In this article, we will discuss: 10 Best One Dollar Stocks To Buy Now.
The upward trend in the stock market has resumed, supported by strong first-quarter and second-quarter results that have relieved investor concerns about inflation. The US economy had a very strong year in 2023. Economic activity increased steadily, job creation was high, unemployment was low, real earnings rose, and inflation declined. Furthermore, the Federal Reserve maintained high interest rates throughout this time in an attempt to control inflation. June recorded a market increase of more than 10%. The large-cap market of the 500 biggest companies has already surged over 17% so far this year as analysts look forward to reduced interest rates in the second half of 2024, along with higher earnings growth and lower inflation.
Historically, since 1928, July has been the strongest month of the year for stocks in terms of performance. The market rose by 1.7% in July. Given that the market posted gains in May and June despite notable economic uncertainty, investors remain bullish that the market can sustain its positive trend.
In a May speech to the Foreign Bankers’ Association, Federal Reserve Chair Jerome Powell recognized the difficulty of bringing inflation down to the desired level. Powell stated that it could be essential to keep interest rates at their present levels for a longer period of time. Interest rates have been fluctuating between 5.25% and 5.5% since July 2023.
Amid concerns over an impending recession brought on by higher interest rates, the US labor market still remains stable. According to the Labor Department, the US economy created 175,000 new jobs in April, although this was less than the 240,000 jobs that economists had predicted. The US labor market maintains a low unemployment rate of 3.9%, while US wages have risen 3.9% YoY. Nonetheless, recession fears are maintained by the historical recession predictor, the inverted U.S. Treasury yield curve, and the New York Fed’s model, which projects a 50% chance of a recession within the next 12 months.
The second quarter of 2024 saw a gain of more than 3% in the US stock market. Under the hood, tech companies continued to lead the artificial intelligence trade, which showed no signs of slowing down throughout the quarter. One striking trend in the stock market this year has been the outperformance of the biggest companies. The large-cap market of the 500 biggest companies gained 4.4% in Q2, bringing its 2024 return to more than 15%. By comparison, the small-cap market had a decline of 3.3%, resulting in a reduced 2024 return of 1.6%.
With over half of 2024 already gone, the US stock market is expected to see significant increases for the second year in a row.
According to DataTrek Research co-founder Nicholas Colas, the 2024 stock market surge is about more than just this year; it also includes the outlook for 2025 and 2026. Colas stated:
“Markets are convinced that U.S. large cap companies will see many years (not just one) of improving earnings. Earnings for 2024 only have to come through slightly better than last year, and nothing occurs on the macro side (economic growth, geopolitics) to derail further earnings growth in 2025 and 2026.”
Investor confidence is supported by historical trends and recent earnings performance. The stock market does well in election years, according to historical statistics, especially when the president is serving his first term, as is the case with Joe Biden.
With that said, here are the 10 Best One Dollar Stocks To Buy Now.
Stocks
Methodology:
In this article, we first used a stock screener, Finviz, to list down all stocks trading under $1.5 and above $0.85 (as of the writing of this article) with over 40% institutional ownership. From the resultant dataset, we chose 10 stocks with the highest number of hedge fund investors, using Insider Monkey’s database of 920 hedge funds in Q1 2024 to gauge hedge fund sentiment for stocks. We have used the stock’s Revenue Growth Rate (year-over-year) as a tie-breaker in case two or more stocks have the same number of hedge funds invested. We only considered stocks that received “buy” or “strong buy” recommendations from analysts.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here)
10. CarParts.com, Inc. (NASDAQ:PRTS)
Number of Hedge Fund Investors: 12
CarParts.com is an online retailer that specializes in aftermarket vehicle parts and accessories. It is based in Torrance, California. PRTS provides a variety of products, such as performance accessories, mechanical and electrical components, and replacement parts, to individual customers via its online marketplaces and e-commerce websites. Automobile body and repair shops are another target market for CarParts.com. The company, along with its subsidiaries, distributes aftermarket car parts and accessories in the United States and the Philippines.
During the COVID-19 pandemic lockdowns, the company and its shares saw tremendous growth, with a share price peaking at $19.50 in 2021, which is similar to the trend observed in many online companies. Sales increased in the second, third, and fourth quarters of FY2020 by 60% to 90% year over year. Nevertheless, when these pandemic-driven tailwinds faded, CarParts.com encountered difficulties, as seen by the stock’s poor performance over the last three years. The stock price has decreased by over 93% since 2021, as of July 16.
