3 Stocks That Are Absurdly Cheap Right Now [Motley Fool] George Budwell, Keith Noonan, and Jeremy Bowman, The Motley Fool ,Motley Fool•January 23, 2019
After one of the longest bull markets in history, stocks finally began to revert to the mean late last year, and many did so in a big way. The upside, though, is that this pronounced marketwide downturn created a number of outstanding buying opportunities for investors with a long-term mind-set.
With this theme in mind, we asked three of our Motley Fool contributors which stocks they think are flat-out bargains in the wake of this indiscriminate sell-off. They picked Amarin (NASDAQ: AMRN), Baidu (NASDAQ: BIDU), and Tailored Brands (NYSE: TLRD). Read on to find out why. Man in a suit bending a downward trending red line upward. Man in a suit bending a downward trending red line upward.
Image source: Getty Images. The luck of the Irish
George Budwell (Amarin): Unlike most other biotech stocks, shares of the Irish biopharma Amarin actually performed quite well in 2018. Over the last 12 months, for instance, the biopharma's shares have appreciated by a jaw-dropping 334%. Even so, Amarin's red-hot stock still has a long way to go before it can be considered expensive or even fairly valued for that matter.
What's the scoop? Amarin's shares took flight late last year following a positive readout for the company's prescription fish oil pill, Vascepa, in a large cardiovascular outcomes trial called Reduce-It. Reduce-It's favorable top-line results attracted investors in droves for two underlying reasons.
First and foremost, Vascepa now appears like it could be a straightforward and cost-effective way to significantly decrease mortality rates among patients with stubbornly high triglyceride levels. As proof, Vascepa reportedly retails for $349 for a 30-day supply, which pales in comparison to the cost of an extended hospital stay stemming from a heart attack or stroke.
Secondly, Vascepa has the potential to enter one of the largest and most lucrative markets in all of healthcare following these stellar late-stage trial results. Several of the best-selling medications of all time, after all, target patients prone to developing cardiovascular disease. So, while Vascepa's current peak sales projection of $2.5 billion is certainly nothing to sneeze at, this novel fish oil pill may even go on to surpass this stately sales estimate within the next five to 10 years.
Bottom line: Amarin seems destined to continue its recent growth spurt, thanks to Vascepa's outstanding top-line results in REDUCE-IT. As such, bargain-hunters might want to scoop up some shares soon.
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