Penny Stocks To Buy According To Top Wall Street Firms
What do you look for when it comes to finding penny stocks to buy? Are you hunting for momentum? Should corporate filings be part of your research? Will news headlines play a role in your decision-making? What about industry sentiment and the ever-popular “Reddit outlook”?
All of these can definitely have a hand in helping you decide on which stocks to buy. The important part is to do your research. It’s straightforward to go to a social media outlet, find a “confident” user and try to mimic their trades. But you risk a few things here. First, what if the person’s motives aren’t what you think they are?
Are Penny Stocks Right For You?
Deciding whether or not penny stocks are right for you has a lot to do with how you handle risk and understand what’s at play with a given company. For example, many OTC penny stocks have seen overly bullish sentiment and hype-fueled trading activity this year. Then, seemingly out of nowhere, the entire market for a stock sells off. There’ve been plenty of times with popular penny stocks on Reddit and other social media outlets that this has been the case. Numerous court case hearings this year have also cited the dangers of social media and stock research.
Another thing you risk by simply following someone on social media is that the profile goes offline. Without proper education and know how to day trade penny stocks, you’re at the whims of whomever you follow. For these reasons, it’s important to know how to research and find penny stocks to buy on your own. Learn how to read company filings, understand what role hype plays in a breakout, and know what to take away from things like analyst reports.
Putting it all together and getting educated on technical indicators and reading charts, for example, will help you all the better. Once you have this strategy put together, the last thing to do is weigh your risk tolerance. If you can handle a little bit of risk and know the basics of trading penny stocks, then yes, these low-priced names could be right for you.
What Does Wall Street Think About Penny Stocks?
You might think that the consensus surrounding penny stocks is bearish. We’re talking about start-up-level companies or businesses that “couldn’t hack it” as higher-priced names, right? Well, if you ask experienced traders or some of Wall Street’s top analyst firms, they might disagree with that statement. Not all penny stocks are bad to buy, nor are many bad investments.
But again, understanding risk and reward are important. In this article, we’re going to take a look at 5 penny stocks to buy according to Wall Street firms. All have been given bullish price targets as well. I’ll leave it up to you to decide if you think analysts are right about these companies or not. But, at the very least, they may be some names to make a note of heading into the end of May:
- Tellurian Inc. (NASDAQ: TELL)
- Iterum Therapeutics (NASDAQ: ITRM)
- Sesen Bio Inc. (NASDAQ: SESN)
- Marker Therapeutics Inc. (NASDAQ: MRKR)
- Vistagen Therapeutics Inc. (NASDAQ: VTGN)
1. Penny Stocks To Buy [According To Wolfe Research]: Tellurian Inc. (NASDAQ: TELL)
Eearlier this year, Wolfe Research changed its rating on Tellurian Inc. to Buy. The firm also put a price target of $5 on the penny stock. Considering that the price of TELL stock was sitting around similar levels that it was last week, Wolfes target sits. roughly 90% higher right now.
Analyst Sam Margolin cited that certain prospects of the company’s Driftwood liquified natural gas project are improved given the spike in global LNG prices. Furthermore, Margolin explained that the project’s “appeal is durable in commodity price environments.”
He thinks that Tellurian can outpace competitors in the current sales and purchase agreement window as well. Thanks to multiple tailwinds fueling energy stocks this year (no pun intended), TELL stock falls somewhere in the middle of alternative/green energy and traditional oil and gas. Both of these niches have gained significant ground in 2021, thanks to reopening. Furthermore, in light of the shift to “green alternatives,” LNG has been seen as a “bridge” fuel because of its smaller carbon footprint compared to things like coal or traditional crude oil.
Nevertheless, TELL stock has held a strong uptrend for the better part of the last month thanks to a rebound in the reopening trade. Heading into the week, it could be interesting to see how energy stocks react given the amount of new economic data set for release.
2. Penny Stocks To Buy [According To HC Wainwright]: Iterum Therapeutics (NASDAQ: ITRM)
Another one of the penny stocks that analysts are bullish on is Iterum Therapeutics. HC Wainwright has a Buy on the stock along with a price target 119% higher than the closing price on May 21st. Analyst Ed Arce upgraded Iterum from Neutral to Buy with a price target of $2.50.
Accordingly, he explained that “Recent financings provide substantial runway, allowing investor focus to turn to potential FDA approval and launch. We downgraded ITRM last June on an unclear regulatory path forward for sulopenem (it had missed the primary endpoint on two of three Phase 3 trials) and a short cash runway without an ability to commercialize the drug (or a partner), even if it were approved. Since then, the company has achieved: (1) unequivocally positive results, in our view, in the final Phase 3 trial in uncomplicated urinary tract infections (uUTI), called SURE1. The NDA was filed in 4Q20, and the FDA accepted the NDA on January 25. The PDUFA date is July 25, 2021. On Friday, March 12 (4Q20 earnings), the company also announced an AdCom is set for June 2.”
