If you're looking for a growth stock with loads of potential, Bellus Health (NASDAQ:BLU) should be on your watchlist. The biopharmaceutical company generates minimal revenue but analysts are optimistic about its future. The company's BLU-5937 drug, which treats chronic cough and itch, is currently in phase 2a and 2b trials. Those results are expected before the end of this year, and how effective and safe it proves to be will have a big impact on where the stock price goes afterwards.
When the company reported less-than-stellar results from its earlier trials in July 2020, the stock crashed from more than $12 a share to less than $3 within just weeks. But that's the danger with investing in biotech as volatility comes with the territory. However, analysts from RBC and Evercore ISI are bullish on the stock, setting price targets of $8 and $12 this year, respectively. With Bellus trading at just $3.46 to close out last week, that's well over 100% upside from where it is now. It's likely that the stock will either crash further down or potentially triple in value when the results come out.
With a market cap of less than $300 million, the stock isn't terribly large but it has risen 13% thus far in 2021. If you're a risk-taker, this might be an investment you'll want to consider. With 26 million American adults that have chronic cough, the market could be massive for Bellus if it can bring to market a product that can help address that condition.
