Are These Penny Stocks Set To Head Higher This Week?
One of the most important things to keep in mind with regards to penny stocks is that it’s possible to generate substantial returns within a short timespan. While that may be true, an investor still needs to conduct thorough research and narrow down a longer list of penny stocks.
One of the best ways of going about it is by watching the market closely and tracking the movements of penny stocks. Market experts often ask investors to track the momentum in stocks when it comes to making penny stock picks.
It’s often seen that a bet on a stock with good momentum ends up generating impressive returns. In the case of penny stocks, the rewards could often prove to be enormous. Hence, penny stock investors need to watch the market very closely and identify stocks that may be gaining momentum.
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In the case of today’s market, the major indexes are nearing fresh highs. This, of course, has created a frenzy across all markets with some of the more volatile industries flourishing. On that note, here is a closer look at 5 penny stocks that have been gaining momentum as the market rallies.
Penny Stocks to Buy [or Avoid]: Matinas BioPharma Holdings (MTNB)
One penny stock that made highly impressive gains was Matinas BioPharma Holdings Inc (MTNB Stock Report). On Friday, as the company’s peers, Amarin Corporation plc (AMRN Stock Report) announced that the fish oil derived pill that is meant for cardiovascular events was approved by a committee of the U.S. Food and Drugs Administration.
The committee voted unanimously in favor of the medicine and it goes without saying that it is a major development for Matinas. The stock price rallied as soon as the news broke and it rallied by as much as 15.55%. MTNB stock continued higher on Monday.
This extended move came as the company announced that Jerome D. Jabbour, Chief Executive Officer, was invited to present at the 31st Annual Piper Jaffray Healthcare Conference. Though this isn’t necessarily a near term event, it does give investors something to look forward to at the start of December. On December 3 the company presents in New York.
Penny Stocks to Buy [or Avoid]: Endo International (ENDP)
Another penny stock that recorded gains on Friday was the Endo International PLC (ENDP Stock Report) stock and it was possibly triggered after the company’s announcement with regards to its next CEO appointment. Endo announced that the current CEO and President of the company, Paul Campanelli will only step down once a successor is named.
Campanelli was appointed as the company’s CEO back in 2016. The announcement perhaps managed to drive away any uncertainty with regards to Endo’s leadership. The stock rallied by 9% on Friday. Shares of ENDP stock briefly pulled back to start the week but have since recovered.
In addition to Campanelli’s retirement, Endo also reported stronger earnings. The company posted adjusted net income of $0.60 per share. This topped estimates of $0.53 per share that analysts expected. Furthermore, the company also recorded nearly $730 million in revenue. Even though this was down from the same period last year, it beat estimates by over $20 million.
Penny Stocks to Buy [or Avoid]: J C Penney Company (JCP)
A third penny stock to watch is department store chain J C Penney Company Inc (JCP Stock Report). The troubled company has been on the verge of collapse due to billions of dollars in debt. JCP stock price has crashed significantly over the past few years. However, last week the company managed to surprise the markets by beating analysts’ estimates with regards to its losses. It followed the same trend that industry comp, Dillard’s (DDS) saw after a surprise earnings beat.
Analysts had projected losses of $0.55 per share but J.C. Penny managed to control the losses to $0.30. It is believed that that company cut costs on a range of areas in order to come up with this performance. The stock shot up on the back of the development.
Furthermore, to start the week, JCP was given an increased price target by B. Riley analysts. Though the firm kept its rating at “Neutral” for the company. A report in Barron’s came out this week citing several upcoming industry events that investors should keep in mind. These could impact retail stocks like J.C. Penney and include Home Depot & Lowe’s earnings as well as TJX and Ross stores.
Penny Stocks to Buy [or Avoid]: Diplomat Pharmacy (DPLO)
The other penny stock that enjoyed significant momentum on Friday was that of Diplomat Pharmacy Inc (DPLO Stock Report). A few days earlier the company had rocked its investors by announcing that it had lost an important client. In turn that had made its relations with its creditors quite precarious.
That had led to a significant fall in DPLO stock price. However, analysts believe that the stock price bounced back by as much as 14% on Friday because the company might get acquired by a larger company. Is there truth to the speculation?
As we’ve seen, rumors can turn into real, material events like the case of Fitbit and Google, but they can also be fleeting more times than not so I wouldn’t put too much value in rumors just yet.
In any case, since dropping, shares have rallied back by more than 50% over the last week. Though DPLO traded higher on Monday, prices consolidated after analyst remarks came out. Credit Suisse maintained a neutral rating but cut its price target on the stock to $5 from $6.
Penny Stocks to Buy [or Avoid]: Servicesource International (SREV)
Last but not least, Servicesource International Inc (SREV Stock Report) is a company that has shown highly impressive momentum. This wasn’t just for a day or two. SREV stock has rallied for the past three weeks and has gained as much as 104% during the period. The company released its third-quarter financial results at the end of October and it managed to surpass analysts’ revenue estimates comfortably.
Analysts had estimated revenues of $53.40 million but ServiceSource managed to generate $57.17 million. After these results, of course the market looked to analysts for a response.
In true fashion, the market got what it was looking for and then some. Analysts from B. Riley upgraded its rating on ServiceSource to Buy from Neutral. Thanks to this momentum, SREV managed to near its 52-week highs of $1.83. Can it make history this week?