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Everyone is talking about the same companies.
For evidence I needed to look no further than the front page of Bloomberg, where this morning there were no fewer than six unique headlines about Tesla (NASDAQ: TSLA) and its CEO Elon Musk above the fold – no scrolling necessary.
To be sure, these stocks aren’t necessarily bad investments. Amazon for one is an expensive stock, but it comes with robust growth potential that’s worth writing about. And Apple surging past the $1 trillion valuation mark last week on the back of a strong earnings report deserves the articles written about it too.
And certainly, Musk’s tweetstorm earlier this week about taking Tesla private is newsworthy and warrants a multitude of stories written. But I’m more interested in those stories that aren’t being told. Those companies that aren’t being talked about constantly.
These three stocks are flying under-the-radar now and deserve a moment in the spotlight.
Galmed Pharmaceuticals (NASDAQ: GLMD)
If you’re at all interested in biotech stocks, Glamed (NASDAQ: GLMD) should be on your radar.
The company is focused on treating liver diseases, including Non-Alcoholic Steatohepatitis (NASH), and analyst Dr. Elemer Piros at Cantor Fitzgerald said it “is undervalued in relation to its peers in the NASH space,” in a note to clients.
Its “opportunity in NASH is worth $1.2 billion,” Cantor noted, as there are currently no approved therapies to treat the disease and GLMD is expected to begin Phase 3 trials for its new treatment, Aramchol, in the fourth quarter.
Also in that note? Cantor gave GLMD an “overweight” rating with a 12-month price target of $59. That’s a whopping 359% gain from its current price of $12.84.
Trupanion (NASDAQ; TRUP)
The pet care industry is a growing one—Americans are expected to spend $72 billion in the sector just this year alone—and Trupanion (NASDAQ; TRUP) is a stock to watch in the space.
Trupanion offers pet insurance for dogs and cats in the U.S., Canada, and Puerto Rico, and just recently smashed its second quarter earnings results.
“TRUP posted very strong Q2 results with accelerating subscription pet growth, expanding EBITDA margins, and a full-year revenue guidance raise that was larger than the Q2 revenue beat,” RBC Capital analyst Mark Mahaney wrote in a note to investors on August 3.
Mahaney sees long term growth ahead for Trupanion, and raised his price target for the stock from $36 to $44—or roughly 19% above the current price—as the company is in a large growth business in a currently under penetrated market. “We continue to believe TRUP has the characteristics of a high-growth, subscription-based ‘Net company and benefits from a highly recurring model, which adds predictability,” Mahaney wrote.
The consensus 12-month price target among analysts for TRUP is $45.57, indicating possible upside of 20.15%.
Marinus Pharmaceuticals (NASDAQ: MRNS)
Here’s another cutting-edge biotech with huge potential for you.
Marinus Pharmaceuticals (NASDAQ: MRNS) is developing ganaxolone, a treatment for epileptic and neuropsychiatric disorders, including the treatment of postpartum depression.
Analyst Difei Yang at Mizuho Securities is optimistic about the upcoming results of the Phase 2 study of ganaxolone IV in women with postpartum depression, writing, “We anticipate this will be an important catalyst for the shares. We see upside potential of 100%+ assuming convincing data including a clear dose response.”
Yang went on to say, “We believe the downside is limited given the history of the compound and potential in other indications,” which is good news indeed.
Yang reiterated a Buy rating for the stock and set a price target of $13, or 121% higher than the current price. However, the consensus 12-month price target among all analysts covering the stock is $18.43, suggesting possible upside of 213.97%.