CarParts.com reported sales of $166.29 million for the first quarter of 2024, which was higher than the analyst consensus expectation of $160.20 million but represented a 5.24% drop from the same period the previous year. The company reported a $6.5 million net loss, which is an increase from the $1.1 million loss during the same time last year. Due to higher outbound transportation costs and selling price compression, gross margins fell by 3.22%, and adjusted EBITDA dropped to $1.1 million from $9.4 million. In spite of these difficulties, the company released a mobile app in 2023, which is significant for PRTS because it currently accounts for more than 8% of PRTS’s overall eCommerce sales.
Analysts urge investors to “buy” PRTS, which is now trading for $1.12. With an average price objective of $3.00, the company presents investors with a 169.06% potential upside. With no revolver debt, the company has about $46.0 million in cash and marketable securities. As of the end of the first quarter of 2024, 12 hedge funds out of 920 hedge funds had a stake in CarParts.com, Inc. (NASDAQ:PRTS), according to Insider Monkey’s data. AQR Capital Management, managed by Cliff Asness, owns 1,846,142 shares of the firm, valued at $2.10 million.
Analysts predict that revenue will rise to $175.38 million in Q2 2024. The revised outlook by the company is bleaker, however, since net sales estimates have been reduced from $662-$688 million to $600-$625 million for 2024. On the other hand, the rise in projected gross margin from 31% to 33% is a positive indication of increased profitability. However, we are concerned about the company’s weak or negligible sales growth and persistent profitability issues and recommend caution.
In order to stand out from the competition in the online car parts business, CarParts.com must improve both its customer experience and operational efficiency. The company’s strategic goals, which include the release of the mobile app with more organic downloads, higher ASPs, repeat sales, and continuous attempts to control costs, are intended to increase sales and boost profits. In Q1 2024, headcount reductions were made to mitigate the impact of gross margin drops by reducing the workforce, showing operational efficiency. CarParts.com has had financial problems recently, but it still has enough cash on hand to fund its expansion plans and weather market turbulence. The company also received 38% of its e-commerce income from loyal, returning clients, and its website had over 100 million views in Q1 2024, demonstrating the strength of its online presence.
David Meniane, CEO, stated:
“We are well positioned to capture the tremendous and growing opportunities within the highly fragmented and underserved four hundred-billion-dollar aftermarket auto parts industry.”
In conclusion, CarParts.com’s solid cash position and positive valuation measures suggest that the company may rebound, but investor trust depends on profitability. Notwithstanding the need for the company to increase sales and boost profitability, analysts are generally cautiously hopeful.
9. Oatly Group AB (NASDAQ:OTLY)
Number of Hedge Fund Investors: 13
OTLY is the world’s first and one of the largest oat beverage companies. Its only focus for more than 25 years has been on gaining knowledge about oats, a crop of great worldwide importance with natural qualities that are beneficial to both human health and the environment. The company’s focus on oats has led to technological improvements that have expanded its dairy offering, including alternatives to milk, ice cream, yogurt, cooking creams, and spreads. Globally, its Oatly brand is accessible in over 20 countries, with its headquarters being in Malmo, Sweden.
The 7 Wall Street analysts with 12-month forecasts for OTLY stock have an average price target of $2.11, maintaining a “Buy” rating. This average price target predicts an upside potential of 91.82% from the current stock price of $1.10. At the end of Q1 of 2024, Oatly Group AB (NASDAQ:OTLY) was held by 13 hedge funds, with Jeffrey Tannenbaum’s Fir Tree holding the largest stake of 4,736,083 shares valued at a total of $3.53 million.
Oatly’s (NASDAQ:OTLY) present market capitalization of $635.73 million is based on steady GAAP net loss quarters and operating cash burn as compared to a balance sheet with decreasing liquidity. The oat milk company has created plant-based products that are actually in demand. During the first quarter of fiscal 2024, revenue of $199.16 million was generated, 1.8% higher than the same quarter in the previous year and $1.49 million beating the consensus estimate. Both the Europe & International and North America sectors had strong growth in Q1, which contributed to the rise in revenue. The company projects that its revenue will grow by 5% to 10% on a constant currency basis for the entire fiscal year 2024. This would indicate that for the entire year 2024, revenue would be at least $822 million.
Oatly’s North American and European & International operations rose by 4.6% and 7.7%, respectively, in the first quarter of 2024 from the same quarter last year on a constant currency basis. As a result of SKU reductions to increase manufacturing efficiency, sales in Greater China fell by 26.8% in the same quarter. Oatly’s cash burn from operations decreased to $39.1 million from $71.2 million in the first quarter of last year, while the company’s net loss for the first quarter was $45.8 million, down from $75.6 million. Including capital expenditures, the company’s cash runway is less than six quarters, since it completed the quarter with $209 million in cash and $453.8 million in total debt.
