So, you have decided it is time to get in on the investing game. Rest assured, you are not alone.
Since November, investors have parked $569 billion into global equity funds. For some context of how popular investing has become, this is far more than the total of the last 12 years – $452 billion flowed into stock-based funds between 2009 and 2020.
Is the investing frenzy another sign of a bubble? Not according to National Securities’ chief market strategist Art Hogan.
“There’s a certain amount of logic to markets right now,” Hogan noted. “It’s less about irrational exuberance in the overall market, less about the 1999-2000 levels, and more about what’s the driver. The driver is clearly an explosion in economic activity that likely will have some earnings growth in its wake.”
If it’s explosive growth we’re talking about, then it is certainly what’s anticipated for shares of two names we pulled out of the TipRanks database. We found two stocks whose valuations are expected to more than double over the next 12 months, according to some Street analysts. Let’s see what’s behind the bullish outlook.
Anixa Biosciences (ANIX)
We’ll start with Anixa Biosciences, a biotechnology company focused on developing treatments and vaccines for cancer and infectious diseases. The company’s leading pipeline is still in its early stages, but H.C. Wainwright’s Yi Chen believes Anixa’s differentiated approach is “potentially groundbreaking.”
The FDA has accepted the Investigational New Drug (IND) application for Anixa’s breast cancer vaccine back in December, and two Phase 1 trials are expected to kick-off in mid-2021.
So far, developing prophylactic vaccines for breast cancer has provided little joy and vaccine development in the area has targeted therapeutic vaccines for patients following diagnosis.
But Anixa – in collaboration with Cleveland Clinic researchers – is developing a vaccine that teaches the immune system to destroy cancer cellsas they surface before they form into tumors. In preclinical in vitro and animal studies, the vaccine has displayed the ability to prevent breast cancer.
The 5-star analyst expects Phase 1 results to become available in 2022. “Of note,” Chen went on to say, “The potential prophylactic use of the vaccine may target the female population above age 40, which totals approximately 80M individuals in the U.S. alone and implies a target market of up to $40 billion annually.”
Additionally, a Phase 1 trial for Anixa’s ovarian cancer CAR- T therapy could start in mid-2021, after the company last month filed the IND application. Here too, Anixa is trying to establish precedents, by enabling CAR-T to target solid tumors.
Right now, CAR-T therapies are indicated for hematological malignancies as so far it has been clinically difficult to target solid tumors. Anixa’s novel type of CAR-T is aimed at the follicle-stimulating hormone receptor (FSHR) that is present only on ovarian cells and is designed with follicle-stimulating hormone (FSH) to find and destroy cells that have FSHR protein on their surfaces.
The CAR-T therapy space has shown to be highly lucrative, and in the past, has generated multiple multi-billion-dollar acquisitions. If successfully developed and commercialized, Chen thinks that in the U.S. alone, the ovarian cancer CAR-T therapy could generate peak annual sales of $900 million.
In addition to these trials, in collaboration with OntoChem, Anixa is also in the preclinical-stage of developing oral compounds for the treatment of COVID-19. In February, the company began testing the Covid-19 candidates on animals and could report final data in 2H21.
With these catalysts in mind, Chen rates Anixa a Buy along with an $11 price target. The implication for investors? Upside of 139% from current levels. (To watch Chen’s track record, click here)
Anixa appears to be flying under Wall Street’s radar right now, and over the last 3 months, Chen is the only analyst to have reviewed its prospects. (See ANIX stock analysis on TipRanks)
Gain Therapeutics (GANX)
Let’s take a look now at another biotech company for which big things are projected. Gain Therapeutics is set on creating new medicines by finding and optimizing newly targeted allosteric binding sites. By doing so, Gain is hoping to unlock new treatment choices for disorders defined by protein misfolding.
GANX entered the public markets on March 19, trading on the NASDAQ. The IPO put 3.63 million shares of common stock on the market, and closed its first day trading at $12.20. This was above the $11 initial price. The gross proceeds from the offering amounted to approximately $40 million.
It’s early days too for Gain’s pipeline and its leading candidates are still in the pre-clinical stage. Of note is the GM1-gangliosidosis and Morquio B disease program. Both are ultra-rare lysosomal storage disorders caused by a lack of the β-galactosidase enzyme caused by mutations in GLB1 (the gene encoding the β-galactosidase enzyme).
While there are several biotech companies presently focused on enzyme replacement therapy (ERT) and gene therapy (GT) approaches to address GM1-gangliosidosis, Oppenheimer’s Hartaj Singh believes it is a field where Gain’s small molecule approach “could complement/dominate.” For Morquio B, Singh is unaware of “any other players” developing a therapy for this rare disease.
However, the biggest potential commercial opportunity is reserved for the Gaucher Disease (GD) & Parkinson’s Disease (PD) program. These two are linked together because, like GD patients, some PD patients have the GBA1 gene mutations’ involvement.
Right now, the program is in the lead optimization phase, and this year Gain is focused on achieving PoC in GD and PD animal models. IND-enabling studies and Phase 1/2 studies are slated to come over the next two years.
“While GM1/Morquio B could potentially bring the first clinical proof-of-concept efficacy and a first-ever STAR molecule to market for Gain Therapeutics,” the 5-star analyst noted. “(Neuronopathic) Gaucher disease (GD) and Parkinson’s disease (PD) are the indications attached with blockbuster sales commercially for Gain in the future.”
To this end, Singh initiated coverage of Gain with an Outperform (i.e. Buy) rating and $30 price target. Investors could be pocketing gains of 114%, should the target be met over the next 12 months. (To watch Singh’s track record, click here)
One other analyst is currently keeping a tab on GANX, suggesting an identical price target and rating as Singh. All in all, the stock qualifies with a Moderate Buy consensus rating. (See GANX stock analysis on TipRanks)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.