How do you find the best penny stocks to buy right now? You might try to find the next big meme trend or social media breakout stock. However, another strategy is finding stocks that analysts are bullish on right now. In this article, we’ll do exactly that. One of the helpful things about Wall Street analysts is that they do some of the homework for you. While their opinion isn’t the end-all (nor should it be), they tend to look into more than just what’s on the surface or what type of speculation is in play.
The Stock Market Today
Closing out the week, the stock market could continue its volatility trend. The nonfarm payrolls data came out before the open. Economists couldn’t have been more wrong. Wall Street estimated that some 500,000 jobs would be added in August. However, fewer than 200,000 jobs were added, as the numbers have revealed. This is yet another huge miss in estimates, and as a result, traders are hoping this could change the trajectory of the Federal Reserve’s stance on tapering next month.
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While some traders wait for the market to work itself out and show if this is the relief expected, other traders are focusing on a “stock picking” approach right now. Here are what some analysts think right now about five companies. Will they be the best penny stocks to buy, or should you avoid them entirely?
Penny Stocks To Buy [according to analysts]
- American Resources Corporation (NASDAQ:AREC)
- Kosmos Energy (NYSE:KOS)
- ReShape Lifesciences (NASDAQ:RSLS)
- Seanergy Maritime Holdings Corp (NASDAQ:SHIP)
- Telllurian Inc. (NASDAQ:TELL)
Penny Stocks To Buy [according to HC Wainwright]: American Resources Corporation (NASDAQ:AREC)
The first company on this list of penny stocks has HC Wainwright analysts bullish. American Resources Corporation is a supplier of raw materials mainly used by infrastructure projects. The company focuses on processing carbon (coal) essential for steelmaking and rare earth minerals directed to the budding EV market. Thanks to interest growing that has stemmed from both the reopening trade and a surge in electrification industries like EV, AREC stock has gained interest.
Recent AREC Stock News
This week has been a busy one for American Resources. Updates include progress on its battery recycling initiative with Purdue University achieving 99.5% purity of lithium, cobalt, and nickel. In addition, the company acquired additional mineral reserves for its Deep Mine at the Perry County Resources complex. These reserves include an estimated 10.1 million tons of mineral resources.
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Then closing out the week, the company reported its expansion of carbon production thanks to a restart of its McCoy Elkhorn Complex. According to American Resources, this could be a well-timed event thanks to an expected boost in steel production. It expects to produce over 40,000 tons of carbon per month from its Carnegie complex, processed at its nearby McCoy Elkhorn facility, and shipped into domestic and international markets.
AREC Stock Forecast
Clearly, American Resources has become a part of the budding reopening trade. Thanks to global economies piping money into infrastructure redevelopment and new projects, raw materials are at the core of the supply chain. In light of this, would it surprise you that analysts are bullish? Right now, HC Wainwright’s Heiko Ihle has a Buy on AREC stock with a price target 80% higher than opening trading levels on Friday.
Penny Stocks To Buy [according to Sanford Bernstein]: Kosmos Energy (NYSE:KOS)
Energy and raw materials are a big part of the reopening trade, as you’ll come to see. Kosmos Energy falls right into the fold. The company is a deepwater oil and gas exploration and production company. Its assets are offshore in Ghana, Equatorial Guinea, and the U.S. Gulf of Mexico.
Recent KOS Stock News
Other than earnings released in August, there haven’t been many new updates from the company. For the most part, KOS stock has moved with the overall oil and gas market direction. When it comes to Kosmos Energy’s last earnings update, it experienced increased revenues and a more narrow adjusted loss.
KOS Stock Forecast
Similar to American Resources, analysts may be bullish on Kosmos thanks to the reopening trade. Higher energy demand has put somewhat of a strain on the portion of the raw material of the supply chain. With that has come higher inflation and, thus, higher prices. In light of this, it might make more sense that analysts at firms like Sanford Berstein have given a stamp of approval with an Outperform rating. The firm also has a $7.80 price target, roughly 140% higher than opening levels on October 8.
