Penny Stocks to Watch With Strong Momentum in December
With COVID cases on the rise and a new president in the U.S., speculative traders have found a lot of luck with penny stocks. While not all penny stocks are worth watching, if investors do the research, they can find the ones that are. So far in 2020, there are several categories of penny stocks to watch that investors are focused on.
This includes biotech penny stocks, epicenter penny stocks, EV stocks, renewable energy stocks, and more. These categories are only a few of a very large investor landscape. And, each one of these categories also holds its own risk and upside potential. When first creating a list of penny stocks to watch, investors need to know what their goals are.
Trading vs Investing In Penny Stocks
If short-term gains or swing trading is your method then there are certain penny stocks to watch. On the other hand, if long term investing is your preference, there are other penny stocks that could be worth watching. Once we identify our investing style, we can begin to pick penny stocks that fit our unique portfolio style.
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Of course, being that they are penny stocks, volatility is always something to take into consideration. But, this is also very common in the entire stock market right now given covid and geopolitical uncertainties. With all of this in mind, here are four penny stocks to watch with solid momentum.
Hot Penny Stocks to Buy [Aegis]: Foresight Autonomous Holdings
Foresight Automous Holdings (FRSX Stock Report) is a company that works on the production and design of vision systems for automobiles. This simply means that the company manufactures the products necessary for advanced crash-detection systems as weak as vision sensors.
The company states that its primary goal is to improve the safety of cars by offering cost-effective technology to avoid collisions. This hardware has become extremely popular with many car brands in the past few years. Because of this, interest in FRSX stock has also increased in that time frame. Last month, Foresight Autonomous Holdings announced its Q3 2020 financial results for the period ending in September 30th.
In the report, the company ended the quarter with around $14.5 million in cash and a GAAO net loss of around $11.4 million. Haim Siboni, CEO of the company, stated that “Foresight continued to demonstrate steady progress in the third quarter, as we established new partnerships with influential players in Europe, Japan and China.”
Interestingly enough, the company has been working on the development of a symptom screener for Covid-19. This technology utilizes thermal cameras to identify various symptoms in individuals. While it isn’t necessarily a covid-related penny stock to watch, it does have some skin in the game here. Furthermore, analysts at Aegis have a $3 target on the stock, which is roughly 58% higher than the current trading levels.
Hot Penny Stocks To Buy [HC Wainwright]: Gevo Inc.
Gevo Inc. (GEVO Stock Report) has been one of the top energy penny stocks to watch this year. Not only does HC Wainwright’s $5 price target represent a 130%+ premium to the current trading levels, but the penny stock has also experienced a strong move since we first began following. At the start of the third quarter, GEVO stock was trading around $0.55 and has since climbed as high as $2.87 this quarter.
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This week, alternative energy stocks are a key focus for investors. As president-elect Joe Biden has placed a bigger focus on renewables and alternatives, it’s no wonder why stocks in this niche are on the move. Gevo focuses specifically on biofuels and renewable chemicals. Its current project backlog has been a huge focus for traders this year. If you look at what the CEO, Patrick R. Gruber said in the company’s last quarterly update, you’ll understand the scope of this.
“This past quarter marked a turning point for Gevo. We secured the blockbuster deal with Trafigura, a major energy player. This off-take agreement brought our total off-take tally to about 48MGPY, collectively representing about $1.5 billion of revenue across the life of the contracts”
Adding to this, GEVO recently supplied sustainable aviation fuel to its customer, Avfuel Corporation. This was the first load of fuel for a fixed-base operator at the King Country International Airport – Boeing Field for resale to its customers. It also marked Avfuel’s entry to sustainable aviation fuel deliveries in Washington state.
Hot Penny Stocks To Buy [Cantor Fitzgerald]: Catalyst Pharmaceuticals
If there’s one industry that’s been hot this year, it’s been biotech. Catalyst Pharmaceuticals (CPRX Stock Report) has attracted its share of bullish analysts. One of which is Cantor Fitzgerald. The firm gave an Overweight rating on the stock as well as issued a $12 price target earlier this year representing a premium of over 200% to Catalyst’s current trading levels.
The company’s Firdapse® is currently being evaluated in clinical trials for treating MuSK-MG and SMA Type 3. It has also received Orphan Drug Designation from the FDA for myasthenia gravis. Earlier this year, the company filed a patent infringement against Jacobus Pharmaceuticals and PantherRx Rare LLC. Specifically, the suit alleges the two companies’ Ruzurgi product infringes on Catalyst’s ‘893 patent when administered according to product labeling.
Aside from this, Catalyst continued executing in its most recent quarter. If you look at the last earnings report, the company beat on EPS. Despite missing on sales estimates, Catalyst’s management seems optimistic about the future of the company and Firdapse® after strengthening its patent portfolio protection on the treatment.
Something that traders are likely focusing on right now is the proof-of-concept spinal muscular atrophy type-3 study for Firdapse®. It was completed earlier this year and the company expects to report top-line data before year-end. So, with that in mind, it could be a speculative catalyst (no pun intended) for CPRX stock before year-end.