As December winds down, investors continue keeping a close eye on penny stocks. While trading may seem closed off to only professionals, these cheap stocks are some of the most accessible securities out there. For one, penny stocks are any stock trading below the $5 threshold. This means that the barrier to entry is quite low, and buying shares can be quite affordable. Now, one thing to keep in mind is that these stocks are known to be quite volatile. This means that prices can fluctuate greatly on a daily basis.
But, before finding the best penny stock to buy, investors should make sure to do their own diligence. This means looking at financial statements, press releases, and anything a company is doing to secure its long-term future. With the internet at our fingertips, any trader can be the most informed. And those with the most info are the ones that have an undeniable advantage over others. While the fundamentals of a stocks matter, traders also have to consider the effects of speculation. With all of this in mind, let’s take a look at 3 penny stocks to watch before Thursday.
- Ampio Pharmaceuticals Inc. (AMPE Stock Report)
- Ageagle Aerial Systems Inc. (UAVS Stock Report)
- Zomedica Corp. (ZOM Stock Report)
Top Penny Stocks to Watch: Ampio Pharmaceuticals Inc.
Ampio Pharmaceuticals Inc. is as the name suggests, a pharmaceutical company. In the past month, shares of AMPE stock have shot up by around 200% which is quite a staggering gain. But, what is driving this massive uptick in value? Well, there are a few reasons for this outside of it simply being a biotech penny stock. For one, the company recently announced that it is working on moving into a Phase 2 trial for its Ampion treatment. This intravenously administered drug has shown a high level of safety and efficacy in its treatment of COVID-19. Because it does have a correlation with the COVID biotech space, AMPE stock has seen a great deal of attention in the past few months.
On December 17th, the company stated that in its Phase 1 study of Ampion, the drug showed a high level of clinical improvement over the placebo group. This drug is used in the treatment of advanced cases of COVID that are not responding to other therapies. The company states that it is working on figuring out the details of the Phase II trial of Ampion. In this trial, clinical sites throughout Israel and the U.S. will be used to administer the drug in greater amounts.
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The drug works by interfering with the immune response from COVID that can often lead to cases becoming extremely severe. If it shows efficacy in these later trials, there’s no telling how many people this substance could help. With this in mind, AMPE stock could be one to watch before the weekend.
Top Penny Stocks to Watch: Ageagle Aerial Systems Inc.
Ageagle Aerial Systems Inc. one of the biggest gainers of the day on December 21st. By intraday, shares of UAVS stock had shot up by around 21% to $4.90. This is quite interesting as UAVS stock could soon move out of the penny stock parameters. With that in mind, let’s take a closer look at the company. On November 16th, UAVS reported its Q3 2020 financial results. In the results, the company increased its revenue by a record $750,000. This is more than 15 times what it posted in the same quarter of the previous year. In addition, gross margin for the company increased by a solid 43% during the quarter. Lastly, the company was able to stay at a similar level in its net losses compared to Q3 2019.
Michael Drozd, CEO of the company stated that “we are very pleased with the progress that AgEagle continues to make across each of our focused business segments. Among many key achievements in the second half of 2020, we booked significant revenue from our commerce client; our team has completed the relocation of our headquarters and manufacturing facilities from Neodesha to Wichita; and we have completed the redesign of our brand logo and launched a new corporate website.”
Working in the drone space, the company has seen increased attention to its products this year. What’s more is that with government initiatives pushing for the use of things like drones for civilian purposes, AgEagle remains a company to watch. The biggest question traders should ask is whether or not short-term consolidation will become a factor this week?
Top Penny Stocks to Watch: Zomedica Corp.
Zomedica Corp. operates as a diagnostic and pharmaceutical company specializing in the veterinary field. The company is working on the commercialization and development of several novel therapeutics for animals to use. Currently, its lead candidate, ZM-007, is used for the treatment of stomach issues in canines. In addition to this, the company has a range of drugs in its pipeline for treating a wide group of animals. Similar to the aforementioned companies, Zomedica reported its Q3 2020 financial results last month. In the report, the company brought in a net loss of around $0.01 per share. This is quite low considering the large effects of the pandemic on all businesses.
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In addition to this, the company stated that R&D costs came in at around $7.2 million. This is a decrease of around 25% over the same quarter of the previous year. Lastly, the company reported that it was able to bring in around $28 million in net cash. This is mostly the result of several financing activities that took place during the quarter. With more people than ever owning pets due to COVID, it seems as though Zomedica is positioned well in the biotech market.
However, considering the recent consolidation, can ZOM stock reignite bullish sentiment in the market before the new year? Analysts at HC Wainwright seem to think there’s potential still. The firm currently has a Buy rating on the stock along with a $0.30 price target.