Looking For Small Cap Stocks To Buy Now?
The broader markets are choppy but small cap stocks continue captivating investor interest on Wednesday. But don’t let the lighter trading fool you. With the latest news on Pfizer’s (PFE Stock Report) and BioNTech’s (BNTX Stock Report) COVID vaccine, the world is eyeing a recovery sooner than some had imagined.
Despite the uncertainties surrounding the U.S. Presidential election, global economies are pursuing a larger goal: reopening. This week the European Union agreed to buy up to 300 million doses of the BioNTech-Pfizer vaccine after demonstrating favorable results. The companies said that deliveries are expected to begin before the end of the year.
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“The agreement means we are a step closer to what we set out to do – to have a broad and solid vaccine portfolio,” said European Health Commissioner Stella Kyriakides. She further explained that it would only be distributed once it is “proven to be safe”.
Goldman Sachs Bullish On Market; Good For Small Cap Stocks?
This week, Goldman’s chief strategist David Kostin increased his year-end S&P 500 price target to 3,700. This move came after Pfizer’s big news on Monday. Now, the strategist is looking for more upside on the heels of this development.
“A vaccine is a more important development for the economy and markets than the prospective policies of a Biden presidency. The much-awaited results from Pfizer (PFE) that its COVID-19 vaccine has an efficacy rate greater than 90% is a positive event that will allow society to gradually normalize during 2021,” Kostin wrote.
Given the upbeat sentiment this week, everything from epicenter stocks to tech is pushing higher. What’s also interesting is that the small cap stocks have also performed very well. Even after pulling back from its $178.10 high on Monday, the Russell 2000 ETF (IWM ETF Report) has bounced back Tuesday and Wednesday.
What’s more is that trading volumes earlier this week were some of the highest since June, in small cap stocks. While the broader markets echoed the trend, some of the biggest moves came from penny stocks. With that, are any of these on your list of small cap stocks to watch this week?
Penny Stocks To Watch: Marathon Patent Group
Marathon Patent Group (MARA Stock Report) is one of the penny stocks to watch recently. The company focuses on cryptocurrency mining. One of the hot niches in the stock market today is bitcoin and blockchain stocks believe it or not. While you haven’t seen the madness we saw in 2018, on outlets like CNBC or Fox Business, the price of bitcoin has quietly mounted a comeback this year. In fact, over the last 30 days, bitcoin prices have climbed by more than $4,000 a coin. Right now the famous cryptocurrency is valued at more than $15,700.
One of the thoughts behind this is with all sorts of fiscal stimulus and fiat currency devaluation, cryptocurrency and the blockchain could offer something more. Some have even compared bitcoin to physical gold as a store of wealth. Billionaire investor Mike Novogratz has said, “It’s no longer a debate if crypto is a thing, if Bitcoin is an asset, if the blockchain is going to be part of the financial infrastructure. It’s not ‘if’, it’s ‘when’, and so every single company has to have a plan now.”
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In light of this, companies with exposure to bitcoin – mining being one niche – have seen momentum building this week. Since the beginning of November, MARA stock is up 14% so far.
Penny Stocks To Watch: Aerpio Pharmaceuticals
Aerpio Pharmaceuticals (ARPO Stock Report) is one of the biotech penny stocks we’ve followed frequently. This week, shares have been relatively flat with intra-day swings keeping day traders engaged. Aerpio announced its third-quarter results and provided its latest business update. The company saw lower EPS this quarter compared to 2019’s Q3. But that really wasn’t what traders seemed to have focused on.
Right now, Aerpio is focused on advancing its razuprotafib treatment. The company completed enrollment in a 28-day Phase 2 razuprotafib glaucoma trial with topline data expected next month. What’s more, is the company began its second clinical trial evaluating razuprotafib for prevention of acute respiratory distress syndrome in COVID-19 patients. The first patient in that trial was dosed last month.
“The potential for razuprotafib to prevent ARDS in COVID-19 patients or rescue current ARDS patients from COVID’s devastating effects is very exciting. Assuming success in COVID-19 patients, we have the potential to expand the usage of razuprotafib into other life threatening diseases that produce a severe ARDS syndrome. We hope to provide an update from our COVID programs in the first half of 2021,” said Joseph Gardner, President, and Founder.
Armed with more than $47 million in cash and equivalents doesn’t hurt either. So with numerous potential applications for razuprotafib and upcoming data potentially in December, ARPO stock could be one to watch before the end of 2020.
Penny Stocks To Watch: MannKind Corporation
MannKind Corporation (MNKD Stock Report) is one of the small cap stocks that has remained a popular one to follow this year. In fact, since March lows of $0.80, MNKD stock has now climbed more than 200%. What’s even more interesting is that just from the start of November, MNKD stock is up 30%. Much of the move has come as MannKind continues executing on its business model.
The company develops and commercializes inhaled therapeutic products offering a product called Afrezza. This is an inhaled insulin for adults with diabetes. This month, MannKind reported earnings. Earnings per share came in line with estimates. The company also missed on sales. But MNKD stock continues making new highs this month so what happened?
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First, Oppenheimer revised its price target higher, to $3, on MannKind. The firm currently maintains an Outperform rating as well. This might have been done in anticipation for what’s to come with MannKind. Specifically, the company plans to expand the Afrezza commercial and medical teams. The company also expects to complete its Treprostinil Technosphere development activities next quarter. Treprostinil Technosphere is a dry powder formulation the company is developing for the treatment of pulmonary arterial hypertension.
