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Raymond James: These 3 Stocks Have Over 100% Upside on the Horizon
We’re now in the heart of earnings season, and investors are paying close attention as companies report their financial results from the first quarter of 2021. It’s a routine, in some ways, but in others, there has never been an earnings season quite like this. It’s the first one post-pandemic, but perhaps more importantly, the results are coming out during a time of nearly unprecedented government stimulus spending. There’s no real comparison to tell just how the inflows of cash are going to impact the bottom lines. Weighing in from Raymond James, strategist Tavis McCourt has put his finger on some of the key points for investors to take cognizance of. First, McCourt notes that the “S&P 500 2021 consensus EPS continues to move higher, almost on a daily basis, and has increased another 2% in the first two weeks of earnings season.” McCourt identifies the correct historical setting to the current conditions: “We normally see forward earnings revisions positive in the first 1-2 years of an economic recovery…” The comparison breaks down, however, as the estimate revisions just keep moving higher. “…analysts/management teams/this strategist, continue to underestimate the positive impact fiscal support (not ‘modelable’ as it’s never been done in this fashion before) is having on corporate earnings,” McCourt added. Bearing this in mind, we wanted to take a closer look at three stocks that have earned Raymond James’ stamp of approval. Accompanying a bullish rating, the firm’s analysts believe each could climb over 100% higher in the year ahead. Running the tickers through TipRanks’ database, we got all the details and learned what makes them such compelling plays. Landos Biopharma (LABP) We’ll start with a newcomer to the markets. Landos Biopharma held its IPO just this past February, when it started trading on the NASDAQ. The company is a clinical-stage biopharma firm, with a focus on autoimmune diseases. Landos uses a proprietary computational platform to develop new drug candidates, and has identified seven so far. The lead candidate is BT-11 (omilancor), a new treatment for patients with ulcerative colitis. BT-11 is a small molecule that targets the Lanthionine Synthetase C-Like 2 (LANCL2) pathway, an action designed to limit gastrointestinal impact. In January of this year, Landos reported positive results from BT-11’s Phase 2 proof-of-concept trial, with remission rates of 11.5% at week 12 for patients with once-daily oral dosing. Landos plans to expand the omilancor clinical trials, with a Phase 3 study in ulcerative colitis patients and a Phase 2 study in Crohn’s disease patients scheduled for later this year. The company’s other drug candidates are at earlier stages of the development pipeline, but it did have positive results to…
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