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Penny Stocks To Buy [according to Alliance Global]: ReShape Lifesciences (NASDAQ:RSLS)
Reshape designs medical devices for weight loss and metabolic health. Its FDA-approved Lap-Band Program allows for minimally invasive treatment for obesity. The ReShape Vest System is an investigational laparoscopically implanted device that wraps around the stomach and is used for weight loss. Reshape also offers reshapecare for virtual weight-loss management to support ongoing communication with board-certified health coaches.
Recent RSLS Stock News
Similar to Kosmos, ReShape hasn’t released much recent news. However, a new VP of Operations and R&D in August along with more substantial revenues for the quarter have been two things traders have focused on. Furthermore, insider buying from CFO Thomas Stankovich this summer came as a vote of confidence for some. Stankovich picked up nearly $50,000 worth of RSLS stock toward the end of August.
However, the company has presented at several industry events and was given a notice of allowance by the US Patent & Trademark Office titled “Intragastric Device” late last month.
RSLS Stock Forecast
According to the World Health Organization, worldwide obesity has nearly tripled since 1975. With an ever-growing population, there remains a constant need for helping those hit by this disease. This week Maxim Group initiated coverage on ReShape with a Buy rating and a price target 167% higher than retail levels on October 8th. Maxim joins other analysts like Alliance Global, who also has a hefty price target on RSLS stock. It sits at $10.25 or roughly 290% higher than where RSLS opened on Friday.
Penny Stocks To Buy [according to Maxim Group]: Seanergy Maritime Holdings Corp (NASDAQ:SHIP)
We’ve discussed Seanergy Maritime frequently as the reopening trade continues to captivate attention from the stock market. The company is a shipowner providing dry bulk transport services. Following its next delivery, the company operates a fleet of 16 Capesize vessels with an average age of 11.5 years and an aggregate cargo-carrying capacity of more than 2.8 million dry-weight tons.
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Recent SHIP Stock News
Seanergy isn’t vocal via its newswire; however, its Twitter feed has become a soapbox of sorts. The company has made it known that there’s a significant value in Cape vessel rates right now. A recent tweet explained that cape vessel rates were $75k/day and that “SHIP has unique benefit through index-linked contracts for most of the fleet.”
Other than that, SHIP stock price movement has reflected a similar tone in a direction that other reopening stocks have seen.
SHIP Stock Forecast
Maxim is the most recent analyst to weigh in on SHIP stock. The firm upgraded its rating to Buy and announced a $2.50 price target. Based on open prices on October 8, this target is 78% higher.
Penny Stocks to Buy [according to B. Riley]: Telllurian Inc. (NASDAQ:TELL)
Finally, Tellurian rounds out this list of penny stocks. Once again, we’re looking at a reopening name. The company provides liquified natural gas services (LNG) to clients. This energy resource has been seen as a “bridge fuel” in the transition to less carb-rich energy sources. It’s developing a portfolio for production, marketing, trading, and infrastructure. This includes a 27.6 mtpa LNG export facility and pipeline.
Recent TELL Stock News
Tellurian has reacted more to the reopening trade momentum than news catalysts. The last update from the company besides naming a new board member was back in August. It was when the company withdrew a senior not offering. With more reopening around the corner, energy penny stocks like TELL could be a focus.
TELL Stock Forecast
B Riley analysts have been optimistic in their outlook on Tellurian. The company has a Buy rating on TELL stock. Analysts also placed an $8 target on Tellurian. Based on its opening price of $3.50, this target is 128% higher.
Should You Buy Penny Stocks With Bullish Analyst Ratings?
Keep in mind that analyst ratings are just one aspect of due diligence. While they can help speed up the research process, there are still many other things to factor in. Market momentum, industry sentiment, and global headlines are also part of the equation. In this article, we gave a brief overview of the recent development in some companies that analysts are bullish on. Will they be top stocks to buy now? I’ll leave the final answer up to you.
