Should These Be On Your List Of Penny Stocks to Buy Right Now?
Penny stocks, love them or hate them, are one of the major topics of discussion this year. That’s mainly due to the fact that so many stocks trading above $5 ended up dropping below that threshold early on. Thanks to COVID restrictions, countless stocks felt severe selling pressure. Some sectors more than others received the brunt of the coronavirus sell-off. But the vast majority have remained lower in price.
This isn’t to say these companies are done for. But it has warranted a closer look by investors for new opportunities. Those who’ve been able to manage volatile trading have succeeded and profited handsomely as a result. Furthermore, the pandemic also brought about massive upswings as well. We saw that COVID-related stocks surged with some even breaking out to more than $100 a share at times.
Penny Stocks To Buy Right Now According To Analysts
This year has certainly been one for unique events in the market. Aside from selling off to the lowest levels since 2017, we also saw markets reach new, all-time highs. While the economy continues to recover, the market is reacting unfazed by current events. The global economic slowdown brought about by social distancing restrictions and other geopolitical catalysts has been no match for the bull market of 2020.
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What’s more is that analysts have also gotten into the ring, focusing on countless penny stocks this year. While analyst ratings are somewhat of a novelty to some, others take them into consideration more adamantly. Personally, I feel they should simply be 1 of many parts of your overall diligence strategy. Regardless of how you feel, there are several penny stocks to buy according to these analysts. Some also carry lofty price targets. But where do you weigh these names? Are they penny stocks to buy or avoid right now?
Penny Stocks To Buy [or avoid]: Second Sight Medical Products Inc.
Shares of Second Sight Medical Products Inc. (EYES Stock Report) have been on fire this week. It’s likely a welcome sign for many traders who’ve been watching this stock trade sideways for most of the fourth quarter so far. Things have been very quiet as far as the company’s been concerned. There hasn’t been a formal press release since September. However, the majority of the interest in the company is what would become of its feasibility study that it began earlier in the year. Due to COVID, the company had to pause its efforts.
Specifically, the early Feasibility Study was of the Orion® Visual Cortical Prosthesis System at UCLA Medical Center. The study includes four participants at UCLA and two participants at Baylor College of Medicine. Study visits resumed in September.
Orion is a breakthrough technology intended to provide useful artificial vision to those who are blind due to a wide range of causes. With the resumption of the study, it will be interesting to see if the company has any further updates before the end of the year. HC Wainwright previously set a $2.50 price target on the penny stock and gave a Buy rating. At the current price, the EYES stock forecast is 110% higher than the current trading levels right now.
Penny Stocks To Buy [or avoid]: Agenus Inc.
Agenus Inc. (AGEN Stock Report) is another one of the penny stocks we’ve covered off and on this year. The recent 4-day jump has grabbed some attention heading into December. Aside from participating in the Evercore ISI HealthCONx Conference this week, Agenus also reported Phase 2 Trial information.
In particular, the company announced the expansion of a Phase 2 trial into colon cancer. This was based on a new objective clinical response in a colorectal cancer patient in addition to a significant tumor reduction of 27%. Agenus also saw biomarker reduction in a patient with MSS colon cancer. Its AGEN1181 +/- balstilimab reported 4 clinical responses in addition to significant tumor reduction.
“AGEN1181 has potential to not only broaden the population of responders to CPIs, but also to reach tumors traditionally considered “cold” or unresponsive to immune therapies. I am excited to see the potential broadened benefit of our next-generation anti-CTLA-4’s design, particularly its Fc-enhancement, and the validation of Agenus’ incredible R&D capabilities.”Dr. Joseph Grossman, Head of Exploratory Medicine at Agenus
Right now Jefferies has an $8 price target on the penny stock. It’s also given a Buy rating. Considering the current price, the AGEN stock forecast price is 107% higher right now.
Penny Stocks To Buy [or avoid]: Verastem Inc.
Verastem Inc. (VSTM Stock Report) has been a top performer during the fourth quarter so far. In fact, since the beginning of October, shares of VSTM stock have climbed as much as 76%. Most of that move came in November as the stock began climbing after the company’s Q3 results. While both EPS and sales were up dramatically from a year ago, Verastem also discussed key milestones and what to expect moving forward in its business update.
Brian Stuglik, Chief Executive Officer of Verastem Oncology explained, “Looking ahead to the remainder of the year, we remain on track to commence two new company-sponsored, registration-directed Phase 2 clinical trials by year end, one in low-grade serous ovarian cancer (LGSOC) and one in KRAS mutant non-small cell lung cancer (NSCLC).”
Giving another boost heading into December, the company’s Phase trial update sparked bigger interest recently. Verastem began a Phase 2 registration-directed trial of is VS-6766 and defactinib in ovarian cancer patients. The company previously announced its successful meeting with the FDA last quarter. The FDA supported Verastem’s development strategy and adaptive trial design for low-grade serous ovarian cancer. The important thing to note here is that pending the trial outcome, Verastem will seek FDA accelerated approval. Previous data from a Phase 1/2 trail showed favorable response rates and safety profiles.
Right now, Cantor Fitzgerald’s $6 price target is nearly 200% higher than the current trading levels. The firm also has a Buy rating on the penny stock.