Wall Street recommends buying shares of NeuroBo Pharmaceuticals Inc (NRBO, Financial) and Windtree Therapeutics Inc (WINT, Financial), even though these two securities have shown poor performance over the prior 52 weeks through April 7. They have both reported more than a 59% fall in their share prices. These two factors earn them the nickname "falling knives."
Investors will sometimes try to catch falling knives near their lowest levels in order to gain the highest return possible once the stock has bounced back. However, investors should note that getting involved with falling knives implies a remarkable risk, as the share price tumble could be the onset of permanent issues.
NeuroBo Pharmaceuticals Inc
Based in Boston, Massachusetts, NeuroBo Pharmaceuticals Inc is a biotechnology company that develops therapies for neurodegenerative and cardiometabolic medical conditions.
Shares of NeuroBo were trading at around $4.08 per unit at close on Wednesday after an 85.86% fall over the past 52 weeks.
The stock has a market capitalization of $90.46 million, a 52-week range of $3.63 to $29.71 and a 14-day relative strength index of 39, which indicates that the stock is not far anymore from oversold levels.
GuruFocus assigned a score of 4 out of 10 for the financial strength rating of the company. The Piotroski F-Score of 2 out of 9 suggests weak financials.
With regard to the profitability of the company, the return on total assets (ROA), return on equity (ROE) and return on capital (ROC) ratios are all performing badly. However, the three-year Ebitda growth rate is 60.7% and the three-year EPS without NRI growth rate is 60.1%.
On Wall Street, the stock has one recommendation rating of buy with a price target of $16 per share.
Windtree Therapeutics Inc
Based in Warrington Township, Pennsylvania, Windtree Therapeutics Inc is a biotechnology company that develops medical devices for the treatment of acute pulmonary and cardiovascular diseases.
Shares of Windtree Therapeutics were trading at around $2.50 per unit at close on Wednesday as a result of a decline of 74.73% that took place over the past 52 weeks.
The stock has a market capitalization of $65.64 million, a 52-week range of $2.06 to $10.20 and a 14-day relative strength index of 26, which suggests that the share price is just a whisper away from oversold levels.
GuruFocus assigned a score of 5 out of 10 for the financial strength rating of the company and 1 out of 10 for its profitability rating.
A Piotroski F-Score of 3 out of 9 tells that the company has not managed its capital well, resulting in a weak balance sheet.
With regard to the profitability of the company, the return on total assets (ROA), return on equity (ROE) and return on capital (ROC) ratios are not performing well. The three-year Ebitda growth rate is 79% and the three-year EPS without NRI growth rate is 79.3%.
On Wall Street, the stock has one recommendation rating of buy with a price target of $9.50 per share.
Disclosure: I have no positions in any securities mentioned.
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