Penny Stocks Analysts Seem To Like Right Now
If you’re looking for penny stocks to buy right now, one place to look is the analyst community. While I’ll be the first to say that these firms aren’t infallible, I will also say that they spend their time studying the markets. Sifting through filings, pouring through data, & monitoring industry trends are frequent practices.
But keep in mind that we’re still talking about cheap stocks under $5. Many of these companies remain in their development stages. That means the market can see myriad things. Everything from expensive financing to institutional trading can play its part in the rise (or fall) of penny stocks. You’ve also got the general business models of these companies.
If you’ve traded for a while, you’ve likely come across companies that’ve hung up operations in search of “strategic alternatives.” We saw this a lot during the early days of the pandemic, where companies grappled with closing up shop and trying to sustain damaged operations. In cases like this, companies searching for strategic options may find them, but the new model might be completely different from the one in place when investments were first made. Some clear examples from last year were tech companies that made a full pivot into coronavirus-related product and service offerings.
Going back to my original statement on analysts, had a firm given its ratings before the pandemic, would it still hold weight after the company made such a dramatic shift? These are just a few things to keep in mind when you’re sifting through penny stocks to add to your watch list.
Penny Stocks To Buy [According To Analysts]
Needless to say, in today’s update, we’re going to talk about some penny stocks to buy according to large Wall Street firms. For the most part, these companies have upheld a consistent model during the pandemic. The next question you should ask is, are they the best penny stocks to buy right now, or should you avoid them entirely?
- New York Mortgage Trust Inc. (NASDAQ: NYMT)
- Trivago (NASDAQ: TRVG)
- MannKind Corporation (NASDAQ: MNKD)
- Nokia Corporation (NYSE: NOK)
- Elys Game Technology Corp. (NASDAQ: ELYS)
Penny Stocks To Buy [According To B. Riley]: New York Mortgage Trust Inc. (NASDAQ: NYMT)
This week B. Riley Securities initiated coverage on New York Mortgage Trust. You may recall this firm from other articles this week. Analysts at B. Riley recently reiterated a Buy and $21 target on one of the former biotech penny stocks we’ve discussed in the past. Needless to say, when it comes to New York Mortgage, B. Riley analysts issued a Buy on the company along with a $6 price target. based on its current trading levels, that would mean a proposed rise of over 30%. Whether or not it ultimately reaches that level is yet to be seen.
However, with recent reopening and strength in real estate, this former $6 stock has steadily recovered from its pandemic lows of under $1 last year. B. Riley analyst Matt Howlett explained that over the last 10 years, the company has delivered among the highest economic return within the space. This, Howlett alluded to, was due in part to strong asset selection, low leverage, and a “highly efficient” operating structure.
Penny Stocks To Buy [According To Mizuho]: Trivago (NASDAQ: TRVG)
Trivago is your classic reopening penny stock to watch. The hotel booking platform was hit hard during the early days of the pandemic. However, since November of 2020, TRVG stock has been on the recovery path. Not only has it bounced back by more than 200% since that time, but analysts have also grown bullish on the stock. Right now, Mizuho has a Buy rating on Trivago. It also placed a $4 target. At this point, that may be a relatively modest target, but it is one of the highest among other analysts following this reopening trade. Morgan Stanley, Deutsche Bank, and DA Davidson all have targets ranging from $2.60 to $4.
Despite a worse quarter compared to last year, several new opportunities may have arisen for the company. CEO Axel Hefer explained earlier this month that there could be a “silver lining” coming from the pandemic. That involved what he called a “less heated” market. Trivago has begun to form an “activities” option for customers. This will include tours from TUI.
“It was so overheated…We would get burned.” CEO Hefer said the activities space might be more normalized as reopening has begun. Trivago also rolled out a Trivago Weekend product to provide curated content for deals on accommodation and experiences. With this new initiative, and bullish analysts getting behind the company, TRVG could be one of the penny stocks to keep track of right now.
Penny Stocks To Buy [According To BTIG Research]: MannKind Corporation (NASDAQ: MNKD)
It’s not necessarily something you would regard as a pure “reopening stock,” but you could argue healthcare has become an industry of focus & MannKind is right in the middle of it. The company develops inhaled therapeutic products for patients with endocrine and orphan lung diseases. Its FDA-approved Afrezza is a fast-acting mealtime insulin product available by prescription in the U.S.
