4 PennyStocks To Buy According To Analysts
Are penny stocks part of your trading strategy? Depending on your risk profile, there are plenty of ways to leverage these cheap stocks to take advantage of short-term volatility. But again, you’ve got to have a solid understanding that with volatility comes a lot more risk. Aside from the ways that these companies fund themselves, the price itself can be a big source of risk (and reward).
Take Vaxart, Inc. (VXRT Stock Report), for example. This penny stock was trading around $3.50 at the beginning of the week. Thursday morning, VXRT stock reached a high of $5.70. While this was only a $2.20 move, it was worth 63% to those holding shares. This obviously wouldn’t have been the same case for a stock like Apple (AAPL Stock Report). Then again, not all penny stocks breakout in this manner.
Many can turn the other way and drop just as big. For this reason, it’s important to understand the risk profile of each penny stock you’re looking to buy. What’s going on with the company, are there upcoming catalysts, is a large institution buying, etc.? In the case of Vaxart, the penny stock saw explosive momentum leading up to a big update on Thursday. Vaxart announced new data from its hamster challenge study of its oral COVID-19 vaccine.
Market momentum can be a big factor but so too can what the “talking heads” say. I’m talking about TV interviews, social media posting, and, yes, analyst ratings & commentary. These can play bigger roles during times around earnings, data readouts, industry conferences, and more. But, keep in mind, that these “talking heads” can bring short-term momentum to certain penny stocks but they shouldn’t be the only thing you rely on for information. With that, do you agree with analysts on these penny stocks?
Penny Stocks To Buy [according to analysts]: Cemtrex Inc.
Cemtrex Inc. (CETX Stock Report) is considered to be a technology company working on innovations such as IoT and AR/VR products. These products are then used in sectors such as consumer, industrial, security and more. With such a wide range of products and industries that it works in, CETX stock is quite diverse. Recently, the company announced that it has signed into an agreement to acquire Virtual Driver Interactive. For those who don’t know, this is a provider of driving training simulation software. VDI states that it has 2,000 installations in all 50 states of the U.S. This includes installations in federal offices as well as in schools and more.
Saagar Govil, CEO of Cemtrex stated that “VDI is a market leader with best-in-class driver training products, with over $2 million in annual revenue. VDI has built a successful business with innovative technologies. We will expand and accelerate those achievements by transitioning their technology to next-generation solutions including VR, enhancing the training solutions, and broadening the product portfolio.”
After announcing this a few weeks ago, shares have since bounced up by around 10%. On Wednesday, November 11th, shares of CETX stock shot up by around 7.5% as of EOD. What’s more is that toward the end of October, Cemtrex received a nice bump from analysts at Alliance Global Partners. The firm initiated coverage with a Buy rating and gave CETX a $3.50 price target.
Penny Stocks To Buy [according to analysts]:
ViewRay Inc. (VRAY Stock Report) is another one of the penny stocks analysts are bullish on right now. last week, Piper Sandler analysts weighed in. The firm carries an Overweight rating right now. It also just lifted its price target from $3.50 to $4 this month. The rating came just after ViewRay posted a sales beat in the latest quarterly report. ViewRay recorded over $10 million for Q3 compared to estimates of just $8.72 million on Wall Street.
ViewRay has been making noise recently, with regard to its MRIdian® Linac MRI-Guided Therapy System. The system’s designed for radiation therapy. This week, we find that Universitair Ziekenhuis Brussels has purchased a system, introducing to the Belgian radiation therapy market.
What’s more is that Thursday, ViewRay reported that Amsterdam University Medical Centers treated its 1000th patient with the MRI-guided radiation therapy. Professor Ben Slotman, M.D., Ph.D., FACR, FASTRO, Professor & Chairman, Radiation Oncology Departments Amsterdam UMC explained, “In prostate cancer specifically, previous data illustrates the quality of life challenges patients can experience after radiation therapy, such as bowel symptoms, whereas we saw very low incidence of early GI and GU toxicity, both in clinician- and patient-reported outcome measurements in our MRIdian SBRT study.”
Penny Stocks To Buy [according to analysts]: Electrameccanica Vehicles
Electrameccanica Vehicles (SOLO Stock Report) has been one of the penny stocks we’ve actually gotten to see grow from a relatively early state. In fact, it first hit our radar amid high levels of speculative rumors. Despite these rumors being proven inaccurate, it didn’t negate the idea that Electrameccanica was working to build upon its electric vehicle product.
It was a big mover we started tracking in early June. Since then it saw a nice move from around $1.35 to highs of $6. Like most of the penny stocks that were up big this year, SOLO stock dipped back to find a general level of support. SOLO found some support between $2.50 and $2.60 with the 50-Day Moving Average holding this level as well. Similar to ViewRay, Electrameccanica also reported earnings. The company saw modest financial progress but the bigger story was with the company’s future plans. One thing that many have waited on is the official launch of Electrameccanica’s SOLO EV as well as the finalized plan for U.S. distribution.
Traders might’ve gotten that with the latest commentary from CEO Paul Rivera:
“Over the next few weeks, we will be dramatically expanding our sales efforts by opening an additional six locations throughout the western U.S., bringing the ‘Drive SOLO’ movement to an even greater retail audience just in time for the holidays…Looking ahead, we expect to finalize our decision on a manufacturing partner later this month and are well on our way to making the first customer deliveries early in the new year.”
Among analysts covering the stock, the most recent rating comes from Aegis. The company reiterated its Buy rating on the stock. It also gave a $4 price target on the penny stock.
Penny Stocks To Buy [according to analysts]: MannKind
MannKind (MNKD Stock Report) is another one of the penny stocks we’ve discussed for quite some time now. In this instance, it’s important to realize that MNKD stock has greatly extended over the last few weeks. Since the start of November, shares have skyrocketed by 46.5%. Thursday saw MNKD stock reach a new 52-week high over $3 during the early morning session.
The company develops and commercializes inhaled therapeutic products offering a product called Afrezza. This is an inhaled insulin for adults with diabetes. What’s gotten some heads turning is what the company cited in its latest quarterly report. Michael Castagna, Chief Executive Officer said, “As we head toward year-end, our focus remains on two significant drivers of value for shareholders: enabling healthcare providers to increase their prescribing of Afrezza and supporting United Therapeutics as they move the TreT clinical program to completion, including manufacturing TreT clinical supplies.”
The company plans to expand the Afrezza commercial and medical teams. MannKind 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.
Two analysts recently weighed in on MNKD stock. Cantor Fitzgerald reiterated its Overweight rating. Meanwhile, Oppenheimer revised its price target higher, to $3, on MannKind. The firm currently maintains an Outperform rating as well.