Penny stocks are significantly riskier than your traditional blue-chip stocks. But with that higher risk comes the potential for much higher rewards. While some traders might get excited by companies like Tesla (NASDAQ: TSLA) making a 7% move in a single day, penny stocks are well-known for doing that by a ratio of 10x or more. So how do you find the best names for your watch list? In 2022, many investors are looking at what analysts have to say.
Penny Stocks TL;DR 30-Second Summary
- Penny stocks are high-risk and high-reward
- Though they aren’t for everyone, the unique profit potential is a big attraction for daytraders
- Retail isn’t the only group looking at penny stocks. Analysts are also following some emerging companies closely
- Today we look at a handful of penny stocks analysts have Buy ratings on and price targets up to 313% higher than closing prices on January 4th
Analysts are infallible. However, Wall Street firms tend to take a more detailed approach to companies versus saying “YOLO, and that’s why,” like you might see on social media discussion boards. Today, we’ll look at a few penny stocks with buy ratings and analyst price targets up to 313% higher than where some of these stocks closed on January 4th.
- Arcadia Biosciences (NASDAQ: RKDA)
- Diversified Healthcare Trust (NASDAQ: DHC)
- NexTier Oilfield Solutions (NYSE: NEX)
- TOMI Environmental Solutions Inc. (NASDAQ: TOMZ)
Penny Stocks To Buy According To Analysts: Arcadia Biosciences (NASDAQ: RKDA)
Arcadia has a unique positioning in the nutraceutical and wellness arena as a plant-based health company. Its product categories range from Zola coconut water to GoodHemp functional ingredients. Furthermore, the latest focus on expanding its consumer packaged goods initiative seems to have stuck with traders.
Recent RKDA Stock News
In addition to appointing a CPG industry vet, Kevin Comcowich, as interim CEO, Arcadia was granted a notice of allowance for a new U.S. patent. Titled “Wheat Having Resistance to Glyphosate Due to Alterations in 5-Enol-Pyruvylshikimate-3 Phosphate Synthase,” this further expands Arcadia’s IP portfolio. The patent win also came not long after the company secured the US Patent #11,202,419, “Soybeans with reduced antinutritional factor content,” in late December.
Looking ahead at 2022, The company has already discussed a full-scale launch of 5 pasta SKUs based on Arcadia’s GooWheat platform. The campaign is set to launch this quarter.
Read: Best Biotech Penny Stocks to Buy Now? 3 to Watch in January
RKDA Stock Forecast
What do analysts think about RKDA stock? HC Wainwright has a $6 target and a Buy rating. Based on Monday’s closing price of $1.18, that target is 408% higher.
Diversified Healthcare Trust (NASDAQ: DHC)
On another end of the health spectrum, Diversified Healthcare is another company analysts are bullish on right now. As a real estate investment trust (REIT), Diversified focuses on healthcare properties in the US. Shares of DHC stock have surged over the last few weeks as the company gained steam following a series of updates.
Recent DHC Stock News
Late last month, the company offloaded a 35% stake in a joint venture for $378 million. The cash proceeds are earmarked for funding CAPEX and reducing some of the debt on the books. This was a high point for the market after mixed earnings were delivered in November.
“Since our purchase of this property in 2014, the Boston Seaport District has emerged as one of the top life science markets in the United States. Adding a new private capital partner to this existing joint venture highlights the sizable value appreciation in the past seven years. It also provides additional balance sheet liquidity for DHC and we expect it to help reduce our overall leverage in the coming year.”Jennifer Francis, President and Chief Executive Officer of DHC
DHC Stock Forecast
This, of course, brought some extra attention from analysts heading into 2022. B.Riley was the latest firm to weigh in. Its analysts maintained a Buy on the company and raised their $5 target to $6 before year-end 2021. Based on Monday’s closing price of $3.26, that target sits 84% higher right now.
Penny Stocks To Buy According To Analysts: NexTier Oilfield Solutions (NYSE: NEX)
Energy stocks have been red hot to start the new year. NexTier Oilfield Solutions is a clear example of that. Shares surged on Monday after the company’s operational update. NexTier had focused on several key initiatives planned for early this year.
NEX Stock News
The oilfield service company anticipates hitting the ground running in 2022. Following boosted Q4 2021 revenue guidance, the company also expects to operate an average of 32 deployed frac fleets during the first quarter of 2022. This is up from 31 fleets at the end of Q4 2021. There’s also a plan to deploy another upgraded frac fleet this quarter. “Sequentially, we anticipate net pricing gains in Q1 2022 and increased utilization, with the expectation that we can achieve double-digit annualized EBITDA per fleet by the end of Q1 2022,” stated the company in its update this week.
NEX Stock Forecast
On the heels of solid guidance and bullish expectations for early 2022, it’s no wonder why analysts are optimistic. For instance, Morgan Stanley recently boosted its price target from $6 to $6.50. It also carries an Overweight rating on the stock, and based on Monday’s closing price, analysts seem to expect upward of 67% from current levels.
TOMI Environmental Solutions Inc. (NASDAQ: TOMZ)
Any list of penny stocks isn’t complete without at least one short interest stock. TOMI Environmental has been on plenty of our “short squeeze penny stocks” lists over the last few months. As of right now, Fintel.IO data shows a shot float percentage of over 10% for TOMI stock, and much of the recent momentum has stemmed from its place in the disinfectant industry. A rise in virus cases has placed a bright spotlight on companies like this. TOMI develops disinfection and decontamination products using its Binary Ionization Technology platform. Brands like its SteraMist product portfolio have gained interest among traders.
Read: Metaverse Penny Stocks To Watch As Traders Look To Buy New Tech
Recent TOMZ Stock News
The company recently launched its SteraMist Amazon store and expanded its sales channels. Citing the development, CEO Dr. Halden Shane explained, “As new pathogens emerge, including the new variant of SARS CoV-2 Omicron and the deadly C. auris fungus, continue to spread around the world, disinfection is deemed critical, and SteraMist is here to stop the spread.”
TOMZ Stock Forecast
What do analysts think about TOMZ stock? HC Wainwright recently started covering the company and gave a Buy rating. The firm also set a price target of $3.50, which, based on Monday’s close of $1.73, is 102% higher right now.
Final Thoughts On Penny Stocks With Analyst Ratings
Whether you use analyst ratings or not is at your discretion. In my opinion, they shouldn’t be the only thing to base your strategy on. But they can help gain a bit more insight into a company, fundamentally. With so much noise in the stock market today, it isn’t a bad idea to take a step back from the hype and do a deep dive to identify potential beyond market momentum.
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