Are Analysts Bullish Or Bearish On These Penny Stocks?
Whether you’re looking for penny stocks to buy or simply add to your watch list, I’m sure extra insight helps. Whether you get this from your own DD – due diligence – is up to you. But there are ways to gain some added insight from sources like analysts. These market participants focus their time on public companies and the future potential.
They’ll also be present on things like earnings calls, get invites to analyst days, and pour through pages and pages of filings. Now, should you only listen to what analysts have to say? In my opinion, no. But it can help you gain some good information to then make it part of your own research plan.
Unlike blue chip stocks, penny stocks are highly volatile as we all know. That can be problematic when it comes to finding penny stocks to invest in. Most of these cheap stocks encounter big price swings and many end up failing. That doesn’t mean you can’t make money with penny stocks. It just means that you have to take things for what they are. Observe trends, chart patterns, and, of course, the past history of a stock. What does it look like? Is there a clear trend? How has it performed when the company releases news or filings?
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If that trend has been historically down, then a bullish analyst rating might not hold as much weight as your own technical analysis, which may lead you to determine said penny stock as one to trade instead of taking a longer-term position. However, if an analyst has continued covering a stock in a bullish trend, you might hold a bit more weight in what that analyst has to say. With this in mind, do you agree or disagree with analysts on this list of penny stocks?
Penny Stocks To Buy [according to analysts]: Ampio Pharmaceuticals Inc.
Ampio Pharmaceuticals Inc. (AMPE Stock Forecast) has actually been a pretty strongly performing penny stock over the years. Last year was relatively flat with AMPE stock beginning the year around $0.40 and finishing around $0.50. This year, however, AMPE shares have really developed a stronger trend.
In fact, in July, AMPE stock reached a high of $1.24. This came as the company continued reporting strong progress on its COVID-19 treatment candidate. That came to a head after Ampio reported that it had dosed COVID-19 patients with its experimental drug Ampion to test its effect on inflammation as part of its early-stage trial. However, since that time, AMPE stock has experienced some selling pressure. This took the penny stock down from its $1+ highs to recent lows of $0.6209.
Something to notice, however, is the move it made on Friday. Not only did shares rebound, they also continued trading higher after the market closed. By the time the full session had ended, AMPE stock reached post-market highs of $0.869. Last week the company announced positive results in an early trial for intravenous AmpionTM treatment for COVID-19 patients. “We believe Ampion may be effective in interrupting the inflammatory cascade associated with COVID-19 and improving the clinical course and outcome in patients treated with Ampion.”
What Do Analysts Think About AMPE Stock?
Overall, the analyst consensus on AMPE stock shows a buy. The last firm to issue this was Roth Capital. However, the rating was issued at the end of 2019. Considering the move it made so far this year, they don’t appear to have been wrong. But does this same sentiment hold weight right now. In light of recent trading activity, is AMPE on your list of penny stocks to buy right now?
Penny Stocks To Buy [according to analysts]: Biolase Inc.
Looking at the chart of Biolase Inc. (BIOL Stock Forecast), we can see a starkly different trend in comparison to the AMPE stock chart. Sure, this year has been relatively flat. But pull out a 2-year chart and you’ll see that BIOL stock has been in a perpetual downtrend since last March. The company focuses on dental products; specifically, manufacturing dental lasers. This year seems to have been a bigger year for the company despite its market shortcomings. One of the bigger things to have factored in is its place in the world of coronavirus stocks. If you haven’t followed our previous updates on BIOL, you might still be confused as to how it’s a COVID stock.
Back in June, Biolase tweeted that it will conduct a presentation via webinar. “This program will cover the latest applications of technology in the Dental Clinic. We’ll dive into #Periodontal, #Restorative and #DentalHygiene specific applications of #dentallasers, and HOW to increase productivity and promote practice growth post-#COVID19.”
Needless to say, BIOL stock dropped yet again in August. For the most part, this has been more attractive to traders than investors as short-term momentum has produced significant jumps in BIOL stock’s price. Aside from that, it’s hard to say with any certainty if things can turn around this year. The penny stock dropped again in August after reporting Q2 earnings. Next week, Biolase presents at the H.C. Wainwright Global Investor Conference. Something else to note is how it finished Firday’s session. Similar to AMPE, BIOL stock also rose at the end of the day and continued its trend into the post-market session.
What Do Analysts Think About BIOL Stock?
Similar to Ampio, analysts hold a general consensus of “Buy” on BIOL stock. As well, most of the ratings are much older. The last firm to weigh in was Ascendiant Capital Markets back in 2019. No new ratings have come out. If BIOL stock caught your attention late in the day on Friday, and you’re seeing analyst ratings, understand that the time frame is a bit skewed. Will BIOL be on your list of penny stocks to buy or avoid next week?
Penny Stocks To Buy [according to analysts]: Great Panther Mining Limited
You can’t have a list of penny stocks right now without some mining stocks included. Great Panther Mining Limited (GPL Stock Forecast) has been on a tear this year. The penny stock began 2020 around $0.50 and even taking out the big March sell-off, GPL stock is still up 86.7% year-to-date. We talked about Great Panther earlier this week as precious metals stocks surged.
Great Panther operates three mines around the world. This includes the Tucano Gold Mine in Brazil and two silver mines in Mexico. Additionally, Great Panther has several exploration projects including the El Horon, Santa Rosa, and Plomo mines in Mexico. It also holds an interest in the Argosy Project in Canada.
The biggest move this year began after the company reported its second-quarter production results. This was closely followed by a strong second-quarter report. Production highlights include the production of 38,540 of gold equivalent ounces on a consolidated basis, including 36,356 gold ounces (Au oz) and 142,457 silver ounces (Ag oz).
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It also produced 35,421 Au oz at Tucano, 35% higher than Q1 2020, and 18% higher
than Q2 2019. Earnings also proved to be stronger than expected. While EPS came in at $0.03 compared to an EPS loss of $0.02 last year, sales significantly beat analyst estimates. Great Panther reported a figure of $67 million which doesn’t compare to the $16.99 million estimates.
What Do Analysts Think About GPL Stock?
Unlike the other two penny stocks on this list, GPL attracted much more recent analyst coverage. Earlier this summer Alliance Global Partners and H.C. Wainwright issued Buy ratings for the penny stock. H.C. also upped its price target from $1.75 to $2.