Low-priced stocks can deliver exponential gains. Such stocks usually have a lot of room to grow, depending on the industry in which they operate. Usually, it is advisable to stay away from low-priced stocks in highly saturated industries. However, low-priced stocks can be a good bet in emerging industries and sectors, particularly when they have strong fundamentals.
It is important to remember that low-priced stocks can also be riskier investments, as there could be some issues that led to the low price. However, with proper research, one could find low-priced stocks that hold immense upside potential based on the strength in their financials and industry backdrop.
Amicus Therapeutics, Inc. (FOLD), Plug Power, Inc. (PLUG), and Fortress Transportation and Infrastructure Investors LLC (FTAI) are trading at quite affordable prices right now despite witnessing solid momentum this year. These stocks are well-poised to experience exponential growth based on the underlying strength in their business models and continued investments for growth.
Amicus Therapeutics, Inc. (FOLD)
FOLD focuses on developing treatments for a wide range of genetic diseases. The company is specifically working on treating individuals with lysosomal storage disorders. FOLD’s stock closed Friday’s trading session at $17.2 after gaining 76.3% year-to-date.
During the second quarter, the company generated revenue of $62.4 million, up 41% year-over-year. The company is working on Phase 3 trials of AT-GAA for the treatment of Pompe disease. Simultaneously, the company is advancing the clinical development of CLN6 and CLN3 for the treatment of Batten disorder.
FOLD reported an EPS of -$0.2 for the second quarter, delivering an earnings surprise of 23.1%. The company’s EPS is expected to increase by 42.9% next quarter and 33% next year. FOLD’s revenue is expected to grow by 40.9% in 2020 and 36.8% in 2021.
How does FOLD stack up for the POWR Ratings?
A for Trade Grade
A for Buy & Hold Grade
A for Peer Grade
A for Overall POWR Rating
The stock is also ranked #68 out of 384 stocks in the Biotech industry.
Plug Power, Inc. (PLUG)
PLUG is an alternative fuel company that focuses on the development and marketing of fuel-cell systems for the off-road vehicle market. The company’s hydrogen fuel systems are used to power vehicles in the warehouses of companies such as Amazon (AMZN) and Walmart (WMT). PLUG’s stock closed Friday’s trading session at $16.3, gaining 414.9% year-to-date.
PLUG has partnered with Apex Clean Energy to develop a green hydrogen network through the use of wind power. This move will help PLUG achieve its goal of using 50% green hydrogen by 2024. The company has also agreed with Brookfield Renewable Partners (BEP) for the latter to provide 100% renewable energy supply to the company’s planned green hydrogen production plant.
PLUG reported an EPS of -$0.03 for the second quarter, delivering an earnings surprise of 70%. The company’s EPS is expected to increase by 17.9% next year and at a rate of 25% per annum over the next five years. PLUG’s revenue is expected to grow by 33% in 2020 and 35.6% in 2021.
PLUG’s strong fundamentals are reflected in its POWR Ratings. It has a “Buy” rating with an “A” in Trade Grade and a “B” in Buy & Hold Grade, Peer Grade, and Industry Rank. In the 58-stock Industrial – Equipment industry, it is ranked #7.
Fortress Transportation and Infrastructure Investors LLC (FTAI)
FTAI acquires, develops, and deploys infrastructure and equipment that is required for the transportation of goods and people worldwide. The company primarily invests in aviation, energy, rail, and intermodal transportation. FTAI’s stock closed Friday’s trading session at $16.9. The company’s stock has gained approximately 199% since the mid-March stock market crash.
Long Ridge Energy Terminal, which is a subsidiary of FTAI, has recently partnered with New Fortress Energy and GE to transition its 485 MW power plant to run on carbon-free hydrogen. The plant is planned to begin operations by November 2021 and would be the first purpose-built hydrogen-burning power plant in the United States.
FTAI reported an EPS of -$0.18 for the second quarter, delivering an earnings surprise of 14.3%. The company’s EPS is expected to increase by 869.2% next year. FTAI’s revenue is expected to grow by 30% in 2021.
It’s no surprise that FTAI is rated a “Buy” in our POWR Ratings system, with a grade of “A” in Trade Grade and Peer Grade. In the 65-stock Air/Defense Services, it is ranked #9.
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FOLD shares were trading at $16.84 per share on Monday afternoon, down $0.33 (-1.92%). Year-to-date, FOLD has gained 72.90%, versus a 7.87% rise in the benchmark S&P 500 index during the same period.
About the Author: Aaryaman Aashind
Aaryaman is an accomplished journalist that’s passionate about providing in-depth insights about investing and personal finance. Recently he has been focused on the stock market and he specializes in evaluating high-growth stocks. More...
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