Four Undervalued Stocks Poised for Potential Growth
While many investors focus on overpriced tech stocks, there are four under-the-radar opportunities setting up for potentially explosive growth. This article will break down these stocks, their entry points, catalysts, and associated risks.
Introduction
Felix Pri, an ex-investment banker and founder of Goat Academy and Tradevision.io, will outline four stocks across different sectors: crypto mining, biotech, pharma, and lithium. He believes these sectors are most likely to rally in the coming weeks and are not meme stocks, but rather real companies with real catalysts trading at attractive prices.
CleanSpark (CLSK): A Bitcoin Mining Play
-
Ticker: CLSK
-
Sector: Bitcoin Mining
-
Catalyst: Bitcoin's surge past \$120,000, increasing miner profitability.
-
Fundamentals: \$344 million in revenue in the first half of the year.
-
Wall Street Sentiment: Price target of \$20+ (stock currently around \$15).
-
Entry Strategy:
-
Ideal: Pullback to retest recent highs around \$15.
-
Alternative: Breakout above recent highs around \$16.50.
-
-
Risk: Bitcoin volatility; potential for miners to get crushed if Bitcoin drops.
-
Position Sizing: Allocate a quarter of your investment capital to manage risk.
CleanSpark is a Bitcoin mining company experiencing significant growth due to the rising price of Bitcoin. A breakout above \$16.50 could signal further upward momentum. Due to the volatile nature of cryptocurrency, measured position sizing is recommended.
Oric Pharmaceuticals (ORIC): An Oncology-Focused Biotech
-
Ticker: ORIC
-
Sector: Biotech (Oncology)
-
Catalyst: Positive clinical trial data or M&A potential.
-
Fundamentals: \$283 million in cash and zero debt, providing a multi-year runway.
-
Wall Street Sentiment: Eight of ten analysts have a "buy" rating, with an average price target of \$17.29 (stock currently around \$11.50).
-
Entry Strategy: Breakout above recent highs around \$12.20, or wait for institutional volume confirmation.
-
Risk: Clinical trial failures could negatively impact the stock price.
-
Position Sizing: Allocate a quarter of your investment capital to manage risk.
Oric Pharmaceuticals is a biotech company with a strong cash position and zero debt, allowing it to advance its oncology programs. Positive clinical trial data could lead to significant gains. Like all biotech companies, Oric carries the risk of trial failure.
Regeneron Pharmaceuticals (REGN): A Large-Cap Pharma with a Blockbuster Drug
-
Ticker: REGN
-
Sector: Pharmaceutical
-
Catalyst: Continued growth of Dupixent and potential from COPD approval.
-
Fundamentals: Large-cap company with a blockbuster drug, Dupixent, with sales up 23% year-over-year, generating almost \$4 billion last quarter.
-
Wall Street Sentiment: Price target of \$1,053 (stock currently around \$600).
-
Entry Strategy: Breakout above recent highs around \$620, or nibble on pullbacks to the 50-day moving average.
-
Risk: Lower upside potential compared to smaller biotechs, but also lower volatility.
-
Position Sizing: Allocate a quarter of your investment capital.
Regeneron is a large-cap pharmaceutical company with a diverse pipeline and a successful blockbuster drug, Dupixent. Recently approved for COPD, Regeneron presents a more stable growth opportunity compared to high-risk biotech stocks.
Lithium Argentina (LIT): A Deep Value Lithium Play
-
Ticker: LIT (not to be confused with LAC)
-
Sector: Lithium Mining
-
Catalyst: Rebound in lithium prices.
-
Fundamentals: Trading at 0.36 times its book value, indicating a significant discount. Ramping up production with 18% year-over-year growth.
-
Analyst Sentiment: Analysts suggest lithium prices have bottomed out.
-
Entry Strategy: Ideal pull back in the $3.70 range or on a breakout above recent highs, while keeping an eye on the 50-day moving average line.
-
Risk: Volatility and dependence on lithium prices.
-
Position Sizing: Allocate a quarter of your investment capital to manage risk.
Lithium Argentina (LIT) is a lithium mining company trading at a significant discount to its book value. If lithium prices rebound, this stock has the potential for substantial gains.
Portfolio Allocation and Risk Management
To manage risk, allocate capital equally across the four stocks. This diversification across sectors, market caps, and risk profiles helps offset potential losses in any single sector. Setting stop losses is critical to prevent emotional decisions from negatively impacting investments.
Free Training Opportunity
Learn how Wall Street finds winning stocks and uses AI tools by attending a free training session. Visit felixfens.org/training for more information.