The pandemic has put health care stocks under the spotlight. As many biotechnology and pharmaceutical companies jump in to find the vaccines and treatments for COVID-19, many investors are looking for top health care stocks to buy. As a matter of fact, it doesn’t take an expert to know a lot of government and private funds went into developing vaccines and treatments. And as an investor, it is only natural to follow the money.
We know health care stocks like Johnson & Johnson (JNJ Stock Report) or Pfizer (PFE Stock Report) are the bigger names in the industry. And it is generally understood that these health care stocks provide solid dividend yields but with slower stock price appreciation. But what if you are one of those investors who has a higher risk appetite and is aiming for a quick flip instead of holding it in the long run? Maybe small-cap health care stocks are a better investment? It’s a game of high stakes and high-return potential. There may be winners, and there may be a few losers if one doesn’t carry out proper due diligence.
Given the nature of the health care industry, many companies rely on clinical results or regulatory approvals to determine if there’s a clear path forward. Therefore, any positive development can act as a catalyst that sends shares skyrocketing towards the moon. On the flip side, disappointing news will also send shares flying, but in the opposite direction. Here are a few health care stocks making big moves this week. Are they on your watchlist?
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First, up the list, shares of Viveve Medical (VIVE Stock Report) soared more than 40% during intraday trading on Tuesday before consolidation and closed 34% higher. This came after the company’s Cryogen-cooled Monopolar Radiofrequency (CMRF) for treating women suffering from Stress Urinary Incontinence (SUI) shows positive results from its recent study.
“The fact that we now have a true inert sham treatment tip provides us more confidence that our upcoming pivotal PURSUIT Trial can achieve its primary efficacy endpoint and position Viveve for a potential SUI indication in the United States.”- Scott Durbin,CEO of Viveve Medical.
Since the beginning of this year, VIVE stock has plunged more than 30% year to date. The stock has been hovering around $0.5-0.6 level for the past few months. This was until Tuesday when we saw some positive sentiments in the company that sent its shares flying. Could the rally from VIVE stock continue this week? Perhaps, only time will tell. The company plans to go ahead with its PURSUIT Trial. The trial will test the effectiveness of CMRF against a placebo. The company expects to recruit 240 patients for the 12-month study. If the company achieves desirable clinical results then, we would likely see a meaningful and sustainable rally.Top Health Care Stocks Under $5 To Buy [Or Sell]: Synlogic Inc.
Next up, shares of Synlogic Inc. (SYBX Stock Report) have been hovering around $2.5 levels for this year. Some analysts believe its current stock price of $2.3 is an attractive entry-point. That’s considering the multiple potential catalysts under its belt for the remainder of 2020.
As Raghuram Selvaraju from H.C. Wainwright puts it, the initiation of Phase 2 clinical trial of SYNB1618, its orally administered synthetic biotic medicine, in patients with phenylketonuria (PKU), a condition that causes decreased metabolism of the amino acid phenylalanine (Phe). The trial is designed to evaluate safety and tolerability as well as the therapy’s ability to lower Phe levels.
Of course, that’s not the only product in the pipeline. The company is currently having a Phase 1 clinical trial of the immuno-oncology (I/O) candidate SYNB1891 in patients with advanced solid tumors or lymphoma. And that could be a source of further upside, according to Selvaraju. The company aims to release interim data from the study this year. Not only did the analyst give it a “Buy” rating, but his target is also $13 per share. That implies around 500% increase from its existing valuation.Top Health Care Stocks Under $5 To Buy [Or Sell]: Evolus Inc.
Evolus Inc (EOLS Stock Report) is another health care stock under $5 to watch before Friday. Shares of EOLS have been on the downtrend since the beginning of this year. It is trading 72% lower than where it was at the beginning of this year. As an investor, it is common for investors to worry that the stocks they are buying at a cheap price might not rebound. And EOLS stocks appear to be like one of them given the price history.
However, Wall Street analysts beg to differ, saying that the stock price of $3.42 per share is an attractive entry-point. Marc Goodman from SVB Leerink gave EOLS stock a “Buy” rating along with a $10 price target. This target implies a potential upside of around 200%.
In Goodman’s statement, he tells clients that Q2 Jeuveau sales landed $6.5 million above his original estimate. The strong showing came as a result of a more robust recovery of normal aesthetics business across the U.S. Approximately 90% of the sales being generated in the second half of Q2 as some offices reopened after the COVID-19-induced shutdown.