Penny stocks aren’t just “short-term” movers or “lotto trades” as some might assume. If you’ve been a reader of our articles this year, you have come to learn that small- and micro-cap stocks are more than quick flips. In fact, there’ve been plenty of penny stocks that ended up running far beyond the upper limits of the general definition of stocks under $5.
There’ve been two camps to trading these highly volatile stocks. One side aims to capture quick gains on short-term catalysts. Another side looks to actually invest in penny stocks for a longer-term. In each case, different strategies are utilized that allow these goals to be met.
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One example of this is trading penny stocks, initially. The “trader” is looking for ways to get in and out as quickly as possible and with the most gains as possible. They don’t typically hold shares longer than a week or two (in the case of swing traders, for example). Many actually look to trade penny stocks within a single day.Are You Trading Or Investing In Penny Stocks?
More technical analysis and chart reading will take precedence over company fundamentals. Traders typically look for penny stock news catalysts to trigger a move in the market. But that news doesn’t necessarily stay on there screens longer than it takes to flip the stock for a hopeful gain.
On the other hand, you’ve got those who look at investing in penny stocks. While chart patterns tend to matter, they’re not the foremost topic of discussion. Unlike trading, investing in penny stocks plans for a longer-term holding period. So, company fundamentals are usually the main focus. Is there a crossover between the two schools of thought? In my opinion, yes, but the end result is obviously different for both types: traders & investors.
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Take analyst ratings, for instance. Firms will give their opinion on companies and pair ratings to those opinions. Both traders and investors can use pieces of analysts’ investment theses to plan either a trading strategy in the short term or an investment one in the long term. It’s important to determine first, however, if you actually agree with analysts in the first place. With that in mind, here’s a list of penny stocks to buy according to several Wall Street firms.Penny Stocks To Buy [according to analysts]: Cellectar Biosciences Inc.
Cellectar Biosciences Inc. (CLRB Stock Forecast) didn’t have the greatest start to 2020. Similar to countless other stocks, in general, CLRB shares fell in March. Since then, the penny stock has trended between lows of around $1 to highs of around $1.75. It’s quite the large channel, however, for the most part, aside from a few spikes here and there, CLRB stock price sits around $1.45. Heading into the week, Cellectar could be in focus. That’s because in July Cellectar announced a poster presentation at the upcoming American Association of Cancer Research annual meeting. It’s being held virtually on August 17-19, 2020.
The presentation will focus on the company’s CLR 131. This is Cellectar’s lead product candidate. It’s currently being evaluated in a Phase 2 study in B-cell lymphomas, and a Phase 1 dose-escalating clinical study in pediatric solid tumors and lymphomas. Keep in mind that this comes on the heels of Cellectar’s latest earnings results where it reported better-than-expected EPS for Q2.
James Caruso, president and CEO of Cellectar explained, “We continue to enroll relapsed/refractory multiple myeloma and LPL/WM patients in the Phase 2b portion of our ongoing CLOVER-1 study and prepare for the initiation of our pivotal study expected in Q4 of 2020 while advancing our Phase 1 pediatric study.”
Among analysts covering Cellectar, all give the stock the highest Buy-side ratings. The most recent firm to report analysis on CLRB was H.C. Wainwright who reiterated its “Buy” rating and holds a $3.00 price target. Oppenheimer also initiated coverage on the company in July giving it an “Outperform” rating and $5 price target.Penny Stocks To Buy [according to analysts]: Genprex Inc.
Genprex Inc. (GNPX Stock Forecast), compared to Cellectar, has performed quite well in 2020. The penny stock began the year trading around $0.34, it’s seen highs of over $7, and currently trades around $4.30. If it seems familiar, that’s because you’ve likely been a reader for a while. Genprex has been on our lists of penny stocks since November of 2019.
But obviously, some of the biggest momentum has come this year. In January, for instance, Genprex stock began is rally to those $7+ highs after announcing that the U.S FDA granted Fast Track Designation for Genprex’s Oncoprex™ immunogene therapy. This was in combination with EGFR inhibitor osimertinib (AstraZeneca’s Tagrisso®) for the treatment of certain non-small cell lung cancer patients.
In June, not only did the company announce its addition to the Russell 3000. Genprex also announced receipt of the United States Adopted Names Council approval of a non-proprietary name quaratusugene ozeplasmid for its GPX-001 (formerly Oncoprex). This is a necessary step in securing marketing approval.
The company has also focused on a diabetes treatment program. The company said its treatment “may have the potential to cure Type 1 and Type 2 diabetes”. While that’s yet to be seen, long story, short, GNPX has been one of the biotech penny stocks to watch that hasn’t focused on coronavirus treatments during the last few months.
Aside from appointing a new President, J. Rodney Varner, there haven’t been many new developments heading into the second half of the month. Regardless, analysts covering the stock appear bullish on the company. The most recent comes from Noble Financial who reiterated a “Buy” rating on the stock and holds a $5 price target.Penny Stocks To Buy [according to analysts]: Xeris Pharmaceuticals Inc.
Xeris Pharmaceuticals Inc. (XERS Stock Forecast) is another one of the penny stocks we’ve watched for some time this year. Back in early July, XERS stock had aggressively dropped from its June highs after announcing a $20 million public offering. On July 1, shares closed at $2.73 and the company made its first announcement of the quarter. Xeris reported that its Gvoke HypoPen would be available in the U.S. to treat severe hypoglycemia.
Fast-forward to this month and XERS stock has climbed from around $2.70 to highs of $4.39 at the end of last week. Xeris recently announced earnings including an EPS and sales beat versus Wall Street expectations. The company reported an EPS loss of $0.63, which came in higher than the ($0.73) expected.
Sales also came in at $1.99 million compared to estimates of $1.86 million. You might also remember that on July 10th a 13G filing showed a well-known institution bought shares of XERS stock. Specifically, Soros Fund Management LLC reported a 5.26% passive stake in the company.
Shares of XERS stock surged at the end of the week last week. Though there weren’t any notable updates from the company, it would appear that analysts have remained bullish on the penny stock. Last Tuesday, RBC Capital kept its “Outperform-Speculative Risk” rating but decreased its price target from $15 to $14. Mizuho also reiterated its “Buy” rating on XERS and currently matches RBC’s $14 price target. Considering all of the developments leading up to this month, do you agree with analysts?Penny Stocks To Buy [according to analysts]: Zosano Pharma Corporation
Zosano Pharma Corporation (ZSAN Stock Forecast) was one of the penny stocks we discussed at the end of last week. The company’s Qtrypta has been the center of focus this year. It’s a microneedle patch under development for the acute treatment of migraines. In March, the FDA accepted Zosano’s new drug application for the treatment and has set a Prescription Drug User Fee Act goal date of Oct. 20. In the meantime, the company signed a deal with Eversana to commercialize and distribute Qtrypta if it’s approved by the FDA.
If approved, the company said Qtrypta would be the first and only microneedle patch indicated for the acute treatment of migraine. But that’s not all Zosano has targeted the microneedle patch technology for. If you recall, the patch was also highlighted for a potential use in COVID-19. Specifically, the company posted that “Zosano is eager to rise to the challenge of responding to the COVID crisis by collaborating with vaccine developers to provide the first microneedle vaccine for at home application.”
Earlier this month, Zosano presented at the BTIG Biotechnology Conference. BTIG is also one of the analysts covering ZSAN stock. It currently holds a “Buy” rating with a $7 price target. The most recent rating, however, comes from H.C. Wainwright who reiterated its “Buy” rating. The firm also holds a $4 price target on the stock.