5 Sizzling Biotech Stocks Under $10 With Gigantic Upside Potential

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While most of Wall Street focuses on large and mega cap stocks, as they provide a degree of safety and liquidity, many investors are limited in the number of shares they can buy. Many of the biggest public companies, especially the technology giants, trade in the low-to-mid hundreds, all the way up to over $1,000 per share. At those steep prices, it’s pretty hard to get any decent share count leverage.

Many investors, especially more aggressive traders, look at lower-priced stocks as a way to not only make some good money but to get a higher share count. That can really help the decision-making process, especially when you are on to a winner, as you can always sell half and keep half.

We screened our 24/7 Wall St. research database and found five biotech stocks trading under the $10 level that could provide investors with some solid upside potential. While more suited for aggressive accounts, they could prove exciting additions to portfolios looking for solid alpha potential.

Galmed Pharmaceuticals

This off-the radar pick could be poised to be a huge winner. Galmed Pharmaceuticals Ltd. (NASDAQ: GLMD) is a clinical-stage biopharmaceutical company. It focuses on the development of the liver-targeted stearoyl-coenzyme A desaturase-1 modulator Aramchol, novel, once-daily, oral therapy for the treatment of nonalcoholic steatohepatitis (NASH) for variable populations, as well as other liver-associated disorders.

The Aramchol is a synthetic conjugate of cholic acid, or a type of bile acid, and arachidic acid, or a type of saturated fatty acid, both of which, in their non-synthetic forms, are naturally occurring.

The analysts at SunTrust love the stock and have a towering $27 price objective. The Wall Street consensus target is even higher at $32, and the shares were trading on Friday’s close at $8.46 apiece.

La Jolla Pharmaceuticals

This biopharmaceutical company has been mentioned as a possible takeover candidate and the stock has been battered over the past six months. La Jolla Pharmaceuticals Co. (NASDAQ: LJPC) engages in the discovery, development and commercialization of therapies intended to significantly improve outcomes in patients suffering from life-threatening diseases.

Giapreza, formerly known as LJPC-501, was approved by the U.S. Food and Drug Administration (FDA) on December 21, 2017, as a vasoconstrictor indicated to increase blood pressure in adults with septic or other distributive shock.

LJPC-0118 is La Jolla’s investigational product for the treatment of severe malaria. LJPC-401 (synthetic human hepcidin), a clinical-stage investigational product, is being developed for the potential treatment of conditions characterized by iron overload, such as hereditary hemochromatosis, beta thalassemia, sickle cell disease, myelodysplastic syndrome and polycythemia vera.

SunTrust’s Buy rating on the shares comes with a whopping $20 price target. The consensus target price is $20.50, and the shares were trading at $7.64 on Friday’s close.