Stocks can go down for a number of reasons, but successful investors know they need to look under the hood before getting out. Some stocks will stutter and freeze, only to restart and accelerate later. If the underlying business is solid, even a sharp drop in stock value can be more of an incident than a lasting success. Before you buy a rundown stock, however, the first thing to do is do your homework and find out what’s behind the stock’s fall. With this in mind, we started looking for convincing investment opportunities that trade at a discount. Using the TipRanks database, we were able to find two stocks that are deviating from their recent highs, while some Wall Street analysts believe a turnaround is on the horizon. Let’s take a closer look. uniQure N.V. (QURE) We’re starting in the biotech space with uniQure, a gene therapy company exploring potentially curative single-dose treatments for patients with severe genetic diseases. UniQure’s two most advanced programs are treatments for hemophilia and Huntington’s disease, which are in Phase 3 and Phase 1/2 studies, respectively. The treatments are adeno-associated virus-based gene therapies (AAV) developed on a proprietary platform. The FDA has discontinued the company’s hemophilia B studies following the mid-December safety report identifying a serious adverse event during the Phase 3 HOPE-B clinical trial of AMT-061. One patient was diagnosed with HCC (hepatocellular carcinoma, the most common liver cancer) during the study. This patient had multiple HCC risk factors, including a long history of hepatitis C and B, smoking, and non-alcoholic fatty liver disease. Since then, uniQure has screened over 100 patients in all hemophilia B programs, including all 54 patients in the HOPE-B trial, for liver complications with negative results. The company and the FDA are currently evaluating this event. Preliminary indications are that the adverse event is unrelated to that specific gene therapy. UniQure’s other major pipeline project, AMT-130, is a potential treatment for Huntington’s disease, a serious genetic mental disorder. AMT-130 is in Phase 1/2 clinical trials, with the second dose group expected to begin in Q3 21 due to enrollment. A second clinical study on AMT-130 is scheduled to begin in Europe in the second half of 21. Through all of this, QURE stocks have fallen 26% since the FDA held AMT-061. However, Mizuho-based analyst Difei Yang notes the investigation of the HCC event in the HOPE-B study as an incentive for investors. “[We] believe these analyzes suggest that multiple risk factors, independent of AAV vector integration, likely contributed to the development of HCC. The company has filed these analyzes with the FDA and an update of the clinical hold status is expected in Q2 21, ”said Yang. Yang sees the stock’s current valuation and positive outlook as grounds for optimism. “[We] see … a favorable risk / return in the stocks listed: 1) a positive security update for the leading HemB program, which we consider a risk reducing event for the company, and 2) initial efficacy data from the HD program expected in late 2021 / Early 2022. We expect this data update to be a closely watched catalyst after the recent failures of competing ASO programs, ”summarized Yang. To that end, Yang gives QURE a target price of $ 52 along with their improved stance, indicating upside potential of 45% for the year ahead. (To see Yang’s track record, click here.) The stumbling blocks that QURE has encountered in recent months are familiar to those in the biotech industry. Hence, the analysts have not left this stock. QURE shares have a unanimous consensus among analysts at Strong Buy Rating based on 5 recent positive ratings. The price of the stock is $ 35.78, with an average target price of $ 67.40 representing an upward trend of 88% for one year. (See QURE stock analysis on TipRanks.) Ontrak (OTRK) Ontrack is another stock related to the healthcare industry – but more on the customer side than biotech research. Ontrak is in the telemedicine niche, leveraging an AI-powered platform to track and monitor patients with chronic disease states. Also, behavior changes are recommended to improve health outcomes. The company combines predictive analysis and human engagement in its program and has achieved lasting cost savings for more than half of its enrolled members. Ontrak shares had risen through early February, but slipped in the middle of the month. Multiple headlines hit the stock in March, and stocks fell 63% from their high. The first success came when management announced in their fourth quarter results pre-announcement that the company’s largest customer, Aetna, would cancel its contract in June this year. The news pushed the forecast for 2021 down, making the predictions for the future much worse than expected by the road. The actual results of the fourth quarter, however, showed considerable increases in sales compared to the previous year. Fourth quarter revenue was $ 29.3 million, 149% higher than last year. The quarterly results were followed on March 16 by the announcement that Jonathan Mayhew, executive vice president of CVS, would serve as CEO of Ontrak starting April 12. Mayhew is a former Aetna executive and it is hoped his connections will help Ontrak reclaim its biggest contract. The announcement that Mayhew would join Ontrak’s front runner prompted 5-star Canaccord analyst Richard Close to upgrade his OTRK stock rating from Hold to Buy. “[We] Look at that [the Mayhew hire] as a great benefit to Ontrak and the validation of the company’s service offering. The addition of Mayhew could allow Ontrak to regain its Aetna Behavioral Health Substance Disorder (SUD) contract and potentially add anxiety and depression as well, while opening up the potential for other populations at Aetna and CVS Health, “Close said the analyst added: “We note that the financial rationale of losing Aetna in 2021 remains, but in the longer term, that stance is very encouraging for Ontrak’s growth and we believe it provides the opportunity for multiple expansions from historically discounted Valuation of the stock offers. “Close’s comments confirm his improved stance and his target price of $ 46 suggests ~ 33% headroom for a year. (To view Close’s track record, click here.) The rest the road is sloping to the bullish side The consensus rating for moderate buying of OTRK is based on on 3 buys and 2 holds. There is a possible upward trend of 36% if the target of $ 47 is met in the coming year. (See OTRK 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.