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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in American Tower Corp (Symbol: AMT), where a total of 13,441 contracts have traded so far, representing approximately 1.3 million underlying shares. That amounts to abo

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Amarin (AMRN) is seriously undervalued, according to Cantor analyst Louise Chen.

On Monday, the drug maker presented encouraging new data from the REDUCE-IT study. After taking 4g a day of Vascepa, Amarin’s high triglycerides treatment, diabetes patients experienced a 23% drop in both first and total primary composite major adverse cardiovascular events. Chen thinks this data underscores Vascepa's “continuing commercial success and future potential.”

“We believe the news is important because it is the first time that data specific to the diabetes population has been presented. Included for example was that in the diabetic patients treated in REDUCE-IT more than half of such patients were already on two or more drugs for diabetes and over 90% were on at least one such medicine. This emphasized that the Vascepa results were incremental to the lowering of A1C and other impacts of such medicines,” the analyst said.

Sales of Vascepa, Amarin’s only product, have been hit hard by the coronavirus. Physician practice closures affected Amarin’s marketing and sales initiative following the FDA’s approval to expand Vascepa’s label last December. Some states have seen a gradual opening, allowing for limited access, but many still do not allow for physical access.

“Nonetheless, we are starting to see patients return to their doctors for ordinary care, which is a great step forward. We anticipate the growth in Vascepa prescription number to gain momentum again once lockdowns ease in 2H20,” Chen commented.

Chen is also confident another serious overhang can be removed. Amarin is currently embroiled in a court case against two generic companies seeking to make their own versions of Vascepa. Amarin lost the case but has since appealed. Chen believes Amarin has a “good probability of winning,” ascribing a 50% chance of success, far higher than the 15-20% overall appeal success rate.

All in all, Chen rates AMRN an Overweight (i.e. Buy) along with a $35 price target. The implication for investors? Massive upside potential of 420% from current levels. (To watch Chen’s track record, click here)

The Street also remains bullish on Amarin, though not quite to the same extent as Chen. The analyst consensus rates Amarin a Moderate Buy based on 7 Buy ratings and 5 Holds. There is still plenty of upside according to the analysts, as the $17.56 average price target implies possible gains amounting to 155%. (See Amarin price targets and analyst ratings on TipRanks)

To find good ideas for healthcare stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

By SA Marketplace Roundtable Podcast:by Daniel Shvartsman

On Tuesday, Eli Lilly's (NYSE: LLY) shares soared by more than 15% after the pharma giant reported positive results from a phase 3 clinical trial for Verzenio. This drug is already approved for metastatic breast cancer and advanced breast cancer, but based on data from the new s

2020 has seen a wave of chaos hit the stock market. Now, you can add the shenanigans surrounding bankrupt car rental company Hertz (HTZ) to the list, too.

After filing for bankruptcy last month, perplexingly, Hertz stock soared by more than 1,200%, mostly as a result of speculative investors piling in on a penny stock’s momentum play. However, since peaking on June 9, the volatility has been off the charts. Last week, in sequential sessions, the stock dropped by 24%, 40%, 18%, and then climbed 37% higher following news that Hertz had inexplicably received the go ahead to issue up to $1 billion in new stock.

Stunning Wall Street, Hertz was delisted from the NYSE, which has led to the coining of a new term: the IBO – Initial Bankruptcy Offering.

The volatility continued on Monday as Hertz shares dropped by 33% following management’s admission in an 8-K filing that the additional $500 million worth of common stock it plans on selling will probably be “worthless.”

As part of the 8-K filing, Hertz detailed its expected cash outlay for the period between May 25 and August 21, and based on a back of the envelope calculation, Deutsche Bank analyst Chris Woronka estimates the cash burn for the period will “probably be close to $1.2 billion.”

Along with the equity raise, Woronka estimates Hertz will try and sell between 25-30% of its fleet to raise additional cash. With no plans to use the money to replenish its fleet, this just raises more questions concerning Hertz’ future.

The analyst said, “At some point the company will need to ‘turn over’ its existing fleet and purchase new vehicles as replacements in order to offer customers a competitive product… We believe the natural cycle suggests this would likely need to occur ahead of the summer 2021 peak. It's unclear to us whether HTZ will have ample liquidity (or borrowing power) with which to fund new fleet purchases, particularly since the existing fleet will have moved further down the depreciation curve relative to where a fleet on a ‘normal’ replacement cycle would be at that time (since HTZ did not replace those vehicles with new ones this summer).”

Woronka, therefore, remains on the sidelines. The Deutsche Bank analyst has a Hold rating on Hertz and “based on a 2022E free cash flow recovery scenario,” a $3 price target. Based on this target, the risk-tolerant investor could take home a 66% gain, should the target be met over the next 12 months. (To watch Woronka’s track record, click here)

Overall, the Street’s view on Hertz presents a strange conundrum. On the one hand, based on 3 hold ratings, and 4 Sells, the bankrupt rental car company has a Moderate Sell consensus rating. However, the average price target of $2.63 represents possible upside of nearly 35%. (See Hertz price targets and analyst ratings on TipRanks)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Consumer stocks still were trading higher in Wednesday trading , with the SPDR Consumer Staples Select Sector ETF climbing 0.4% this afternoon while the SPDR Consumer Discretionary Select Sector ETF also was rising about 0.4%.

During the recent months of the outbreak of Covid-19, we’ve seen some significant volatility in equity prices. There was a gut-wrenching selloff in March, followed by a strong recovery rally that brought the major indices close to their pre-crisis levels. Even during the rally

As the aftershocks of the coronavirus pandemic -- and hints of a possible second wave -- ripple through the economy, Abercrombie & Fitch (NYSE: ANF) continues to extend its cost-cutting measures, while preparing to sell $300 million worth of bonds. The company described its

The Dow Jones Industrial Average (DJINDICES: ^DJI) was struggling to pick a direction on Wednesday, fluctuating between gains and losses throughout the morning. By 12:10 p.m. EDT, the Dow was down about 0.1%.

Microsoft MSFT recently stated that it has expanded its network and data center capacity to meet the growing demand for cloud services amid the ongoing coronavirus pandemic.Notably, the company’s Azure and Office cloud offerings have witnessed a surge in demand owing to the pa

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Wall Street may be on a roller-coaster ride of late, but the Federal Reserve’s relentless efforts to keep the market steady are also paying off. Signs of a second wave of coronavirus took the market into a tailspin last week. However, markets bounced back this week and will li

Shares of Air Lease Corporation AL have skyrocketed 202.1% over the past three months, comprehensively outperforming the industry’s 46.4% growth.

Here are four stocks with buy rank and strong income characteristics for investors to consider today, June 17th:

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, June 17th: