3 Penny Stocks to Watch in December That Exploded Today
If you’re looking for penny stocks that could explode or have exploded, there are plenty of options to choose from. But, to pick the best penny stocks to buy, investors need to have a thorough understanding of what’s going on in the stock market and how to take advantage.
For starters, the largest impacting factor on the stock market right now is Covid and the newly recognized, Omicron variant. While it is too early to say what the full effect of this variant will be, there’s no doubting the effect that it has on markets right now.
As a result, we’ve seen major bullish sentiment with a handful of biotech penny stocks. This includes companies like Arbutus Biopharma Corp. (NASDAQ: ABUS), which exploded by over 90% at midday on December 1st. Aside from this, we’re also witnessing widespread market volatility that is causing major price jumps and falls across the board. While this is common with penny stocks, the level we’re witnessing fluctuations at right now is much higher than usual.
Now, there is also plenty of money to be made with penny stocks in 2021. But as stated earlier, understanding what’s going on, and how to use that as an advantage, will be a major asset to your trading. Considering that, let’s take a look at three penny stocks that exploded today.
3 Penny Stocks For Your December 2021 Watchlist
Ardelyx Inc. (NASDAQ: ARDX)
One of the bigger gainers of the day so far is Ardelyx Inc. By midday, shares of ARDX stock had shot up by over 17%, bringing it to almost $1.50 per share. In the past five days, ARDX stock has shot up by a staggering 57%, which is no small feat. While many large gains occur without news, several factors are causing Ardelyx shares to move up right now.
This includes Ladenburg Thalmann, upgrading shares of ARDX to a buy rating, which is always good news for investors. The upgrade comes alongside Ardelyx announcing the launch of its IBS-C drug, ISBRELA for the second quarter of 2022. It states that the drug has the potential to see net revenue of over $500 million per year.
“Over the last five years, the IBS-C market has grown to be sizeable and concentrated, with 9,000 high-writing physicians accounting for approximately 50% of the almost five million prescriptions written annually for drugs indicated for the treatment of IBS-C. This market is ripe for the entry of a novel therapeutic option like IBSRELA, as existing therapies do not adequately address all patient treatment needs.”The President and CEO of Ardelyx, Mike Raab
The launch of a new drug is always an exciting prospect for companies and investors alike. And as a result, we see clearly why shares of ARDX stock have risen so substantially in the past few trading days. Considering this, does ARDX deserve a spot on your list of penny stocks to buy?
ImmunoGen Inc. (NASDAQ: IMGN)
Another big gainer so far today is IMGN stock, pushing up by over 11% at midday. While it technically is no longer a penny stock at over $6.85 per share, it was only a day or two ago. In the past five days, shares of IMGN stock have shot up by a sizable 38%, on positive news surrounding one of its products. Before we go any further, it’s worth noting that we’ve covered IMGN numerous times in the past few weeks including yesterday.
On Tuesday, November 30th, the company stated that its cancer drug, mirvetuximab, met all of its primary goals in the late-stage study. The drug posted an objective response rate of over 32%, which is quite substantial in its category. Moving forward, the company will be submitting this data to the FDA as a part of its BLA or Biologics License Application. This will occur in the first quarter of next year.
“Data from SORAYA have the potential to redefine the standard of care for patients with FRα-high platinum-resistant ovarian cancer, as this trial has demonstrated that mirvetuximab delivers clinically meaningful benefit in this setting.”The Chief Scientific Officer of U.S. Oncology, Robert Coleman
This is very positive news, and shows the potential that this drug could have. Whether it makes IMGN stock worth adding to your penny stocks watchlist however, is up to you.
Skylight Health Group Inc. (NASDAQ: SLHG)
With over 12% in gains on December 1st, Skylight Health Group is another penny stock that is on investors minds right now. While it’s difficult to pinpoint exactly why shares of SLHG stock are shooting up right now, we can look at its stellar balance sheet that was reported only a few weeks ago. In its Q3 2021 financial results, Skylight Health posted revenue growth of 269% to $12.2 million over the same period of the previous year. Additionally, it posted a cash balance of over $5.6 million as of the end of September 2021.
“We are excited that we achieved our largest revenue quarter in the history of the Company. The third quarter continued our path of transformative growth that started in the first and second quarters of this year from strategic and mission-aligned acquisitions as well as organic growth from existing practice.”The CEO of Skylight Health, Prad Sekar
If you’re not familiar, Skylight Health is a healthcare services and tech company that operates across the U.S. It focuses on small businesses working to switch to value-based healthcare or VBC. As a result of the major emphasis on healthcare right now, Skylight has continued to see heightened popularity in the past few months. With this in mind, will SLHG stock be on your penny stocks watchlist moving forward?
Are Penny Stocks Worth it or Not?
If you’re looking for the best penny stocks to buy, there are plenty of options to choose from. Because of the sheer number of penny stocks out there, it can seem like a daunting task to pick just a handful for your watchlist.
However, because of the major volatility we’re witnessing in the stock market right now, there is also plenty of money to be made with small caps. Considering all of this, do you think that penny stocks are worth it or not?