The hunt to find the best penny stocks to buy can be complicated at times. Thanks to the rise of the retail trader, there’s a lot of noise to sift through. Do you follow that random Twitter account that seems to be “right” about a stock that is already heavily discussed? Maybe you should follow the advice of an anonymous Reddit user. But what about the article you read on a finance website from a contributor with five followers? My best advice to you is not to base your decision on any single facet.
The best part about penny stocks today is that there are plenty to choose from. If it takes you a few extra minutes to do some research, so be it. At the very least, you’ll understand the reasons why specific stocks are moving and better determine if there’s an opportunity for you to capitalize on.
Penny stocks can be incredibly lucrative, and you can reap the rewards very quickly. Just look at popular names like Pasithea Therapeutics (NASDAQ:KTTA). As discussed earlier today, this is one of the hottest penny stocks to watch after the company reported its latest development.
Quite literally overnight, the penny stock went from trading around $2.10 to rallying to highs of $8.50 with some of the highest single-day volumes this year. That 304% move was accompanied by plenty of social media hype. Unless you were in the know early on, most of that “hype” was just additional noise. Regardless, KTTA stock is just one of the many examples of the explosiveness that cheap stocks can experience. In this article, we’ll look at a few more that’ve begun gaining attention in the stock market today. Will they be on your list of penny stocks to buy now, or should you wait?
Best Penny Stocks To Buy [or avoid]
- Crescent Point Energy (NYSE:CPG)
- Amplify Energy (NYSE:AMPY)
- Vallon Pharmaceuticals (NASDAQ:VLON)
- InMed Pharmaceuticals (NASDAQ:INM)
- Tivic Health Systems (NASDAQ:TIVC)
Penny Stocks To Buy [or avoid] 1. Crescent Point Energy (NYSE:CPG)
Kicking off this list of penny stocks are a few energy companies steadily rising today. Crescent Point, specifically, focuses on traditional oil production. Its operations span the western region of Canada in Alberta and Saskatchewan and sites in North Dakota, tapping into the rich Bakken and Three Forks formations.
There’s been plenty of attention on renewable energy and alternatives over the last year. With things like the infrastructure bill getting passed in the US, “green energy” is having its time in the spotlight. However, the reopening of global economies has put a strain on supply chains, and inflationary constraints are pointing to a lack of energy resource supply. With this has come much more interest in traditional oil and gas, at least in the short term.
Thanks to this, oil companies, including Crescent, have gained momentum this week. The latest uptick in CPG stock also comes after the company reported strong Q3 earnings. Crescent Point’s EPS jumped from C$0.13 during last year’s Q3 to C$0.24 this year. Furthermore, the company explained that it sees average production for the year between 132,000 and 134,000 barrels of oil equivalent per day. Thanks to this growth, analysts have also become bullish on the stock. Stifel Nicolaus recently boosted its price target to C$11 and currently maintains a Buy rating on CPG stock.
2. Amplify Energy (NYSE:AMPY)
Another one of the energy penny stocks to watch right now is Amplify Energy. The company’s new in October demolished share prices in AMPY stock. The primary catalyst originated from a major oil spill in Southern California.
This also came with some negative sentiment from analysts, including Roth Capital. The firm slashed its rating from Buy to Neutral as shares plummeted from over $5 to as low as $2.60. However, the last few days have seen a bit more of a rebound in AMPY stock.
The oil and gas company’s recent corporate update continues getting digested by traders. In particular, Amplify management retracted its guidance for the year in response to the California incident. However, as oil demand has continued to increase, related companies, including Amplify, have gained. With AMPY stock following the broader energy industry trend right now, some have made this one of the penny stocks to watch.
3. Vallon Pharmaceuticals (NASDAQ:VLON)
As of the start of this article, VLON stock was still sitting below $5. However, the stock’s price has surged out of penny stock territory as time has gone on. Regardless, it’s essential to keep track of everything going on right now, including breakouts from small caps like this.
Vallon develops drugs designed to deter abuse in treating central nervous system disorders. Its lead treatment candidate, Abuse-Deterrent Formulation of Dextroamphetamine (ADAIR), is developing for treating ADHD and narcolepsy. ADAIR under observation in a Study to Evaluate the Abuse Liability or SEAL study. According to the company, if it’s approved, ADAIR could address the increasing Adderall segment of the ADHD market. With the final patient visit and completion of treatment expected next quarter, topline results are likely something to look out for in 2022.
Other than this, VLON stock has received some bullish interest from the analyst community this quarter. HC Wainwright recently started coverage on the company with a Buy rating. The firm paired this with a $12 price target as well.
4. InMed Pharmaceuticals (NASDAQ:INM)
Shares of InMed have continued climbing this month. INM stock was one we discussed earlier in November, thanks to news from research firm Edison. The firm highlighted the latest progress that InMed made and the outlook for advancing its business model and development pipeline. The focus was heavily on InMed’s recent acquisition of BayMedica. Accordingly, this could allow InMed to go directly into commercial stage development.
Edison stated, “We have adjusted our valuation to US$290m or US$20.53 per basic share, from US$293m or US$24.24 per basic share. This is mainly due to a higher number of shares outstanding following the share issuance as a result of the closure of the BayMedica acquisition.”
This week, InMed announced it would present at Cowen’s investor conference at the end of November. With this latest surge of momentum heading into the end of November, INM stock could be one to watch.
5. Tivic Health Systems (NASDAQ:TIVC)
Rounding out this list of penny stocks, Tivic Health came back from the dead on November 23. Following a painful few weeks after its IPO, TIVC stock has pulled through with a rebound in price. Though it’s still down considerably from its $6.50 highs this month, traders have begun circulating information about the biotech company.
Tivic is a commercial-phase medical device company. Its ClearUP product is an FDA Class II and EU Class IIa device that received multiple regulatory clearances for relieving sinus and nasal inflammation symptoms. The device uses low current electrical waves to achieve this. Although no further updates have come from Tivic recently, the IPO hangover seems to have subsided a bit.
Right now, the focus is on commercial sales of ClearUP. Proceeds from its November IPO have been earmarked for advertising, PR, social media, e-commerce infrastructure, and increasing the awareness of the device. There are also plans to support the launch of its ClearUP Gen 2 platform. With this planned roll-out, it will be interesting to see what comes next for Tivic on its path to commercial sales.
Penny Stocks To Watch This Week
It has already been a topsy-turvy week in the stock market. But that doesn’t mean it’s time to shut it down and leave. Finding new opportunities is both exciting and rewarded when done correctly. There’s plenty to dissect before next week, given the latest developments and industry trends with some of these penny stocks.