Considering that Oatly’s financial runway, including capital expenditures, is less than five quarters, the company’s primary risk is rapid cash burn. Though the projection for negative adjusted EBITDA of $35 million to $60 million in 2024 suggests persistent difficulty, the company is still aiming for profitable growth. Oatly faces competition from other oat companies, such as Alpro and supermarket generics, despite solid expansion in the plant-based sector.
Although Oatly has made significant strides toward reducing losses, the business must act quickly to turn a profit before depleting its cash reserves. Oatly’s significant capital burn and constrained liquidity continue to be concerns, even as the market as a whole continues to trend toward plant-based goods. Nonetheless, given the company’s global reach and standing as a pioneer in oat beverages, investors continue to have high hopes for its development potential.
8. Adaptimmune Therapeutics plc (NASDAQ:ADAP)
Number of Hedge Fund Investors: 14
Adaptimmune Therapeutics plc (NASDAQ:ADAP) is a biotechnology company. It develops treatments for cancer. Their pipeline includes Afami-cel, which has demonstrated positive results in solid tumors, as well as Lete-cel, which targets soft tissue sarcoma. ADAP is one of the best one-dollar stocks to buy now, since ADAP has received a “buy” recommendation from analysts. Adaptimmune Therapeutics plc (NASDAQ:ADAP) has an average Wall Street analyst price target of $4.29, indicating a possible 253.09% upside from the company’s current $1.22 price. As of the end of the first quarter of 2024, 14 hedge funds out of the 920 funds reported having stakes in Adaptimmune Therapeutics plc (NASDAQ:ADAP). The company’s main investor is Matrix Capital Management which is managed by David Goel and Paul Ferri and has 38,974,185 shares worth $61.58 million.
Afami-cel, the flagship product of ADAP, is an engineered cell treatment guided by MAGE-A4 that targets soft tissue sarcomas. The FDA is now reviewing its application for a biologics license, and an action deadline of August 4, 2024, is set. Clinical evidence demonstrates notable action in a range of solid tumors, indicating a critical juncture for ADAP. Second, at an ASCO presentation, Lete-cel, a NY-ESO1-targeted T-cell therapy, showed a 40% response rate in 45 patients with synovial sarcoma and myxoid/round cell liposarcoma. Concerns about cytokine release syndrome and toxicity persist despite the encouraging operations. Thirdly, phase 2 trials for Uza-cel are targeting platinum-resistant ovarian cancer, while phase 1 trials are still underway for malignancies of the bladder and head/neck. The big news is that its development is supported by a partnership with Galapagos that might be valued at $500 million.
In cash and equivalents, ADAP has $140.7 million as of the most recent earnings report. Due to the end of the Astellas cooperation and $55 million in operating expenses, the firm recorded $5.7 million in revenue, an 88.07% decline from the same quarter last year. This translated into a $48.5 million net loss. A runway of around three quarters is implied by the cash burn rate of 12.34% from the same quarter the previous year. Nevertheless, the Galapagos agreement extends the runway until late 2025 with an upfront payment of $100 million and a $125 million loan from Hercules Capital to assist with the successful launch of the lead asset, afami-cel for synovial sarcoma.
The diverse ADAP pipeline, including lete-cel, uza-cel, and afami-cel, lessens reliance on a single product and highlights the company’s strong development approach. Its strategic partnership with Galapagos expedites product development and fortifies its financial position even further.
However, approval from authorities is still pending, especially for afami-cel. Stock value may be greatly impacted by a negative FDA ruling. Even with recent financial gains, as seen by its annual revenue growth over the years, long-term viability still depends on successful product launches, mainly because of the high cash burn rate over the years. Hence, the company’s strong cash burn indicates how much its financial health depends on favorable regulatory decisions.
The company is confident in the approvability of the lead assets, afami-cel and lete-cel, as well as the timely authorization of afami-cel on/by the 8/4 PDUFA. If the FDA’s impending ruling on Amfami-cel is favorable, the value might rise dramatically. Regulatory and financial hazards persist despite advancements in clinical practice and business alliances. Investors should evaluate the possible benefits against these risks, keeping in mind the large negative impact if regulatory permission is not received. If the FDA rules in favor of ADAP, the stock would become more competitive, and risk-averse investors would be justified in maintaining a “Strong Buy” rating.
