Who doesn’t love a bargain? We look for deals in many places. And when it comes to investing, we look for bargain stocks. This can mean different things to different investors. Some investors will consider a stock a bargain if it’s undervalued.
But this is no ordinary market. You’ve heard of hard landings and soft landings. But right now, there are growing concerns about stagflation which is the scenario of no immediate landing. That would be bad news for even the “safest” of stocks. That’s why it may be time to try something new.
In coming up with the stocks for this article, I’m looking at stocks that are trading at or near 52-week lows and have some analyst support.
While no strategy is foolproof, finding stocks trading at 52-week lows in a market like this can make for a profitable trade. If nothing else, these bargain stocks aren’t overvalued. And if they have the support of an analyst or a handful of analysts, it can signal that the 52-week low will serve as support.
With that in mind, every stock on this list is a penny stock. Penny stocks carry a tremendous risk and the possibility of an outsized reward. And while each stock has a story that could send it much higher, each of these bargain stocks may never deliver on its promise.
|RGF||Real Good Food||$4.23|
TFF Pharmaceuticals (TFFP)
TFF Pharmaceuticals (NASDAQ:TFFP) is a clinical-stage biopharmaceutical company that has developed its proprietary Thin Film Freezing technology. The technology attempts to “transform medicines into elegant and potent dry powders for better efficacy, safety, and stability.”
Although the company does not have a product through clinical trials, there’s no evidence that the technology doesn’t work. But to date, the company has not found a partner that would provide the necessary funding.
And, like all biotechs, that’s the real issue. The company said in December that it was capitalized through 2023. But they won’t have a product through clinical trials until 2024. So that could mean another round of share dilution unless they find a partner.
One thing that may help that process is that the company has appointed an interim CEO. The leadership of former CEO Glenn Mattes was called into question by shareholders.
Analysts do not widely cover the company. But it does have the support of the analysts that do cover the stock. It has a consensus buy rating and a price target of $20, a gain of over 2,900%.
Steakholder Foods (STKH)
Steakholder Foods (NASDAQ:STKH) was formerly known as MeaTech 3D. The new name, however, fits into their mission of being a leader in the emerging field of structured or cultivated meat. And the play on the word “stakeholder” can’t hurt when you’re a company bound to be looked upon favorably by investors who prioritize ESG (environmental, sustainability, and corporate governance) standards.
The company is using 3D bioprinting to make meat from animal cells. The goal is to feed a growing population while protecting the environment and the welfare of animals. The company has applied for 18 patents and has received and been granted four.
Numerous analysts suggest cultivated meat will have a large addressable market between now and 2050. That makes STKH stock a long-term play. However, as the company’s recent $6.5 million securities offering reminds investors, this will still be volatile.
Real Good Food (RGF)
The last of our bargain stocks is another play on the future of food is The Real Good Food Company (NASDAQ:RGF). But this company is generating revenue today. And the company’s gluten-free and grain-free products are in several notable channels, such as Costco (NASDAQ:COST) and Sam’s Club.
The marketing message is that the company offers products that have more protein with fewer carbs and without sacrificing taste.
The company was profitable GAAP-based in two out of the last three quarters. But the company went from a GAAP profit of 49 cents a share to a loss of 51 cents a share in the previous quarter. And with revenue jumping over 20% sequentially, the company may have difficulty passing inflation-related costs along to its customers.
Revenue and earnings are expected to grow at 38% and 34% in the next five years. Eight analysts give RGF stock a $14.28 mean price target. That’s a gain of over 230% from its current price.
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Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.