Penny stocks are some of the most volatile things to trade in the stock market today. With broader markets tumbling and volatility at much higher levels, it doesn’t take long to find it hard to find a rhythm. Does that mean it’s impossible to make money trading stocks (and options) in the stock market today? Are penny stocks entirely out of the question? The answer to both of those questions is No. But it isn’t a time to dive in, head-first, without an action plan. In light of that volatility, it’s essential to have a strategy in place and understand that “today’s” stock market trends may not be the same “tomorrow” or the next day.
Considering that the Federal Reserve is expected to raise rates this week during its 2-day meeting, tensions are already high. However, some analysts have taken a closer look at specific companies. Even amid the bearish turmoil, it appears that they’ve got a bright outlook for a few of the names on this list of penny stocks. Some have even set price targets 900% higher than this week’s trading levels.
Penny Stocks To Buy [according to analysts]
- Blue Apron Holdings (NYSE: APRN)
- Arrival Group (NASDAQ: ARVL)
- Clover Health Investments (NASDAQ: CLOV)
Best Penny Stocks To Buy Now
Thanks to this wild action in the stock market today, pinpointing opportunities requires some know-how. Many traders were introduced to the stock market during the pandemic. You had companies like AMC Entertainment and GameStop surging thanks to bullishness in the market, along with a sea of new retail traders buying up beaten-down companies. This time around, fundamentals are much different, and global economic conditions have made a clear impact. What are the best penny stocks to buy right now? Let’s see what analysts are looking at with these companies, then you can decide for yourself.
Blue Apron Holdings (NYSE: APRN)
Shares of the food delivery and meal prep company Blue Apron have seen their prices sliced and diced over the last few months. APRN stock hit fresh 2022 lows of $3. Slower growth and missed earnings haven’t helped things either. However, this week, APRN received a jolt of upbeat sentiment after news of a $70.5 million capital infusion. The debt and equity financings are broken down, with RJB Partners committing to a $40 million private placement at $12 per share. A $20 million investment was completed, with an additional $20 million investment expected in Q2 2022. Blue Apron’s President, CEO Linda Findley, invested $500,000 in a private placement at $12 per share.
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APRN Stock Forecast
What do analysts think about APRN stock? There haven’t been many new ratings placed on APRN in the last 12 months. However, looking back at the most recent from Morgan Stanley from 2021, we can see they had higher hopes for the company. The firm carries an Equal-Weight rating and a price target of $6.50. When the rating was made, this target was an upgrade from the prior $5.60 target.
While that may emphasize a significant upside to some, researchers at Citron Research have much higher expectations. In a recent presentation, the company placed a $40 target on APRN stock, saying, “The food market is on the cusp of massive digital disruption as eCommerce penetration rates are low single digits despite food being by far one of the largest consumer markets.”
Based on the latest trading levels around $4, that $40 target is ten times higher right now.
Arrival Group (NASDAQ: ARVL)
Like Blue Apron, Arrival shares haven’t been able to reclaim their losses over the last few months. Since November, the “affordable” electric vehicle design and production company has seen its stock price plummet from over $17 to under $2. A downtrodden sentiment on the outlook for growth stocks hasn’t helped things either.
However, even with the stock market down today, shares of ARVL stock managed an early bounce. This move comes just about a week out from its next round of earnings. First-quarter results will be delivered before the market opens next Tuesday. Investors may also be looking for more follow-up on comments made by Arrival’s President, Avinash Rugoobur, earlier this month. Rugoobur said that the company is seeing surging demand for its vehicles and expects to build 400-600 Vans this year as “UPS will be getting its vehicles.”
ARVL Stock Forecast
Whether or not speculation is in the driver’s seat is to be seen. However, the most recent ratings on ARVL stock from analysts at Barclays put a hefty expectation on the company’s shares. The firm has an Overweight rating and a price target of $6. That’s roughly 200% higher than current market prices.
Clover Health Investments (NASDAQ: CLOV)
Like many on this list of penny stocks, Clover Health has battled a bearish trend for the last several months. The company has worked on growing its platform to improve access for seniors to healthcare. Clover reported better than expected Q4 results prompting some insider buying earlier this year. Heading into May, earnings are back in focus as the company reports on May 9th. Based on the last forecast from Clover, it expects 2022 total revenue to exceed $3 billion. The drivers include a projected 90% year-over-year growth in lives under management. As this is the case, it will be interesting to see how the market reacts leading up to and following this next round of earnings results.
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CLOV Stock Forecast
Should you buy CLOV stock? Canaccord Genuity initiated coverage on Clover Health this year. The firm gave it a Buy rating and started CLOV with a $6 target. Considering that shares are still below $3 per share, that target is more than 100% higher.
Conclusion
The thing you need to ask yourself is this: Are penny stocks good for beginners? Learning how to trade can be exciting, and penny stocks can quickly add to this emotion. However, a clear strategy and a keen understanding of handling volatility are important. If you are interested in learning more about penny stocks and the stock market as a whole, then you need to check out True Trading Group, the fastest growing & highest-rated online premium educational platform available today.
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