Penny stocks are shares of companies trading for less than $5. They are some of the most volatile assets in the stock market today, but they are also some of the most rewarding if you know what you’re doing. Trading penny stocks is a skill that many retail traders have sought out.
Big moves in the stock market in companies like AMC Entertainment and GameStop have attracted millions of new traders to Wall Street. There have even been numerous documentaries made about the trading conditions of the 2020 pandemic.
Now that 2022 is in full swing, these same “stonks only go up” traders are realizing that there’s more than just a static bull market. In fact, this year, broad indexes have dropped by some of their most significant percentages in the shortest period of time since the 1920s.
Don’t let this scare you because there is plenty of opportunities ahead if you know what to look for. Whether you’re a day trader looking for a quick pop or someone who’s looking to invest in penny stocks, there are plenty of choices. Today we look at a handful of names that analysts have become bullish on and have given price targets up to 1,152%
Penny Stocks To Buy According To HC Wainwright: Mind Medicine (MindMed) Inc. (NASDAQ: MNMD)
This year, the psychedelic revolution may have been put on pause thanks to risk-off trading. However, that hasn’t meant interest is completely gone. Companies like MindMed have mounted a steady comeback over the last few sessions. Though it’s still far off its 2022 highs of $1.51, the latest uptick has seen MNMD stock recover roughly 14% from its May lows.
Recent MNMD Stock News
Besides new management appointments, the most significant focus seems to have been on the company’s latest topline data. This was from MindMed’s Phase 1 trial of its MM-110 for treating opioid withdrawal. Data showed favorable safety and tolerability results and will guide the Phase 2a dose design. If MNMD stock is on your list of penny stocks right now, this Phase 2a trial is still expected to begin this quarter. Since June is the final month of Q2, the clock is ticking.
MNMD Stock Forecast
What do analysts think about MindMed? Based on HC Wainwright’s MNMD stock forecast, expectations are very high. The firm has a Buy rating and a $10 price target. Based on MindMed’s closing price of $0.7986 on May 27th, that’s 1,152% higher than current market levels.
Penny Stocks To Buy According To JMP Securities: Nerdy Inc. (NYSE: NRDY)
Like MindMed (and many other stocks), Nerdy Inc.’s share price slipped this year. The online learning technology company dropped most recently thanks to mixed reactions in the market following its latest earnings results. The interesting part of it was that Nerdy announced record first-quarter 2022 figures. Revenue came in at $46.9 million, beating analyst estimates of $46.7 million. However, the company’s outlook on Q2 revenue was lower than what was reported in Q1 ($37 million – $40 million).
Recent NRDY Stock News
Despite the earning folly, NRDY stock has managed to rebound. This came shortly after the company’s Varsity Tutors business reported a new collaboration with the Smithsonian Institution. Brian Galvin, Chief Academic Officer at Nerdy, explained, “Over the past two years, our StarCourse series has attracted everyday learners from around the world and continues to be among our most popular content. The class headlined by the Smithsonian is expected to draw huge audiences hungry to learn more about Paleontology. We look forward to feeding their curiosity.”
NRDY Stock Forecast
If JMP Securities analysts are to be trusted, NRDY stock could have a bullish outlook ahead. That’s because the firm currently has a Market Outperform rating on Nerdy and a price target 192% higher than the May 26 closing price ($7 target).
Penny Stocks To Buy According To JPMorgan: iQIYI Inc. (NASDAQ: IQ)
When you talk about volatile stocks, iQIYI should be on that list. Over the last few months, shares of IQ stock have flip-flopped between lows of $1.86 and highs of $5.77. Thanks to concerns over Chinese companies listing in the US, the online entertainment service provider has faced numerous headwinds. Meanwhile, it has continued reaching new milestones, which have helped it maintain a strong interest from retail traders.
Recent IQ Stock News
The latest focus is on corporate growth. iQIYI’s Q1 earnings blew away expectations. Wall Street anticipated an 11-cent loss per share for the quarter. Meanwhile, iQIYI posted an EPS of $0.03. Membership services revenue also jumped 4% year-over-year. “During the first quarter of 2022, we delivered a select portfolio of premium shows, bringing membership services growth; we improved our operating efficiency, leading to margin expansion and profits. Our new strategy cemented our market leadership while yielding healthy financial performance,” said Yu Gong, Chief Executive Officer of iQIYI.
IQ Stock Forecast
As far as the IQ stock forecast is concerned, JPMorgan analysts have high hopes. The firm has an Overweight rating and paired that with an $8 target. Based on Thursday’s closing price of $3.91, that target is 104% higher.
Penny Stocks To Buy According To Analysts
Analysts can be a great benchmark when looking for penny stocks to buy. The firms take time to analyze and research different aspects of companies. However, it’s not a bad idea to note that they aren’t the final say. Things change quickly, especially with cheaper stocks. As a result, doing additional research is a prudent strategy when putting together your watch list. If you’re new to trading, here are a few other strategies to use to find penny stocks to watch: