Penny Stocks To Watch With Analyst Buy Ratings
Despite their volatility, penny stocks are continuing to attract interest from investors this year. For the most part, anyone trading these cheap stocks understands that these can move very quickly. That’s one of the big reasons why I think investors trade penny stocks. The ability to turn a profit quickly is something that the broader market doesn’t typically offer.
I know there’ve been several outliers especially this year. But for the most part, it usually takes years for blu-chip stocks to jump 50% or more. However, just because there’s higher risk with penny stocks, it doesn’t mean they don’t attract institutional interest.
Aside from family offices and hedge funds investing in penny stocks, analysts also take interest in some of these companies. I think there’s a common misconception that since stocks under $5 are akin to the “start-up” mentality, they aren’t developed enough to become viable targets for analysts.
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Needless to say, it’s exactly this “potential” that analysts pay attention to. Are these firms always correct in their ratings? No, but what’s more is that should show you the point I’ll make right now. Analysts can be highly regarded by traders and investors. At the end of the day, however, they are just one part of a much larger picture when it comes to research. With this in mind, do you agree with analysts on these penny stocks with Buy ratings?
Penny Stocks To Buy [According To Analysts]: Exela Technologies
Exela Technologies (XELA Stock Report) has been one of the penny stocks to watch since the second quarter this year. When we first came across the company, XELA stock traded around $0.30. Attention started to pique after the company tweeted about its previously announced deal with Co-operative Bank.
The two companies are working together to expand their existing partnership to deploy Exela’s Confirmation of Payee platform. The company has also been pushing attention to its contactless solutions. In a tweet from earlier in the week, Exela said, “As college campuses look to reopen in the fall, Intelligent Lockers provide a safe, contactless way for students to pick up packages.”
Furthermore, it’s also worth noting what the company reported back in April. Exela announced that the United States Patent and Trademark Office issued patent 10652413 to Exela. This was regarding document processing. The patent introduces a new solution to automatically separate documents during scanning and processing by placing a unique indicator on pages where separation is needed, rather than using a traditional page separator. The solution is an essential part of Exela’s Digital Mailroom platform. It helps organizations extend remote working capabilities, maintain operational continuity and minimize the legal risk of lost mail.
Why is this worth noting? As you’ll see from other companies like DocuSign (DOCU Stock Report), this sector has been heating up. With coronavirus pushing a “contactless” initiative, investors have taken notice. DOCU stock, for instance, has jumped nearly 200% since the start of the year. Considering that it began 2020 around $74, it makes sense that the market could be looking toward “sympathy” or “similar” stocks.
Penny Stocks To Buy [According To Analysts]: Rigel Pharmaceuticals Inc.
Analysts covering Rigel Pharmaceuticals Inc. (RIGL Stock Report) give a “Strong Buy” rating for the stock. The company focuses on immune and hematologic disorders. The company’s first FDA approved product is TAVALISSE® (fostamatinib disodium hexahydrate) tablets. It is an oral spleen tyrosine kinase (SYK) inhibitor for the treatment of adult patients with chronic immune thrombocytopenia.
The product has been approved by the European Commission for the treatment of chronic immune thrombocytopenia in adult patients who are refractory to other treatments and will be marketed in Europe under the name TAVLESSE® (fostamatinib). Raul Rodriguez, Rigel’s president, and CEO explained, ” Europe represents approximately half of the estimated $900 million ITP market outside of the U.S., and Grifols’s experience with treatments for hematological disorders make them the ideal collaborative partner for our product.”
Last week the company announced that Grifols S.A.has launched TAVLESSE® in Germany and the United Kingdom. Grifols is Rigel’s collaborative partner in Europe. What’s more, is the type of investors Rigel has attracted. Again, just because they’re considered “penny stocks” it doesn’t mean potential isn’t there for these companies to grow. In a 13G/A filing posted on July 10th, it shows BlackRock, Inc. holding a stake in the company. The firm has a 10.2% stake in Rigel as of that filing.
Penny Stocks To Buy [According To Analysts]: electroCore Inc.
electroCore Inc. (ECOR Stock Report) got off to an explosive start this week. Even before the opening bell rang, ECOR stock traded more than 18 million shares. It also jumped to highs of more than $3. What happened that triggered such a move?
The company announced that the FDA issued an Emergency Use Authorization allowing for the use of its gammaCore Sapphire™ CV product. It’s a non-invasive vagus nerve stimulation product that can be used at home or in a healthcare setting to treat adult patients with known or suspected COVID-19. Patients also experience an increase in asthma-related dyspnea and reduced airflow.
JP Errico, electroCore Board member, co-founder and co-inventor of gammaCore, commented, “This FDA decision is an encouraging first step toward developing evidence that may provide a basis for electroCore to pursue expansion of nVNS into reactive airway disease (RAD), which was the first area of research for electroCore.”
Where do analysts stand on ECOR stock? According to those tracking it, the average rating sits at a “Strong Buy”. Earlier this year we discussed electroCore as well. In April, the company announced receipt of 501(K) clearance from the FDA for its gammaCore therapy for migraines. It was also when electroCore first announced the submission of its Emergency Use Application to the FDA for gammaCore. Since April, the penny stock has rallied from around $1 to now over $3 during premarket trading on Monday. Will ECOR stock continue surging this week?
Penny Stocks To Buy [According To Analysts]: NovaBay Pharmaceuticals Inc.
NovaBay Pharmaceuticals Inc. (NBY Stock Report) is another one of the premarket movers on July 13. This was also another one of the penny stocks we’ve watched closely throughout the duration coronavirus has been around. Since March, NBY stock has been on the move. It has now jumped from around $0.30 to as high as $1.85. Initially focused on for its KN95 face mask, NovaBay attracted attention as one of the “epicenter penny stocks“.
This week, however, news of a different kind is putting investors’ focus on the company. Monday, NovaBay announced testing results from an independent third-party laboratory. These results confirmed that Avenova® kills SARS-CoV-2. Avenova is NovaBay’s proprietary formulation of pure hypochlorous acid. According to the company, test results now head to the Environmental Protection Agency. This is for the EPA’s approved list of disinfectants for use against SARS-CoV-2.
“Since Avenova’s inception, we have known it to be a powerful antimicrobial spray solution, effective against all types of pathogens, including a wide variety of viruses, bacteria, and fungi. Now we have results from a highly reputable independent laboratory confirming Avenova kills the coronavirus that causes COVID-19,” said Justin Hall, NovaBay CEO. As far as analysts are concerned, average ratings show NBY stock as a “Strong Buy”. Will this week see new highs for the penny stock following its latest news?