This New Tesla Coil is the Future of Electricity
In 1891, Nikola Tesla stunned the scientific community by inventing a device that could transmit electricity through the air. This breakthrough device could power light bulbs and electric motors wirelessly, at a distance of a few feet. But unfortunately, his experiments came to a premature end. Now, 75 years after his death, Tesla’s dream has been resurrected in an incredible way.
Cheap stocks can come with massive rewards for investors who can stomach the risk.
A stock that has fallen below $5 is usually a sign that the company has lost the confidence of Wall Street. While some of these stocks eventually flicker out all together, some stocks are able to stage a comeback and deliver massive gains to patient investors.
These three stocks are all under $5, but analysts say they could be heading much, much higher over the next year.
Here’s what you need to know about these stocks.
Consumer Portfolio Services (NASDAQ: CPSS)
The Las Vegas-based Consumer Portfolio Services (NASDAQ: CPSS) is in the subprime auto loan business. The firm has struggled since the 1990s, however, the credit services company could gain some traction in the near future.
Revenues have climbed by an average 36% per year over the last five years, and analysts forecast profit growth of 22% next year and 20% growth per year over the next five years.
The stock has been in a deep correction since the spring of 2013 when the price topped-out above $12 after a parabolic rise from just under $1 beginning in 2012. But with 20%-plus growth on the horizon, the stock’s multiple of just over 8 times forward earnings should rise, and the share price along with it.
While the average analyst price target for CPSS is $5.50, indicating possible upside of nearly 42%, JMP Securities recently upgraded the stock to an Outperform rating with a price target of $6 – 54.6% higher than Thursday’s closing price.
Capstone Turbine (NASDAQ: CPST)
You’ve likely never heard of Capstone Turbine (NASDAQ: CPST), but the company is a manufacturer of gas turbine engines that analysts covering the stock say has significant upside ahead.
Capstone’s turbines are unique in that they are more efficient, more reliable, and can run on several different types of fuels as a result of having just one moving part that operates as an air intake compressor, turbine, and generator all in one.
Because of advances in insulation, the company’s turbines are also able to run at higher temperatures and under greater pressures, which enables more complete combustion—and thus, cleaner emissions—and can run on just about any combustible material.
Last month, the company posted positive earnings with revenue at $21.19 million for the quarter, compared to the average analyst forecast of $21.09 million.
The consensus price target for CPST is $2.30, suggesting possible upside of 139.6% over the next twelve months. Lake Street Capital recently initiated coverage of the stock with a Buy rating and a price target of $3 – 212.5% higher than current prices.
Rigel Pharmaceuticals (NASDAQ: RIGL)
Rigel Pharmaceuticals (NASDAQ: RIGL) is a biotech that is focused on the discovery and development of small molecule drugs for the treatment of immune and hematologic disorders, cancer, and rare diseases.
The company earned its first FDA drug approval this spring for its platelet protector Tavalisse, and analysts are waiting with bated breath for the first sales figures to roll in.
Tavalisse is the first new treatment in years for immune thrombocytopenia (ITP), which impacts 65,000 adults in the U.S., a disease that causes the immune system to chew up platelets for no discernible reason. At its peak, the niche treatment Tavalisse could deliver roughly $400 million in sales annually.
The company may also be able to expand the addressable patient population for Tavalisse to include another chronic condition called autoimmune hemolytic anemia, a disease that impacts 40,000 patients in the U.S. At this time, there are no FDA-approved therapies to prevent the widespread destruction of red blood cells patients with autoimmune hemolytic anemia experience.
Results from an ongoing trial for the treatment of the disease by Tavalisse are expected within the next few months. If those results are positive, and if initial sales figures for Tavalisse for the treatment of ITP impress, this stock could shoot much higher.
Analysts’ average twelve month price target for RIGL is $8.21, indicating potential upside of 157.5%. Just last month, Cantor Fitzgerald reiterated its Buy rating on the stock with a price target of $9 – 182% above Thursday’s closing price.