The consumer price index surged 6.2% year-over-year last month, its highest gain since 1990, driving investors’ inflation concerns. While other, positive, economic data should power the stock market, concerns over rising inflation could foster significant volatility in the near term.

However, according to Suze Orman, a popular personal finance expert, “Over the long-term, stocks have produced the best gains after factoring in inflation. Bonds and cash struggle to keep pace with inflation; only stocks have a track record of earning more than inflation.” Furthermore, Fed officials have reiterated that the rally in commodity prices is temporary, owing to production and delivery bottlenecks caused by the COVID-19 pandemic. Since the gridlock-driven inflation is expected to abate in the near term, we think investing in low-priced stocks gradually could churn out greater returns.

Therefore, it could be wise to add Globalstar, Inc. (GSAT), OPKO Health, Inc. (OPK), and Energous Corporation (WATT) to one’s watch list now. These stocks are trading at less than $5, and Wall Street analysts expect them to deliver significant returns in the near term.

Globalstar, Inc. (GSAT)

A pioneer of mobile satellite voice-data services, GSAT in Covington, La., provides mobile satellite services worldwide. It is a leading global provider of customizable Satellite IoT Solutions to industries that include  oil and gas, transportation, emergency management, and others.

On October 19, 2021, GSAT announced the deployment of its SmartOne Solar satellite IoT transmitter to provide satellite tracking for leisure boat owners. Co-Founder and Managing Director of Advanced Tracking, Christophe Allan, said, “We knew that by integrating SmartOne Solar, we’d have the ideal solution to provide cost-conscious boat owners with an affordable, high-quality solution to track their vessels.”

For the third quarter, ended September 30, 2021, GSAT’s subscriber equipment sales increased 9% year-over-year to $4.77 million. Its total revenue came in at $32.61 million, up 7.7%, sequentially. The company’s total operating expenses were $47.33 million, compared to $47.39 million in the year-ago period.

GSAT’s revenue is expected to be  $121.35 million in its fiscal year 2022, representing a 1.5% year-over-year rise. The company’s EPS is expected to increase 16.7% in the next year and 15% per annum in the next five years.

Over the past six months, the stock has gained 42.2% in price to close yesterday’s trading session at $1.55. Wall Street analysts expect the stock to hit $3.25 in the near term, which indicates a potential 109.7% upside.

OPKO Health, Inc. (OPK)

Healthcare company OPK, in Miami, Fla., does business mainly in the diagnostics and pharmaceuticals businesses. Its segments include Diagnostics and Pharmaceuticals. In addition, it is  a multinational biopharmaceutical and diagnostics company that is seeking to establish itself in large, rapidly growing markets.

On September 14, 2021, OPK and LeaderMed Health Group Limited announced their partnership to develop and commercialize two of OPK’s drug products. Phillip Frost, M.D., Chairman, and CEO of OPK, said, “Through this joint venture, we have an opportunity to extend the global availability of two of our novel long-acting development products and to establish a presence in China in partnership with collaborators who have significant experience and deep knowledge of the Asian biopharmaceutical opportunity.”

OPK’s product revenue increased 28.6% year-over-year to $36.9 million for its  fiscal third quarter, ended September 30, 2021. Its net income increased 21.1% from the same period last year to $28.7 million. And its operating income increased 72.6% year-over-year to $37.8 million.

Analysts expect OPK’s revenue to be  $1.68 billion in its fiscal year 2021, representing a 17% year-over-year rise. The company’s EPS is expected to be  at $0.03 in the current year and is estimated to grow 12% per annum for the next five years.

Over the past six months, the stock has gained 15.1% in price to close yesterday’s trading session at $4.07. Wall Street analysts expect the stock to hit $6.17 in the near term, which indicates a potential 51.6% upside.

Click here to checkout our Healthcare Sector Report for 2021

Energous Corporation (WATT)

WATT is the global leader of Wireless Charging 2.0 technology. Its award-winning WattUp solution is the only technology supporting both contact and distance charging through a fully compatible ecosystem. It is also the recipient of the world’s first FCC Part 18 certification. WATT is headquartered in San Jose, Calif.

On October 19, 2021, WATT reported  that its 900MHz 1W Active Energy Harvesting transmitter technology had received the U.S. Federal Communications Commission Part 15 grant of equipment authorization for wireless power transfer at any distance. Cesar Johnston,  acting CEO at WATT, said, “This FCC certification of our Active Energy Harvesting transmitter technology marks the latest recognition of our efforts to further the regulatory pathway for far-field wireless power networks.”

WATT’s revenue came in at $184,960 for its second quarter, ended June 30, 2021, up 61.7% year-over-year. Its accounts receivable was  $121,970 for the period ended June 30, 2021, versus $75,850for the period ended December 31, 2020. And its long-term operating lease liabilities were  $194,176, compared to $576,762 for the same period.

For its fiscal year 2022, analysts expect WATT’s revenue to increase 745.6% year-over-year to $11.50 million. Its EPS is expected to increase 26.7% in the next year and 20% in the current year.

WATT’s stock is currently trading 12.9% above its 52-week low of $1.71, which it hit on December 16, 2020. It closed yesterday’s trading session at $1.93. Also, Wall Street analysts expect the stock to hit $4 in the near term, which indicates a potential 107.3% upside.

GSAT shares were trading at $1.60 per share on Thursday afternoon, up $0.05 (+2.90%). Year-to-date, GSAT has gained 372.53%, versus a 25.42% rise in the benchmark S&P 500 index during the same period.

About the Author: Riddhima Chakraborty

Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries. More...

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