Stock futures drift after indexes touch fresh record highs

TipRanks

2 “Strong Buy” Penny Stocks That Could See Outsized Gains

Well, it’s official. Joe Biden is now President, and he’ll be backed – at least for the short term – by Democratic majorities in both Houses of Congress. Wall Street is taking the measure of the new Administration, and sees, among its first moves, a boost in fiscal stimulus that is likely to goose consumer spending, bump corporate profits, and provide general economic support in the first half of 2021. Covering the situation for Goldman Sachs is investment strategist David Kostin, who is bullish on the near-term prospects for fiscal stimulus. In light of it, Kostin sets the Goldman outlook for this year at 6.4% GDP growth; he sees continued high growth next year, and sets the 2022 prediction at 4%. These outlook numbers are up from the previously published 5.9% and 3.7%. To this end, Kostin sees S&P 500 reaching 4,300 by year’s end, which would be a gain of 12% from current levels. “Elections have consequences. Democratic control of Washington, D.C. after January 20 will bring greater fiscal spending, faster GDP growth, more inflation, and higher interest rates than we had previously assumed,” Kostin noted. With markets looking up, investors are looking for the stocks that are ready for gains. Penny stocks, equities priced at less than $5 per share, are a natural place to search for potential winners. Their low price means that even a small incremental gain will translate into large percentages. However, before jumping right into an investment in a penny stock, Wall Street pros advise looking at the bigger picture and considering other factors beyond just the price tag. For some names that fall into this category, you really do get what you pay for, offering little in the way of long-term growth prospects thanks to weak fundamentals, recent headwinds or even large outstanding share counts. Taking the risk into consideration, we used TipRanks’ database to find compelling penny stocks with bargain price tags. The platform steered us towards two tickers sporting share prices under $5 and “Strong Buy” consensus ratings from the analyst community. Not to mention substantial upside potential is on the table. AzurRx BioPharma (AZRX) We’ll start with a company specializing in gastrointestinal disease, AzurRx. This company is focused on creating non-systemic, targeted recombinant therapies for GI ailments. AzurRx has a pipeline of three drug candidates, at several levels of the development process. The key pipeline candidate, MS1819, is being investigated as a treatment for exocrine pancreatic insufficiency for patients also suffering from cystic fibrosis. MS1819 is a recombinant lipase, derived from a yeast strain. The drug is designed to target fat molecules in the digestive tract, allowing patients to absorb the broken-down fats for nutritive value. The drug is currently in Phase 2 trials, which are scheduled for completion in the first half of this year. As…