7. Ur-Energy Inc. (NYSE:URG)
Number of Hedge Fund Investors: 18
Ur-Energy Inc. (NYSE:URG) is involved in the purchase, exploration, development, and operation of uranium mineral properties. Ur-Energy (NYSE: URG) is a strong competitor in the uranium industry, with a unique opportunity to capitalize on the current state of the market right now. Given its strategic emphasis on in-situ recovery (ISR) uranium mining in the United States, the company is pioneering an expanding industry that is being pushed by both supply limits and growing worldwide demand. Having been established in 2004, the firm has been producing uranium for little more than a decade.
The increasing recognition of nuclear energy as a dependable, clean substitute for fossil fuels has propelled a notable upswing in the uranium market. The IEA expects global nuclear generation to be almost 10% higher in 2026 compared with 2023. Since starting operations, the company has produced and packed about 2.7 million pounds of U3O8 from Lost Creek, while 2.2 million pounds per year are allowed for the processing plant, Ur-Energy takes advantage of this trend. This plant, in operation since 2013, demonstrates the company’s capacity to continue producing at a low cost and turn a profit despite changes in the price of uranium. The company holds interests in 12 projects located in the United States.
Analysts have given URG a “strong buy” rating. The average Wall Street analyst price target for Ur-Energy Inc. (NYSE:URG) is $2.65, which presents a 97.03% upside potential from the current price of $1.35. According to Insider Monkey’s Q1 2024 database, 18 hedge funds made investments in this company. With 14,584,181 shares worth $23.33 million, Daren Heitman’s Azarias Capital Management held the largest stake in the company.
Significant advancements have been announced by the firm in its Q2 2024 reports. Despite guiding to the lower end of their 2024 target of 550,000 to 650,000 pounds, Lost Creek operations showed a quarter-over-quarter rise in output, with 70,679 pounds collected, 64,170 pounds dried and packaged, and 70,390 pounds transported.
The engineering and construction work at Shirley Basin is progressing, and the placement of monitor wells is proceeding as planned. The CEO, John W. Cash, stated in his latest letter to shareholders that in Q1 2026, Ur-Energy hopes to have the Shirley Basin project operational, tripling its operations and increasing capacity to 2.2 million pounds annually. The strategy of the satellite plant will reduce expenses and improve profits, resulting in an increase in cash flow.
With a gross profit margin of around 32%, the company made $4.6 million in revenue by selling 75,000 pounds of U3O8 for $61.65 per pound. Hence, revenue visibility is provided by recent contracts and sales agreements, with an anticipated increase in output. Ur-Energy projects $33.1 million in sales revenue for 2024. In 2025, 730,000 pounds of U3O8 will be delivered as part of future obligations; additional agreements will guarantee up to 100,000 pounds a year between 2026 and 2029. These commitments, together with projected price rises for uranium, put Ur-Energy in a favorable position for increased revenue growth and shareholder value.
URG celebrated an incredible yearly revenue increase, surging by 92947.37% to 17.68 million from $0.02 million in 2023. Ur-Energy’s existing manufacturing base in the United States, low operating costs, and capacity to rapidly scale up supply put it in a favorable position to profit from this market. With $61.3 million in cash and cash equivalents as of Q2 2024 and no debt at the end of the quarter, URG continues to maintain a strong balance sheet. Since 2022, the company has signed six multi-year sales contracts, and management is still aggressively looking to sign more deals. Solid demand for US-sourced items is expected, potentially at a premium over foreign materials.
Ur-Energy is a reputable, low-cost manufacturer with an appeal to US jurisdiction. This means that the Ur-Energy Company has demonstrated its capacity to manufacture uranium at a cheap cost, enabling it to maintain a profit even in the event that uranium prices decline. With an average cost per pound sold of $28 and an average price per pound sold into term contracts of $60.45 over the final two quarters of 2023, the average gross profit per pound sold came to $32.41, with an average gross profit margin of about 54%. Ur-Energy’s U.S. assets are also appealing to consumers looking for dependable domestic uranium sources in the face of supply chain issues, which makes its production even more appealing. This is especially true in light of the current international conflicts affecting Russian uranium supplies.
The operational difficulties that come with scaling up production and outside factors that affect uranium prices and market dynamics are among the risks. Ur-Energy’s potential as a strategic investment in the nuclear energy sector is highlighted by its proactive approach to handling risks and utilization of its operational strengths.
In summary, for investors looking to gain investment in the uranium industry, Ur-Energy is an excellent pick. Ur-Energy has the opportunity to take advantage of the rising demand for nuclear energy due to its sound operations, good financial health, and strategic positioning. This presents significant long-term growth potential in the clean energy industry.
