For Immediate Release
Chicago, IL – April 07, 2016 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include QLT Inc. (QLTI), Twitter, Inc. (TWTR), Aegerion Pharmaceuticals, Inc. (AEGR), Linn Co, LLC (LNCO) and Lenovo Group Limited (LNVGY).
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Here are highlights from Wednesday’s Analyst Blog:
5 Stocks Near 52-Week Lows Still Worth Buying
The year has turned out to be rather challenging as far as stock prices are concerned. Oil price volatility, a strong U.S. dollar, China growth worries, sluggishness in other emerging markets, slumping commodities, and geopolitical tensions triggered uncertainty in the U.S. stock market. Also, the lack of clarity in terms of Federal Reserve’s tightening of monetary policy and the next rate hike don’t help matters.
Amid this uncertainty, investors are often known to follow the “herd.” As a result, everyone seems to end up buying the same stocks, influenced by some specific favorable events. On the other hand, apprehensions about an impending event can make a massive number of investors sell their investment assets. As such, the market is often driven by the fear and greed of investors. Only if investors can hold their patience and invest in stocks that have strong long-term fundamentals, can they make money from even low priced stocks.
How to Choose Stocks?
While investing in low-priced stocks, one needs to select companies that have strong fundamentals and have the potential to overcome the current headwinds.
We have picked five stocks carrying a Zacks Rank #1 (Strong Buy) or 2 (Buy) with the help of our new style score system. These stocks are priced close to their 52-week low at the moment and offer an excellent bargain to investors.
5 Stocks to Watch
QLT Inc. (QLTI)
Shares of this biotechnology company, which specializes in developing and commercializing innovative ocular products, dropped over 40% in the past year. Termination of its deal with InSite Vision Inc. in Sep 2015 was a huge setback for QLT as the deal would have added two approved products to QLT’s portfolio – AzaSite and Besivance – and boosted its product portfolio. With no marketed product in its portfolio, QLT's pipeline has just one product QLT091001. Any setback in the development of QLT091001 will hurt the stock significantly.
However, QLT091001, on approval, will target a market with unmet medical need due to the lack of approved therapies for indications like retinal diseases such as impaired dark adaptation, leber congenital amaurosis (LCA) and retinitis pigmentosa (RP). Moreover, the company is presently in discussions with the European regulatory authorities regarding the potential submission of a marketing application in the second half of 2016 for a conditional approval of QLT091001. Successful development and subsequent commercialization of QLT091001 will be a positive for the company.
We believe that the shares of this Zacks Rank #2 company are undervalued at present and, despite the lack of a big portfolio, it can be a worthwhile investment. The company’s shares hit a low of $2.07 on Apr 5, which is close to its 52-week low of $1.88.
Twitter, Inc. (TWTR)
Shares of this large cap social media company tumbled over 60% over the past year. The company’s sluggish user growth has been a major concern for the past few quarters. Currently, Twitter has 320 million monthly active users (MAUs). Though the company is working hard to increase its user base, changing features which are unique to Twitter might estrange existing users, which isn’t an affordable proposition in the face of decelerating user growth.
However, Twitter has been benefiting from a rising number of increasing mobile users and its strategic acquisitions. Initiatives to improve user engagement and accelerate business expansion are the other positives
We believe that the shares of this Zacks Rank #2 company are undervalued at present, and despite the sluggish increase in the number of MAUs, it can be a good addition to your portfolio. The company’s share reached a low of $16.89 on Apr 5, which is close to its 52-week low of $13.91.
Aegerion Pharmaceuticals, Inc. (AEGR)