Are These On Your List Of Penny Stocks To Watch This Week?
As penny stocks come back into focus, investors are ready for a new month to begin. In May 2021, there are plenty of industries that traders may want to add to their penny stock watchlists. Right now, we see trends with tech, biotech, blockchain, and a few others. While trends aren’t the only way to find hot penny stocks, they can help to give you some watchlist inspiration.
This year, the popularity of all stocks under $5 has been quite volatile. This is illustrated through the discrepancy between current and average volume. While this may seem disheartening, it is simply the result of the natural ebb and flow of the stock market. And, with any dips, there may be a buying opportunity presented. One thing to consider is that research will always be your best friend. If you’re having trouble picking penny stocks to buy, careful due diligence or “DD” can offer new insights into every prospective company.
However, it’s also worth noting industry-wide movements and what could happen in the future. Equally important is your investing strategy and what your goals are. This can help define a proper timeline for investing and determining which companies are right for you. So, May kicks off here are a few top penny stocks to watch right now.
Penny Stocks To Watch
- Atossa Therapeutics (NASDAQ: ATOS)
- SOS Limited (NYSE: SOS)
- Durect Corp. (NASDAQ: DRRX)
Atossa Therapeutics (NASDAQ: ATOS)
Last week was an active one for Atossa Therapeutics. In fact, since April 20th, ATOS stock has been one to watch. At the time, the penny stock had just reached a new low, hovering around $1.50. Keep in mind that it hadn’t traded at that level since January. One of the things that added pressure to ATOS was the company’s fundraising activities.
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Obviously, as a public company, tapping the capital markets for money is one of the main reasons for listing on any exchange. However, when companies raise money at discounted prices, no matter how much money they raise, it can be considered a potentially dilutive event. Regardless, the stock is still up considerably higher both when it tested the $1.50 area and as of last week.
Heading into May, Atossa is on the radar after announcing a few key milestones. First, it began treating ovarian cancer patients with its proprietary oral Endoxifen. The unique part of this process is that the FDA has allowed expanded access for the use of Endoxifen for just one patient. Steven Quay, M.D., Ph.D., Atossa’s President, and CEO explained in a press release that “This testing revealed that the combination of Endoxifen and alpelisib produced an exceptional tumor response. We will follow the progress of this patient and consider additional clinical studies in patients with ovarian cancer.”
Then, heading into this week, Atossa could be in the spotlight as Dr. Quay is set to participate in a panel discussion at Cello Health’s Cancer Progress Virtual Conference on the 6th. Given the timing and progress made in the market recently, ATOS could be a name to know as May begins.
SOS Limited (NYSE: SOS)
If you’ve been paying attention to higher-risk assets recently, cryptocurrencies have become a big point of interest. There was a pullback toward the end of April. However, this weekend, everything from Bitcoin to Dogecoin saw a reversal. In fact, Doge tested the $0.40 level for the first time since mid-April, and Bitcoin prices jumped back above $55,000. Ethereum also shined bright, reaching fresh record highs.
With this as the backdrop, for now, cryptocurrency and Bitcoin mining stocks could be a focus. SOS Limited has been treading water for the last few weeks, hovering just above its 200-day moving average. However, during Friday’s aftermarket session, SOS stock bounced from a closing price of $4.21 back to highs over $4.30.
What’s more, the company’s latest purchase of 575 cryptocurrency Ethereum mining rigs could have been well-timed given the trend in ETH over the weekend. According to its April 20th PR, these rigs should have been delivered “on or about” April 30th. If this trend in crypto continues heating up, heading into Monday morning, cryptocurrency penny stocks like SOS could be ones to watch.
Durect Corp. (NASDAQ: DRRX)
DURECT Corp. was another one of the penny stocks that has experienced a stronger rally since the latter half of April. Since April 21st, DRRX stock has yet to post a red close. Furthermore, shares have managed to rally by as much as 17% during that time.
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This week could be an important one for the company and the market, in general. Among the hundreds of companies reporting financial results, DURECT delivers its earnings data on May 4th. In its prior quarter’s results, the company managed to beat analyst estimates on earnings per share but missed sales estimates in a big way. Needless to say, Q1, 2021 saw several milestones other than these results that could be something to take note of in the company’s business update on Tuesday.
Specifically, DURECT announced the publication of its DUR-928 mechanism of action in The Journal of Lipid Research. This treatment is designed to regulate patterns of gene expression without changing the DNA sequence.
Norman Sussman, MD, FAASLD, Chief Medical Officer of DURECT explained in a March update that, “DUR-928 has already demonstrated promising efficacy signals in a Phase 2a study in patients with AH and encouraging data in a Phase 1b study in patients with NASH. The proposed mechanism of action of DUR-928 in this publication provides a further scientific rationale for evaluating DUR-928 as a therapeutic agent for AH and NASH.”
The company has an ongoing Phase 2b clinical trial in patients with alcohol-associated hepatitis. It’s also exploring other indications that could benefit from DUR-928’s mechanism of action. Given the fact that earnings are coming up this week, it could present a potentially volatile situation depending on how the market reacts to DURECT’s results. So keep that in mind if DRRX stock is on your watch list right now.
Penny Stocks To Watch This Week
Putting together a list of penny stocks to watch is never a bad idea. The weekends are great for taking the time to do this. You can get a full overview of each company, sift through data, and take time to form a proper thesis without the noise of daily market trading. I understand that small-cap stocks cooled off at the end of the week. The Russell 2000 Small-Cap ETF (NYSE: IWM) and the S&P Small-Cap ETF (NYSE: IJR) gave back their weekly gains.
Despite this being the case, I’m sure there will be plenty of opportunities to buy penny stocks as May gets kicked off. When that happens, it’s best to be prepared, and your list of penny stocks can definitely help sift through the thousands of names flooding the newswires on a given day.