Since the beginning of the year, the stock market has been under pressure due to investors’ concerns over surging inflation, Russia’s invasion of Ukraine, soaring crude oil and natural gas prices, and the possibility of aggressive rate increases by the Federal Reserve.

However, the market’s recovery over the past two weeks indicates that investors have largely priced-in these concerns. The peace talks between Russia and Ukraine have been progressing, and any settlement might act as a trigger for the market to bounce back in earnest. Recently, Russia announced its decision to “drastically reduce” its military activity in two key areas of Ukraine. Furthermore, as the earnings season draws close and corporate earnings are expected to be solid, investors should gain more confidence.

Given this backdrop, we think it could be wise to add quality stocks Venator Materials PLC (VNTR), Lipocine Inc. (LPCN), Venus Concept Inc. (VERO), MEI Pharma, Inc. (MEIP), and Rave Restaurant Group, Inc. (RAVE) to one’s watchlist. These stocks are currently trading at less than  $2 and have the potential to deliver solid returns when the market rebounds.

Venator Materials PLC (VNTR)

Headquartered in Stockton-On-Tees, the U.K., VNTR is a global manufacturer and marketer of chemical products. The company’s products comprise a range of chemicals and formulations that bring color and vibrancy to buildings, protect product life, and reduce energy consumption. It markets its products to a diversified group of industrial customers through Titanium Dioxide and Performance Additives.

VNTR’s revenues increased 12.3% year-over-year to $535 million for the fourth quarter, ended Dec. 31, 2021. The company’s adjusted EBITDA increased 60% year-over-year to $40 million. And its adjusted net loss came in at $5 million, compared to a $13 million adjusted net loss in the year-ago period.

Analysts expect VNTR’s EPS for its fiscal year 2022 to increase 3,500% year-over-year to $0.34. The company’s revenue for the quarter ending March 31, 2022, is expected to increase 15.7% year-over-year to $623.64 million. Over the past month, the stock has declined 20.1% in price to close the last trading session at $1.82.

VNTR’s strong fundamentals are reflected in its POWR Ratings. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.

It has a B grade for Growth and Value. It is ranked #37 out of 87 stocks in the A-rated Chemicals industry. Click here to see the other ratings of VNTR for Momentum, Stability, Sentiment, and Quality.

Lipocine Inc. (LPCN)

LPCN in Salt Lake City, Utah, is a clinical-stage biopharmaceutical company that focuses on developing pharmaceutical products to treat neuroendocrine and metabolic disorders. The company’s primary development programs are based on oral delivery solutions for poorly available drugs. Its lead product candidate is TLANDO, an oral testosterone replacement therapy.

On March 29, 2022, LPCN announced that Antares Pharma, Inc. had received the approval of TLANDO from the U.S. Food and Drug Administration. Antares Pharma has the exclusive U.S. commercialization rights for TLANDO, an oral treatment for testosterone replacement therapy for adult males with a deficiency of endogenous testosterone. LPCN’s Chairman, President, and CEO, Dr. Mahesh Patel, said, “The approval of TLANDO is a significant milestone achievement for Lipocine.”

For its fiscal year ended Dec. 31, 2021, LPCN’s total operating expenses declined 27.7% year-over-year to $12.99 million. The company’s net loss came in at $634.39K, compared to a  $20.96 million net loss in the year-ago period. Also, its loss per share was $0.01, compared to a $0.38 loss per share in the year-ago period.

For its fiscal year 2023, analysts expect LPCN’s EPS and revenue to increase 70% and 85.2%, respectively, year-over-year to $0.03 and $12.35 million. It surpassed the Street’s EPS estimates in three of the trailing four quarters. The stock has gained 34.1% in price year-to-date to close the last trading session at $1.33.

LPCN’s POWR Ratings reflect solid prospects. The stock has an overall B rating, equating to a Buy in our proprietary rating system.

It has an A grade for Sentiment and a B grade for Growth, Value, and Quality. Within the Medical – Pharmaceuticals industry, it is ranked #27 out of 172 stocks. To see the other ratings of LPCN for Momentum and Stability, click here.

Click here to checkout our Healthcare Sector Report for 2022

Venus Concept Inc. (VERO)

Headquartered in Toronto, Canada, VERO is a global medical technology company that develops, commercializes, and sells minimally invasive and non-invasive medical aesthetic and hair restoration technologies and related services. The company’s product portfolio consists of aesthetic device platforms, including Venus Versa, Venus Legacy, Venus Velocity, Venus Fiore, Venus Freedom, Venus Viva, Venus Glow, Venus Bliss, and Venus Viva MD.

On Jan. 18, 2022, VERO announced that it had received 510(k) clearance from the U.S. FDA to market the Venus BlissMAX device in the U.S. VERO’s CEO, Domenic Serafino, said, “We look forward to initiating a limited commercial launch in the U.S. by the end of the first quarter of 2022 and believe BlissMAX will be the only device on the market to offer laser fat reduction, cellulite reduction and muscle conditioning in a single body contouring workstation.”

