When you've chosen to start investing, doing the research is the most stressful and time-consuming part. If you're like me and don't have ten grand to spare, you want to find undervalued stocks that get the most bang for your buck while avoiding price traps. To make it easy, I've compiled a list of 5 up and coming companies to invest in.
#5 Aeterna Zentaris Inc. (AEZS)
Aeterna Zentaris is a Canada-based biochemical company. Its work focuses on oncology and women's health. As a medical company in a country with universal healthcare, it is low-risk. This stock is the comeback kid! Just a decade ago, stocks were up $166. Then in 2012, the stock took a nosedive after a 1:6 reverse split. But cancer research continues to be of the utmost importance in the medical field and the company slowly rebuilt itself. Now, Aeterna Zentaris has unprecedented growth potential. In June 2017, its total assets amounted to $13.93 million. Last quarter, Aeterna Zentaris reported that it nearly doubled its worth at $24.55 million. With its newly acquired funds the company is able to conduct research on drugs for rarer cancers, adult growth hormone deficiency, and endocrine diseases. This has widened their markets internationally. But for the time being, the stock price remains at $2.12 per share.
#4 New York Community Bank (NYCB)
This may not be the sexiest stock in the trade but it's about to turn a huge profit. NYCB is a major lender in New York City. It is a low risk stock as it was one of the strongest companies amidst the 2008 and 2016 financial crises. But after the financial crisis in 2008, regulators were afraid that NYCB would dominate the lending market and gave the company a $50 billion asset capacity. After the new regulation, NYCB's stock struggled. But this month President Donald Trump repealed the cap so NYCB is free to return to its full potential. For now, a share is $11.54.
#3 Dolphin Entertainment (DLPN)
This is another stock you want to get while it's down. Dolphin is an up and coming digital media distribution company. They have contracts with Hulu, AOL, and Facebook. DLPN had a very successful 2017 after hiring one of the best PR companies in the game (42West) and bringing in former Disney executive Joe Quenqua as managing director. His connections helped expand Dolphin's market. But in late December 2017, the company paid off $26 million in debt. This left them with less than a million dollars in cash. After this, the stock plummeted to half its previous value. Since then, the stock has been slowly recovering and is currently undervaluing its stock to account for the financial losses of the previous quarter. According to Simply Wall Street, DLPN is expected to grow by 42.6% this year. Facebook is launching a new series produced by Dolphin Entertainment. Dolphin is on the lookout for web series to produce and also has a family movie in the works. The stock price is currently at $3.29.
#2 Aphria Inc. (APHQF)
Medical marijuana is legal in 29 states. California has followed eight other states in making it legal recreationally. With the current trend of legalization, the marijuana market is quickly expanding. Take the hit while it's burning! Aphria is a marijuana company that is undergoing expansions. Because the company uses solar greenhouses, they have some of the lowest production costs in the mary jane game. Last year they announced their plans to expand into the US. They launched distribution to Florida and plan to expand to all 29 states. They have a new partner (a $225 million deal) in Clarus Securities Inc. Aphria will use the $225 million to expand production facilities internationally. The stock price is currently at $11.63.
#1 Micron Technology Inc. (MA)
This Idaho-based company was part of that huge tech selloff in March. The tech market has taken a downturn, but selloffs have given companies the chance to rebuild, giving us another chance to get in on the bottom floor. Micron is the face of the international memory and storage industry. Also, everyone's been talking about the future of transportation in self-driving cars. Micro is one of the largest investors in self-driving cars. So when they cash in on the inevitable shift to fully automatic cars, we can too. Also, Micron's hybrid memory cube can move information 15 times faster than the average storage bank. They plan to start distribution in 2023. For now, the stock is at $58.23 per share with a 12.93 P/E ratio.
Sources:
https://seekingalpha.com/article/912271-aeterna-zentaris-a-falling-knife-worth-catching
https://www.zentaris.com/press-releases
https://www.nasdaq.com/symbol/aezs/after-hours
https://www.forbes.com/forbes/welcome/?toURL=https://www.forbes.com/sites/greatspeculations/2018/06/13/heres-why-we-believe-that-medical-marijuana-stock-aphria-is-undervalued/&refURL=https://www.google.com/&referrer=https://www.google.com/
https://aphria.com/aphria-launches-u-s-expansion-strategy/
http://investors.micron.com/releasedetail.cfm?ReleaseID=1068477&_ga=2.36819104.1437633091.1529120501-568880705.1529120501
https://industrytoday.co.uk/it/hybrid-memory-cube-and-high-bandwidth-memory-market--by-deployment--by-technology--by-end-user-and-by-vertical---forecast-2023
https://investorplace.com/stock-quotes/nycb-stock-quote/
https://simplywall.st/stocks/us/media/nasdaq-dlpn/dolphin-entertainment/news/is-dolphin-entertainment-inc-nasdaqdlpn-a-financially-sound-company/