Sometimes the best penny stocks to buy are the ones that nobody is looking at (yet). The last few months of stock market trends have certainly shown that anything can happen, and even good news can make a surprising impact on stocks. Today, the latest round of economic data came out thanks to the June nonfarm payrolls.
Jobs Report
The new jobs report showed that the unemployment rate remained at 3.6% last month. In addition, US nonfarm payrolls for June came in at 372,000. This was a surprise compared to the 268,000 expected. With over 100,000 more jobs added in June, the market appeared to underestimate the labor market’s strength. The immediate reaction based on the S&P 500 ETF (NYSEARCA: SPY) and NASDAQ ETF (NASDAQ: QQQ) wasn’t what some retail traders expected. Good jobs numbers, good market reaction, right? Not entirely, and both the SPY and QQQ dropped aggressively after the results were published.
Why is the stock market down after the latest jobs report? It’s ironic, but a seemingly robust employment market could suggest that things aren’t slowing despite rising interest rates and higher inflation. As long as growth remains heightened, investors question the actual impact that the Federal Reserve’s policy is having. The figures could also support another 75 basis point rate hike at the Fed’s July meeting.
The Fed’s Bostic spoke during premarket trading on Friday, taking a hawkish tone. Bostic discussed the need to move more aggressively. He also discussed the jobs report and how it showed a strong economy. Bostic explained that we need to see the first signs of a slowdown and that it may be the labor market “catching up” to output. However, he said that it doesn’t necessarily represent a recessionary issue.
Penny Stocks To Buy
Despite this backdrop in the stock market today, not all stocks are trading lower. Multiple penny stocks are trading higher as broader trends waiver. This article will dive deeper into a few of them, see what potential catalysts are at play, why these penny stocks are moving, and help you decide if they deserve a place on your list of penny stocks to watch.
- Annexon Biosciences (NASDAQ: ANNX)
- Aprea Therapeutics (NASDAQ: APRE)
- Yatsen Holding Limited (NYSE: YSG)
- Endo International (NASDAQ: ENDP)
Annexon Biosciences (NASDAQ: ANNX)
Biotech penny stocks have been on fire daily. Annexon is the latest name to jump on the bandwagon as shares have steadily bounced back from April’s $2.06 52-week low. The company develops treatments for patients with autoimmune, neurodegenerative, and ophthalmic disorders.
Last month, Phase 2 clinical data helped give ANNX stock a boost. The company’s ANX005 candidate for treating Huntington’s disease showed favorable results.
“We are very encouraged by these final data with ANX005, which provide significant insights into our mechanism of action for a chronic neurodegenerative disease where the role of classical complement has been well-characterized,” explained Annexon CEO Douglas Love, Esq.
Why Is ANNX Stock Moving?
This week is capped off by another jump in ANNX stock price. This time, the catalyst was a $130 million financing round led by Redmile Group. The combined stock and warrant price came in at around $3.87. Considering that this wasn’t a steep discount to Thursday’s closing price ($3.97), the market took the news as a positive.
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Aprea Therapeutics (NASDAQ: APRE)
The next name on this list of biotech penny stocks to watch is Aprea Therapeutics. The company’s shares have been working their way back from May lows following mixed reactions to its Q1 earnings.
One of the question marks was what the company’s future would look like following a coinciding update related to a new acquisition. Aprea announced the purchase of Atrin Pharmaceuticals, which Aprea expects to shift its primary focus to. In particular, ATRN-119 will be studied in a Phase 1/2a clinical trial in solid tumor malignancies. There are additional programs for Atrin’s pipeline treatment candidates.
“Aprea has explored a range of strategic alternatives to maximize shareholder value, and we believe the acquisition of Atrin represents an opportunity to create substantial value for Aprea shareholders,” explained Christian Schade, Chairman and Chief Executive Officer of Aprea.
We’ve seen how “strategic alternatives” have offered the potential to companies trying to weather the storm in the stock market this year. However, the vague details of the acquisition left some analysts questioning things. Barenberg, for instance, dropped its $4 target to $1 in May.
Why Is APRE Stock Moving?
APRE stock is back in the spotlight this week due to bullish analyst sentiment. Wedbush initiated coverage on the company giving it an Outperform rating. It also set a $3 price target on APRE stock.
Yatsen Holding Limited (NYSE: YSG)
One of the top penny stocks to watch for the last few months has been Yatsen Holding. We’ve discussed the beauty company stock plenty of times during this period. While not much news has come out in July, traders continue weighing the potential of China-based company stocks against the broader market headwinds.
Earlier this year, fears were stoked that officials would limit or even ban some of these companies from listing in the US. Fast-forward to this month, and plenty of Chinese stocks, including penny stocks, are heading higher.
Yatsen has focused on a long-term, sustainable, and environmentally friendly operational strategy. It has released an inaugural ESG (environmental, social, governance) report emphasizing this focus.
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Why is YSG Stock Moving?
With the Q2 earnings season still to come, traders may speculate on how Yatsen performed over the last three months. The company reported a 68.5% increase in net revenues last quarter. The gross margin was also higher at 69% compared to 68.6% during the previous year’s first quarter. Net loss also decreased in Q1 by 8.7%, and the non-GAAP net loss dropped 33.6%. In light of recent attention on cheap stocks, YSG has been one of the names to watch heading into the final days of June.
Endo International (NASDAQ: ENDP)
In our article Buy Penny Stocks Like Hedge Funds Do: A How-To Guide, we discussed specific forms and filings to pay attention to if you want to “follow” the money of investment firms. Endo International was a topic of that piece of content. In this case, Millennium Management LLC filed a 13G on June 27th, showing a 1.7% stake in the company. A 13G pertains to “passive investors” owning less than 20% of a company’s outstanding shares. For reference, once a “passive investor” reaches over 20% of the outstanding share count of a company, they must start filing 13D statements.
Something else to remember is that one of its subsidiaries, Paladin Labs, has established a suite of brands it has acquired or in-licensed for the Canadian market. One of these brands is Plan-B, which has come into focus thanks to the overturning of Roe v Wade in the U.S. this month.
Why Is ENDP Stock Moving?
ENDP stock continues moving higher on the back of speculation. As traders continue seeking out stocks and companies involved with reproductive health, Endo remains one on the list of penny stocks to watch.
Penny Stocks To Buy Or Avoid Right Now?
So are penny stocks a “buy,” or should you avoid them at all costs? Are they worth risking your hard-earned money on? With broader markets dipping following the latest jobs report, should you be investing in the stock market at all? If you know how to trade stocks, the answer is relatively simple: penny stocks are worth it, and investing in the stock market has never been more opportune.
But education is vital to your success. If you see a trending penny stock, how can you make money trading it? Step one is to learn how to trade volatile markets and make money during a stock market crash. There are plenty of resources on PennyStocks.com to use to help. For those looking to take things a step further, there are also Free resources to use, like a trading chatroom led by professional traders and even a former Wall Street hedge fund trader, to help take your skills to the next level.
No matter what happens – stock market crash, bounce to all-time highs – there are many ways to use what’s happening in the stock market today to your advantage.
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