Analysts Appear Bullish On These Penny Stocks; Where Do You Stand?
Looking for penny stocks to buy? I’m sure you’re not alone and right now you’re probably doing research for the rest of the week. No matter how you slice it, the typical timeframe for trading penny stocks is shorter than investing in blue-chips.
If you’re new to this world of stocks under $5 you might be saying, “yea, why is that?” Well aside from the fact that many companies are still in uncertain start-up phases, penny stocks greatly fluctuate in price. Even a few pennies can mean a drop in value by 10% or more.
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So then you might ask why any analyst would want to spend time covering penny stocks. In somewhat of a catch 22, the “uncertain start-up” phase is one of the reasons why certain analysts like to cover these stocks. Now, keep in mind that goes for both good and bad factors. Remember, I’m going over penny stocks that have a buy or hold rating but rest assured, there are other stocks under $5 that have been given sell ratings too.
Are Penny Stocks Worth It According To Analysts?
The fact of the matter is this: since penny stocks fluctuate so much, these ratings may or may not be as relevant as they were at the time they were given. In any case, there are reasons for analysts to initiate coverage so there may be at least a little info to extract from their research. With this being said, should you only listen to what these firms say? In my opinion, research involves much more than listening to one organization or person’s take.
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So as much as analysts’ research may be seen as important, I don’t think it’s a supplement to your own due diligence. Having said this, here are a few penny stocks to buy or hold according to analysts right now. Are any going to make it to your watch list this month?
Penny Stocks To Hold [or avoid]: Nabriva Therapeutics
In April we started focusing a bit more on Nabriva Therapeutics (NBRV Analyst Report). At the time NBRV stock was trading around $0.50 and the company just made a pivotal tweet. It said it’s “pursuing opportunities with the US gov & our partner in China to provide potential treatment options for #coronavirus patients w/suspected/confirmed community-acquired #BacterialPneumonia.”
Since then the market surged, reached highs of over $1, and since pulled back to a level of support around $0.633. At the end of May, NBRV stock was followed up on once again. Nabriva’s XENLETA (lefamulin) was in focus. The Committee for Medicinal Products for Human Use of the European Medicines Agency adopted a positive opinion recommending approval of the therapy to treat community-acquired pneumonia.
This month the company followed up with another XENLETA release. Nabriva signed an exclusive agreement with WEP Clinical to supply XENLETA® on a named patient or expanded access basis. This is designed to ensure that physicians, contingent on meeting the necessary eligibility criteria and receiving approval, can request IV or oral XENLETA on behalf of patients who live in certain countries where it is not yet available.
What’s The NBRV Stock Forecast According To Analysts?
While these developments have been key, its latest news may be something more timely. Nabriva entered into another exclusive agreement, this time with subsidiaries of Merck & Co. Inc. to market, sell, and distribute SIVEXTRO® in the US. This is the company’s antibacterial to treat certain skin infections.
With these latest updates in mind, could analysts be right about NBRV or are they missing the bigger picture? The current average rating on Nabriva is a “Hold” among analysts. Where do you stand on the penny stock right now?
Penny Stocks To Buy [or avoid]: iBio Inc.
Similar to NBRV, iBio Inc. (IBIO Analyst Report) has been on our list of penny stocks to watch. In this case, IBIO has been on the list since last December. But as we know, things picked up when it started getting mentioned alongside other coronavirus penny stocks. As we know, the U.S. has experienced record after record of COVID-19 cases. We’ve also seen a huge surge of interest in vaccine-related stocks.
Moderna set the tone this week but that tone has continued to pick up. Most recently iBio has been focusing on a COVID-19 vaccine. Something else that has brought much more attention to the company is joining the Russell 200 and Russell 3000 Indexes. Despite its CFO resigning, COVID-19 vaccine news has helped give companies, including IBIO a boost in the market this month.
What’s The IBIO Stock Forecast According To Analysts?
