Could these 3 stocks be 10-Baggers in 2021?
We all dream of finding the next 10-bagger. By that I mean a stock that will increase by 1000% over our purchase price. If this happens even after a few years, we can proudly say that we have made a great investment. Then there is an even better dream. This is when a stock skyrockets by that much or more in just one year.
Since the start of 2021, three health values have shown us that they may be on the right track. They each posted three-digit percentage gains. Let’s take a closer look at these exciting movers – and see if they really have 10 bagger potential.
Ocugen (NASDAQ: OCGN) recently entered the coronavirus vaccine race thanks to a collaboration agreement with Bharat Biotech of India. As part of the deal, Ocugen obtains the rights to co-develop and commercialize Bharat’s vaccine candidate in the United States. As a result, Ocugen shares have climbed more than 400% since the start of the year. A recent report from Bharat’s Phase 3 trial in India showed the candidate – Covaxin – to be 81% effective. And the data indicates that Covaxin can handle the UK variant.
Can the stock continue to rise? It’s possible. Future enablers include more data reports on Bharat’s clinical trial and information from US regulators on when and how Covaxin may enter the market. Ocugen could become a 10-bagger for some investors this year if those catalysts are positive.
Corn here is my concern: I’m concerned about how Ocugen can actually carve out market share in the United States. The country has already bought enough doses from bigger rivals to immunize the entire population. Of course, the United States will need more doses in the future. But to take part in the leadership, Ocugen will have to show that his product is better. And so far the data has not supported this. So I’m worried that the stock may not be able to withstand an increase of 1000% or more.
While we talk about COVID-19 vaccines, let’s talk about Sandstone oncology (NASDAQ: GRTS). The company announced in January that it was planning a Phase 1 trial for a second-generation coronavirus vaccine candidate. The stock has soared – and now it’s up about 290% year-to-date.
In a recent update, Gritstone said it aims to generate Phase 1 data by the middle of this year. Here’s what sets this vaccine candidate apart: it targets the coronavirus spike protein and other parts of the coronavirus antigen. This means that it may have a good chance of functioning even if the spike protein mutates. And that could translate into enhanced protection against new strains of concern. Vaccines today focus on the spike protein.
If Gritstone is the candidate has succeeded, it would be useful to protect against future pandemics – so this represents an opportunity ahead. The company also has eight other infectious disease and oncology candidates in the pipeline, including three in phase 2. And Gritstone recently announced a collaboration with Gilead Sciences to develop a vaccine-based cure for HIV.
Gritstone could become a 10 bagger this year if its coronavirus vaccine candidate produces strong test results. If not, stocks will surely fall. But here’s the good news: Either way, the other candidates in the Gritstone pipeline might have what it takes to make this biotech action a sack of 10s in the long run.
Now let’s move on to veterinary diagnosis. The big day is approaching for Zomedica (NYSEMKT: ZOM). The company will launch its first product on March 30. And that product is Truforma, a system for detecting thyroid and adrenal disease in dogs and cats.
The company will initially sell the toaster-sized device along with three tests to veterinarians in a limited geographic area. Then it will increase the number of tests and its geographic presence later this year. Zomedica faces competition from large companies such as IDEXX Laboratories. But demand means there is probably room for Zomedica to take a comfortable place in the market. The pet diagnostics market is expected to reach $ 3 billion by 2025, according to a Markets and Markets report.
The main question now is: will Zomedica win the vets? For now, investors are optimistic. The stock has jumped over 800% since the start of the year. If the launch goes well, this stock will likely grow into a 10-bagger fairly quickly. But for lasting gains, Zomedica will have to prove that it can generate sustained sales growth. And it can take years. For cautious investors, it’s a good idea to take a look at early sales trends before jumping into this animal health stock now.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.