Numerous factors must be considered as you search for penny stocks to buy in the current market. Emotions are running high, from overarching recession and inflation narratives to the potential for a stock market crash in 2023. This has led to increased volatility and a unique environment for retail traders and investors.
A particularly active and sought-after segment of the market is low-priced stocks. The appeal of these stocks is mainly due to their unique price movements. Even when the overall market is down, numerous penny stocks continue to rise. Moreover, the fluctuations in these stocks can be rapid. For instance, during Thursday’s morning session, U Power Ltd (NASDAQ: UCAR) experienced a sudden 56% increase in value.
Recognizing the driving forces behind these low-priced stocks’ activity is crucial. Sometimes, it might be fueled by speculation for various reasons, like what was seen with UCAR stock today. U Power is an EV market company focused on battery-swapping technology. It has a modular battery-swapping platform that can offer power solutions for electric vehicles. What it does came secondary to market metrics as a mix of attention on low float stocks & EV stocks converged in the stock market today.
But that isn’t the only way to find names for your list of penny stocks to watch. Today, we’re examining another valuable piece of information: analyst opinions.
Penny Stocks to Watch
Oatly Group (OTLY)
Last year was one of the worst for Oatly Group. Shares slipped to all-time lows of $1.28 as the company battled numerous macro headwinds. The oat drink company has since turned things around as far as the market is concerned, and on May 9th, it will release its latest performance figures for Q1 2023. The last Q4 and 2022 business update shows that the company’s 2023 guidance was for revenue growth between 23% and 28%.
CEO Toni Petersson also noted, “Our supply chain is back on firmer footing, we have clear line of sight to reaching profitability, and we have the liquidity needed to fully fund our growth investments and reach financial self-sufficiency. Therefore, we believe we are well-positioned to start playing offense in 2023.”
In the meantime, OTLY stock is trading in a tight channel and maintaining higher levels in 2023 compared to 2022’s year-end. It recently inked a deal with McDonald’s and Swiss International Air Lines.
What do analysts think about OTLY stock? The Royal Bank of Canada weighed in recently. It has an Outperform rating and a $7 price target. Considering OTLY stock sits at around $2.40 as of this article, the target is 191% higher.
Applied Therapeutics Inc. (APLT)
People trade penny stocks for their potential for big moves in short periods. Applied Therapeutics is a clear example. Less than a week ago, APLT stock was under $1. This week, shares have reached over $1.70 so far.
The most recent move to the upside has come with the news that the company’s govorestat (AT-007) demonstrated a clinical benefit in its ACTION-galactosemia kids trial. As a result, the company now plans to request a pre-NDA meeting with the FDA. It also explained that Applied “already received feedback from the EMA supportive of a submission in Europe.”
“Govorestat has demonstrated consistent results on improvement in galactitol biomarker levels in both adults and children and on long-term clinical and functional outcomes in children with Galactosemia,” said Riccardo Perfetti, MD, Ph.D., Chief Medical Officer of Applied Therapeutics.
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What do analysts think about APLT stock now? Baird recently adjusted its target to $14 and maintained an Outperform rating. Based on the current trading levels around $1.76, that target is roughly 695% higher. However, it is worth noting that the penny stock has extended exceptionally quickly, and paying attention to market trends could be key at this point.
Akebia Therapeutics (AKBA)
Shares of Akebia have steadily risen over the last few months. Despite still being a “penny” stock and trading below $1, shares have climbed nearly 100% since the first week of April.
One of the more recent milestones is Akebia’s receipt of an interim response from the FDA. This was to appeal its vadadustat treatment of anemia. It met with the FDA to discuss the next steps regarding the interim response to its Formal Dispute Resolution Request. This was prompted by a Complete Response Letter last March. A favorable Committee for Medicinal Products for Human Use (CHMP) opinion in Europe for the drug candidate has also helped boost sentiment in the market.
The CHMP of the European Medicines Agency adopted a positive opinion. This was regarding recommending the European Commission to approve Vafseo™ (vadadustat) for treating symptomatic anemia associated with chronic kidney disease. This will be reviewed, and a final decision will be delivered. Akebia said the decision would be made within months.
The company also presented posters at the National Kidney Foundation Spring Clinical Meetings on April 11-15. Shortly after this, analysts at HC Wainwright adjusted their price target higher to $2 and maintained a Neutral rating. Despite not having a “Buy” on the stock, HC’s target sits significantly higher by roughly 135% compared to levels at around $0.85.
Tilray (TLRY)
Shares of marijuana stocks surged early in the stock market on Thursday. It wasn’t due to any single company’s news but a broader market event. A bipartisan group of lawmakers introduced a cannabis banking bill in Congress this week. According to the founder and co-chair of the Congressional Cannabis Caucus, Earl Blumenauer, the bill will “save lives and livelihoods” to address “unfair and unsafe prohibition” of banking services for cannabusinesses.
Tilray rebounded strongly from its 52-week lows on Wednesday thanks to this news. The company also struck a chord with some looking for pot stocks with diversification beyond cannabis. In this case, Tilray turned heads thanks to its beer division. The company’s added focus on a diverse acquisition strategy has brought on numerous beer brands. These include SweetWater Brewing, Alpine Beer Co., Green Flash Brewing, and Montauk Brewing.
Ty Gilmore, President of U.S. Beer at Tilray Brands, said in an April update, “Tilray Brands’ U.S. Beer division has enormous potential to grow even further as we continue to expand our distribution network into new markets across the U.S. and grow our leading portfolio of diverse craft brands that resonate with adult consumers.”
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What do analysts think? Cowen has an Outperform rating on the pot stock and a price target set at $5, which is roughly 110% higher than the current $2.38 level as of this article. It’s also worth noting that cannabis stock rallies have been mostly short-lived. So if TLRY stock is on your watch list, it may be something to remember.
List Of Penny Stocks To Buy According To Analysts
- Oatly Group (NASDAQ: OTLY)
- Applied Therapeutics Inc. (NASDAQ: APLT)
- Akebia Therapeutics (NASDAQ: AKBA)
- Tilray (NASDAQ: TLRY)
