward movement of 72% over the stock price of 31, $ 88. (See IOVA stock analysis on TipRanks.) Quidel Corporation (QDEL) The next pullback stock we look at is Quidel, a $ 5.9 billion diagnostic health care company, headquartered in Quidel in Southern Ca., California, operates worldwide providing products in a variety of on-site diagnostic test niches, and achieved great success last year when it received FDA approval ng for a COVID-19 antigen test. Earlier this month, Quidel announced emergency approval for its Quickvue COVID-19 home test kit, available to patients with a doctor’s prescription. In February, the company reported its fourth quarter 2020 results with total revenue of $ 809.2 million, up 69% from the previous quarter and an even more impressive 431% year-over-year profit. The increase was due to COVID-19-related products, which had quarterly sales of $ 678.7 million. Earnings per share were $ 10.78, compared to earnings of 71 cents for the year-ago quarter. The corona pandemic has been a boon to the medical testing field, and Quidel has seen much of that benefit. The company posted earnings similar to the fourth quarter for the full year. For 2020, Quidel had sales of $ 1.66 billion, up 211% year over year, on COVID-19 sales of $ 1.16 billion. Earnings per share for the year were $ 18.60 compared to $ 1.73 in 2019. Ironically, the success of the medical effort against COVID-19 has fueled Quidel – and prepared him for the current withdrawal. As the vaccination program continues and expands and the spread of the virus slows down, the need for rapid mass testing will decrease. Quidel is unlikely to completely wind up its COVID business in the near future, but in the medium term it is so likely it will return to pre-pandemic normalcy. That prospect has investors wondering whether the current high stock valuation can continue. Craig Hallum analyst Alexander Nowak is optimistic about QDEL. Regarding the company’s recent success, he writes, “This stock almost stumbled around during COVID, but business has accelerated significantly over the same period. QDEL was able to grow its customer base by 60% in a single year, more than double its placements, sign long-term test contracts, five times the capacity to support more tests, markets, regions, enter alternative care channels, build the market for Home tests and lots of money generated. “And going forward, the 5-star analyst adds,” But when COVID is completely over, we still see QDEL making normalized profit of $ 10 + $ 47 in cash / share, and that’s more than that Worth double the current rating. For investors who can look past volatility, the pullback is a great buy point. “To this end, Nowak rates the QDEL share with a buy and sets a price target of 341 USD, which means an upward movement of 148% for the coming year. (To see Nowak’s track record, click here.) Now turn to the rest of the street, where QDEL mostly receives purchases from Nowak’s colleagues – 3 as it happens. An additional 1 sale cannot detract from a consensus rating for a moderate buy. Given the average target price of $ 239, analysts expect stocks to rise 71% from current levels. (See QDEL stock analysis on TipRanks.) Sunrun, Inc. (RUN) As we switch, we take a look at an old energy company, Sunrun. This company specializes in solar power generation systems for home use. Customers who want to install and operate solar modules on the roof can choose between purchase and leasing options and use the generated electricity in a number of ways, either for home use or for resale to the local electricity supplier. Sunrun stocks are down 40% since their most recent high in January. The decline, more than anything, is due to sentiment. The solar sector has generally risen sharply since the November elections as it believes the Biden administration will provide regulatory support to the industry. However, with the recent spike, investors have been slightly concerned that Sunrun won’t live up to the hype going forward. However, the decline was certainly not due to performance disruptions. At the end of February, Sunrun had fourth quarter revenue of $ 320 million, up 31% year over year. The strong sales were due to an 18% increase in the customer base compared to the previous year, bringing the company to a total of 550,000 customers. With these customers, the average contract length is 17 years and annual recurring revenue is $ 668 million. Overall, these factors prompted Truist analyst Tristan Richardson to reiterate his buy recommendation. “[We] I think the pullback represents an attractive opportunity leading to an accelerated growth profile in 2021 and tailwind in customer margin (storage, VSLR synergies). We’re modestly increasing our near-term install forecast and expecting more than 20% year-over-year growth, ”said Richardson. The analyst continued, “With the sell-off of growth stocks and risk assets (including solar) over the past few weeks as interest rates have been volatile, we are mathematically underscoring the importance of the ability of the largest US installer to accelerate home growth profile so as not to accentuate the issue from a fundamental perspective. “Richardson supports his stance with a target price of $ 95, indicating confidence in upside potential of 66% for a year. (To see Richardson’s track record, click here.) The Truist view of Sunrun isn’t an outlier. There are 14 reviews of this stock, including 11 buys versus just 3 holds, giving the stock a strong buy consensus rating. The stock is trading at $ 57.28, and the average target price of $ 82.10 suggests an upward move of 44%. (See RUN stock analysis on TipRanks.) To find great ideas for trading stocks at attractive valuations, visit TipRanks ‘Best Stocks to Buy, a newly launched tool that brings together all of TipRanks’ stock insights. Disclaimer: The opinions expressed in this article are solely those of the presented analysts. The content is intended to be used for informational purposes only. It is very important that you do your own analysis before making any investment.
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This article originally appeared on finance.yahoo.com