Well, recent coverage has come from analysts at Alliance Global Partners. The firm gave a Buy Rating on iBio. It also set a $2.75 price target. The firm joins other analysts covering the stock. While these latest developments have triggered a surge of more interest in IBIO stock, the general analyst consensus holds the company at a “Strong Buy”.
Considering the late afternoon surge on Wednesday, will this market the next leg for IBIO or is it set to slide back under $3 again? This was the case back in February. The penny stock hit a high of $3.40 and almost immediately went into a downtrend for a few weeks after. Without any new updates to suggest as a catalyst for Wednesday’s spike, where do you think IBIO ends up by the end of the week?
Penny Stocks To Buy [or avoid]: Heat Biologics
Initially, Heat Biologics (HTBX Stock Report) was on the radar as March was beginning. HTBX exploded to highs of $1.25 after entering a research collaboration with UM leveraging Heat’s gp96 platform to address SARS-CoV-2 coronavirus. Fast-forward to June and Heat shares continue to climb higher.
Last month, the company came out with news on the initiation of its first clinical trial site for PTX-35. This is Heat’s T-cell co-stimulator. It targets what is known as TNFRSF25 (death receptor 3), which is a receptor that is preferentially expressed by antigen-experienced T cells. You’ve also got to keep in mind that it had announced the first patient was treated in its first-in-human Phase 1 clinical trial evaluating PTX-35.
What’s more is that the company’s latest tweet seems to have sparked a bit of intrigue. On July 15th the company made the following post on Twitter:
What’s The HTBX Stock Forecast According To Analysts?
The timing could also be a factor right now from the look of previous updates. Remember in June, Jeff Wolf, CEO of Heat, said, “We remain on track to complete design and development of our COVID-19 vaccine in July.” He also said the company expects its gp96/nCoV-2 expressing cell line “will be available for clinical-grade manufacturing with our partner, Waisman Biomanufacturing, in early August.”
Among analysts right now, it appears the majority are bullish. The average rating on HTBX stock shows a “Strong Buy”. Where do you see HTBX stock in the grand scheme of things? Is 2020 set for new highs or is a pullback in the works? Since March, the penny stock is up more than 140%.
Penny Stocks To Buy [or avoid]: Zovio Inc.
Zovio Inc. (ZVO Analyst Report) is another “oldie” that we began discussing back at the beginning of November of last year. At the time, shares were trading around $1.80 and Zovio reacted strongly to its Q3 2019 earnings report. After a few more weeks of bullishness, ZVO stock consolidated with the rest of the market at the end of Q1.
But for those who’ve continued watching, you already saw the strength of this latest move. Before I go into the finer details, it’s worth mentioning what Zovio actually does. That’s because it could fall in line with another trend we’ve identified this week. is an education technology services company that partners with higher education institutions and employers. If you’ve read the articles recently, the trend in favor of EdTech penny stocks has been growing stronger. With cities in places like California coming out to say they aren’t planning to reopen schools in the fall, EdTech penny stocks have definitely received attention.
This month, Zovio reported several key updates. These included McGraw Hill, a leading learning science company, expanding its work with TutorMe, a subsidiary of Zovio. The two will offer college students using the McGraw Hill Connect® digital learning platform a free 60-minute tutoring session with TutorMe. Furthermore, San José State University announced a partnership with Fullstack Academy, calling for the launch of programs that will develop beginners into coding or cybersecurity professionals in just 26 weeks. Fullstack is also part of Zovio.
What’s The ZVO Stock Forecast According To Analysts?
Considering these updates came after big deals in June, what are analysts thinking right now? These deals, by the way, were with Caltech’s Center for Technology and Management Education & Virginia Tech.
Both were with Zovio’s Fullstack. Since November, ZVO stock is up over 120% after Wednesday’s $4 high. Since the March dip, ZVO stock has climbed more than 265%. Among analysts, the average rating shows “Strong Buy”. Considering the issue with schools reopening, do you think analysts are correct in their rating?