Looking For Penny Stocks To Buy?
Trying to get in on the action and don’t know where to start? If you can stomach volatility, penny stocks have become one of the top attractions in the stock market today. I’m not just talking about small-cap stocks but micro- and even nano-cap stocks are gaining major interest from retail traders.
Call them Robinhood traders, Reddit traders, or retail traders, these “mom and pop” market participants are making their presence known. What began as a means to make money during the pandemic has now become a way of life for many.
The markets offer a way to make money even if businesses are shut down. At least, this is what a few million people found out last year. If you look at some of the penny stock broker growth statistics for 2020, you’ll see what I’m talking about. With this flight of new retail money to the market has come new trends.
One of these has been the influence of social media and its influence over certain sectors & stocks. This was clearly exemplified earlier in 2021 with the massive rise in Reddit penny stocks like Express, Nokia, Zomedica, GameStop, and others.
Now that retail traders have found a voice, they’ve found opportunities to make money in the stock market. This has brought many to use penny stocks to do just that. These stocks (defined as ones trading below $5) are inherently volatile. It’s this wild action that has attracted so many traders. Is there a higher risk involved when compared to stocks like Apple or Netflix? Yes, and you could definitely account for this. However, if you’re ok with this higher risk and still looking for cheap stocks, then penny stocks could be your poison of choice.
Penny Stocks To Buy Under $3
Keep in mind that just because they appear “cheap,” it may not mean they’re worth the risk. With this in mind, will any of these be on the list of penny stocks to buy for under $3 this week?
- Senseonics Holdings (NYSE: SENS)
- SINTX Technologies Inc. (NASDAQ: SINT)
- Onconova Therapeutics (NASDAQ: ONTX)
- Genius Brands (NASDAQ: GNUS)
- ZW Data Action Technologies (NASDAQ: CNET)
Senseonics Holdings
The latest market pullback has brought plenty of stocks (including penny stocks) down to key technical levels. When I talk about these levels, I’m talking about major moving averages (I.E. 50-Day, and 200-Day Averages).
In this case, SENS stock has been riding the 50-Day for the last 3 sessions, all while trading higher consecutively. The biotech penny stock had been falling ever since, hitting highs of $5.56 last month. But it looks like that recent analyst action has helped give a breath of fresh air to SENS.
Last Friday, SVB Leerink analysts raised their price target from $1 to $3. Analyst Danielle Antalffy also maintained Senseonics with an Outperform rating. Analysts at Stifel also echoed a similar sentiment. The firm currently maintains a Buy rating on the company. Similar to SVB, Stifel also boosted its price target. In this case, it was from $1 to $2.50. With bullish momentum stemming from this analyst activity, SENS shares have continued rebounding from the early March sell-off.
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Something that could play a role in the market this week is the presentation that Senseonics is set to make at the H.C. Wainwright Global Life Sciences Conference today. The point of focus will be on the company’s implantable continuous glucose monitoring systems, Eversense® and Eversense® XL, for diabetes patients.
SINTX Technologies Inc.
Another one of the biotech stocks to watch is SINTX. The company is more along the line of “bio-tech” with its focus on silicon nitride development. In this instance, the company uses silicon nitride in fabrics as it has shown the potential to inactivate the SARS-CoV-2 virus upon contact.
This week the company gave another update on the advancements of this and its potential for use in personal protective equipment. “Our new fabric-based R&D may improve the effectiveness of PPE,” said Bryan McEntire, Ph.D., Chief Scientific Officer at SINTX.
“Currently available face masks, for example, that make antiviral claims rely on the addition of metal ions, such as silver, copper, and zinc, as well as other chemicals to the mask fabrics. Unlike these additives, which are either allergenic or toxic to human tissue, extensive testing has shown that silicon nitride powder is non-allergenic, and non-toxic to mammalian cells. Additional development and testing will continue with the goal of meeting ISO and ASTM standards in the forthcoming months.”
The company already has a commercialization agreement in place with O2TODAY. SINTX’s silicon nitride will be used in O2TODAY’s consumer face masks this year. The agreement is for a 2-year term with an extension option. With these latest developments and an obvious focus for traders on controlling the pandemic, SINT stock has bounced strongly off of its 50-day moving average this week.
Onconova Therapeutics
Shares of Onconova Therapeutics also saw a similar technical bounce on Tuesday. Like SENS, ONTX stock fell for most of February, ultimately testing its 50-day moving average late-last week. Since then, it has been tightly trading along this technical level, albeit in an uptrend.
[Read More] Best Penny Stocks To Watch On Robinhood As Biotech Sector Rebounds
This week is a potentially important one for the company as it kicks of Onconova’s conference circuit. The company will conduct 1-on-1 meetings at the H.C. Wainwright Global Life Sciences Conference. Next week, Onconova continues on this path with meetings at the Roth and the Maxim Group Emerging Growth Conferences from the 15th through the 18th.
The company’s main focus is on developing cancer treatment candidates. Right now, its ON 123300 is in a dose-escalation and expansion Phase 1 trial in China. A dose-escalation and expansion Phase 1 trial is planned in the U.S. to commence in the first half of this year. Late last year, the FDA gave the nod to the company to proceed with a Phase 1 trial for ON 123300 under its Investigational New Drug Application for the treatment.
Genius Brands
Love it or hate it, but Genius Brands has been one of the popular penny stocks to watch for the better part of the last year. Shares traded from lows of $0.05 to highs of $11.73 last year before coming back down to earth. However, despite this as the case, the last few quarters have been interesting to watch. For GNUS stock, the price has been slowly creeping higher.
What’s more, both the 50- and 200-Day Moving Averages have acted as a level of support for the penny stock many times. The one thing to consider when including these two technical levels in your analysis is that the 200 is still above the 50, generally a slightly bearish indication. Needless to say, since the beginning of September in 2020, GNUS stock has crept up by over 80% to date. It has also climbed as high as $3.06 as the company released progress updates on its entertainment offerings.
This month, momentum has continued reaching milestones with the launch of a digital linear channel for ad-supported scheduled viewing experiences. The company’s Kartoon Channel! has been the center point for its entertainment model focusing on children’s entertainment.
“Since we launched Kartoon Channel! less than a year ago, we have consistently expanded distribution, now available in over 100M U.S. television households, and we are continuing to build the channel offering with this latest FAST channel launch to both increase consumer and shareholder value,” commented Jon Ollwerther, General Manager of Kartoon Channel! & EVP of Global Business Development at Genius Brands. Since the announcement, momentum has built up in GNUS stock.
ZW Data Action Technologies
Another one of the penny stocks to watch right now is ZW Data. One of the interesting things about it is that there hasn’t been any news to pair with the rebound in the market. However, what we do know is that CNET stock has been wrapped into the conversation along with cryptocurrency names.
In particular, the company has focused on expanding its Blockchain Infrastructure Framework platform. Last month ZW announced a strategic cooperation agreement with Wuhan BitSpace Tech Inc. to build a join blockchain mining platform. BitSpace will provide blockchain mining technology for numerous channels and user services. In turn, ZW’s blockchain infrastructure framework platform will offer a model of smart contract to automatically aggregate mining as well as automated distribution of income.
With cryptocurrency penny stocks remaining a clear focus in light of Bitcoin prices surging, CNET could be one of the penny stocks to watch right now.
Penny Stocks & Volatility
Year-to-date, these penny stocks are up big percentages. But as I’m sure you’ll see from the charts, it hasn’t been a smooth ride. Big spikes to highs and big drops to lows have been seen along the way. So if you are looking for penny stocks to buy right now, be sure to account for any volatility in the broader markets and the markets for the particular stocks themselves.
