Savita Subramanian, the head of US Equity and Quantitative strategy at Bank of America, is optimistic about the current market conditions, trusting that the S&P 500 will continue to hike. If you’re wondering what are good shares to buy now, her team of analysts is recommending two stocks that are likely to perform well in the near future.
Subramanian emphasizes the importance of long-term investing. She states that “time in the market beats timing the market” and that “best days usually follow worst days, and missing those best days is costly.”
What are good shares to buy now?
If Subramanian’s way of thinking resonates with you, you may want to consider her suggestions. Let’s delve deeper into why these recommended stocks are poised for growth.
Sutro Biopharma
While asking what are good shares to buy now, the initial pick from Bank of America, Sutro Biopharma, may be worth considering.
Sutro Biopharma is an innovative medical research organization focused on revolutionizing cancer treatment. Their mission is to develop groundbreaking medications to meet the urgent needs of patients with various types of cancer. Sutro’s approach involves creating a robust pipeline of drug candidates with superior therapeutic capabilities.
At the heart of Sutro’s innovation is their cutting-edge technology platform called XpressCF. This platform was developed to address a major challenge in drug candidate creation – the limitations of existing cell lines in producing essential proteins. By overcoming this obstacle, Sutro is paving the way for more efficient and effective drug development.
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Sutro’s XpressCF platform is revolutionizing drug development by using cell-free technology to produce proteins. This allows to turn single proteins into new drug candidates. Sutro’s leading drug candidate, STRO-002 or luvelta, is showing exciting potential in early testing against ovarian cancer.
Analyst Tazeen Ahmad from Bank of America is excited about this company’s potential. She believes that their drug candidate, luvelta, has the potential to treat up to 80% of PROC patients, which is a huge market.
Looking ahead this year, the company is about to submit an Investigational New Drug application for STRO-004, a promising treatment for solid tumors.
The company is in a strong financial position for this, with $267.6 million in cash, cash equivalents, and marketable securities on hand. Plus, with an extra $75 million from Ipsen and another $75 million raised from a secondary offering, Sutro Biopharma’s runway is set to stretch into the first quarter of 2026.
Avidity Biosciences
The next candidate we’re looking at while asking what are good shares to buy now is Avidity Biosciences.
Avidity Biosciences is a biotech company that’s making waves in the development of targeted RNA therapeutic agents. It has its own proprietary development platform called Antibody Oligonucleotide Conjugates (AOC), which is said to have broad and disruptive potential.
On top of that, the company has already lined up a portfolio of muscle disease programs in its research pipeline, showing its commitment to tackling challenging genetic diseases.
Avidity’s AOC platform is a game-changer. It allows the company to create drug candidates that combine the tissue selectivity of antibody treatments with the precision of oligonucleotide-based drugs. This innovative approach has the potential to revolutionize RNA therapeutics and better target the underlying genetic causes of many diseases.
So far, Avidity has used its platform to put three RNA therapeutics into the clinical trial pipeline. These candidates are intended to target the specific genetic root cause of three rare muscle diseases, each of which has proven untreatable with previously available RNA therapies. The company has already had some success in its research program, and has made the first-ever reported successful targeted delivery of RNA into muscle tissue.
The myotonic dystrophy type 1 (DM1) track is making waves with its leading drug candidate AOC-1001. Early testing has shown the drug’s ability to reverse disease progression across multiple functional measures, offering hope for those affected by this often fatal neuromuscular disease.
This achievement has captured the attention of analyst Geoff Meacham, who is optimistic about the company’s future. In his coverage for Bank of America, Meacham predicts great success for RNA, estimating peak adjusted sales of $2.3B by 2033. With a promising platform and a potential path to commercialization as early as 2026, RNA is positioned as an appealing risk-reward opportunity.
Should you actually buy these shares?
As Sutro Biopharma continues to make significant progress in clinical advancements, the company’s market performance offers valuable insights for investors. With a market capitalization of $345.86 million, STRO is currently trading at a low revenue valuation multiple, which suggests that the stock may be undervalued.
Moreover, recent data illustrates a noteworthy price increase of 78.48% over the past six months, signaling a growing confidence among investors.
With 10 recent analyst reviews, including 9 Buys and 1 Hold, it’s clear that there’s a lot of confidence in this stock. The current share price of $4.01 and an average price target of $11.44 indicate a potential gain of 185% in the next 12 months.
On the other hand, Avidity Biosciences is an exciting company with a potentially groundbreaking late-stage drug candidate for DM1. Its AOC platform is robust, with collaboration and licensing agreements with industry leaders, validating its innovative approach.
With a market cap of $2.8 billion and no product revenues yet, the market seems to be banking on its drug candidates in the near future.
The outlook for RNA stock is optimistic, with 7 unanimously positive analyst reviews and a Strong Buy consensus rating. Currently trading at $29.50, the stock has an average price target of $42.67, suggesting a 45% upside potential in the coming year.
(Information in this post is for general informational purposes only. It cannot and should not be considered as suggestions or recommendations regarding investing or financial decisions.)