6. Karyopharm Therapeutics Inc. (NASDAQ:KPTI)
Number of Hedge Fund Investors: 19
Karyopharm Therapeutics Inc. (NASDAQ: KPTI) is a commercial-stage biotechnology company focusing on producing selinexor, a nuclear exportin 1 inhibitor. Through a phase 3 trial, KPTI hopes to add endometrial cancer to the list of diseases for which selinexor is now licensed, in addition to multiple myeloma, which is approved for treatment in later lines of therapy in the US.
The company’s shares have decreased by over 43% since 2019, with slow annual revenue growth over the years. However, currently, it is one of the best one dollar stocks to buy, according to investors. Karyopharm Therapeutics Inc. (NASDAQ:KPTI) has received an average price target of $4.60, reflecting analysts’ bullish outlook on the stock. The price target reflects a potential upside of over 416.04% from the current stock price of 0.89. Meanwhile, 5 analysts have given the stock a “buy” rating. Karyopharm Therapeutics Inc. (NASDAQ:KPTI) was owned by 19 of the 920 hedge funds that Insider Monkey examined in the first quarter of this year. Jonathan Berger’s Birch Grove Capital held the largest stake in the company, with 6,000,00 shares worth $3.21 million.
Karyopharm Therapeutics Inc (NASDAQ:KPTI) saw a sharp rise in February following Novartis’ $2.9 billion acquisition of the oncology-focused business MorphoSys AG. The firm reached 33.13 million in sales in the first quarter of 2024, with U.S. XPOVIO net product revenue forecast to be between $100.0 million and $120.0 million by 2024.
Karyopharm Therapeutics Inc. (NASDAQ: KPTI) is making significant progress with its nuclear exportin 1 inhibitor, selinexor, which will be presented in seven distinct ways at the ASCO meeting. The company is conducting an important study that, if successful, may completely change the treatment of endometrial cancer and myelofibrosis with its main medication, selinexor. Expansion prospects for selinexor, notably in myelofibrosis, will be major drivers of the business, with analysts seeing endometrial maintenance and SENTRY-2 trial combination trials as potentially valuable. The main goal of the SIENDO study was achieved: patients who received Xpovio had a statistically significant improvement in median progression-free survival as compared to placebo.
Karyopharm has $192.4 million in liquid assets, enough to fund its operations until the end of 2025. Karyopharm announced a significant debt restructure that would postpone the majority of repayments until 2028-2029, freeing up $30 million in cash on the balance sheet and lowering the royalty rate on selinexor.
Research on myelofibrosis and endometrial cancer, specifically focusing on individuals with TP53 wild-type, may expand the market for selinexor beyond its current use in multiple myeloma.
Three critical phase 3 studies one for myelofibrosis, one for endometrial cancer, and one more for myeloma are being conducted by KPTI. If any of these studies are successful, selinexor’s commercial prospects might be much improved, with huge upside potential.
It’s possible that KPTI won’t have enough funds on hand to continue operating after crucial trial results. Furthermore, there is no certainty that phase 3 studies will be successful, and a negative outcome might further harm KPTI.
Karyopharm Therapeutics Inc. has intriguing potential in spite of doubts and financial difficulties, with high cash burn rates YoY (42.97% in TTM and 31.20% in 2023) and low sales declining by 5.5.16% in TTM. Given the noteworthy catalysts now in operation, the company’s present value may be regarded as a high-risk “Buy.” Perhaps the present share price is undervalued if one of the major trials is successful in 2025.
5. Marinus Pharmaceuticals, Inc. (NASDAQ:MRNS)
Number of Hedge Fund Investors: 19
A biopharmaceutical company, Marinus Pharmaceuticals, Inc. (NASDAQ: MRNS) is dedicated to the development and marketing of medicinal solutions for rare hereditary epilepsies and seizure disorders. ZTALMY, also known as ganaxolone, is the company’s primary asset. It was approved in early 2022 to treat seizures in both adult and pediatric patients caused by cyclin-dependent kinase-like 5 deficiency disorder (CDD). Ganaxolone is presently being evaluated by Marinus for other indications, which might lead to market expansion. With a market value of about $81.02 million, the stock trades at $1.48 per share as of June 17.
The management of the RAISE project has opted to cease patient enrollment, despite the recommendation of the independent data monitoring committee (IDMC) to continue the research involving about 100 patients. The outcome was an almost 80% decline in MRNS shares in April 2024, following the lead drug’s failure in the seizure study.
When Marinus Pharmaceuticals (NASDAQ:MRNS) said it was reducing staff by around 20% to cut costs, its shares dropped 9% following the release of its Q1 results report. Furthermore, it stated that in order to analyze research data and reassess its development plans for IV ganaxolone, it was postponing manufacturing investments in the drug and halting enrollment in its Phase 3 RAISE and RAISE II clinical trials.
