Freeport-McMoRan

This may be a compelling value at current trading levels, and it is one of the top picks at Jefferies in the sector. Freeport-McMoRan Inc. (NYSE: FCX) is the world’s largest publicly traded copper and molybdenum producer, and the eighth largest gold producer. Its key operating and development assets are in Indonesia, North and South America, and Africa.

Highly leveraged toward copper mining, the company could be a big player in a scenario of rebuilding and repairing old and battered projects and would clearly benefit from stronger demand and higher prices for industrial commodities.

The $14.50 Jefferies price target is well below the $19.19 posted consensus target price. Shares closed on Friday at $8.83 apiece.

Intra-Cellular Therapies

This smaller cap biotech has huge upside potential for aggressive investors. Intra-Cellular Therapies Inc. (NASDAQ: ITCI) is a biopharmaceutical company that focuses on the discovery and clinical development of innovative, small molecule drugs that address underserved medical needs in neuropsychiatric and neurological disorders by targeting intracellular signaling mechanisms within the central nervous system.

The company’s lead product candidate, ITI-007, is in clinical development as a first-in-class treatment for schizophrenia. The company also includes preclinical programs that are focused on advancing drug candidates for the treatment of cognitive dysfunction, in both schizophrenia and Alzheimer’s disease, and for disease modification and the treatment of neurodegenerative disorders, including Alzheimer’s.

The Jefferies team started the stock with a massive $16 price objective earlier in August. That compares to the consensus target price of $14, and the stock was trading at $8.49 on Friday’s close.

Osmotica Pharmaceuticals

This is another small cap biotech play with massive upside to the Jefferies target. Osmotica Pharmaceuticals PLC (NASDAQ: OSMT) is a fully integrated biopharmaceutical company focused on the development and commercialization of specialty products that target markets with underserved patient populations. Its diversified product portfolio in the specialty neurology and women’s health therapeutic areas, together with non-promoted complex formulations of generic drugs, form the foundation of our unwavering commitment to improve patients’ lives.

Osmotica has a late-stage development pipeline highlighted by two NDA candidates that recently completed Phase 3 clinical trials: arbaclofen extended-release tablets for spasticity in multiple sclerosis patients and RVL-1201 for the treatment of blepharoptosis, or droopy eyelid.

The Jefferies price target is a gigantic $10. The consensus target is $8, and the stock was changing hands at $2.80 per share as the week came to a close.

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These are five stocks for aggressive accounts looking to get share count leverage on companies with sizable upside potential. While not suited for all investors, they are not penny stocks with absolutely no track record or liquidity, and major Wall Street firms have research coverage on them. Note though that while markets have retreated somewhat from all-time highs, value stocks still come with some risks.