Danger 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 value comes the potential for excessive good points, as even an incrementally small value improve will translate to a excessive proportion achieve.JPMorgan’s Head of Small and Midcap Fairness Technique, Eduardo Lecubarri, sees each the alternatives and risks within the present market atmosphere – and the good potential of small-cap shares which have room to run.“1Q could also be rocky following the sturdy good points since Nov and the truth that valuations are sitting on all-time highs. Nonetheless, the yr lengthy outlook is encouraging resulting from way more highly effective elementary tailwinds. Such a constructive backdrop is prone to maintain traders chasing these few shares that also provide large restoration upside, as they appear to have began to do YTD. It is for that reason that we might encourage traders to construct their portfolios now and see issues by means of within the occasion of any consolidation section which will are available in Q1,” Lecubarri wrote.Taking the chance into consideration, we used TipRanks’ database to seek out compelling penny shares with discount value 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 at the least 300% over the subsequent 12 months, based on the analysts.AcelRx Prescription drugs (ACRX)Opioids have made headlines lately, and for all of the flawed causes. These potent ache reduction 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 therapies for acute ache, growing artificial opioid medicine for sublingual (beneath the tongue) dosing.The corporate’s principal product, Sufentanil, was accepted by the FDA beneath the identify Dsuvia in 2018, and by the EU as Dzuveo that very same yr. A second sublingual Sufentanil system, beneath the identify Zalviso, has additionally been accepted to be used by the EU, and is in Section 3 trial within the US.In its most up-to-date incomes report, the corporate confirmed $1.4 million on the high line, pushed by $1.3 million in product gross sales. The gross sales determine was up 433% sequentially, and the entire 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 value seems to be like a steal.Cantor analyst Brandon Folkes is upbeat on Dsuvia’s prospects as an alternative choice to present opioid therapies, and he believes that potential will enhance 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 count on traders to start to understand the worth of the product. We imagine that Dsuvia gives an development in supply of satisfactory ache remedy 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 count on the uptake of Dsuvia to drive income upside past the Avenue’s present estimates, which, in flip, might drive the inventory increased from present ranges,” Follked opined.According to his bullish stance, Folkes charges ACRX a Purchase, and his $9 value goal implies room for a shocking 552% upside potential within the subsequent 12 months. (To observe Folkes’ observe document, 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 score. Primarily based on the $7 common value 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 therapies. The corporate’s purpose is to offer efficient therapies for biliary, breast, colorectal, ovarian, and pancreatic cancers – whereas avoiding the problems and unwanted side effects of present chemotherapy therapies. NuCana makes use of a phosphoramidate chemistry know-how referred to as ProTide to create a category of medication that can 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 Section III trial on Acelarin, the drug candidate furthest alongside the corporate’s pipeline, as a remedy for biliary tract cancers. The examine encompasses over 800 sufferers in 6 international locations and is at present ongoing. In November, the corporate printed knowledge described as ‘encouraging’ from the Section Ib examine of the identical drug.Whereas Acelarin is the flagship drug within the pipeline, NuCana has two different prospects beneath improvement. NUC-3373 is in Section I trial as a remedy 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 examine is the farthest superior.Writing from Truist, 5-star analyst Robyn Karnauskas sees the pipeline as key to NuCana’s investor potential.“We imagine traders have ignored the truth that NCNA is a platform Firm that we imagine is validated, as outlined by the manufacturing of scientific 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 may produce higher chemos […] Whereas traders are largely centered on Acelarin, we imagine traders 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 value goal on NCNA, suggesting the inventory has room for 384% progress forward of it, together with a Purchase score. (To observe Karnauskas’ observe document, click on right here)Total, NCNA’s Robust Purchase consensus score is unanimous, and based mostly on 4 current evaluations. Shares have a mean value goal of $17.33, suggesting a 270% one-year upside from the present buying and selling value 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’ Finest 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 rather essential to do your personal evaluation earlier than making any funding.