The good news was that the revenue in Q1 2024 for Marinus’ medication Ztalmy, often referred to as ganaxolone, made an impressive growth by 125% to $7.5 million compared to the same quarter last year, indicating the future growth potential of not only the drug but also the company as a whole. However, the company’s performance fell short of street projections in terms of both top and bottom lines.
Despite the challenges, the company has long-term potential for Ganaxolone since it increased its initial projection of $32 million to $35 million in net product revenue in 2024, to $33 million to $35 million. MRNS’s management reaffirmed that ZTALMY and TSC initiatives are its top priorities. Moreover, Ganaxolone’s clinical trials showed a definite improvement in RSE patients. In Q3, there were 140 patients on ZTALMY, up from 120 in Q2.
The firm has beaten analyst EPS estimates in three out of its four latest quarters. Annual revenue jumped over the last three years. In 2023, it increased by 21.63% to $30.99 million from 2022 due to net product revenue growth.
Hence, due to the growth potential of its product, ZTALMY, and diverse pipeline, the stock has earned a consensus “buy” rating. Analysts predict an average price target of $10.86 within the next 12 months. The average price target represents a potential upside of over 638.78% from the current stock price of $1.47. In Q1 2024, 19 hedge funds were bullish on Marinus Pharmaceuticals Inc (NASDAQ:MRNS). Aaron Cowen’s Suvretta Capital Management is the largest stakeholder, with 5,108,520 shares valued at $46.18 million.
Orio Corporation, per agreement with MRNS, is working on the commercial launch of YMLATZ in a few European countries during the second half of 2024, planning to eventually expand access worldwide. This indicates that the company is expanding in the market.
Ganaxolone’s clinical results are critical to the company’s success; any setbacks or unfavorable findings might harm the company’s chances. Risks to market potential and revenue development are also posed by intense competition in the biotech industry and regulatory obstacles. The performance of ZTALMY is a major factor in the current bullishness among investors toward the company.
4. Adicet Bio, Inc. (NASDAQ:ACET)
Number of Hedge Fund Investors: 22
The biotech company Adicet Bio (NASDAQ: ACET) is dedicated to creating readily available cell treatments for autoimmune disorders and cancer. Targeting B-cell non-Hodgkin’s lymphomas, they are presently doing a phase 1 study for their pilot cell treatment, ADI-001. The FDA approved its IND application to study ADI-270 in patients with relapsed or refractory renal cell carcinoma.
It is one of the best one dollar stocks to buy now since the consensus rating for ACET stock, according to analysts, is a “strong buy.” The 12-month average price target is $14.2, reflecting a possible 996.53% increase from the current price of $1.30. Analysts are optimistic about Adicet Bio because of its strong portfolio and forthcoming catalysts, that involve clinical data readouts. Secondly, Insider Monkey disclosed 22 funds that owned Adicet Bio, Inc. (NASDAQ:ACET) hedge funds in Q1 2024. Austin Wiggins Hopper’s AWH Capital is the largest stakeholder in the company.
Gamma delta T-cells are being used by Adicet Bio to construct a platform that exhibits both innate and adaptive immunological properties. These cells lower the likelihood of graft-versus-host illness by specifically targeting cancer and infected cells regardless of MHC presentation. This allows for on-demand usage and qualifies them for allogeneic (non-self) cell therapy.
ADI-001, the leading cell treatment from Adicet, targets CD20 in B cells associated with various leukemias and non-Hodgkin’s lymphomas. Early phase 1 trial data showed minimal adverse effects and promising cell growth and durability. The second part of the year is anticipated to provide further data, including those from patients with mantle cell lymphoma, and a phase 1 study for lupus nephritis is scheduled.
Adicet has $247.6 million in cash and equivalents as of the most recent financial report (Q1 2024), an increase of 6.89% over the same period the previous year. The business will have enough cash for eight or nine quarters, given that its operating expenses in Q1 2024 came to $30.9 million and its net loss in terms of revenue for the period was $28.0 million. It is doubtful that there will be any more dilution in the near future after a $98 million fundraising in January. Adicet and Regeneron have partnered on a GPC3 program for liver cancer, with Adicet receiving up to $80 million in exercise payments in addition to $45 million in upfront and milestone payments.
The gamma delta T-cell strategy used by Adicet has a good chance of having favorable safety profiles and great effectiveness. The preliminary findings are promising, especially in relapsed/refractory NHL, with response rates of over 70%. However, there is a risk associated with Adicet’s early development, as phase 1 data offer only a limited understanding of the drug’s long-term safety and efficacy. There is uncertainty about the timing for clearance, and larger trials may not replicate the early successes.
