Best Penny Stocks To Buy Right Now According To These Analysts
If there’s one thing to learn about penny stocks is that things can change at a moment’s notice. You might see a stock up 300% one minute then either flat or down 10% or more the next. While traders understand volatility is part of the market, knowing how to navigate it is something that takes a bit more time. Case in point, some lists of penny stocks include names that are good penny stocks to watch on a given day.
The next day, they might not be. But, as there are different traders, there are different types of stocks that appeal to them. Someone who is looking to day trade, wouldn’t necessarily want to spend time finding the best penny stocks to buy and hold. Likewise, someone looking to invest in penny stocks is probably going to avoid the parabolic move that the latest hot biotech stock just made. Different strategies for different styles of both trading and investing are important to keep in mind.
Investing VS Day Trading Penny Stocks
Which do you prefer? In many cases, both styles are used in some shape or form. In particular, we’ve seen a lot more swing traders commenting on posts and asking for information. If you’re unfamiliar, swing trading involves buying penny stocks and holding for a little as a few days or as long as a few weeks at times. One of the strategies used by swing traders (and day traders for that matter) is a tier trading system. I’ve discussed this approach many times in the past. It’s a way to stay in winning trades longer while getting out of losing trades sooner & with minimal losses. I’ll include a video of tier trading at the end of the article for those interested in learning more.
Moving on, today we’re seeing somewhat of a continuation of Tuesday’s trading. I’m not referring to the action in broader markets. In particular, I’m looking at small-cap stocks and biotech stocks. Both of the benchmark ETFs (IWM & IBB respectively) are hovering around or climbing to all-time highs. With this in mind, it might not be a bad idea to keep some small-cap biotech stocks on the radar right now. Here’s what Cantor Fitzgerald & HC Wainwright think about these 4.
Penny Stocks To Buy [According To HC Wainwright]: Zomedica Corp.
Zomedica Corp. (ZOM Stock Report) is one of the biotech penny stocks we’ve followed for weeks. In fact, since November, ZOM stock has jumped as much as 234% from its 52 week low. One of the key points of interest for traders has been on the company’s veterinary diagnostic product, TRUFORMA.
Zomedica has been ramping up for the official launch and recently appointed a new team member to lead its marketing department ahead of this launch. TRUFORMA is Zomedica’s diagnostic platform for use at the point-of-care. With commercial sales expected to begin by the end of Q1 next year, this comes as a timely update for the company. So this will likely remain a hot button for traders heading into 2021.
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As far as analysts are concerned, HC Wainwright is bullish on the stock. The firm has a Buy rating on ZOM. It also carries a 30 cent price target, which is 56% higher then Tuesday’s closing price.
Penny Stocks To Buy [According To Cantor Fitzgerald]: Evogene Ltd.
Evogene Ltd. (EVGN Stock Report) is another one of the biotech penny stocks we’ve had on watch for a while. Unlike Zomedica, Evogene is more of a diversified company with a number of operating subsidiaries. These range from traditional biotechnology to Cannabis and even agriculture.
With the budding industry boosting marijuana stocks, EVGN is in the spotlight this week for its Canonic subsidiary. The company received approval from the Israeli Medical Cannabis Agency earlier this year to propagate medical cannabis seedlings. Canonic can proceed with its commercialization plan set to release its first product in Israel in 2022.
What’s more is that this week, Canonic signed its first commercial agreement with a licensed medical cannabis cultivator, Telcann Ltd. This provisioned plant growth services in Israel to Canonic. The agreement resulted in Canonic completing the establishment of the major component required for the production infrastructure of its medical cannabis products, MetaYield and Precise in Israel. With an obvious interest on cannabis thanks to the incoming Biden administration, the cannabis industry as a whole could see some attention heading into 2021.
Whether it’s in light of this idea or something else, Cantor Fitzgerald is bullish on EVGN. The firm has an Overweight rating on the stock along with a $9 target.
Penny Stocks To Buy [According To HC Wainwright]: Zosano Pharma Corp.
One of the other penny stocks that HC Wainwright is bullish on right now is Zosano Pharma Corp. (ZSAN Stock Report). The firm currently has a Buy rating on ZSAN along with a $2 price target. That puts HC’s ZSAN stock forecast at roughly 242% based on Tuesday’s closing price. Since early November, shares have steadily bounced back from 52-week lows.
One of the key points of focus for Zosano has been on its Qtrypta migraine treatment. The company is planning a Type A meeting with the FDA to gain clarity on the next steps of an NDA resubmission. Ahead of a potential approval, Zosano also teamed up with EVERSANA to commercialize and distribute Qtrypta. So, while the markets await a decision, traders have continued speculating on a potential outcome.
Aside from migraine treatment, Zosano has also explored the actual platform itself; specifically the transdermal microneedle system technology. The benefit of this platform is rapid absorption of a therapeutic in patients who need it. Via this model, the company expressed interest earlier this year in working with some of the COVID vaccine companies. The potential of utilizing a microneedle application with a vaccine candidate is yet to be seen. However, Zosano has remained open to new options utilizing the technology as a whole.
Penny Stocks To Buy [According To HC Wainwright]: Acasti Pharma Inc.
Acasti Pharma Inc. (ACST Stock Report) has also enjoyed a strong last few months of the year so far. Since early November, ACST stock rallied from around 17 cents to nearly 42 cents. The last few weeks have seen some consolidation on the chart. However, daily trading volumes remain much higher compared to earlier in the quarter. One of the things helping to drive this is really “the unknown” in my opinion.
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Acasti is currently “exploring and evaluating a range of strategic alternatives”. Earlier this year the company engaged Oppenheimer & Co. The main reason was to undertake a strategic review of the company with the purpose of exploring strategic alternatives to drive shareholder value. This includes potential mergers, acquisitions, or other initiatives that involve Acasti and/or its product. In its current pipeline are products including CaPre. This is Acasti’s therapeutic in Phase 3 trials for treating hypertriglyceridemia.
While there haven’t been any further updates to strategic alternatives so far, momentum continues building. Right now, analysts at H.C. Wainwright still have a Buy rating on the stock and a $3 price target. That’s 1100% higher than the current levels on December 22nd.
