The stock markets can sometimes be a study in paradoxes. Good and bad news will exist simultaneously, tugging in various directions, and short-term trends can shift in a single trading session.
Start with two data points noted by Oppenheimer’s chief investment strategist John Stoltzfus. He draws attention to the Q1 earnings – reporting season is winding down – particularly to the strong results. After 91% of the S&P 500-listed companies had reported, quarterly revenues had grown 9.8% year-over-year and earnings were up 47%.
On the negative side, Stoltzfus contrasted the solid earnings with the poor April jobs report. The new jobs total reached a mere 266,000; far short of the nearly 1 million expected, and the February/March numbers were revised downwards.
Stoltzfus sees resilience in the markets, however, as stocks continue to hover near record levels.
“So far in 2021 the US economy and stocks have shown remarkable resilience considering the challenges and uncertainties they face in the process of moving towards the ‘next new normal.’ It’s no secret that a whole lot of love in the form of accommodative monetary policy from the Fed and gargantuan levels of stimulus from Capitol Hill have played a significant role to effect the process of navigating a landscape fraught with the uncertainties that come with any recovery from a major crisis,” Stoltzfus wrote.
The upshot: Oppenheimer comes down in favor of stock investing in today’s overall market environment, with an emphasis on US equities. The investment firm has been consistent in this stance for some time now, and its stock analysts have been making their recommendations accordingly.
Two of those recent stock recommendations caught our eye; according to the TipRanks database, these are stocks that gotten under the radar of the analyst class. They haven’t had much coverage, but Oppenheimer’s analysts believe that each could double or more in the next year. Let’s find out why.
Cyclacel Pharmaceuticals (CYCC)
The first stock we’re looking at, Cyclacel Pharma, is involved in clinical-stage research into new cancer medications. The company’s focus is on innovative drug candidates based on ‘cell cycle, transcriptional regulation, and mitosis biology;’ in plainer language, the way cells divide. Uncontrolled cell division is a hallmark of tumor growth, and Cyclacel aims to tackle that facet of cancer through several pathways.
Cyclacel has two main drug candidates in its pipeline, fadraciclib and CYC140. Both are undergoing clinical trials as treatments for solid tumors and leukemia, but with different mechanisms. The first is a transcriptional regulator, while the second is in the anti-mitotic program.
Fadraciclib is administered either orally or intravenously, and is an inhibitor or CDK2 and CDK9. It has been shown to cause death of cancer cells at sub-micromolar…
Read More: Buy These 2 Stocks Before They Double, Says Oppenheimer