Penny stocks are beginning to heat up again. While the broader stock market indexes waiver in the wake of the latest Federal Reserve meeting minutes, traders are charging ahead & buying into volatile stocks. One of the biggest reasons behind the shift from investing and into trading is the 2022 stock market crash.
Traders who made money during the pandemic and stuck it out over the last seven months are finding that large-cap stocks are lagging. By employing a shorter-term trading strategy, many have been able to capitalize on the daily trends that penny stocks have offered.
Are Penny Stocks Worth It?
If you’re new to penny stocks or just getting your feet wet in day trading, you might wonder if these cheap stocks under $5 are worth the risk. Ask anyone who knows how to manage the risk, and they’ll tell you that penny stocks are worth it. This year, in particular, during any given session, there are at least a handful of low-priced stocks running 20%-50% in a day. Some penny stocks have exploded hundreds of percentage points over a few weeks.
To see this, you don’t need to look too far back in history. A newly spun-off company, United Maritime Corporation (NASDAQ: USEA), made its public debut on Wednesday. The international shipper spun off from Seanergy Maritime Holdings (NASDAQ: SHIP) earlier in the month. Shares of USEA stock made an initial print at $0.80, rose to highs of $4.85, and during premarket trading on July 7th, broke above $8. Nothing like a 900%+ move in less than 24 hours.
This article looks at a few of the top penny stocks to watch based on recent market momentum and trading chatter. While the definition of penny stocks includes all stocks under $5, we’re going one step further and diving into cheaper names currently trading below $3. At the end of the article, you can decide if these are top penny stocks to buy or avoid.
Penny Stocks To Buy [or avoid]
- Adverum Biotechnologies (NASDAQ: ADVM)
- Kiromic BioPharma (NASDAQ: KRBP)
- American Rebel Holdings Inc. (NASDAQ: AREB)
Adverum Biotechnologies (NASDAQ: ADVM)
Even though Adverum is trading below its 2022 highs, it has become one of the top penny stocks to watch over the last few months. Since hitting 52-week lows in May, the ADVM stock price has managed to bounce back more than 50%. One of the points of interest for the market is the company’s gene therapy pipeline.
New data from its OPTIC study for treating wet age-related macular degeneration showed meaningful results when Adverum’s ADVM-022 was applied. According to Adverum, ADVM-022 offered continuous and consistent therapeutic benefits for three years after one injection. The treatment was also well-tolerated.
What To Watch With ADVM Stock Today
Heading into the second half of the week, ADVM stock continues climbing. Adverum completed an Investigational New Drug application amendment and announced that it would prepare for its Phase 2 LUNA trial of ADVM-022 earlier this week. Moreover, the company expects to dose the first patient in the study this quarter.
On the heels of this news, analysts have begun readjusting their expectations. Truist Securities is the latest to boost its rating from Hold to Buy. The firm also lifted its $3 price target to $4.
Kiromic BioPharma (NASDAQ: KRBP)
Like Adverum, Kiromic has managed to bounce back from 52-week lows over the last few months. A news headline back in June was one of the biggest catalysts for the biotech penny stock. The company expanded its Gamma Delta T Cell product pipeline via a sponsored research agreement. Under the agreement with principal investigator James W. Welsh, M.D. of Texas MD Anderson Cancer Center, preclinical data will be generated from Kiromic’s therapies.
The company also outlined several milestones it looks to reach in the next few quarters. The most near-term is an Investigational New Drug application for its Deltacel, which is expected to see clinical activation before the end of the year. Deltacel is Kiromic’s “off-the-shelf” Gama Delta T-Cell therapy.
What To Watch With KRBP Stock Today
This week Kiromic announced a new milestone achieved. The company completed its current good manufacturing practice (cGMP) manufacturing facility. Now, Kiromic has one of the critical components necessary for responding to the FDA’s clinical hold communication in June.
“The on-time completion of our cGMP manufacturing facility is one of the conditions necessary to begin the activation of the Deltacel™ clinical trial by the end of this year,” stated Pietro Bersani, Kiromic BioPharma’s Chief Executive Officer. “The facility supports an expanding product pipeline of cell therapies designed to target solid tumors…”
American Rebel Holdings Inc. (NASDAQ: AREB)
In the wake of a series of gun violence, certain companies with exposure to everything from gun safety to alternative weapons are in the spotlight. American Rebel Holdings specializes in branded safes, personal security, and self-defense products.
The last few sessions have been more active for the penny stock thanks to recent headlines out of Chicago and the latest mass shooting to gain national attention. Though there haven’t been many updates from the company, overall, this week marked a more significant development for American Rebel Holdings.
What To Watch With AREB Stock Today
American Rebel announced the acquisition of Champion Safe Company. Champion is a manufacturer of gun safes. The $9.9 million transaction is expected to add more than $20 million in revenue to American Rebel. With the acquisition expected to close by the end of August, the clock has begun ticking as closing conditions are in process and based on several items, including obtaining financing.