5 Small-Cap Biotech Stocks Trading Under $10 With Massive Upside Potential

Health and Healthcare

Published: April 3, 2021 6:45 am

While most of Wall Street focuses on large-cap 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 hundreds, all the way up to over $1,000 per share or more. At those steep prices, it is difficult 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.

Each week we screen our 24/7 Wall St. research database looking for stocks rated Buy at major firms and priced under the $10 level. This week we found five new stocks that could provide investors with some solid upside potential.

With the number of new equity traders skyrocketing over the past year due to the Reddit/WallStreetBets and Robinhood popularity, locating good ideas to trade has become even more challenging. These five could all prove to be exciting additions for traders looking for solid alpha potential. While they are definitely better suited for aggressive investors, it is still important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Affimed

This German-based biotech has a solid pipeline and big-time upside potential. Affimed N.V. (NASDAQ: AFMD) is a clinical-stage biopharmaceutical company focused on discovering and developing cancer immunotherapies in the United States, Europe and Germany.

Its lead product candidate is AFM13, a natural killer cell (NK-cell) TandAb, which has completed Phase 2a clinical study of relapsed CD30-positive lymphoma and Phase 1b clinical study of anti-PD-1 antibody Keytruda (pembrolizumab) in patients with relapsed Hodgkin lymphoma.

The company also is developing AFM24, a tetravalent, bispecific epidermal growth factor receptor, and CD16A-binding innate cell engager for the treatment of advanced cancer patients; AFM26, an innate cell-engaging bispecific antibody targeting B cell maturation antigen for the treatment of multiple myeloma; and Trispecific antibodies for the treatment of multiple myeloma.

Credit Suisse has a giant $15 price target on the shares, while the consensus target is $12.85. The shares gapped up recently to near $8.