It Is Time to Go Shopping. Here Are Seven Stocks on My List.
There are good opportunities to put money to work in names that have been unfairly punished by general market weakness.
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The market has finally figured out that Trump's hardline on tariffs was just a tactic to increase his negotiating leverage. Countries around the world are lining up to negotiate trade, and the U.S. appears to have the upper hand.
This shift in dynamics has produced a healthy bounce Tuesday morning, with breadth running over 8,000 gainers to just 1,300 decliners. The Nasdaq 100 QQQ is leading the charge with a gain of more than 4%, while the Magnificent Seven is up around 5.2%.
Bounces like this in very poor markets can gain powerful momentum because market participants are out of position and unprepared. Shorts have to be covered, and the bulls want to quickly add more long exposure. The biggest rallies always occur in the worst markets.
There are still plenty of potential economic negatives out there, and many charts are broken and need work, but there are good opportunities to put money to work in stocks that have been unfairly punished by general market weakness.
Here are several names on my shopping list:
ADMA Biologics ADMA. ADMA is expected to post EPS growth of 49% this year and 36% next year. The company just put out a statement that it has a strategic advantage of 100% U.S.-based manufacturing.
BridgeBio Pharma BBIO. BBIO was chugging along very nicely on very strong Attruby sales before the tariff tantrum hit. JPMorgan raised its price target to $50 on March 24.
Delcath Systems DCTH. DCTH's system for the administration of chemotherapy had very strong fourth-quarter results. Analysts at Wainwright raised their target to $24. The stock is very thinly traded and was hurt badly in the poor market environment.
Gambling.com Group GAMB had a blowout quarter and raised guidance. It is also doing buybacks, which Jefferies says helps to support a valuation of $21. This stock is a very solid value.
Mereo BioPharma MREO. On March 27, JPMorgan initiated coverage with a $7 price target and stated that the company's current valuation creates an attractive entry point ahead of the setrusumab data readouts in osteogenesis imperfecta. Despite the positive coverage, the stock has dropped in the poor market to $1.85. This is one of my larger positions.
Ocular Therapeutix OCUL. OCUL is a favorite pick of several analysts who see a bright future for its eye disease drugs. It is a top pick at Raymond James and has targets in the $17-$18 area.
Xeris Biopharma XERS. XERS remains one of my top picks for 2025. It was ramping up very nicely and hitting a new multi-year high before the market collapse dragged it down. There have been no negative fundamental developments, and I am adding back shares that I sold in the high-$5's.
One sector that has been the worst in the market for a while is biotechnology. I believe it may finally be so beaten down after this latest drop that it going to start attracting value buyers. I'll have more on this in a later column.
At the time of publication, Rev Shark was long OCUL, MREO, GAMB, DCTH, ADMA and BBIO.