Shares have rallied strongly over the last year, and 2021 has continued showing that same trend. Earlier this week, the company announced a new partnership with IndyCar Driver Conor Daly. He has Type 1 Diabetes and will bring awareness to the company’s products. Aside from Afrezza, MannKind’s collaboration partner, United Therapeutics (NASDAQ: UTHR), also submitted an NDA to the FDA for its Tyvaso DPI product. This is a potential treatment for pulmonary arterial hypertension and pulmonary hypertension associated with interstitial lung disease.
As far as analysts are concerned, MNKD stock has a bright outlook. BTIG Research set an $8 target on the stock. Based on today’s price of around $4.32, that’s a proposed move of 85%. Will it manage to reach that price level? Comment below.
Penny Stocks To Buy [According To Deutsche Bank]: Nokia Corporation (NYSE: NOK)
I don’t need to explain the history of Nokia Corp. at this point. It’s one of the more notable names in the communications industry. It’s also a key player and mainstay on any list of 5G penny stocks to watch. Needless to say, the company has experienced its share of volatility over the last few months. It also put a new CEO in place looking to make his own mark on the company.
May has been an active month for Nokia. The company sealed a deal with Swisscom to supply its new optical transport network. Nokia is the sole supplier to build an end-to-end wavelength division network to support Swisscom customer’s rapidly increasing bandwidth demands. These have obviously been driven by the larger stay-at-home trend caused by the pandemic. The company also inked a deal with Movistar Chile for the launch of a commercial 5G network.
This week, the momentum has continued. Nokia and Ericsson settled a claim from back in 2019. The company is set to receive $97 million following a DOJ and SEC investigation into Ericsson’s violations of the U.S. Foreign Corrupt Practices Act.
Aside from these key updates, the analyst community is seemingly bullish on the penny stock. Most recently, Morgan Stanley upgraded Nokia to Overweight from Equal-Weight. This adds to the long list of analysts with high hopes for the company, including Deutsche Bank, SEB Equity, & UBS.
Penny Stocks To Buy [According To HC Wainwright]: Elys Game Technology Corp. (NASDAQ: ELYS)
Esports and gaming are another offspring of the pandemic in 2020. Lack of live sports, closures of casinos, and the like left little for real-time entertainment options. However, when it comes to esports, it’s all about virtual entertainment and the ability to compete for no matter where you are. As part of the reopening trade, companies like Elys have benefited from speculative market momentum. At one point, shares of the penny stock had rallied as high as $8.28. What’s more, if you’ve been an active reader of PennyStocks.com, you would’ve seen this the first time we began discussing the company when shares were trading below $3.
This week Elys reported its latest quarterly results. The game technology company achieved 39% revenue growth and reported record revenue for the first quarter in 2021. Revenue figures came out to $14.2 million. Matteo Monteverdi, CEO of Elys Game Technology Corp., commented, “The disciplined growth strategy we previously set out has been executed extremely well. Our web-based gaming turnover increased by an impressive 150% over the same period last year, and we continue to generate strong cash flow from operations.”
What do analysts have to say about ELYS stock? H.C. Wainwright, for example, currently has a Buy on the stock. Analyst Scott Buck set an $8 price target as well. Based on Elys’ established sportsbook, the company is “positioning itself to be a leading technology provider in the U.S. market.”
The evolving landscape in North America could allow Elys to leverage its operating and technology expertise in this “meaningfully larger market.” Buck also anticipates Elys has the potential to become one of the largest business-to-business gaming technology providers in North America. It will be interesting to see how the company continues to grow in light of the recent quarter’s performance. But, based on Buck’s current target, he’s expecting a potential upside of 95%.
Some Final Thoughts On Analysts & Penny Stocks
Whether analysts are right or wrong, the ultimate decision is up to you. Understanding things like how to day trade or what to look for before investing in penny stocks is important. Following the latest round of Reddit posts to justify risking your money isn’t the best course of action, in my opinion. Depending on your style, knowing what’s driving momentum or what the future may hold for a company are important to consider before deciding to buy penny stocks.
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