Meal Kit Delivery Services Market will Showcase Positive Impact During 2020-2024


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3 “Strong Buy” Healthcare Stocks Under $5 That Could Go Boom

Since 2019, the healthcare sector has been bracing for the wild ride that would be the election year. However, according to some Street pros, 2021 is looking a lot like 2009, and this could actually be a good thing for the space.“[We] think 2021 will play out very similarly to 2009 for the health care sector. If in fact the political prediction markets are correct and Democrats seize control of the presidency and the U.S. Senate, the rhetoric on changes to health care policy exceeds the reality of what can be accomplished,” UBS healthcare strategist Eric Potoker noted.Potoker points out that the 2009 passage of the Affordable Care Act (ACA) had a muted effect on the industry, with demand for products and services rising due to expanded health coverage. Healthcare stocks reaped the benefits of this between 2009 and 2015, and the space outperformed the rest of the market.To this end, Potoker believes 2021 will play out in a very similar way, and therefore, is pointing to the healthcare space as a must-watch area of the market.Using TipRanks’ database, we scanned the Street for compelling yet affordable plays within the healthcare sector. Locking in on three trading for less than $5 per share, the platform revealed that even with the risk involved, all three have scored overwhelmingly bullish analyst support, enough to earn a “Strong Buy” consensus rating. What’s more, each boasts a massive upside potential.Kintara Therapeutics (KTRA)Working to meet the needs of patients who are failing or resistant to current treatment regimens, Kintara Therapeutics focuses on developing cutting-edge cancer therapies. Based on its diverse oncology-focused pipeline and $1.40 share price, some members of the Street believe the share price reflects an attractive entry point.Aegis analyst Nathan Weinstein cites the company’s two differentiated, late-stage oncology assets as the primary components of his bullish thesis. These candidates are VAL-083, a small molecule chemotherapeutic agent for the treatment of glioblastoma multiforme (GBM), a highly lethal brain cancer with a 95% five-year mortality rate, and REM-001, a phototherapy designed for the treatment of cutaneous metastatic breast cancer (CMBC).Looking at the former, Weinstein highlights the fact that VAL-083 affects DNA in a different way than the current standard of care, temozolomide (TMZ). “We think VAL-083 could show relative benefit, particularly in MGMT-unmethylated patients. Two thirds of GBM patients have an unmethylated MGMT promoter,” the analyst noted.The MGMT repair enzyme has been found to correct the damage to DNA caused by TMZ. However, patients with an unmethylated MGMT repair enzyme have a poor response to TMZ treatment, which bodes well for KTRA as its therapy has a different mechanism of action. “In our view, data from the ongoing Phase 2 trials presented at AACR (June 2020) are encouraging regarding overall survival (OS) and progression free survival (PFS) data vs historical controls,” Weinstein opined.As for REM-001, it has been evaluated in over 1,000 patients to-date, and thus has a “well-characterized safety profile,” in Weinstein’s opinion. Additionally, in previous CMBC trials, the asset has demonstrated robust efficacy, including 80% complete response of evaluable lesions.All of the above prompted Weinstein to comment, “We find the valuation of Kintara in the market to be compelling, as little value is being ascribed to the company, despite having two phase 3 ready oncology assets with sufficient funding in-place to reach multiple milestones ahead.”To this end, Weinstein rates KTRA a Buy along with a $6 price target. This target conveys his confidence in KTRA’s ability to climb 341% higher in the next year. (To watch Weinstein’s track record, click here)Are other analysts in agreement? They are. Only Buy ratings, 3 to be exact, have been issued in the last three months. Therefore, the word on the Street is that KTRA is a Strong Buy. Given the $4.33 average price target, shares could soar 218% from current levels. (See KTRA stock analysis on TipRanks)DiaMedica Therapeutics (DMAC)Utilizing its cutting-edge technologies, DiaMedica Therapeutics develops novel recombinant proteins to treat kidney and neurological diseases. With a price tag of $4.20 per share and potential catalysts coming up, it’s no wonder this stock is on Wall Street’s radar.Representing Craig-Hallum, analyst Alexander Nowak sees multiple value-creating catalysts on tap, noting that the company appears “chronically undervalued.” Looking ahead to Q4, DMAC will have a meeting with the FDA for DM199 in acute ischemic stroke (AIS), where break-through designation, Special…



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