In the cell treatment space, Adicet Bio appears to be a strong contender based on preliminary evidence. Investors should use caution, nevertheless, considering the early stage of growth. The firm is not overpriced, it’s possible that the impending catalysts will be revolutionary.
3. CytomX Therapeutics, Inc. (NASDAQ:CTMX)
Number of Hedge Fund Investors: 24
Based in San Francisco, CytomX Therapeutics (NASDAQ: CTMX) is a biotechnology company that uses its patented Probody platform to produce advanced cancer treatments. This technology reduces adverse effects and increases therapeutic efficiency by producing biologics that are conditionally activated.
Analysts have recommended a “buy” based on the average price objective of $5.77, implying that investors may potentially profit by 303.50% from the current stock price of $1.43. In the first quarter of 2024, there were 24 hedge funds for CytomX Therapeutics, Inc. (NASDAQ:CTMX) in IM’s database. The company’s biggest shareholder is Mark Lampert’s Biotechnology Value Fund / BVF Inc with 6,595,801 shares worth $14.38 million.
Among the drugs in its pipeline is CX-904, a bispecific antibody created in collaboration with Amgen that targets CD3 on T cells and EGFR on tumor cells. Due to the unsatisfactory Phase 1a trial findings for their cancer medication CX-904, which showed few favorable responses among patients with pancreatic cancer, CytomX’s shares fell by 72% in May 2024. However, Phase 1a is underway, and dosage escalation findings are anticipated by year’s end in 2024. Second, CX-2051 is a drug-antibody combination that targets EpCAM in malignancies such as prostate, breast, and colorectal. The first data should be available by early 2025. Recently, CTMX confirmed that it has partnered with Merck on a supply agreement and will be testing CX-801 in combination with pembrolizumab for various kinds of solid tumors.
With a market value of $113.75 million, CTMX has $151 million in accessible cash, consisting of $114.1 million in short-term investments and $36.2 million in cash and equivalents. The company’s balance sheet is comparatively strong, with $216.4 million in total liabilities (mainly delayed sales) but no significant financial debt. Nevertheless, CTMX has a cash runway of around 1.4 years, indicating a possible need for further capital and dilution concerns in the near future. This is due to a quarterly cash burn rate of 26.39% since 2023.
CYMX’s annual revenue grew by 90.38% YoY from $53.16 million to $101.21 in 2023. In Q1 FY2024, CTMX announced a net income of $13.8 million, or $0.17 per share, which exceeded the forecast of $0.01 per share due to higher-than-expected revenue recognition, including $10 million of milestones obtained from the Astellas collaboration. The stock rose by approximately 200% in May when CTMX announced the release of early Ph1a ‘904 results sooner than previous guidance.
The company’s strength is that the Probody platform has the potential to develop safe and efficient cancer therapies. Even though the early data is inconsistent, it shows promise, particularly when working with top pharmaceutical companies.
The risk is associated with the limited financial runway and the possibility of future dilution. Its pipeline is still in its early stages, so real results and revenue growth remain a cause for concern.
Although CytomX Therapeutics is a promising biotech company with a revolutionary Probody platform, investors should be aware of the risks associated with its short financial runway and the possibility of dilution. Investors are optimistic about the stock, even if the company’s valuation seems low. It is worthwhile to keep an eye on CTMX for any future developments.
2. Augmedix, Inc. (NADAQ:AUGX)
Number of Hedge Fund Investors: 27
For hospitals and doctors, Augmedix (NASDAQ: AUGX) creates a platform for AI-driven medical recordkeeping. Its stock has seen volatility since going public in 2021; as of right now, it is trading at $0.93. The company provides services to the top healthcare systems in the United States using ambient AI technology.
Investors are positive about the stock because of the company’s consistent financial growth brought about by the rapid advancement of AI, even in the face of losses and worries about profitability and cash flow generation. As per analysts, the company has an average price target of $4.67 and an upside potential of 367.00% from the current stock price of $1.00. Analysts have rated AUGX as a “strong buy.”
Despite an adjusted EBITDA loss of $5.1 million, Augmedix reported total revenues of $13.5 million in Q1 2024, a 40% increase over the same quarter the previous year and exceeding expectations and estimates. Augmedix’s revenue has gone up as an outcome of strong customer demand and the effective rollout of its latest AI-powered medical documentation solutions. The $0.12 reported quarterly EPS met analyst forecasts.
Leading the way in ambient AI medical documentation and data solutions, the business has demonstrated outstanding financial success, with yearly revenue growth. Annual revenue shot up from $22.17 million in 2021 to $30.93 million in 2022 and $44.85 million in 2023, before rising to $48.70 million in the previous 12 months.
