Breakdown of the latest developments on the global exchanges
May 26, 2020, 1:33 PM GMT

Top 4 Most Promising Stocks as of May 2020

In today's article, we outline our picks for the top four most promising stocks this month that deserve close attention from traders and investors alike. We have selected stocks with prospects for massive returns that are going to be of interest to the two types of market participants. The intrinsic value of each of these stocks stems from different reasons, which makes this list especially useful to investors who are looking to diversify their portfolios, or traders interested in obtaining a new edge on the market.

The United States:

Two companies from North America have made our list.

1. Navidea Biopharmaceuticals Inc. (NAVB). The company, which is listed on the NYSE, has generated the remarkable 120 per cent gains over the month for two chief reasons. Firstly, Nividea has benefited from being part of the biotechnological industry, whose importance has been highlighted during the coronavirus crisis. Secondly, last Thursday the company announced the successful conclusion of phase 2 trials of its treatment for rheumatoid arthritis.

"Navidea […] is pleased to announce positive preliminary results from the Company’s second interim analysis of its ongoing NAV3-31 Phase 2B study. Analysis demonstrates that these interim data further corroborate Navidea’s hypotheses that Tc99m tilmanocept imaging can provide robust, quantitative imaging in healthy controls and in patients with active rheumatoid arthritis (“RA”), and that this imaging can provide an early indicator of treatment efficacy in patients with active RA."

Subsequently, the company's stock price surged by more than 90 per cent during last Friday's trading session.

The intrinsic value of the stock is very likely to continue appreciating in the following months as even more complete results of the treatment become published. Moreover, once the treatment passes the final clinical trials, provided that its efficiency is proven, Nividea's share price is likely to skyrocket. Hence, in the following few years, the company's stock, which was recently trading close to 0.50 cents per share, could jump to the next prominent level at 12.17, which is represented by the 23.6 per cent Fibonacci retracement level.

A crucial confirmation for the likely beginning of a new rally is going to be a successful breakout of the price action above the major resistance level at 2.50.

Navidea 1W Price Chart

2. Remark Holdings Inc. (MARK). This technological company, which 'primarily focuses on the development and deployment of artificial-intelligence solutions for businesses and software developers in many industries', is listed on the Nasdaq. Remark's stock has risen by the impressive 296 per cent in May, which could be the beginning of a massive new bullish run.

The immense success of the company over the last few weeks is mostly due to the recent transformational changes in the way American companies do business. The coronavirus pandemic has highlighted the inability of most companies to maintain normal operations when most or all of their employees are forced to work from home.

Hence, the importance of companies such as Remark is likely to grow in the future, as more and more firms start incorporating AI solutions within their business models.

At present, Remark's stock price is hugely undervalued compared to the Nasdaq composite, which underlines the massive prospects for future gains. A new bullish run can be established if the underlying price action manages to definitively break out above the crucial resistance level at $2.70 per share.

Remark Holdings Inc. 1M Price Chart


One company from China has been selected for our list.

3. Aurum Pacific Group. The software company is listed on the Hong Kong Stock Exchange with a ticker 8148, and its share price rose by over 230 per cent in May. Its current share price provides traders and investors with a unique opportunity to join the market now, which could end up being a pivotal turning point for the company. Unlike the previous two companies in our list, however, a potential bullish run on Aurum could be initiated due to the most recent changes in the international relations between China and the US.

The tech firm's stock value has been walloped from the political tensions between the two biggest economies in the world, which have been engaged in a far-reaching trade war with each throughout most of Trump's presidency. Despite the strained political relationship, however, a lot has been achieved by Beijing and Washington in mitigating their policies of imposing tariffs on the other. The de-escalation of the trade war is welcoming news for global commerce, despite international trade remaining muted due to the pandemic.

As regards Aurum, this could end up being the necessary change to the global political landscape that would allow the tech firm to offset some of the losses that have been registered over the last several years. Aurum's stock price has depreciated by more than 90 per cent since July of 2015.

Essentially, this could be the beginning of a new period of solid performance for Arum, following a disastrous stretch that has been marked by consistent losses. Nevertheless, traders and investors should remain vigilant because, in spite of the huge profit potential, this stock also has considerable underlying risk.

Aurum Pacific Group 1M Price Chart


One company from Italy also makes our list.

4. Iervolino Entertainment. This is an Italian company that 'operates in the production of film and TV content'. It is listed on the 'Borsa Italiana' (BIT) with a thicker IE. Iervolino's stock price rose by 22 per cent since the beginning of May, which is not so impressive compared to the observed performance of the previous three companies on our list, but what Iervolino lacks in scope, it makes up with an excellent Risk/Reward outlook.

At present, the unique advantage of Iervolino is its deeply undervalued share price, which is bound to be affected positively from the company's intrinsic value. Iervolino was listed on the BIT for public trading on the 5th of August 2019. By the end of that year, the share price had risen by more than 160 per cent, which is demonstrative of the company's robust outlook.

Subsequently, Iervolino's stock depreciated by nearly 60 per cent in the first quarter of 2020 due to the pandemic. Now, as Italy prepares to reopen its economy, the business sector can resume its operations soon. Accordingly, Iervolino can continue its growth process from late 2019, which was suddenly interrupted by the unexpected developments.

Therefore, the advantage of Iervolino's stock is encompassed by the fact that its price is so deeply discounted at present, that the timing for a potential entry looks very promising.

If the underlying price action manages to break out above the major resistance level at 4.140, this would be a piece of significant evidence highlighting the renewed bullish sentiment in the market.

Iervolino 1W Price Chart