Analysts Say ‘Buy the Pullback’ in These 3 Stocks
The savvy investor knows that the best time to buy is when a stock is priced low – it’s just the old game of ‘buy low and sell high,’ the age-old advice on making money. But with the S&P at near-record levels, it’s hard to tell when a stock is priced low. The key is just to take them as individuals. The stock market is the world’s greatest real-time experiment in averaging large mass numbers.
The markets as a whole can go up while a few individual stocks are slipping to the bottom. And when a stock hits bottom, as long its basics are sound, it becomes a buying opportunity. Wall Street’s analysts make their reputations by finding these opportunities and bringing them to our attention. Using the TipRanks database, we found 3 stocks down from their recent peaks, while some analysts recommend ‘buy the pullback.’ Let’s take a closer look. Iovance Biotherapeutics (IOVA) We’ll start with Iovance.
Biotherapeutics, a mid-cap biotech firm in immune-oncology, is developing tumor-infiltrating lymphocyte (TIL) therapies for cancer treatment. At base, the technology aims to use the patient’s own immune system to attack cancer. The company’s prime drug candidate, lifileucel, is on track for a Biologics License Application to the FDA, the next step in the ongoing approval process. The drug has shown promise to treat metastatic melanoma, and follow-up studies are underway in Phase 2 clinical studies. Additionally, lifileucel is under investigation for application against cervical cancer; the program is enrolling patients in Phase 2 study, and enrollment of patients in Cohorts 1 and 2 has been completed.
This background, along with the stock’s 40% fall since its recent peak in February, has combined to catch the attention of 5-star analyst Joseph Pantginis from H.C. Wainwright. “”We] believe the pullback in the shares create a compelling entry point again for investors ahead of the 2021 planned BLA filings for its TILs in both melanoma and cervical cancer. Recall, importantly, that melanoma has RMAT status and cervical has Breakthrough Therapy designation…””The analyst added, “”e believe the recent encouraging data and trial modifications are indications of llifileucel’sclinical promise and strengthen the case for its commercialization ahead of anticipated BLA filings.
Pantginis backs these comments with a Buy rating and $50 price target that implies an upside of 57% in the coming 12 months. (To watch PPantginis’track record, click here) The cutting edge med tech has attracted attention frcutting-edges’colleagues, as well. The stock has 5 recent reviews, and all are to Buy, making for a unanimous Strong Buy analyst consensus rating. IOVA has an average price target of $54.80, suggesting a 12-month upside of 72% from the share price of $31.88. (See IOVA stock analysis on TipRanks) Quidel Corporation (QDEL) The next ”ullback”stock wwe’relooking at is Quidel, a $5.9 billion company in diagnostic healthcare.
Quidel, based in southern California, has worldwide operations, offering products in various point-of-care diagnostic testing niches. The company scored a major win last year when it received FDA approval for a COVID-19 antigen test. Earlier this month, Quidel announced emergency use authorization for its Quickvue at-home COVID-19 test kit, available to patients with a medical prescription. In February, the company reported its
Q4 results for 2020, showing $809.2 million in total revenue, a 69% quarter-over-quarter increase – and an even more impressive 431% year-over-year gain. The growth was driven by COVID-19-related products, which generated $678.7 million in quarterly sales. EPS came in at $10.78, compared to the 71-cent earnings in the year-ago quarter. The corona pandemic has been a boon to the medical testing sector, and Quidel has seen a large part of that benefit. The company reported full-year gains similar to its Q4 results. For 2020, Quidel showed $1.66 billion revenues, up 211% year-over-year, with COVID-19 revenues of $1.16 billion.