Threat and reward usually journey hand-in-hand, making the inventory market each profitable and harmful. Among the many finest exemplars of this axiom are the penny shares, these equities priced at $5 or much less. With that low worth comes the potential for excessive good points, as even an incrementally small worth enhance will translate to a excessive share acquire.JPMorgan’s Head of Small and Midcap Fairness Technique, Eduardo Lecubarri, sees each the alternatives and risks within the present market atmosphere – and the nice potential of small-cap shares which have room to run.“1Q could also be rocky following the robust good points since Nov and the truth that valuations are sitting on all-time highs. Nonetheless, the yr lengthy outlook is encouraging attributable to much more highly effective elementary tailwinds. Such a constructive backdrop is more likely to hold buyers chasing these few shares that also provide huge restoration upside, as they appear to have began to do YTD. It is because of this that we might encourage buyers to construct their portfolios now and see issues by within the occasion of any consolidation section that will are available Q1,” Lecubarri wrote.Taking the chance into consideration, we used TipRanks’ database to search out compelling penny shares with cut price worth tags. The platform steered us in the direction of two tickers sporting “Robust Purchase” consensus scores from the analyst neighborhood. To not point out substantial upside potential is on the desk. We’re speaking returns of no less than 300% over the following 12 months, in response to the analysts.AcelRx Prescription drugs (ACRX)Opioids have made headlines in recent times, and for all of the flawed causes. These potent ache aid medicine are additionally dangerously addictive – an element that has led to the opioid epidemic within the US. AcelRx is a pharmaceutical firm devoted to the creation of safer remedies for acute ache, growing artificial opioid medicine for sublingual (beneath the tongue) dosing.The corporate’s foremost product, Sufentanil, was authorised by the FDA beneath the title Dsuvia in 2018, and by the EU as Dzuveo that very same yr. A second sublingual Sufentanil system, beneath the title Zalviso, has additionally been authorised to be used by the EU, and is in Part 3 trial within the US.In its most up-to-date incomes report, the corporate confirmed $1.4 million on the prime line, pushed by $1.3 million in product gross sales. The gross sales determine was up 433% sequentially, and the whole income determine was up 133% year-over-year.In opposition to this backdrop, a number of members of the Avenue imagine ACRX’s $1.40 share worth seems like a steal.Cantor analyst Brandon Folkes is upbeat on Dsuvia’s prospects as a substitute for present opioid remedies, and he believes that potential will increase the corporate’s inventory.“With the launch of Dsuvia, we imagine investor focus can now shift to launch metrics and peak gross sales potential for the product. As ACRX launches a real different to IV opioids, we anticipate buyers to start to understand the worth of the product. We imagine that Dsuvia provides an development in supply of satisfactory ache therapy by eliminating the necessity for an invasive and time-consuming IV set-up within the emergency room, in addition to an outpatient, or post-surgery, setting. Regardless of hospital launches taking time, we anticipate the uptake of Dsuvia to drive income upside past the Avenue’s present estimates, which, in flip, might drive the inventory greater from present ranges,” Follked opined.In keeping with his bullish stance, Folkes charges ACRX a Purchase, and his $9 worth goal implies room for a surprising 552% upside potential within the subsequent 12 months. (To look at Folkes’ monitor report, click on right here)Turning now to the remainder of the Avenue, 3 Buys and no Holds or Sells have been printed within the final three months. Due to this fact, ACRX has a Robust Purchase consensus ranking. Based mostly on the $7 common worth goal, shares might soar 407% within the subsequent yr. (See ACRX inventory evaluation on TipRanks)NuCana (NCNA)NuCana is a biopharma firm centered on new most cancers remedies. The corporate’s aim is to supply efficient remedies for biliary, breast, colorectal, ovarian, and pancreatic cancers – whereas avoiding the issues and uncomfortable side effects of present chemotherapy remedies. NuCana makes use of a phosphoramidate chemistry expertise referred to as ProTide to create a category of medication that may surmount the restrictions of the present nucleotide analogs behind many chemotherapy medicine. NuCana’s ProTides have already been utilized in Gilead’s antiviral drug Sovaldi.In Might of final yr, NuCana introduced the restart of its Part III trial on Acelarin, the drug candidate furthest alongside the corporate’s pipeline, as a therapy for biliary tract cancers. The research encompasses over 800 sufferers in 6 nations and is at the moment ongoing. In November, the corporate printed knowledge described as ‘encouraging’ from the Part Ib research of the identical drug.Whereas Acelarin is the flagship drug within the pipeline, NuCana has two different prospects beneath improvement. NUC-3373 is in Part I trial as a therapy for stable tumors and colorectal cancers, and NUC-7738 is a second pathway beneath investigation for purposes to superior stable tumors. Of those three, the colorectal research is the farthest superior.Writing from Truist, 5-star analyst Robyn Karnauskas sees the pipeline as key to NuCana’s investor potential.“We imagine buyers have ignored the truth that NCNA is a platform Firm that we imagine is validated, as outlined by the manufacturing of medical merchandise. We like that it has introduced 3 merchandise to the clinic, together with one novel drug and two improved cornerstone chemos. The information recommend to us that the platform works and might produce higher chemos […] Whereas buyers are largely centered on Acelarin, we imagine buyers must also give attention to NUC-3373, one other core to our platform-based thesis that has knowledge anticipated in 1H2021,” Karnauskas famous.To this finish, Karnauskas places a $22 worth goal on NCNA, suggesting the inventory has room for 384% development forward of it, together with a Purchase ranking. (To look at Karnauskas’ monitor report, click on right here)General, NCNA’s Robust Purchase consensus ranking is unanimous, and based mostly on 4 current critiques. Shares have a mean worth goal of $17.33, suggesting a 270% one-year upside from the present buying and selling worth of $4.69. (See NCNA inventory evaluation on TipRanks)To seek out good concepts for penny shares buying and selling at engaging valuations, go to TipRanks’ Greatest Shares to Purchase, a newly launched software that unites all of TipRanks’ fairness insights.Disclaimer: The opinions expressed on this article are solely these of the featured analysts. The content material is meant for use for informational functions solely. It is extremely vital to do your personal evaluation earlier than making any funding.