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Best Penny Stocks To Trade As Markets Reach New Highs?

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Will These Penny Stocks Break to New Highs This Week?

The stock market has been in breakout mode this week as the Santa Claus rally continued to push stocks higher on Thursday. The NASDAQ managed to break a new, all-time high and other markets around the world also saw big surges in trading momentum. Penny stocks were also included in this as many cheap stocks saw big trading volumes.

However, given the fact that this is within days of the end of 2019, can it continue? The U.S. stock market has managed to break new all-time highs at least once a week for several weeks now.

This morning, stock market futures also saw yet another push higher. As far as volatility is concerned, the markets are enjoying more uptrend than anything right now. For those looking for quick swings, small-cap stocks and micro-cap stocks may be a viable option.

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If you’re not familiar with how penny stocks work, make sure you take time to get educated. These low-priced stocks tend to move quickly and can produce gains of hundreds of percentage points in days; sometimes hours. Heading into the last Friday of the month, here’s a list of penny stocks to watch that have begun to firm up multi-day uptrends.

Penny Stocks To Trade: Correvio Pharma (CORV)

One of the hottest sectors of the stock market has been biotechnology. When it comes to these stocks, the companies behind them focus on novel therapies and life-changing treatments. As a result, biotech stocks tend to perform on both rumor/speculation and news/fundamentals. Correvio Pharma (CORV Stock Report) hasn’t had the easiest month this month.

In fact, at the start of December, shares plummeted after it was reported that the FDA said the benefits of its Brinavess didn’t outweigh the risks associated to its use. After the dust settled, CORV stock dropped from above $2 to lows of $0.349. But since then the stock has been in rally mode as have the broader markets.

What appears to be optimism around the company’s comments in response to the FDA have boosted shares (for now). The company said that its intention is to request a meeting with the FDA to discuss the design and specifics of a possible study to address the outlined concerns. Since then, the penny stock’s rallied from $0.369 to $0.56 on Thursday.

Penny Stocks To Trade: Yield10 Biosciences (YTEN)

Another one of the biotech penny stocks to watch this week, Yield10 Biosciences (YTEN Stock Report) has also seen a similar trend as Correvio. Shares dropped earlier this quarter but this week, YTEN stock has jumped to new December highs.

Instead of pipeline updates, the company has benefited from a few things over the last 45 days or so. First, a 13G filing showed considerable interest in the company from Empery Asset Management.

[Read More] These 2 Penny Stocks Just Hit New Lows; Can They Recover?

It holds a 9.1% stake in the company. This week, an 8K filing showed that the company received notice from NASDAQ that it was granted an additional 180 days (to June 22, 2020) to regain compliance. Since shares trade below $1, NASDAQ requires listed companies to have a minimum bid price above this. Now Yield10 has 6 months to do so.

Penny Stocks To Trade: Proteostasis Therapeutics (PTI)

Oddly enough, Proteostasis Therapeutics (PTI Stock Report) has found itself in a similar circumstance as the two penny stocks previously mentioned. PTI stock was on a roll during November and into early December. In fact, the stock managed to move from $0.82 on Nov. 1 to highs of $4.72 on December 11th. But after that, the stock dropped to lows of $1.21. So the first question is why.

The company reported positive trial results from a phase 2 trials of its cystic fibrosis therapy. However, it lagged against rival, Vertex Pharmaceuticals’ (VRTX Stock Report) trikafta. This can be a risk with biotech stocks. There’s a lot of competition in the market so it’s very important for trials to show absolute improvement above all others or, at least, in line with others.

Needless to say, there wasn’t any other news after this and shares of PTI stock have rallied since. H.C. Wainwright analyst Andrew Fein thinks the Phase 2 data reported by Proteostasis “are more positive than the Street perceives.”

“Although the 8% mean ppFEV1 improvement fell short of the perceived bar of 10% in cystic fibrosis, treatment, this level of benefit is nevertheless approvable.”

Fein to investors in a research note

This week the stock reached highs of $2.72 on above-average trading volume. Is this a signal for a new uptrend or just a head-fake before the end of the year?

Penny Stocks To Trade: Mereo Biopharma Group (MREO)

Mereo Biopharma (MREO Stock Report) develops therapies for specialty diseases. Its pipeline includes several drugs in Phase 2 clinical trials with a range of applications. In November, the company announced that its setrusumab demonstrated dose-dependent bone-building and trend in fracture reduction via a Phase 2b ASTEROID study in adults.  However, since then, there hasn’t been much by way of penny stock news.

Thursday saw shares of MREO stock skyrocket on above-average trading volume. On December 24, the stock hit new 52-week lows of $1.08 but yesterday the stock rallied to highs of $2.47 in after-hours trading. Without any news or filings, it will be something interesting to watch. The initial move didn’t begin until later in the day on Thursday.

By J. Samuel

As a trader and expert finance writer, I enjoy finding new and emerging trends that may have been overlooked by the average masses. If there's one thing that a trader or investor wants to know, it's how to use valuable data to their advantage. My expertise is in uncovering this data and compiling it into actionable information. As a professional finance writer, I've contributed to many of the top finance platforms and pride myself on researching factual, publicly available information and using that in all of my articles.

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