Are Analysts Right About These Penny Stocks?
When it comes to finding penny stocks to buy, there are plenty of ways to find them. Some search for the latest news or filings. Meanwhile, other traders may focus on things like technical analysis and momentum. Whether you’re looking at fundamentals or technicals, there are myriad strategies to take up. The bottom line is to find stocks that have potential for the trading style you use.
Here’s something to think about. If you’re an investor, the latest parabolic penny stock may not be as well suited for your style. Then again, if you’re a day trader, the stock that takes months to move up just a few percentage points may not fit your idea of a good penny stock to buy either.
Situationally, there are plenty of things to take under consideration. Regardless of the “style”, most will look for some sort of catalysts. Whether it’s a chart set up or a major deal being signed, things like this can support the early momentum traders seek in order to enter a trade (or begin investing).
Are Analysts Good For Penny Stocks?
Where do analysts come into play, though? These market watchers take a look under the hood and analyze numerous aspects of companies. They take into account current events, recent developments, and future potential in order to give their rating (and price target in some cases). These ratings can range from underweight, sell, hold, buy, strong buy, etc. But remember, it all comes down to the companies themselves to execute.
A stock can have a strong buy rating and a massive price target forecast by an analyst. But if the company itself doesn’t execute, the rating doesn’t really hold much merit in my opinion. With this in mind, this list of penny stocks has a few names analysts have grown bullish on. But it’s up to you to decide if they’re good to buy or not.
Penny Stocks To Buy [according to analysts]
- Clovis Oncology Inc. (CLVS Stock Report)
- Chimerix Inc. (CMRX Stock Report)
- Polarityte Inc. (PTE Stock Report)
- Oncolytics Biotech Inc. (ONCY Stock Report)
Penny Stocks To Buy [HC Wainwright]: Clovis Oncology Inc.
If there’s one group of biotech stocks to watch outside of COVID-related names, its cancer stocks. Oncology is a broad segment of the healthcare and biopharma industry. However, as I’m sure you know, the search for a cancer cure never ends. Clovis has been in the spotlight recently after submitting an Investigational New Drug Application.
This was for its FAP-2286 compound. This is the lead compound in the company’s peptide-targeted radionuclide therapy development program. Specifically, it will be used as a diagnostic to identify patients with fibroblast activation protein-positive tumors appropriate for treatment with the therapeutic agent. Upon clearance of the INDs, a Phase 1/2 study LuMIERE is planned to start in the first half of 2021.
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Right now analysts appear bullish on the stock, HC Wainwright currently has a Buy rating on the penny stock. Furthermore, its has a $15 price target. This puts the firm’s CLVS stock price forecast 201% higher than Thursday’s closing levels.
Penny Stocks To Buy [HC Wainwright]: Chimerix Inc.
Chimerix Inc. is another one of the biotech penny stocks we’ve discussed for months. In fact, since the end of April, CMRX stock has been on our radar. Cutting through nearly a year’s worth of updates (you can read more on CMRX here), the penny stock has climbed more than 220% and this week things continue pushing the envelope.
Chimerix announced a major acquisition. The company bought Oncoceutics, Inc. It’s a clinical-stage biotechnology company developing a class of compounds known as imipridones. Its lead product candidate, ONC201, has shown in clinical testing to selectively induce cell death in multiple cancer types. ONC201 is currently in a registrational clinical trial for recurrent H3 K27M-mutant glioma and a confirmatory response rate assessment is expected in 2021. This news has triggered another spark in CMRX stock.
Where do analysts stand on it though? HC Wainwright has a Buy rating on the stock, currently. The firm also placed a $7 target on CMRX. This puts H.C.’s CMRX stock price forecast 42% higher than Thursday’s closing price.
Penny Stocks To Buy [Cantor Fitzgerald]: Polarityte Inc.
The company has been working to regain the trust of the market recently. Shares of PolarityTE stock dropped hard at the end of November when the company announced the reduction of the exercise price for its warrants from $2.80 to just 10 cents. Aside from that, the company has been focused on advancing its regenerative tissue product pipeline. In addition to receiving an allowance for its first U.S. patent, PolarityTE also managed to raise a few million dollars to put toward working capital.
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What’s more is that next week the company is set to present at the H.C. Wainwright Bioconnect Conference on Monday. This could be an opporutnity for the company to discuss its strategy in light of all of the recent confusion among its larger shareholders. Specifically, Gatemore Capital (holders of over 5% of the company) sent a letter to the company demanding it reconsider its fundraising activities. In particular, the firm pointed out that, there is still “immense potential of SkinTE and the intrinsic value of the Company’s intellectual property.” Ultimately, Gatemore aims to push the company toward restructuring its leadership and board & form a strategic alternatives committee.
Needless to say, this hasn’t seen analysts change their tune much. The last rating from Cantor Fitzgerald remains a Buy from early summer of last year. Furthermore, the firm’s $3 target places the PTE stock price forecast 291% higher than Thursday’s close.
Penny Stocks To Buy [RBC Capital]: Oncolytics Biotech Inc.
Finally, Oncolytics Biotech Inc. has seen a nice jump in price and volume at the start of the year. Leading up to 2021, recent data showed the company’s AWARE-1’s first two cohorts demonstrated that 70% of patients saw an increase in CelTIL, a measure of tumor-associated cellularity and tumor-infiltrating lymphocytes that is associated with favorable clinical response. This was in patients with HR+/HER2- breast cancer.
The company also published an electronic poster at the 2020 San Antonio Breast Cancer Symposium with data from the AWARE-1 window-of-opportunity study. It further showed that its pelareorep delivered a significant boost known to increase the effectiveness of checkpoint inhibitors.
Where do analysts stand on ONCY stock? RBC Capital has a $6 price target on the stock. It also placed an Overweight rating on Oncolytics. With Thursday’s closing price of $2.60, RBC’s ONCY stock price forecast is 130% higher right now. Does the penny stock have a shot at ever getting to that price?