Are These On Your List Of Penny Stocks To Buy Right Now?
There’s a question that pops up from time to time: Should penny stocks and analyst ratings go together? A better way to ask this, in my opinion, is: should you take analyst ratings into account if you’re talking about penny stocks? Honestly, for an analyst to cover low priced equities, they’re likely basing their expectations on the potential of the company.
Much like traditional startups, companies trading in the market as stocks under $5 typically have some growth to do. That’s not a bad thing, however. It just means that if you’re looking for earnings multiples and all that blue-chips have, you might not find it because it’s an early-stage company.
Needless to say, there’s still a lot to get excited about when it comes to these low priced stocks. Being able to see a company from the “ground floor” so to speak does have its perks. On top of that, small moves in price based on early achievements can equate to large percentage gains as I’m sure you’ve figured out. That’s not to say that risk doesn’t play a role. Just as fast as you can see these cheap shares jump, they can also drop from catalyst like negative headlines.
So always keep in mind that while even analysts may be bullish on certain penny stocks, the point in time that you’re looking at these stocks may not be the same as the analysts. Some of these firms will rate a stock once a year and that’s all you’ll get. Where an analyst might be bearish on a penny stock at the beginning of the year, things can obviously change a month or even a few weeks after that. Just keep that in the back of your head when doing your research. On that note, let’s take a look at some penny stocks analysts have bullish ratings on right now. Will they be on your list of penny stocks to buy?
Penny Stocks to Watch: T2 Biosystems Inc.
Earlier this year, T2 Biosystems Inc. (TTOO Stock Report) became a more frequently discussed company amid all of the exciting things happening in health care and biotech. Since then, we’ve seen shares explode from around $0.50 to highs of $1.95 on June 10. At the start of June, anticipation was building around the expected first shipment of the company’s SARS-CoV-2 test.
After reaching those highs, there’s been a bit of a pullback. However, the company hasn’t simply gone silent. Even with a bit of profit taking, T2 made several key updates including changes to its board. The company also regained compliance with NASDAQ and gave insight on places like Huntsville Hospital concluding that using T2Candida led to fewer days of antifungal therapy.
But quite possibly the biggest news, recently, came after the close on Tuesday. announced unaudited preliminary financial result estimates for the quarter ended June 30, 2020. In addition, T2 announced the U.S. launch of the T2SARS-CoV-2™ Panel, the new molecular diagnostic test for the detection of SARS-CoV-2. TTOO stock started climbing during aftermarket trading on June 30th and could be one to watch starting the new Quarter on July 1. Currently, among analysts, the average rating shows a “Moderate Buy”. Do you agree with this after the company’s latest update?
Penny Stocks To Watch: Opko Health Inc.
Shares of Opko Health Inc. (OPK Stock Report) have been on the rise since early April. At the time, OPK stock had gotten pummeled by selling pressure and dropped to a low of $1.12. But fast-forward to this month and shares have climbed to highs of over $3.50 on June 30. When we started looking at it more closely, Opko was caught up in coronavirus penny stock trends. This was driving momentum for many biotech stocks.
But it made sense why. Unlike many of the companies that didn’t announce anything and jumped simply because of the sector or treatments in their pipeline, Opka was different. The company announced that its BioReference Laboratories company will prioritize COVID-19 testing for hospital patients around the country. In the company’s last corporate call, CEO Phillip Frost explained, “In the beginning of June, we received FDA authorization to pursue a Phase 2 clinical trial RAYALDEE in patients with mild to moderate COVID-19. If this works out well, it would be extremely interesting because there’s a unique mechanism of action which gives the scientific basis for this trial.”
However, recent news comes from a development milestone it reached with its somatrogon treatment. In 2014, Pfizer and OPKO entered into a worldwide agreement for the development and commercialization of somatrogon. This was for the treatment of growth hormone deficiency. Opko reported that its Japan Phase 3 clinical trial met its primary and secondary objectives.
It also demonstrated that the efficacy and safety of somatrogon administered weekly was comparable to GENOTROPIN® (somatropin). Ironically, GENOTROPIN is distributed by Pharmacia and Upjohn Co., a division of Pfizer, Inc. Among analysts right now, the average rating is showing a “Strong Buy”. Is it on your personal list of penny stocks to buy right now?
Penny Stocks To Watch: Nokia
With COVID-19 dominating headlines, you might’ve forgotten all about the “big thing” in tech. I’m talking about the race for 5G. The growing popularity of 5G penny stocks and really 5G stock, in general, hasn’t slowed down. Nokia (NOK Stock Report) has been one of the main 5G penny stocks we’ve watched progress over the months.
While the beginning of the year was strong for NOK stock, the entire market took a dive in March. Nokia joined in that “party” too. But it has been relatively resilient ever since and made a very steady, consistent move higher. As of June 30th, NOK stock has recovered by as much as 94% following highs of $4.54 earlier this month.
June has been a busy month for Nokia. It signed a data center infrastructure deal with Tencent and Baidu. It also ran a successful trial of the “RAN Intelligent Controller” over AT&T’s commercial 5G network. The companies are co-developing this software platform to boost interoperability and enable rapid service deployments.
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This week the company announced another big 5G development. Nokia inked a EUR400 million deal with Taiwan Mobile. The company will become the only supplier of Taiwan Mobile’s 5G network in a 3-year deal. It will also see Nokia provide its 5G RAN portfolio that will enable Taiwan Mobile to deliver 5G access to its subscribers. Among analysts, the average rating shows as a “Strong Buy”.