Today we look at penny stocks to buy according to 4 Wall Street analysts. Like most trends in the stock market today, low prices are becoming the norm. This year’s stock market crash has brought plenty of awareness that no company is immune to bearish sentiment and with that has come a significant drop for even the most popular names.
In fact, if you look at some of the household name stocks like Party City (NYSE: PRTY), Express Inc. (NYSE: EXPR), Buzzfeed (NASDAQ: BZFD) and plenty of others, you might be surprised to find that they’re trading well-below $5. So, for starters, are penny stocks worth it? That depends on who you ask.
These cheap stocks don’t usually offer the same type of security as stand-outs like Coca-Cola (NYSE: KO) or Apple (NASDAQ: AAPL). But they do tend to outperform most other stocks in the short term. While Tesla (NASDAQ: TSLA) shares might jump 10% in a day signaling a “big day” for the stock, you’re sure to find penny stocks running 50% or more at the same time.
Even with that as the case, longer-term potential isn’t uncommon either. Look at popular meme stocks like GameStop (NYSE: GME) and AMC Entertainment (NYSE: AMC). They once traded below $5 and despite the stock market pullback this year, they remain significantly higher still.
How To Find Penny Stocks To Buy
In this article, we aren’t looking at social media trends or stocks with insider buying. We’re looking at a few penny stocks to buy according to a handful of Wall Street analysts. Believe it or not, there are many firms that follow stocks under $5. They not only give a rating but typically pair it with a price target. The important thing to remember is that no matter what analysts say, it’s critical to do your own research beyond what the ratings or targets are.
4 Penny Stocks To Buy
1. Grab Holdings (NASDAQ: GRAB)
Current GRAB Stock Price: $2.68
Grab (NASDAQ:GRAB) is a Southeast Asian-focused “superapp” development company. Consumers use its flagship Grab for anything from food delivery to financial services. Earlier this month, it launched its B2B map data sales & targeting mapping & location-based services. With vital user data as the lynchpin, GrabMaps provides intelligence and services to 7 out of 8 countries it operates in.
Tan Hooi Ling, Co-founder of Grab, said, “We’ve invested to turn this intelligence into a competitive advantage, allowing us to serve our users and partners with a great experience, at the same time driving efficiency and cost-savings for the business. We’re very proud that soon we will be fully self-powered by our own mapping and location-based technology. Commercializing this technology is another step forward for our young but fast-growing Enterprise and New Initiatives business.”
Is GRAB Stock A Buy?
According to analysts at Deutsche Bank, GRAB stock is a Buy right now. The firm also set a price target of $3.20 when it initiated coverage earlier in June.
2. Rhythm Pharmaceuticals (NASDAQ: RYTM)
Current RYTM Stock Price: $4.12
The biotech company Rhythm Pharmaceuticals (NASDAQ:RYTM) remains one of the hot penny stocks to watch this month. We reported on it last week after big news sparked a run in share prices before the holiday weekend. The Food & Drug Administration approved its Imcivree in patients with Bardet-Biedl syndrome. The treatment is now available for chronic weight management in patients with obesity resulting from the syndrome. Rhythm also attracted the attention of HealthCare Royalty with a potential investment of up to $100 million that came with a $37.5 million initial investment.
But that wasn’t necessarily what kept the penny stock on watch lists later in the week. It was the mounting short interest that traders were monitoring. At the time of the article, the short float percentage sat around 10%, according to data from Fintel. IO.
Is RYTM Stock A Buy?
So, is RYTM stock a buy with all of this recent momentum? According to Stifel Nicolaus, it is. The firm also boosted its $23 price target to $25 last week.
3. Edgio Inc. (NASDAQ: EGIO)
Current EGIO Stock Price: $2.32
Edgio (NASDAQ:EGIO) is a software solutions provider for streaming experiences and recently completed the acquisition of Limelight Networks’ Edgecast. In doing so, Edgioconsumed Limelight with the combined company operating under this current name.
The official name and symbol change took effect last week, and EGIO stock has been steadily trading higher since. Hopes are also high that the “new” company can become a leading name within the streaming and edge technology space.
“Edgio stands to be a recognized leader in delivering digital solutions natively at the edge, and Apollo is very excited to participate in this shared vision,” said Apollo Partner Reed Rayman, who will join the company’s board of directors. “We believe Edgio can quickly become the recognized go-to partner to power edge native digital solutions for businesses seeking to deliver faster and safer digital experiences for their customers.”
Is EGIO Stock A Buy?
Cowen analysts cover EGIO stock. The firm has an Outperform rating set alongside a $5 price target. That target is roughly 100% higher than current levels.
4. Kinross Gold (NYSE: KGC)
Current KGC Stock Price: $4.23
Gold stocks have returned to favor thanks to high inflation and rising rates. However, the “safe haven” trade hasn’t exploded as much as some may have initially projected. Nevertheless, investors remain focused on precious metals stocks in case recession takes hold and rates continue moving higher.
This has companies like Kinross Gold on the radar. The company might be priced as a penny stock, but its business is far from a start-up. The Canadian-based senior gold mining company has projects in the US, Brazil, Chile, Ghana, Canada, and Mauritania. Aside from completing the sale of its Russian assets for $340 million in cash this month, Kinross will also provide an update on several projects in North America. Next week, management will discuss the Great Bear project in Canada and the Manh Choh project in the U.S.
Is KGC Stock A Buy?
Canaccord Genuity thinks KGC stock is a Buy right now. Despite lowering its price target, the firm still sees potential up to C$11 or roughly $8.50USD.