Recs

5

The Stocks Wall Street Loves

Despite all of Wall Street's conflict and contention, a fortunate few companies enjoy unanimous support among professional analysts. If the market's movers and shakers all believe these companies will beat the long-term averages, well, surely they will -- right?

Not so fast! With help from the 170,000 members of Motley Fool CAPS, we'll see whether these high-flying favorites deserve analysts' unwavering support.

Stock

CAPS Rating 
(out of 5)

CAPS Bullish Sentiment

No. Wall Street Analysts

52-Week Price Change

Apple (Nasdaq: AAPL  )

***

92%

55

39%

Apricus Biosciences (Nasdaq: APRI  )

*

68%

3

123%

Cleveland BioLabs (Nasdaq: CBLI  )

***

89%

2

1%

More than a "Yes" man
If Apple's recent patent win for "multi-touch gestures" for smartphones is any indication, Wall Street's faith in the consumer electronics giant is well grounded. This could give Apple an unassailable lead over every competitor, from HTC to Motorola Mobility (NYSE: MMI  ) , seeking to steal a slice of the smartphone market.

Yet as the Fool's Tim Beyers asks, was anyone really assailing Apple's lead to begin with? "Since Day One, Apple's iCandy has been gobbling market share like Pac Man gobbles pellets."

This development may just give Apple the cudgel it needs to cow its rivals, or at least make them come crawling to it for relief. Presumably Nokia (NYSE: NOK  ) would be in the clear, having already settled with Apple outstanding patent infringement claims, but competing suits with HTC, Samsung, Motorola, and others remain.

But even without the patent battles, investors like CAPS member DaveMarcus82 see Apple's history of innovation as keeping consumers chained to it via a short leash:

Wouldn't be surprised if they jump to $400 this year, with the release of so many new products. The iCloud is underrated, and will keep people even more chained to Apple.

Let us know in the comments section below or on the Apple CAPS page whether the patents mean the war is over before the battle even began.

My, how big you've grown
One catalyst for pharmaceutical Apricus Biosciences was its recent inclusion in the Russell Microcap index. The benchmark's annual reconstitution invariably sends stocks of those making the list soaring higher as investors anticipate the huge influx of institutional cash from mutual funds that index the index.

Although Apricus got a small bounce on the day of the announcement, it has the potential to soar even higher if Pfizer (NYSE: PFE  ) is successful in defending its Viagra patents against intrusions by generics makers Teva Pharmaceuticals (Nasdaq: TEVA  ) and Watson Pharmaceuticals.

That's because Apricus manufactures the erectile dysfunction treatment Vitaros, which received Canadian approval last year, and both it and its partners would likely see higher revenues if Pfizer is successful. Unit prices could rise as much as $2 without the threat of low-cost Viagra generics.

Apricus doesn't seem to get a rise out of CAPS members as only a little more than two-thirds of those rating it think it will outperform the indexes, but more than 60% of the All-Stars rating it see it underperforming. That could be because, as zzlangerhans pointed out, Vitaros is just a low-margin product, and there's not much reason to be excited about the rest of the company's pipeline:

There are many reasons to be dubious about the prospects of PrevOnco, the company's most advanced pipeline compound. PrevOnco is an unspecified derivative of lansoprazole (Prevacid), a commonly prescribed antacid. There is absolutely no evidence of any antineoplastic activity in humans. The company proposes to proceed directly to a phase III trial based on activity on tumors in mice.

If you're interested in learning more about Apricus Biosciences and the prospects for Vitaros, add the stock to your watchlist for complete coverage of its growth.

A glowing opportunity
When the Biomedical Advanced Research and Development Authority (BARDA) requested additional information from Cleveland BioLabs for its radiation drug Protectan, I noted that such delays cost it money because it pushes back funding for the company. That's probably why the company resorted to directly selling almost 6 million shares at $4 a share to institutional investors in an effort to net some $22 million. It'll be able to finance its operations as well as continue its R&D program, though at a cost of diluting current shareholders.

Radiation drugs are proving of some interest to drugmakers. Osiris Therapeutics is working with Genzyme to develop medical countermeasures to nuclear terrorism and other radiological emergencies, while AstraZeneca's Ethyol is the leader in the medical radiation-protection market.

All but one of the CAPS All-Stars who weighed in think it ought to outperform the indexes, and its three-star rating shows the investor community believes it has at least a middling chance of success. Add Cleveland BioLabs to your watchlist for complete coverage of its developments.

Agree to disagree
It pays to start your own research on these stocks on Motley Fool CAPS. Read a company's financial reports, scrutinize key data and charts, and examine the comments your fellow investors have made, all from a stock's CAPS page.

Sign up today for the completely free service, and tell us whether these stocks deserve to have Wall Street marching lockstep.

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!

The Motley Fool owns shares of Apple and Teva Pharmaceutical. Motley Fool newsletter services have recommended buying shares of Teva Pharmaceutical, Apple, and Pfizer. Motley Fool newsletter services have recommended creating a bull call spread position in Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Fool contributor Rich Duprey owns shares of Motorola Mobility but does not have a financial position in any of the other stocks mentioned in this article. You can see his holdings here.


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 05, 2011, at 5:00 PM, dregstudios wrote:

    Pharmaceutical companies cause OVER 100,000 deaths each year from the drugs they push on the public… that’s 10 times more deaths than from street drugs. Does EVERYone need a pill for something? The real drug cartels moving their product on unassuming victims are the Big Pharma Companies, averaging over $25 Billion in revenue EACH. Their agenda and money has corrupted Washington and the FDA. Voice your concern with me at http://tinyurl.com/3ut7m4z

  • Report this Comment On July 05, 2011, at 6:14 PM, lucasmonger wrote:

    The time to love Apple isn't when the rest of Wall Street love it. I loved Apple in the dot-bomb era, and only wish I piled more money in at $13 per share before the split. Although Apple is running on all cylinders at the moment, buying shares at around $350 hoping it will go to $400 isn't nearly as attractive as the $10 in 1998, $13 in 2003, or even $87 in 2008. Call me a pessimist, but I've sold my shares already and am waiting on the sidelines for the next big stock tumble or Apple product snafu, or other bad news... even it if never comes. Even at the recent drop to $315, the downside from $315 to $0 is a long, long way.

  • Report this Comment On July 06, 2011, at 4:09 AM, FoolishKwai wrote:

    @lucasmonger -

    I'm not going to say if AAPL is a buy or a sell here, just that you're looking at it the wrong way.

    You should NEVER be buying a stock "hoping" that it will go from x to y whether x is 10 or x is 350.

    The dollar value of x is almost irrelevant when valuing a company. In fact the potential downside of a stock trading at 350 is exactly the same as the potential downside of a stock trading at 10: 100%.

    FoolishKwai

  • Report this Comment On July 20, 2011, at 11:34 AM, DaveMarcus82 wrote:

    $400 was a conservative outlook, and isn't look too "fool"ish at the moment.

    This is one of the most successful companies ever, and the international demand for Apple products, especially to the east, is just beginning to really pick up. While I don't know anyone who isn't kicking themselves for not getting in ten years ago, I'm more than confident that the profits will continue to come for shareholders.

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Related Tickers

5/25/2012 3:59 PM
CBLI $1.30 Up +0.09 +7.44%
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AAPL $562.29 Down -3.03 -0.54%
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PFE $22.13 Down -0.01 -0.05%
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Teva Pharmaceutica… CAPS Rating: *****
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