12 Best Performing Cheap Stocks in 2024

02. Emergent BioSolutions Inc. (NYSE:EBS)

Number of Hedge Fund Holders: 19

Year to date Share Price Gain: 289.58%

Forward Price to Earnings (P/E) Ratio: 6.19

Emergent BioSolutions Inc. (NYSE:EBS) is a prominent life sciences company focused on providing solutions to public health threats, including opioid overdoses, infectious diseases, and biological threats. With a diverse portfolio of products such as NARCAN Nasal Spray for opioid overdose and various vaccines for serious diseases, Emergent BioSolutions Inc. (NYSE:EBS) is positioned to address critical healthcare needs.

In the second quarter of 2024, Emergent BioSolutions Inc. (NYSE:EBS) reported a significant upward revision of its revenue and adjusted EBITDA guidance for the year, demonstrating robust operational performance. The company has successfully reduced its debt burden, contributing to a healthier balance sheet. This achievement is attributed to strategic divestitures, including a $75 million divestment of RSDL to SERB Pharmaceuticals and a $30 million sale of its Camden facility to Bora Pharmaceuticals, which also resulted in substantial operational cost savings. These initiatives are expected to yield approximately $110 million in expense reductions, showcasing the company’s commitment to financial prudence.

Emergent BioSolutions Inc. (NYSE:EBS) Q2 performance was noteworthy, exceeding revenue expectations without relying on significant ACAM2000 shipments, highlighting its operational resilience. Furthermore, the company received a $50 million settlement from Janssen, which bolstered its cash reserves and improved liquidity. With a strong focus on product expansion, particularly for NARCAN, Emergent aims to increase accessibility in response to the ongoing opioid crisis, a sector expected to drive future growth.

The company’s contract modifications with the U.S. government, totaling over $250 million, signify its status as a trusted biodefense partner. This includes notable contracts for supplying critical medical countermeasures like ACAM2000 and VIGIV, further establishing Emergent’s potential for sustained revenue growth.

In summary, Emergent BioSolutions Inc. (NYSE:EBS) not only showcases a solid foundation for financial recovery but also possesses a promising outlook driven by its strategic initiatives and robust product portfolio. The combination of operational efficiency, significant revenue guidance adjustments, and a commitment to addressing urgent public health threats positions Emergent BioSolutions Inc. (NYSE:EBS) as a strong candidate among cheap stocks poised for exceptional performance in 2024.