Driven by strong AI trends in the US healthcare business and the optimization of Medical Documentation Specialists (MDS) facilities in India, AUGX hopes to exceed its $60 million – $62 million revenue projection for FY 2024. From 2024 to 2030, the healthcare AI industry is expected to increase at a 38.5% compound annual growth rate (CAGR), from its estimated $19.27 billion in 2023, per Grand View Research. Significant clients like Dignity Health and HCA Healthcare that AUGX has acquired suggest that there is room for future revenue development through cross-sells and upsells of its products.
The upcoming complete launch of Augmedix Go in March 2024 and its testing in an emergency room setting with HCA Healthcare show the product’s potential for expansion and increased market share. Additionally, Augmedix’s business plan stipulates that payments must be made every month under yearly agreements, showing a consistent and reliable source of funding.
Notwithstanding the potential for expansion, AUGX’s high cash burn rate since 2021, may lead to potential dilution. However, elite funds are piling into this stock, with hedge fund positions increasing from 26 in Q4 2023 to 27 in Q1 2024 with a collective stake of $122.12 million, giving us a clear hint that investors are bullish on Augmentix’s stock. Jeremy Green’s Redmile Group is the largest stakeholder in the company, with 16,380,327 shares worth $66.995 million.
AUGX is a great investment opportunity since it is well-positioned to benefit from the quick expansion of AI in the healthcare industry. Its strategic placement and potential for margin expansion make it a desirable option even in the face of financial difficulties. Given its bright potential in the AI healthcare space, investors need to consider AUGX.
1. Gossamer Bio, Inc. (NASDAQ:GOSS)
Number of Hedge Fund Investors: 38
Gossamer Bio is a biopharmaceutical company in the clinical stage that is primarily concerned with the development and marketing of seralutinib as a therapy for pulmonary hypertension. Its objectives are to lead the industry in pulmonary hypertension and improve the quality of life for those who suffer from it in the US.
Analysts are bullish on the stock and rate it as a “strong buy,” with an average target price of $9.20 and an upside potential of 793.20% from the current stock price of $1.06. In Q1 2024, the company saw an increase in popularity among hedge funds tracked by Insider Monkey, as the number of bullish investors increased from the last quarter from 31 to 38. Steve Zhengis’s Deepcurrents Investment Group is the largest stakeholder in the company, with 29,860,000 shares worth $11.71 million.
Recent Phase 2 research results show that their medicine has the potential to treat pulmonary arterial hypertension (PAH). Working together with Chiesi, GOSS hopes to boost seralutinib’s reputation and get it closer to crucial Phase 3 trials.
Gossamer Bio Inc. (NASDAQ:GOSS) is trading at $1.03 per share. The company’s SG&A costs have continuously decreased over the preceding four years, demonstrating better cost control and operational efficiency. In 2023, SG&A costs declined by 19.22% YoY, from 47.61 to 38.46.
Gossamer Bio Inc (NASDAQ:GOSS) announced $0.19 EPS in the first quarter of fiscal year 2024, which met the average analyst estimate. The GOSS increased its financial runway for future growth this quarter by reporting $396 million in cash and an extra $160 million in reimbursement payments.
Gossamer Bio (NASDAQ: GOSS) has made significant strides with its seralutinib product, as seen by Chiesi’s $160 million development reimbursement and the anticipated start of a Phase 3 trial in mid-2025. As of March 31, 2024, the company reported having $244.4 million in cash and equivalents, 21.07% cash growth since 2023. The pro forma total post-reimbursement was $396 million, which is more than enough to sustain operations until H1 2027. While G&A spending saw a minor reduction to $9.6 million in Q1 2024 from the same quarter last year, R&D expenses fell to $32.4 million from $37.8 million. Over the previous year, the net loss decreased to $41.9 million ($0.19 per share) from $49.2 million ($0.52 per share). Positive recent developments from partnerships and clinical studies put the business in a good position for future expansion.
Key concerns for Gossamer Bio include finance requirements, regulatory obstacles, competition, and clinical trial results. In spite of this, investors maintain a buy rating for Gossamer Bio because of its favorable valuation (below cash value) and the possibility that seralutinib will be approved. With Chiesi’s assistance, the business should be able to finish Phase 3 with its $244 million cash balance. Seralutinib’s inhaled formulation’s ease of use and the unique mechanisms separating it from Sotatercept give it a strong market position.
While we acknowledge the potential of GOSS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Gossamer Bio but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. 10 Best One Dollar Stocks To Buy Now is originally published on Insider Monkey. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
