Latest News

‘Take Opportunities on Days Like Today’: Mary Callahan Erdoes Says Now Could Be the Best Time to Invest. Here Are 3 Stocks to Consider

0

S&P Futures

3,755.00

-1.75(-0.05%)

 

Dow Futures

29,982.00

0.00(0.00%)

 

Nasdaq Futures

11,537.50

-4.25(-0.04%)

 

Russell 2000 Futures

1,759.40

+1.30(+0.07%)

 

Crude Oil

88.44

-0.01(-0.01%)

 

Gold

1,718.30

-2.50(-0.15%)

 

Silver

20.67

+0.01(+0.05%)

 

EUR/USD

0.9806

+0.0011(+0.11%)

 

10-Yr Bond

3.8260

+0.0670(+1.78%)

 

Vix

30.52

+1.97(+6.90%)

 

GBP/USD

1.1178

+0.0009(+0.08%)

 

USD/JPY

144.9680

-0.1000(-0.07%)

 

BTC-USD

20,015.78

-325.40(-1.60%)

 

CMC Crypto 200

455.10

-8.03(-1.73%)

 

FTSE 100

6,997.27

-55.35(-0.78%)

 

Nikkei 225

27,190.07

-121.23(-0.44%)

 

Investors are facing a storm of headwinds right now – a genuine bear market, stubbornly high inflation, rising interest rates, and increased fears of a recession in the near-term.

However, Mary Callahan Erdoes, CEO of JPMorgan’s Asset & Wealth Management division, advises investors to stay invested.

“It’s actually the easiest time in the world to find alpha — there is alpha everywhere… It’s everywhere, because we are in such a state of change… While all the world is focused on all the black swan events, there will be white swans that emerge… Staying invested in these markets is one of the most important things and one of the most difficult things,” Erdoes opined.

In the meantime, her viewpoint is influencing JPMorgan’s stock pros. The firm’s analyst Brian Cheng is following this stance to its logical end, picking out stock choices that are primed for gains even in today’s unfavorable market clime. We ran three of them through the TipRanks database to gauge the rest of the Street’s sentiment. Let’s take a closer look.

Adicet Bio, Inc. (ACET)

The first stock we’ll look at is Adicet Bio, a small-cap clinical-stage biopharmaceutical firm working to develop the potential of gamma T cells as a new line of off-the-shelf therapies for cancer treatment. Current treatments using alpha beta T cells have proven efficacious against hematological cancers; Adicet aims to show that gamma T cells can bring a similar potency to the treatment of solid tumors.

Adicet’s pipeline currently features no fewer than 8 drug candidate programs, including one being conducted in partnership with Regeneron. Most of the candidates are still in preclinical stages of development, but the leading track, ADI-001, has entered human clinical trials.

ADI-001 has received the FDA’s Fast Track designation, an important regulatory milestone, and as of the May 31, 2022 data cutoff date, the clinical trial program has shown that ADI-001 has met a 75% complete response (CR) and objective response rate (ORR) across all doses tested in the Phase 1 trial. The drug candidate has showed a favorable safety and tolerability profile in the treatment of patients with relapsed or refractory non-Hodgkin’s Lymphoma (NHL).

In addition to its positive start in human clinical trials, Adicet also boasts a solid balance sheet. The company has over $304 million in cash and liquid assets available, as of the end of 2Q22. Management states that this should fund the company’s ops into the beginning of 2025.

In his coverage of this stock, JPMorgan’s Brian Cheng writes: “The company’s lead asset has shown signs of differentiation that could make its approach stand out from other cell therapy products. We are at the early innings of Adicet’s story in cancers as the company paves a first-in-class path with its line of γδ1-based products. Fundamentally, its approach offers a multitude of potential advantages in cancer-killing activities, safety (with less rejection risk), and natural homing tendency into tissues.”

“We believe the platform has under-appreciated potential to take off from this initial testing ground to solid tumors, where cell therapy has not yet gained sufficient ground. As such, we see Adicet with attractive expansion potential beyond the initial set of indications in the near term,” the analyst added.

Cheng complements these comments with an Overweight (i.e. Buy) rating, and a price target of $23 to suggest a one-year upside of ~46%. (To watch Cheng’s track record, click here)

JPMorgan is hardly the only Wall Street firm to come down on the bullish side here. ACET shares have 5 recent reviews and they are all positive, for a unanimous Strong Buy consensus rating. The stock is selling for $15.70 and its $27.40 average price target is even more aggressive than JPM’s, implying an upside of ~75% for the year ahead. (See ACET stock forecast on TipRanks)

Xencor, Inc. (XNCR)

The second stock we’ll look at, Xencor, is a biopharma firm working on new antibody and cytokine drug candidates through its proprietary XmAb protein engineering platform. The company boasts that it has 20 programs in the clinical trial phase, including several at the Phase 2 stage.

