Wall Street sell-side analysts are positive about Natural Gas Services Group Inc (NGS, Financial) and Aptorum Group Ltd (APM, Financial), even though these two stocks have lost more than 59% over the past 52 weeks. These so-called "falling knives” hold a buy recommendation rating on Wall Street.
Some investors buy shares of falling knives because they expect to make huge gains out of their investments following a significant share price rebound.
Natural Gas Services Group Inc
Shares of the Midland, Texas-based supplier of equipment and related services to oil and gas operators were trading at a price of $5.86 per unit at close on Wednesday as a result of a 62.3% decline in share prices over the prior 52 weeks.
The stock has a market cap of $80.77 million, a 52-week range of $2.62 to $18.24 and a 14-day relative strength index of 43, which tells that this stock has not reached oversold levels yet, despite the share price tumble.
Wall Street sell-side analysts recommend a buy rating for Natural Gas Services Group Inc, anticipating a strong share price rebound up to the target of $11.50 with a 96.2% upside from Wednesday’s closing price.
Aptorum Group Ltd
Shares of the Hong Kong-based biotechnology developer of treatments and diagnostics for several human diseases and disorders were trading at a price of $3.74 per unit at close on Wednesday following a 86% fall over the prior 52 weeks.
The stock has a market cap of $113.65 million, a 52-week range of $1.66 to $33.28 and a 14-day relative strength index of 50, which indicates that this stock has not reached oversold levels yet, despite the sharp decline in the share price.
Aptorum Group Ltd has an extremely low debt-equity ratio of 0.01. Also, Aptorum Group's Altman Z-Score of 3.33 (which is greater than 2.99) indicates that the company is not likely in danger of bankruptcy.
Wall Street sell-side analysts recommend a buy rating for this stock.
Disclosure: I have no positions in any securities mentioned.
Read more here:
- 3 High Quality Stocks for the Value Investor
- A Trio of Strong Performers to Consider
- 2 Underperforming Holdings to Ease Up On
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