VERO’s total revenue increased 26% year-over-year to $32.63 million for the fourth quarter, ended Dec. 31, 2021. In addition, its U.S. revenue improved 42% year-over-year to $16.49 million. The company’s gross margin came in at 70%, representing a 5.3% year-over-year increase.

Analysts expect VERO’s EPS for its fiscal year 2023 to increase 60% year-over-year to $0.10. Its revenue for its fiscal year 2022 is expected to increase 20.9% year-over-year to $127.66 million. Over the past month, the stock has declined 13.9% in price to close its last trading session at $1.42.

VERO’s POWR Ratings reflect solid prospects. The stock has an overall B rating, which equates to a Buy in our proprietary rating system.

It has an A grade for Sentiment and a B grade for Growth and Value. It is ranked #58  of 181 stocks in the Medical – Devices & Equipment industry. Click here to see the other ratings of VERO for Momentum, Stability, and Quality.

Click here to checkout our Healthcare Sector Report for 2022

MEI Pharma, Inc. (MEIP)

MEIP is a late-stage pharmaceutical company that is focused on developing and commercializing novel cancer therapies. The San Diego, Calif.-based company’s portfolio of clinical drug candidates includes Zandelisib, Voruciclib, ME-344, and Pracinostat.

On Feb. 7, 2022, MEIP announced that it was expanding its management team with two experienced industry executives, Alejandro Ricart, who will join MEIP as senior VP of Clinical Development, and Yomara Gomez-Naiden as senior VP of Quality. Ricart said, “I look forward to bringing my experience leading registration-enabling clinical trials and clinical development to support the company’s continued growth and mission to provide improved outcomes to patients with cancer.”

For its fiscal second quarter, ended Dec. 31, 2021, MEIP’s revenue increased 98.7% year-over-year to $18.22 million. The company’s adjusted net loss came in at $11.22 million, compared to a $18.53 million adjusted net loss in the year-ago period. Also, its research and development expenses declined 3.1% year-over-year to $21.53 million.

For the quarter ending March 31, 2022, MEIP’s EPS is expected to increase 32.1% year-over-year to $0.19. Its revenue for its fiscal 2022 is expected to increase 47.2% year-over-year to $37.58 million. It surpassed consensus EPS estimates in three of the trailing four quarters. And over  the past month, the stock has retreated  71.3% in price to close the last trading session at $0.62.

MEIP’s POWR Ratings reflect a promising outlook. It has an A grade for Growth and a B grade for Value.

Within the Medical – Pharmaceuticals industry, it is ranked #46 out of 172 stocks. To see the other ratings of MEIP for Momentum, Stability, Sentiment, and Quality, click here.

Click here to checkout our Healthcare Sector Report for 2022

Rave Restaurant Group, Inc. (RAVE)

Dallas. Tex.-based RAVE operates in the rapidly growing fast-casual pizza space and franchises pizza buffet, delivery/carry-out, and express restaurants under the Pizza Inn trademark domestically and internationally. It operates through three segments: Pizza Inn Franchising; Pie Five Franchising; and Company-Owned Restaurants.

On Dec. 14, 2021, RAVE’s Pizza Inn announced the execution of its multi-unit development agreement with the company’s franchise business consultant, Dion Firooznia. Firooznia and his team operating under the D2 Restaurant Group name, plan to open six buffet restaurants in Tennessee and North Carolina.

RAVE’s revenues increased 26.6% year-over-year to $2.69 million for the second quarter, ended Dec. 26, 2021. The company’s net income increased 348% year-over-year to $0.45 million. Also, its EPS came in at $0.02, representing a 100% increase year-over-year. In addition, its adjusted EBITDA increased 175.6% year-over-year to $0.56 million.

The stock has gained 7.4% in price year-to-date to close the last trading session at $1.09.

RAVE’s POWR Ratings reflect solid prospects. The stock has an overall B rating, which equates to a Buy in our proprietary rating system.

It has an A grade for Quality and a B grade for Value and Sentiment. It is ranked #7 of 45 stocks in the B-rated Restaurants industry. Click here to see the other ratings of RAVE for Growth, Momentum, and Stability.

What To Do Next?

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VNTR shares were trading at $1.83 per share on Thursday morning, up $0.01 (+0.30%). Year-to-date, VNTR has declined -27.95%, versus a -3.47% rise in the benchmark S&P 500 index during the same period.

About the Author: Dipanjan Banchur

Since he was in grade school, Dipanjan was interested in the stock market. This led to him obtaining a master’s degree in Finance and Accounting. Currently, as an investment analyst and financial journalist, Dipanjan has a strong interest in reading and analyzing emerging trends in financial markets. More...

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