Xencor’s tech platform is designed to create subtle changes in an antibody’s Fc domain, to create a ‘plug-and-play’ structure that can be substituted in almost any antibody, to create precision drugs to target specific oncological or autoimmune conditions.

Working through partnerships, Xencor has several FDA-approved drugs already on the market. These include Ultomiris, in partnership with Alexion, in the treatment of paroxysmal nocturnal hemoglobinuria and atypical hemolytic uremic syndrome; and Monjuvi, in partnership with MorphoSys, which is approved for the treatment of adult patients with relapsed or refractory diffuse large B-cell lymphoma.

At the clinical stage, the leading drug candidate, vudalimab, is undergoing two Phase 2 trials. One trial is evaluating the drug against clinically-defined high-risk metastatic castration-resistant prostate cancer as well as some gynecological cancers; the second trial is studying vudalimab in combination with chemotherapy or a PARP inhibitor. This second trial is dependent on tumor subtypes to determine which combo treatment is used. The company is expected to release data by the end of this year.

Through the first half of this year, Xencor’s cash position improved modestly; the company saw its cash holdings increase from $664 million as of the end of 2021 to more than $679 million as of June 30 this year. The company’s received royalties and milestone payments totaled $113.7 million in 1H22, and offset the $105 million in operations spending during that time.

In analyst Brian Cheng’s view, this is definitely a biotech worth a second look.

“The company is building on the past successes of its platform in approved products, such as Monjuvi, Ultomiris, and sotrovimab. Xencor’s ability to execute and willingness to pivot (at an opportune time) are attractive qualities that, in our view, will continue to differentiate the company… We believe the company is near an inflection point, where we will begin to see clarity across its earlier stage products,” Cheng wrote.

“Against the backdrop of steady revenue from partners, the data catalysts within the next 12 months in our view pose an attractive risk/reward profile and provide potential to further unlock the underlying fundamentals,” the analyst summed up.

That upbeat outlook leads Cheng to set an Overweight (i.e. Buy) rating on this stock, and his price target of $37 implies that a one-year gain of ~38% lies ahead for this company.

Overall, from the 6 unanimously positive analyst reviews on record for Xencor, it’s clear that Wall Street is in broad agreement about the bright future for this biotech. The shares are trading for $26.75 and their $46.67 average price target indicates potential for a robust 74% upside over the next 12 months. (See Xencor stock forecast on TipRanks)

Intellia Therapeutics (NTLA)

Last up is another biopharma. Intellia works with gene editing, attacking genetic disease conditions at their source. The company uses CRISPR gene editing technology in the pursuit of both in vivo and ex vivo research tracks. Several of Intellia’s drug candidates have reached the clinical research stage, while more are progressing through the pre-clinical phases. The sheer number of research tracks gives Intellia plenty of ‘shots on goal,’ an attractive feature for research-heavy biotech.

Intellia’s two leading drug candidates are NTLA 2001 and NTLA 2002. The first, NTLA 2001, is under testing as a treatment for ATTR amyloidosis. Initial data from the ongoing Phase 1 study, announced last month, was positive. The drug candidate showed ‘deep and sustained’ TTR reductions, and important milestone in treatment, at the 28-day mark. In addition, the drug candidate was well-tolerated at two dose levels.

NTLA-2002 also showed positive Phase 1 interim clinical data, which was made public in mid-September. NTLA-2002, which is being tested as a treatment for Hereditary Angioedema, or HAE, showed plasma kallikrein reductions of 65% and 92% at two doses, 25mg and 75mg, at the 8-week mark. The drug was administered as a single dose, and was well tolerated at both doses tested. The Phase 2 dose-expansion study is planned for 1H23.

Turning back to JPM’s Brian Cheng, we again find him bullish on this biotech play. He writes, “We think NTLA is attractively positioned given its versatility and validation in clinics. The early clinical data from ‘2001 in transthyretin amyloidosis (ATTR) and ‘2002 in hereditary angioedema (HAE) provided strong proof of mechanism as first-in-class therapies. More importantly, the improvement in HAE attacks reported last week was the first confirmation in a relevant outcome measure. We think the data reads through to the rest of the portfolio and bolsters its potential in addressing the underlying cause of many diseases.”

