3 Low-Priced Stocks to Buy and Hold for One Year
These names represent good values for the long term — if you are willing to be patient.
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The CPI report was a mixed one Wednesday, but it relieved worries that it would be much hotter than expected and triggered a rally in bonds and stocks. Bonds have been the main problem recently, and interest rates dropped sharply on the CPI news, accelerating the chances of a Fed rate cut before mid-year. While this CPI report was not that great, the mood has become quite gloomy recently, and conditions were good for a relief bounce.
The market’s attention will now quickly turn to earnings and the Trump inauguration, which should keep volatility high. However, if bond action improves and worries about inflation cool off, technical support should improve.
I’ve been patiently awaiting opportunities to put money to work, but charts have needed some time to develop. Wednesday morning, I added to ADMA Biologics ADMA and Delcath Systems DCTH, both of which have already pre-announced fourth-quarter revenue beats.
There are a number of smaller stocks that I believe will do well in 2025, but they don’t have any immediate catalysts. While several have a very high likelihood of positive news, it won’t hit for several months. These are stocks that can drive you crazy with random short-term volatility that has nothing to do with their merit. But if they are just put in the corner and ignored, there is a good chance they could be significantly higher a year from now.
Mereo BioPharma Group MREO is trading near its lowest point in months. The company has two key drugs. One is waiting for further data, and the other is waiting for a potential partnership. There was disappointment that the company did not have positive results in the past week, but it is very likely to have positive results by mid-year for a drug that treats a rare brittle bone disease.
MREO looks like dead money in the short term, but the potential for a huge move on data or partnership news is high. It may go lower from here, but this is a name I want to put in the corner and ignore.
Sensus Healthcare SRTS sells equipment to dermatologists for the treatment of sun cancer. It has had a couple of very strong quarters, but the kicker here is that it is changing its business model from outright sales to shared revenue. Medical equipment sales are always lumpy but this new model should produce a steady stream of increasing revenue. The company already has one deal with a large dermatology practice and is talking to others.
SRTS stock trades thinly, but news of these deals later this year should be a major catalyst.
Rocket Pharmaceuticals RCKT is my top play for large gains in 2025. The stock has been trapped in an ugly biotechnology market and struggling to find support. While there isn’t any nearby catalyst to bring in buyers, there are at least five different programs that could send the stock higher at some point in 2025.
Analysts that follow RCKT stock love it, and the average price target is $43 versus the current price of around $11. The lowest target is $29, and the company just did a secondary offering with strong demand at $12.50. The poor price action is keeping buyers on the sidelines, but with the big potential, I want to hold RCKT and ignore it for a while.
I’m hoping for improved stock picking after Trump is in office and earnings season progresses, but there are already some good values for the long term if you are willing to be patient.
At the time of publication, Rev Shark was long ADMA, DCTH, MREO, SRTS and RCKT.
