Investing

5 Sizzling Stocks to Buy Under $10 With Big 2021 Upside Potential

Noodles

This stock has been a rollercoaster ride but also has giant upside potential. Noodles and Co. (NASDAQ: NDLS) operates in the restaurant industry, offering lunch and dinner meals. It serves a variety of cooked-to-order dishes, including noodles and pasta, soups, salads, sandwiches and appetizers.

The company claims to serve noodles your way, from noodles and flavors that you know and love to new ones you’re about to discover for the first time. From indulgent Wisconsin Mac & Cheese to good-for-you Zoodles, Noodles serves a world of flavor in every bowl. It has more than 450 restaurants and 10,000 employees.

Jefferies has a $10 price objective, and the consensus target is $9.40. The stock has traded just shy of $9 recently but looks like a triple top breakout candidate.

Osmotica Pharmaceuticals

This small-cap biotech play has massive upside to the Truist Securities price 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.

The company’s diversified product portfolio in the specialty neurology and women’s health therapeutic areas, together with its non-promoted complex formulations of generic drugs, form the foundation of our unwavering commitment to improve patients’ lives.

The company recently received a Complete Response Letter (CRL) from the U.S. Food and Drug Administration (FDA) regarding its new drug application seeking approval for arbaclofen extended release tablets as treatment for spasticity resulting from multiple sclerosis. The letter stated that Osmotica did not provide adequate justification for the statistical analysis of one of the co-primary endpoints, change from baseline to Day 84 in TNmAS-MAL scores comparing arbaclofen 40 mg versus placebo. The FDA’s recommendations include conducting a new study in order to provide substantial evidence of efficacy. Osmotica will review the CRL and intends to discuss the recommendations with the FDA.

While the Truist team recently lowered the price target to $8 from $11, they (like many) feel that new studies could be positive. The consensus price target is $8.50, and the shares have rallied some off recent lows to the $4.70 level.