To this end, Cheng is placing an Overweight (i.e. Buy) rating on NTLA stock, and he backs that with an $85 price target – implying an upside of ~36% on the one-year time horizon. (To watch Cheng’s track record, click here)

Overall, most on the Street keep a bullish stance when considering the NTLA’s prospects; the analyst consensus rates the stock a Moderate Buy, based on 12 Buys, 3 Holds and 1 Sell. The stock is trading at $62.69 and its $108.64 indicates a 73% one-year gain lying ahead for NTLA. (See NTLA stock forecast on TipRanks)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

Advertisement

Bloomberg

Cathie Wood’s Dip-Buying Binge Mainly Focusing on Small Stocks

(Bloomberg) — Cathie Wood’s latest dip-buying binge appears to be largely focused on smaller stocks, cementing her firm’s already hefty shareholdings in such companies.Most Read from BloombergTrump Says US Agency Packed Top-Secret Documents. These Emails Suggest Otherwise.Secretive Chip Startup May Help Huawei Circumvent US SanctionsMusk Revives $44 Billion Twitter Bid, Aiming to Avoid TrialNord Stream Leaks Caused by Detonations in Sign of SabotageMass Shooting in Thailand Leaves 38 Dead, Most

TipRanks

Crispin Odey Scored a Whopping 193% Return This Year; Here Are 2 Stocks That the Hedge Fund Tycoon Likes

Most people might not want to glance too often at their stock portfolio in 2022, but not everyone has had a rough year. Making good use of the UK market unrest, Crispin Odey’s hedge fund has had a great one. In fact, with returns of a hefty 193% year-to-date, it has been a record year for the fund. How did the hedge fund tycoon do it? To a large extent, by going short against UK bonds and the British pound, a wise moving considering the pound plummeted even further in September after new Prime M

TipRanks

Chips Are Down but Not Out; Here Are 2 ‘Strong Buy’ Semiconductor Stocks From a Top Analyst

Chip stocks have had a brutal ride in 2022. The tables have turned on a sector particularly sensitive to cycles; after seeing outsized growth during the pandemic, and despite the global chip shortage, waning demand has seen many in the segment hit hard. Factor in some lofty valuations, a slowing economy and fears of a full-blown recession and the result is the SOX (the main Semiconductor index) is down by 38% year-to-date. That said, there are many good companies operating in the space whose sha

Benzinga

3 Reasons To Invest In Treasury ETFs Over Treasuries Themselves

Treasury bills are short-term U.S. government securities with maturities ranging from a few days to 52 weeks. Bills are sold at a discount from their face value. A Treasury note is a U.S. government debt security with a fixed interest rate and maturity between two and 10 years. Alexander Morris, F/m Investment’s president, CIO and co-creator of the U.S. Benchmark Series, said that his organization believes that “the U.S. Benchmark Series will revolutionize the financial markets, making the most

Benzinga

Lock In High Dividend Yields Before These 3 REITs See A Major Price Jump

When choosing among stocks in the same sector, investors often compare fundamentals like price-to-earnings ratios (P/E) or earnings per share (EPS), balance sheets and other metrics. But it’s also important for investors to compare the relative strength of a stock versus its peers in that sector. In other words, investors also want to consider the stocks that are recently outperforming other similar stocks, because these are the stocks that institutions are buying and will usually continue to pe

Yahoo Finance

Stocks trending after hours: Levi Strauss, AMD, Tilray, and more

Levi Strauss, AMD and Tilray are among the top trending stocks in after hours trading on Thursday, October 6, 2022.

SmartAsset

What to Know About the 529 Grandparent Loophole

A 529 plan can be a powerful way to save for college, offering tax-free growth and other tax benefits. These accounts are so powerful, in fact, that many grandparents choose to open them for their grandchildren. In the past, there … Continue reading → The post How the 529 Grandparent Loophole Works appeared first on SmartAsset Blog.

MarketWatch

Porsche stock continues to climb after IPO

Shares in luxury automaker Porsche edged up 6% on Thursday and over 10% since its launch on the Frankfurt Stock Exchange in Germany last week.

Barrons.com

AMD’s Revenue Misses by a Mile. The Stock Is Falling.

The chip maker warned that revenue for the third quarter would be lower than expected. CEO Lisa Su said that the PC market has “weakened significantly.”

Reuters

Explainer-How will Elon Musk pay for Twitter?

Elon Musk bought himself some time on Thursday, after a judge accepted the billionaire’s request to halt a Twitter lawsuit to allow him to close his proposed $44 billion buyout of the social media company by Oct. 28. Musk said earlier this week he would buy Twitter for $54.20 per share, the price that was agreed in April, but included a condition that the closing of the deal be contingent on debt financing for the transaction coming through. Musk has pledged to provide $46.5 billion in equity and debt financing for the acquisition, which covers the $44 billion price tag and closing costs.

Investor’s Business Daily

Autodesk Stock Upgraded As It Shows Rising Relative Strength

The Relative Strength (RS) Rating for Autodesk entered a new percentile Thursday, as it got a lift from 65 to 73. When you’re researching the best stocks to buy and watch, be sure to pay attention to relative price strength.

I’m Over 72. How Do I Avoid the RMD Tax Bite?

Previous article

MarketWatch First Take: AMD shows the end of the PC boom may be hurting chip makers more than expected

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News