An insightful look into the future is important when deciding to buy stocks. Trading stocks online successfully depends on this skill or information.
When great companies go on sale at discount prices, it’s a no-brainer that investors would get hold of them. The only thing they need to consider is whether these temporarily fallen stocks have the likelihood of heading higher. The Motley Fool’s analysts certainly think the following stocks have the tendency to head higher though they have currently fallen. You cannot, of course, rule out the risk element, but there certainly is a greater chance of success considering the circumstances surrounding these stocks.
The first one deals with the pharmaceutical sector - Portola Pharmaceuticals (NASDAQ: PTLA). The stock is close to its one-year low because its drug betrixaban delivered mixed results in tests. The drug is an advanced anticoagulant and was conceived with the idea of remodelling the manner in which doctors treat patients who are hospitalized for heart failure, stroke or other such serious conditions. It was intended to replace Lovenox, which is the drug currently used in these situations.
In a multi-cohort trial, a major patient subset was unable to significantly respond to betrixaban, unlike with Lovenox. This caused the shares to drop significantly, which is something that might attract new investors. However, apart from that one cohort, betrixaban proved to be statistically advantageous over Lovenox in the overall study population. The company’s management is therefore still looking to present an application to be approved, depending on FDA discussions.
The AndexXa Drug Could Be a Smashing Hit
The FDA could allow the betrixaban application to be approved, and this could lead to the company’s shares rising. But Portola has another potentially blockbuster drug that could raise its stock, and that is AndexXa. The FDA is expected to make a decision on allowing the use of AndexXa in August. If the FDA approves, AndexXa could become the first antidote approved for patients who take factor Xa anticoagulants. That could make AndexXa a big hit.
Of course, as we said above, the risk factor is always present. FDA discussions could lead to the company concluding that more study data is necessary for betrixaban to be approved. AndexXa too could be opted out by the FDA though analysts expect it to be approved soon, and it’s a great possibility that it will be approved. That will see a great rise in the stock value, and that’s what makes Portola Pharmaceuticals worth checking out.
Moving from pharmaceuticals to fertilizers, there’s another potentially winning stock that is selling cheap. While this may not be the industry you want to look into, CF Industries (NYSE: CF) is certainly one of those companies. As of now its stock has sunk to its 52-week low and is down a massive 42%. But this is largely due to external factors such as the excessive supply from China resulting in excess of nitrogen which has resulted in the latter’s prices being hit. This has affected CF, and the first quarter saw a halving of the company’s gross margin.
Nitrogen Production Makes the Difference
CF’s sales volumes actually hit record highs in Q1 though, and this could be attributed to improved demand and increased production by the company from its newly expanded facilities. And its total nitrogen production capacity could increase by 25% as the year ends. That’s a massive growth opportunity for CF, since the country imports a significant amount of its nitrogen requirements, as we saw above.
Nitrogen is the most vital nutrient for corn and other such key crops, which is why nitrogen demand has a relatively inelastic nature when compared to demand for phosphate and potash. This is sure to improve CF’s fortunes further and keep it on the growth path. The company is trading at just 11 times trailing earnings as well as 5 times cash flows, making it a very good bargain.
If these stocks fit your portfolio, they could be well worth considering. For successfully trading stocks online, TradeZero provides you resources, smart technology, and direct market access to make quick trades. Give us a call at +1 954-944-3885 or send us an email at email@example.com.
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