In a current evaluation of the market’s present circumstances, JPMorgan strategist Eduardo Lecubarri recaps his view that 2021 will see modest beneficial properties throughout shares usually – however outperformance among the many small/mid-cap sector. Lecubarri believes that traders can discover alternatives for large upside amongst shares in that class. Driving the final shares beneficial properties, Lecubarri factors to current manufacturing PMI prints, that are at 15-year excessive ranges, and the falling unemployment numbers – each information factors point out a agency basis for financial restoration. With client confidence additionally rising, and comparatively excessive financial savings, he sees a tailwind for the small/mid-cap because the 12 months unfolds. A normal pattern of rising small-cap shares ought to naturally impel analysts and traders to take a look at the ‘pennies,’ shares which are priced beneath $5 per share. While not a positive indicator, low share worth normally goes together with low market cap – however it additionally comes with the strong upside potential that Lecubarri mentions. However, earlier than leaping proper into an funding in a penny inventory, Wall Street professionals advise trying on the greater image and contemplating different elements past simply the worth tag. For some names that fall into this class, you actually do get what you pay for, providing little in the best way of long-term progress prospects due to weak fundamentals, current headwinds and even massive excellent share counts. Taking the danger into consideration, we used TipRanks’ database to search out two compelling penny shares, as decided by Wall Street professionals. Each has earned a “Strong Buy” consensus score from the analyst group and brings huge progress prospects to the desk. We’re speaking about over 100% upside potential right here. Biolase Technology (BIOL) We will begin with Biolase Technology, a frontrunner designer, producer, and innovator in dental laser expertise. Lasers convey a bunch of advantages to dentists and their sufferers, together with fewer aerosols and a gentler contact throughout procedures, and extra comfy therapeutic afterwards. Biolase merchandise are utilized in periodontal, endodontic, hygienic, and implant procedures; the corporate markets on-line on to dental practices. Biolase put a optimistic spin on its current 4Q20 earnings report. Even although the highest line revenues of $8.52 million have been down 16% year-over-year, the sequential quarterly achieve was spectacular, at 31%. The firm benefited as dental clinics bought again to work within the financial restoration of 2H20. Biolase reported two optimistic tendencies in gross sales in This autumn, with 78% of gross sales coming from new clients and 40% going to dental specialists. Even higher, the corporate supplied Q1 income steerage for $7.5 – 8.0 million, up 60–70% yoy, and above consensus of $7.0 million. Currently going for $0.76 apiece, Biolase shares might see main beneficial properties, in line with some analysts. Among the bulls is Maxim analyst Anthony Vendetti who famous that the corporate’s positives in This autumn aren’t simply spin. “While the worldwide market continues to lag the US in COVID restoration, BIOL delivered its second consecutive quarter of important sequential income progress, pushed by US gross sales to new clients, dental specialists, and Dental Service Organizations (DSOs). We are inspired that dental specialists comprised 40% of the corporate’s US laser gross sales in 4Q20, and count on the corporate’s current launch of each the Endo and Perio Academies to contribute to elevated adoption by the ~5K endodontists and ~5K periodontists within the US. Moreover, BIOL has positioned an elevated emphasis on changing small DSOs (that may undertake BIOL’s expertise extra rapidly), which we count on to bolster short-term income as the corporate makes progress changing bigger DSOs, corresponding to Heartland Dental (personal),” the 5-star analyst opined. Vendetti summed up, “Based on the distinctive worth proposition of BIOL’s merchandise, its continued progress in penetrating DSOs, and its growing traction with dental specialists, we reiterate our Buy score.” Along with that Buy score, the analyst units a $2 worth goal that signifies 165% share progress forward in 2021. (To watch Vendetti’s monitor report, click on right here) It seems the remaining of the Street sees loads of upside, too. Based on Buys solely – 4, in actual fact – the analyst group charges BIOL a Strong Buy. The common worth goal hits $1.94, and implies potential upside of ~157% over the approaching months. (See BIOL inventory evaluation on TipRanks) Fortress Biotech (FBIO) Fortress Bio is a pharmacological analysis agency with a wide-ranging pipeline of 28 drug candidates, in various phases of improvement from preclinical to Phase 3 trials. In addition to the pipeline, Fortress has six permitted medicine in the marketplace for a range of dermatological circumstances together with pimples, pores and skin fungal infections, and burns and different floor wounds. These medicines are advertising by Journey Medical, Fortress’s associate firm, and in 2020 netted revenues of $44.5 million. This in contrast effectively – up 28% – to the $34.9 million netted in 2019. Fortress ended 2020 with a sound money place, holding $235 million money and money equivalents. This was up $15 million from Q3, and up 53% year-over-year. The firm famous that these optimistic outcomes got here even because the COVID pandemic impacted each provide and gross sales. Looking forward, Fortress expects so as to add two new permitted prescription merchandise to its lineup in 2021. In one other program replace, Fortress is partnering with Cyprium Therapeutics and Sentynl Therapeutics on CUTX-101. Both corporations have signed onto a Development and Asset Purchase settlement for the drug candidate, a remedy for Menkes illness at the moment in Phase 3 medical trials. The firm reported optimistic medical efficacy outcomes final August, together with medial survival within the early remedy cohort of 14.8 years, in comparison with 1.3 years for the untreated historic management cohort. In 2H21, Fortress will start rolling submission of the NDA for CUTX-101. Covering this inventory for B. Riley, 5-star analyst Mayank Mamtani notes the corporate’s basic soundness. “FBIO’s differentiated enterprise mannequin, constituting of a diversified portfolio of marketed merchandise and clinical-stage candidates, stays resilient amid challenges posed by C-19 pandemic, thereby establishing favorably prematurely of quite a few regulatory, medical information and stability sheet inflection factors anticipated over the subsequent few quarters serving as alternatives to re-rate the inventory,” Mamtani wrote. To this finish, Mamtani charges FBIO a Buy, and his $10 worth goal suggests it has room for ~100% upside within the subsequent 12 months. (To watch Mamtani’s monitor report, click on right here) Overall, Fortress Bio has 4 evaluations on report, and all are to Buy, giving the inventory a Strong Buy consensus score. FBIO shares are priced at $4.48, and their $13 common worth goal implies a one-year upside of 190%. (See FBIO inventory evaluation on TipRanks) To discover good concepts for penny shares buying and selling at engaging valuations, go to TipRanks’ Best Stocks to Buy, a newly launched instrument that unites all of TipRanks’ fairness insights. Disclaimer: The opinions expressed on this article are solely these of the featured analysts. The content material is meant for use for informational functions solely. It is essential to do your individual evaluation earlier than making any funding.