Fears over high interest rates have knocked down equity valuations across the board lately, but there are indications the stock market is close to finding a floor for its recent sell-off. And after the market's historically hot start to 2023, there's a silver lining to the latest wave of heavy selling - with valuations dropping back down to earth, there are now quite a few more buying opportunities cropping up for investors of all types.
In this piece, we'll highlight some low-priced stocks - under $10 per share - that Wall Street analysts think could potentially double or even triple in value within the next year. Yes, these are more speculative plays - but these aren't obscure penny stocks you've never heard of. All three of these picks are well-established companies with innovative products, growing markets, and solid positions in their industries.
Of course, let's not sugarcoat it – these stocks come with their fair share of risks and challenges. The operating environments they're in can be quite unpredictable, and volatility is the name of the game.
So, while these stocks have the potential for big gains, they're not for the faint of heart. As always, it's crucial to do your homework and due diligence before taking the plunge. Stay tuned as we delve deeper into why these stocks might just be worth your attention and investment.
Mind Medicine
Meet Mind Medicine Inc. (MNMD), aka Mindmed, a biopharmaceutical company on a mission to pioneer psychedelic therapies for mental health issues like anxiety, depression, addiction, and ADHD. They've got a bunch of exciting drug candidates in their pipeline, including MM-120, MM-220, and MM-401. What's even more intriguing is their exploration of digital therapeutics and experiential therapies to enhance their treatments.
Now, let's talk numbers. MNMD's share price has been on a bit of a rollercoaster lately, having pulled back from recent highs near $5. On a year-to-date basis, however, the stock is outpacing the broader market with a 41.8% gain.
The company's market cap sits at $122.32 million, and here's the kicker – their enterprise value is -$19.8 million, which means they've got more cash than debt.
MNMD dropped its second-quarter financial results on Aug. 3, and the net loss of $36 million - equivalent to $0.72 per share - was wider than analysts expected. The blame went to higher research and development expenses, along with general administrative costs.
But there's a silver lining – they wrapped up the quarter with $157 million in cash and cash equivalents, enough to fuel their plans into the first half of 2025. They've also secured a $50 million credit facility with K2 HealthVentures, further boosting their financial flexibility.
What's next for MNMD? Well, they've got some exciting stuff lined up. They're making appearances at conferences like the Jefferies London Healthcare Conference on Nov. 16. But the pièce de résistance is the Phase 2b study for MM-120, targeting generalized anxiety disorder (GAD), set to drop in late 2023. This study is a big deal – it's the most advanced clinical trial of its kind in North America for the mental health use of a psychedelic substance. Success here could open doors to Phase 3 trials and, potentially, regulatory approval.
Analysts are bullish on MNMD, with all seven tracking the stock calling it a “strong buy” or “moderate buy.” And the average price target is $23.57 per share, implying a staggering 655% upside potential from the current price. Keep an eye on this one, folks!
Aspen Aerogels
Meet Aspen Aerogels, Inc. (ASPN), the wizards of aerogel technology. Aerogel is an industrial material that's super light, porous, and boasts top-notch thermal insulation and fire protection abilities. ASPN's products find their way into various industries, from building and construction to oil and gas, power generation, transportation, and even aerospace. Their star player? Pyrogel®—a flexible aerogel blanket that's all about cutting heat loss and saving energy wherever it's used.
But that's not all. ASPN's PyroThin® thermal barrier products are stepping up to tackle thermal challenges in the electric vehicle (EV) and energy storage game. With Aspen Battery Materials, they're diving into carbon aerogel territory, aiming to supercharge lithium-ion battery cells for longer EV drives and cost savings.
ASPN has held up surprisingly well during the recent broad-market sell-off. While the shares are down about 35% on a year-to-date basis, ASPN has gained more than 26% since the start of September.
Diving into the financials, ASPN unveiled its second-quarter results on Aug. 2. They clocked in with $48.2 million in revenue, marking an impressive 125% increase compared to the previous year. And here's the good news: they reported a net loss of $15.6 million, which translates to $0.22 per share, surpassing analysts' consensus estimate of -$0.36 per share. ASPN chalked up the positive results to strong demand for their products in the oil and gas and building and construction sectors.
Analysts are singing the stock's praises, with all eight of them giving ASPN a "strong buy" rating. The average price target? A whopping $21.50 per share, hinting at a potential 178% upside from the current price. This one's definitely worth keeping on your radar!
Beam Global
Let's talk about Beam Global (BEEM), a cool cleantech company that's all about sustainable EV charging and energy security solutions. They've got some nifty products in their arsenal, like the EV ARC (a solar-powered off-grid EV charging system), ARC Mobility (a transportable EV charging system), and Solar Tree (a solar-powered grid-connected EV charging system).
BEEM shares are down nearly 60% year-to-date. The company's market cap stands at $95.46 million, with an enterprise value of $93.7 million.
In the financial department, BEEM reported a whopping 379% year-over-year increase in second-quarter revenue to $17.8 million. That revenue boost came from higher deliveries to federal agencies, bolstered by record EV ARC system deployments. But they also posted a net loss of $4.5 million, or $0.32 per share, which is wider than what the experts were expecting.
Beam Global is seeing more federal GSA orders and opportunities in line with federal initiatives, with their EV charging infrastructure products making it onto the federal GSA MAS Contract. They're also in the process of acquiring Amiga, which should help them expand into the European market and boost their production, engineering, sales, and product development expertise. Plus, they've secured a hefty $100 million credit facility to keep up with the rapid growth in product orders and deliveries.
Analysts are giving BEEM a nod, with a "strong buy" rating from seven experts. The average price target? A solid $24.17 per share, hinting at a potential 243% upside from the current price. So, if you're on the lookout for some promising green tech, BEEM might just be your ticket.
Conclusion
To sum it up, we've analyzed three stocks under $10 that analysts are saying could double in value - or quite a bit more - in the coming year. For investors looking to dip back into growth opportunities around current levels, low-priced stocks like MNMD, ASPN, and BEEM are worth adding to your watchlist for the massive upside potential.
On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