In addition, when it came to the company’s lead treatment, sulopenem, the analyst believes that it is likely to be the first oral “penem” class antibiotic drug to reach the market. These were several potential catalysts that we’ve discussed in the past when it comes to ITRM stock. Furthermore, with these two upcoming dates quickly approaching, it could be interesting to see how the market responds. Despite the current sideways trend, ITRM stock remains 14% higher than where it started this year.
3. Penny Stocks To Buy [According To Canaccord Genuity]: Sesen Bio Inc. (NASDAQ: SESN)
Canaccord Genuity analysts have gotten behind Sesen this year. Analyst John Newman currently has a Buy rating and $5.00 price target on the company. He believes that Sesen’s Vicineum in Non-Muscle Invasive Bladder Cancer will receive priority review and approval by next quarter.
“Vicineum is preferred by urologists vs. Keytruda, has shown stronger data in terms of time to cystectomy, and should carry premium pricing similar to Keytruda ($165,000/yr)…Sesen completed its Biologics License Application (BLA) submission for Vicineum in 4Q20, and we expect priority review, especially given the ongoing serious Bacillus Calmette-Guerin shortage for treatment of non-muscle invasive bladder cancer. FDA will make a decision on BLA acceptance and priority review within 60 days from filing date. If required, an FDA panel would be a significant positive for Vicineum, boosting visibility.”
In the company’s latest quarterly update, CEO Thomas Cannell explained that the company remains on track for potential approval in the US in August of this year and Europe early next year. If you’ve been following the story on Sesen, you’ll likely remember that it received notice from the FDA that the BLA was accepted in February. A Priority Review was given a target PDUFA date of August 18th. Now that we officially enter the summer season, August doesn’t seem that far away and could be a point of interest for the market as the date comes closer.
4. Penny Stocks To Buy [According To Oppenheimer]: Marker Therapeutics Inc. (NASDAQ: MRKR)
Clearly, there’s plenty of attention from analysts in small-cap stocks with exposure to biotech. While this isn’t the only area of interest, it remains a popular one thanks to the potential of these types of companies. However, with the potential also comes the higher risk of failure &, in turn, the downside in the market. Needless to say, that hasn’t prevented retail traders from shifting focus to biotech penny stocks in 2021.
Market Therapeutics caught a strong bullish surge last week, which added to its gain for the year. Since January, shares of MRKR stock are now up 91%. What’s more, if analysts at Oppenheimer are right, the firm expects more upside to come. In particular, Matthew Biegler assigned a Buy rating to Marker and set a price target of $8.00. Considering MRKR closed the week last week at $2.77, that’s 188% higher right now.
One of the company’s focuses is on advancing its AML trial, which recently dosed its first patient. CEO Peter L. Hoang explained that “In March, we dosed the first patient in the safety lead-in portion of our Phase 2 trial in post-transplant acute myeloid leukemia, or AML, and continue to activate clinical sites. In parallel, we continue to optimize the MT-401 cell therapy manufacturing process, which we believe could result in an increase in the number of T cells available for patient administration–among other benefits–as we prepare to operationalize our new in-house cGMP facility in the first half of the year.”
Cancer stocks have been red hot over the last few years. New means of treatment, including T-cells and even mRNA, have been throw into the mix. This week the company will present early results from robotic automation of T cell generation for treating AML at the International Society for Cell & Gene Therapy, taking place from May 26th-28th.
5. Penny Stocks To Buy [According To Baird]: Vistagen Therapeutics Inc. (NASDAQ: VTGN)
Vistagen is a biotech company we’ve discussed plenty of times in the past. The company is developing treatments for various conditions, including anxiety, depression, and other mental illnesses. These include its PH94B nasal spray, which will soon enter a Phase 3 trial for its potential to treat anxiety in adults.
Earlier this month, Baird analyst Brian Skorney initiated coverage on VistaGen with an Outperform rating and announced a price target of $9. Considering that VTGN stock closed out last week at $2.82, that target is 219% higher than the current levels. Skorney highlighted the potential of PH94B explained that it has a very large commercial opportunity.
Furthermore, Skorney told investors that he thinks VTGN is “significantly undervalued” with what he has identified as the possibility of success and sees VistaGen as a “big outperformer over the next year.”
As far as what to pay attention to right now, Vistagen has more upcoming presentations at industry conferences. Both come next week on Wednesday and Thursday at the Jefferies Healthcare and William Blair Conferences. In light of this, VTGN could be one of the penny stocks to watch this quarter.
Should You Buy Penny Stocks Because Analyst Say So?
In short, the only reason you should buy penny stocks is based on your personal feeling on the matter. At the end of the day, analysts aren’t always right, and things can quickly change for smaller companies. However, as we’ve seen with some of these penny stocks, analysts point out why they’ve given the recommendations that they’ve arrived at, thanks to their own research. At the end of the day, it’s up to you as the investor to decide if those highlights align with your own thesis on a given company.