4 Stock-ing Stuffers for Under $10 a Share
These names could be the gifts that keep on giving in 2025.
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As we settle in for the holidays and reflect on 2024, I've compiled a list of several stocks under $10 a share that should have a prosperous new year.
Let’s start with Aldeyra Therapeutics, Inc. ALDX, an ocular-focused biopharma biotech company that has made steady progress in 2024. Shareholders have been rewarded with an approximate 40% rise in the stock this year. But the equity is selling at less than half its recent highs in mid-2023. In mid-November, the Food and Drug Administration finally accepted its resubmitted marketing application for its topical ocular candidate reproxalap for the treatment of dry eye disease.
If all goes to plan the compound should be approved this coming April. FDA approval will most likely trigger an option agreement with drug giant AbbVie ABBV to acquire the rights to reproxalap. As part of that deal AbbVie will take over marketing of the treatment. Aldeyra will receive nearly a $95 million upfront payment, up to $300 million in additional milestone payouts as well as 40% of the profits of the venture. The stock’s market cap is just under $300 million currently and Aldeyra ended the third quarter with just over $120 million worth of cash and marketable securities on its balance sheet. At just under five bucks a share, the equity still looks undervalued despite the rebound in the shares in 2024. Another five buck a share biopharma name I like in 2025 with a similar ticker symbol is Ardelyx, Inc. ARDX, which I profiled earlier this month.
Moving away from the biotech/biopharma space, let’s look at BARK, Inc. BARK, which trades near two bucks a share. Bark, Inc. is a turnaround story that seems to be garnering some traction recently. The company broke eight-straight quarters of year-over-year revenue declines earlier this year. Bark, Inc. also announced a new partnership with Chewy, Inc. CHWY and expanded an existing partnership with Amazon AMZN. The company is close to cash flow break-even and has a solid balance sheet. If this turnaround story continues to progress, shareholders should be rewarded in 2025.
We will end with LifeMD LFMD, which trades right at five bucks a share. It is another turnaround story. The company provides several telehealth services and also owns nearly three quarters of a software-as-a-service document business called WorkSimpli. Telehealth revenues rose some 65% on a year-over-year basis in the third quarter. This business has gotten a huge boost from its LifeMD's GLP-1 weight management offering launched in the first half of last year. The company now has produced positive cash flow for four-straight quarters and its balance sheet is in good shape. Earnings should move sharply higher in fiscal 2025 on revenue growth in the low- to mid-20s. The shares feel like they have good upside potential in the coming year.
At the time of publication, Jensen was ALDX, ARDX BARK and LFMD.
