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Investors are constantly looking for stocks that will yield massive returns. That being said, finding these stocks can seem like an overwhelming task. Not to mention it can be expensive. Some of the most well-known names like Amazon and Alphabet can put you out thousands of dollars for just a single share.
However, snapping up stocks with strong long-term growth prospects doesn’t have to cost you your entire savings. Using the TipRanks database, we were able to pinpoint two stocks with massive upside potential, all for less than $10.
Additionally, each has amassed substantial support from Wall Street analysts with Strong Buy consensus ratings. This is based on all of the ratings assigned over the last three months. Let's take a closer look.
Esports Entertainment Group (GMBL)
We’ll start with a natural combination, sports and gambling. The two have been intertwined probably since the first footrace at the dawn of time – but nowadays, they’ve moved online. Esports Entertainment provides both online sports access and online gambling, nurturing the connection between sports betting and online gaming. Fans can easily connect with their favorite teams and leagues through the company’s online platform, as Esports has partnerships with FIFA as well as the NFL, NHL, and NBA.
Esports is continuing its active moves to expand its footprint. The most recent step was the October submission to the New Jersey Division of Gaming Enforcement (DGE) of the transaction waiver. This bureaucratic step, when approved, will clear the way for Esports to start online betting ops in New Jersey. The state has a $1 billion monthly sports betting market.
Geographical expansion is not Esports’ only diversifying move. The company earlier this year acquired the B2B software company ggCircuit, in a deal worth $43 million. Esports has since then used the software company’s crypto mining app as an add-on to ggLeap subscriptions, allowing users to dedicate idle computing time to Ethereum mining. The mining app in October passed the $1 million mark.
Also in October, Esports reported its Q4 results for fiscal year 2021. Top-line revenue grew an impressive 63% sequentially, to reach $8.8 million, just over half of the $16.8 million total revenue generated in fiscal 2021. The company finished the fiscal year with over $19 million in cash, out of $29 million in total assets.
Looking at Esports for Roth Capital, analyst Edward Engel is suitably impressed. He writes: “GMBL offers exposure to two of the most attractive segments in Gaming, Online Gaming and Esports. We see EEG carving a sizable niche within the global Online Gaming industry, where EEG's direct interaction with millions of Esports fans offers an underappreciated customer acquisition opportunity.”
On the scale of that opportunity, Engel elaborates: “Esports are a rapidly growing phenomenon, where ~500M Esports fans are actively watching and participating in video game competitions. This fan base has already surpassed major sports leagues including the NFL and NBA. Over time, we believe betting on Esports offers a similar global market opportunity as tennis, the NBA, or NFL, which each contribute ~5% of global sportsbook revenues. This implies a $4bn addressable market for Esportsbooks by 2030.”
Taking this into consideration, Engel rates Esports stock a Buy along with a $22 price target. Should the target be met, a twelve-month gain in the shape of a whopping 285% could be in store. (To watch Engel’s track record, click here)
Overall, the unanimous Strong Buy consensus rating here, based on 3 recent positive reviews, shows that Wall Street agrees with Engel on this stock. The shares are trading for $5.72, and the average price target of $16 indicates a potential upside of 180% for the next 12 months. (See Esports stock analysis on TipRanks)
Gain Therapeutics (GANX)
Next up is Gain Therapeutics, a biotech company working on new medication therapies for rare genetic and neurodegenerative diseases. The company uses its propriety SEE-Tx target identification platform to identify and optimize previous unused allosteric binding sites, unlocking new treatment options for the target disorders. The company is targeting disease conditions characterized by protein misfolding. Protein misfolding disrupts the 3D structure of the molecule so that it cannot function properly in biochemical operations. This has been implicated in a variety of conditions, including lysosomal storage disorders and Parkinson’s disease.
Gain has five pipeline products, all in early stages of discovery or pre-clinical testing. The company is focused on enzymes with a narrow application, to rare genetic diseases, allowing for faster development and efficient demonstration of proof-of-concept, before expanding the program and indications for larger markets. Among the conditions targeted by the current crop of early-development pipeline projects are Parkinson’s disease, Gaucher disease, Morquio B (a progressive disease of the skeleton), and GM1 Gangliosidosis (another progressive disease, of brain and spinal neurons). These conditions are caused by mutations in the GBA1 or the GBL1 genes.
This company has caught the attention of B. Riley analyst Mayank Mamtani, who notes, “We are particularly encouraged by the highly scalable, iteratively self-improving drug discovery approach that allows for initial focus on relatively lower-risk pipeline programs addressing disorders of misfolded protein accumulation—e.g., Parkinson's disease, Gaucher, GM1 Gangliosidosis, Mucopolysaccharidosis type 1 (MPS 1), and Krabbe—where conventional modalities such as enzyme replacement therapies and gene therapy have limited applicability given low permeability through the blood-brain barrier.”
Getting to the company’s unique advantages, Mamtani writes, “We believe a seasoned management team serves as a core competitive advantage, especially in the current macro drug pricing environment that has led to general equity underperformance of rare disease companies, relatively more exacerbated in the case of preclinical companies like GANX. Overall, we view GANX as falling in the sweet spot between the advancement of artificial intelligence in novel drug design and the value-focused CNS orphan drug development landscape.”
As a result of this analysis, Mamtani rates GANX a Buy along with a $21 price target. Should his thesis play out, a twelve-month gain of ~185% could potentially be in the cards. (To watch Mamtani’s track record, click here)
What does the rest of the Street have to say? Looking at the consensus breakdown, other analysts generally agree with Mamtani. Based on3 Buy ratings with no Holds or Sells, GANX has a Strong Buy consensus rating. The average price target here is $27, even more bullish than Mamtani allows, and it suggests ~266% upside potential from the current share price of $7.48. (See GANX stock analysis 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.
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.