The stock market has been facing immense volatility over the past few weeks due to various macroeconomic factors and geopolitical uncertainties. However, yesterday S&P 500, Dow Jones, and Nasdaq recovered 2%, 1.6%, and 2.7%, respectively. Despite yesterday’s rally, the uncertainties prevailing in the broader market are expected to keep the investor’s overall sentiments bearish. According to a famous economist David Rosenberg, the S&P 500 will further crash by 17% to 3,300.
In addition, the Fed’s hawkish stance to tame the multi-decade high inflation and the consequent possibilities of a recession is expected to keep the market volatile. Therefore, it could be wise to bet on quality, low-priced stocks, which are expected to rebound significantly in the coming months.
Wall Street Analysts expect sub-$2 stocks PaySign, Inc. (PAYS), Sorrento Therapeutics, Inc. (SRNE), and National CineMedia, Inc. (NCMI) to witness significant upside in the coming months. So they could be solid additions to your portfolio now.
PaySign, Inc. (PAYS)
Headquartered in Henderson, Nevada, PAYS offers prepaid card products and processing services under the PaySign brand for corporate, consumer, and government applications. It provides various services, such as transaction processing, cardholder enrollment, value loading, cardholder account management, reporting, and customer service through PaySign, a proprietary card-processing platform.
During the fourth quarter ending December 31, 2021, PAYS’ total revenue increased 20.9% year-over-year to $8.77 million. Its income from operations amounted to $0.10 million compared to a loss of $0.66 million in the prior-year quarter, while its net income came in at $0.11 million compared to a net loss of $4.31 million in the previous period. The company’s cash stood at $7.39 million.
The consensus EPS estimate of $0.01 represents a 150% improvement year-over-year for the fourth quarter ending December 2022. Analysts expect PAYS’ revenue to increase 32.8% year-over-year to $8.83 million for the second quarter ending June 2022.
Out of the four Wall Street Analysts that rated the stock, three rated it Buy, and one rated it Hold. Closing its last trading session at $1.32, the 12-month median price target of $3.43 represents a 159.9% potential upside. The price target ranges from a low of $2.80 to a high of $4.00.
Sorrento Therapeutics, Inc. (SRNE)
Headquartered in San Diego, California, SRNE, a clinical-stage and commercial biopharmaceutical company, develops therapies for cancer, autoimmune, inflammatory, viral, and neurodegenerative diseases. It has two operating segments, Sorrento Therapeutics and Scilex.
This month, SRNE announced the dosing of the first subject in Phase 2, a randomized, double-blind, placebo-controlled, parallel-group, multicenter study to examine the safety and efficiency of SP-103 in subjects with acute LBP. “It is a significant milestone for Scilex to begin the next development phase of the triple-dose strength of FDA-approved ZTlido (lidocaine topical system) 1.8% (“ZTlido”), said Dr. Dmitri Lissin, Chief Medical Officer of Scilex.
SRNE’s total revenue increased 29% year-over-year to $18.39 for the first quarter ending March 31, 2022. The cash and cash equivalents increased 205.2% from its year-ago value to $111.91 million for three months ending March 31, 2022, while its net cash flow provided by financing activities amounted to $173.37 million.
Analysts expect SRNE’s revenue to increase 117.7% year-over-year to $29.41 million for the second quarter ending June 2022. In addition, it has an impressive earnings history as it surpassed the consensus EPS estimate in three of the trailing four quarters.
The two Wall Street Analysts that rated the stock rated it Buy. The 12-month median price target of $18.00 indicates a 1068.8% potential upside. The price targets range from a low of $16.00 to a high of $20.00. The stock closed the last trading session at $1.54.
National CineMedia, Inc. (NCMI)
In March, NCMI announced the launch of one of the largest technology platforms driven by data for moviegoers, NCMx. The new data, insights, and analytics platform uses the company’s complete knowledge and substantial data about moviegoer behavior to connect brands with custom audiences in theaters and on digital screens before and after attending movies.
For the first quarter ending March 31, 2022, NCMI’s revenue increased 564.8% year-over-year to $35.90 million. Its operating loss decreased 20.5% from its year-ago value to $22.50 million. The cash and cash equivalent and marketable securities grew 12.3% year-over-year to $115.10 million for three months ending March 31, 2022
Analysts expect NCMI’s revenue to increase 362.5% year-over-year to $64.75 million for the second quarter ending June 2022.
All four Wall Street Analysts that rated the stock rated it Buy. Closing its last trading session at $1.23, the 12-month median price target of $3.83 represents a 211.4% potential upside. The price target ranges from a low of $3.50 to a high of $4.00.
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PAYS shares were trading at $1.39 per share on Friday afternoon, up $0.07 (+5.30%). Year-to-date, PAYS has declined -13.13%, versus a -12.59% rise in the benchmark S&P 500 index during the same period.
About the Author: Spandan Khandelwal
Spandan's is a financial journalist and investment analyst focused on the stock market. With her ability to interpret financial data, she aims to help investors evaluate the fundamentals of a company before investing. More...
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