Tip Ranks
The recent drop in these three stocks is a “buying opportunity,” analysts say
It’s that time again – time to start looking for upwardly mobile stocks at relatively low prices. We’ve just seen a drop in market prices, but for some stocks, the drop has started earlier and is going deeper. That has opened up opportunities that Wall Street analysts have been quick to point out. These are Strong Buy stocks, despite their recent drop in stock value. The analysts have noted that each has a path to short-term gains, making the risk-return factors suitable for return-oriented investors. And with low prices, these are also suitable for bargain hunters. We used TipRanks’s database to find three stocks that match that profile. Let’s take a closer look. Farfetch, Ltd. (FTCH) Online retailers have clearly had an advantage over the past year, but on the other hand, the recent reopening of economies around the world has put some pressure on them. Farfetch, an online apparel retailer with an international profile – headquartered in London, offices in New York, LA, Tokyo, Shanghai, Portugal and Brazil – shows both trends. The company’s earnings in the second half of 20 threw its market cap well above $ 16 billion, while recent stressors have caused the stock price to drop 38% since its peak in February. Farfetch has a solid foundation, based on more than 3 million active customers and more than 1,300 sellers on the platform. The company saw more than $ 3.2 billion of gross merchandise offered through the site in 2020, making it the # 1 global platform for buying luxury products online. The gross trade value was 49% higher than last year. On the top line, Farfetch’s revenues were up 64% year-on-year in 2020, to $ 1.7 billion, with $ 540 million, about a third of that total, in the fourth quarter. 5-star analyst Doug Anmuth writes about Farfetch for JP Morgan, noting that the recent weakness has created an “attractive buying opportunity”. This capability is based on: “1) FTCH’s position as the leading global marketplace in the $ 300 billion luxury market that is rapidly shifting online; 2) FTCH’s established e-concession model that is pulling more brands and inventory to the platform; and 3) FTCHs strong position in the booming Chinese luxury market through both the FTCH app and the recently launched store at Alibaba’s Tmall Luxury Pavilion. FTCH should also see its first full year of EBITDA profit in 2021, with a path to greater scalability in over time driven by leverage in both gross margin and terms and conditions. ”In line with this optimistic outlook, Anmuth rates FTCH as an Overweight (i.e. Buy), with a price target of $ 72, up 58% for a year suggests. (Click here to view Anmuth’s track record). Farfetch is based on 7 Buy reviews, which offset a single Hold. The stock price of the stock is $ 45.50 and its average target of $ 74.38 implies ~ 63% upward for the next 12 months. (See FTCH Stock Analysis on TipRanks) Oncternal Therapeutics (ONCT) The next stock on our list, Oncternal, is a clinical-stage biopharma company focused on oncology. The company is developing new treatments for cancers with unmet critical needs. The company’s pipeline has three drug candidates, at various stages of development from preclinical to a phase 2 study. The lead candidate in the pipeline, cirmtuzumab, is the one undergoing that study. The drug is a monoclonal antibody that inhibits the ROR1 receptor in certain haematological cancers. In December, the company released interim P has 1/2 results of the efficacy of cirmtuzumab in combination with ibrutinib. The combination compares favorably with ibrutinib as monotherapy. Cirmtuzumab is also in a phase 1 clinical trial as a treatment for breast cancer; updated results released earlier this month showed partial response or stable disease in half or more of the patient cohort. Despite the positive clinical results, Oncternal’s share fell 30% this month. According to Northland analyst Carl Bynes, investors should take the time to buy in in a note titled “ Weakness Creates Buying Opportunity. ” “We view ONCT shares as an essential holding for those investing in the oncology segment, with multiple clinical updates expected. in 2Q21 as MAJOR catalysts. We believe that cirmtuzumab (anti-ROR1 mAb) is positioned to become a pioneering therapeutic agent for the treatment of MCL and other malignancies expressing ROR1. Furthermore, we expect the first human dose of its ROR1 CAR-T candidate in 2H21 in China, “Bynes said. Consistent with its optimistic outlook, Bynes rates ONCT as an Outperform (ie Buy), and its $ 21 price target implies a impressively up 265% over the next year. (to view Bynes’s track record, click here) Wall Street has taken a unanimous stance on ONCT, giving the stock 4 recent positive reviews for a Strong Buy consensus rating. $ 15, 50, indicates a ~ 170% increase from the stock price of $ 5.75. (See ONCT Stock Analysis on TipRanks) BioLife Solutions (BLFS) Pharmaceutical companies cannot do their jobs without ancillary services – or the products being provided by companies such as BioLife.provides bioproduction tools for cell and gene therapy, including cryopreservation storage units, blood storage bioconservation, hypothermic storage and transport media, and, most importantly, cell thawing media that allow the use of biosamples after cryopreservation. has shown consecutive gains in both Q3 and Q4. Third quarter profit was 14% and increased to 30% in Q4. Fourth quarter sales were $ 14.7 million, up 78% year-on-year. For the full year, sales were $ 48.1 million, a year-over-year profit of 76%. The company has provided sales advice between $ 101 million and $ 110 million for 2021. With this in the background, we can look at the stock performance. BLFS shares peaked in December after rising 176% in 12 months. Since then, the shares have retreated 31%. Carl Bynes, of Northland Capital, sees that stock pullback, again, as an ‘in’ for investors. “We view the recent decline in BioLife stock as a buying opportunity. We believe BioLife is uniquely positioned to emerge as the leading consolidator of the segment of activating technologies supporting the fast-growing cell and gene therapy industry. has amassed an extensive product and service offering that supports cell and gene therapy applications from development to commercialization, ”noted Bynes. To this end, Bynes rates BioLife as an Outperform (i.e. Buy), along with a price of $ 55 target to indicate a 12-month potential upside potential of ~ 75%. (to view Bynes’s track record, click here) Looking at the consensus breakdown, Wall Street is taking a bullish stance on BLFS. 6 Buys and 1 Hold issued over the previous three months make the stock a Strong Buy. BLFS shares are selling for $ 31.51, and their average price target of $ 55.83 suggests a 77% rise. (See BLFS Stock Analysis on TipRanks) To find great ideas for down stock trading at attractive valuations, visit TipRanks ‘Best Stocks to Buy, a newly launched tool that brings together all the insights into TipRanks’ net worth. Disclaimer: The opinions expressed in this article are solely those of the recommended analysts. The content is provided for informational purposes only. It is very important to conduct your own analysis before making any investment.