Penny Stocks To Buy
If you want to make money in the stock market today and do it quickly, penny stocks might be on your watch list. According to the definition, we’re talking about stocks trading below $5. But for some, they look for much cheaper stocks to buy.
Penny Stocks To Buy Under $1
Why do traders buy penny stocks under $1? Removing all other factors, the lower the price, the greater the chances of a significant percentage change from a small move in price. Simply put, penny stocks trading for $0.50 only need to see a difference in price of five or ten cents to reap the benefits from a 10%-20% windfall. You can’t say the same for higher-priced stocks.
Nevertheless, you can also assume that the risks are more significant. While Apple (NASDAQ: AAPL) doesn’t flinch at the sight of a ten-cent drop in share price, the same $0.50 stock will see a meaningful decline in value.
Last week we ran a poll on Twitter asking what information traders are most interested in. Among the choices, “stocks under $1” received over 40% of the votes. So in response, we look at a handful of these cheap stocks and see what’s driving momentum. Today’s update continues the article: Hot Penny Stocks To Buy? 3 Under $1 To Watch Now, where we discussed the first 3 penny stocks on this list of 7. You can see those right now & read the article by clicking here.
- Iterum Therapeutics (NASDAQ: ITRM)
- T2 Biosystems Inc. (NASDAQ: TTOO)
- Agile Therapeutics (NASDAQ: AGRX)
- Redhill Biopharma Ltd. (NASDAQ: RDHL)
Iterum Therapeutics (NASDAQ: ITRM)
You might notice on this list of penny stocks that it’s made up of biotech companies. Thanks to a robust M&A market and bullish strength in the sector as a whole, many traders are turning toward cheaper names in a somewhat risk-on approach to this pocket of momentum in an otherwise bear market.
La Jolla Pharmaceutical Co (NASDAQ: LJPC), for example, was the most recent name to come into the M&A spotlight. Innoviva acquired the company for Ja Jolla’s GIAPREZA and XERAVA platforms, among other things. Thanks to this, traders are playing the sympathy sentiment and looking for other biotech penny stocks to buy.
Iterum Therapeutics is one of the names on the radar this week. The company develops oral and IV antibiotics for treating infections in community and hospital settings. Since mid-June, shares of ITRM stock have managed to bounce back strongly from their 52-week lows of $0.175.
What To Watch With ITRM Stock
ITRM stock is surging during premarket hours thanks to news headlines that include FDA information. Specifically, the company announced a Special Protocol Assessment agreement with the FDA for its Phase 3 trial of oral sulopenem etzadroxil-probenecid. The candidate is being studied in urinary tract infections and is anticipated to begin enrollment next quarter.
T2 Biosystems Inc. (NASDAQ: TTOO)
One of the cheapest penny stocks on this list is T2 Biosystems. In general, TTOO stock has underperformed most of the biotech penny stocks on this list. However, it has seen several sessions where bullish momentum takes hold and gains the interest of day traders. Will that be the case again today?
T2 Biosystems specializes in the detection of sepsis-causing pathogens and antibiotic resistance genes. An earnings miss and Nasdaq delisting notice increased selling pressure in late Q2, prompting a continued sell-off in July.
What To Watch With TTOO Stock
But the latest headlines from the company have some traders asking if that will be the case much longer. In another FDA-related news headline, T2 reported receipt of a Breakthrough Device Designation for its T2Lyme Panel. The device is used to detect Lyme disease earlier. The news also comes shortly after the company received a patent covering the device.
Agile Therapeutics (NASDAQ: AGRX)
The trouble stemming from Roe v Wade has placed a bright spotlight on companies developing contraceptives. We’ve discussed Agile Therapeutics several times since the decision was made public, as the company’s pipeline includes its Twirla platform. Twirla is Agile’s daily contraceptive pill.
The company presents at the Maxim Group Upcoming Women’s Health Panel this week. July 13th starting at 11 AM ET, Agile CEO Al Alomari participates in a panel discussing the latest SCOTUS outcome on Roe v Wade.
What To Watch With AGRX Stock
Other than the panel on Wednesday, other industry-related news could be driving sentiment. President Biden has been said to have mulled a health emergency for abortion access. According to a Reuters report on Monday, the President said he asked his administration to consider whether he has the authority to declare an abortion-related public health emergency or not. This seems to have sparked some bullishness in contraceptive stocks like AGRX.
Redhill Biopharma Ltd. (NASDAQ: RDHL)
Like ITRM stock, Redhill shares have been on the rebound path since hitting recent 52-week lows of $0.62 in June. The company reported more robust earnings and specifically mentioned that it’s on track for positive cash from operations in the year’s second half. Redhill specializes in developing treatments for gastrointestinal and infectious diseases. Its Movantik, Talicia, and Aemcolo all treat different GI diseases, including constipation, H. pylori, and diarrhea.
It also has several pipeline candidates in different phases. RHB-204, for example, is a Phase 3 treatment for pulmonary nontuberculous mycobacteria (NTM). Its opaganib is being studied to treat hospitalized Covid patients and those with prostate cancer and cholangiocarcinoma. These are only a few of the many pipeline candidates Redhill is working on.
Of particular interest were comments made in Redhill’s quarterly update. CEO Dror Ben-Asher stated:
“RedHill is in non-binding discussions to acquire a synergetic U.S. FDA-approved, patented GI drug currently generating dozens of millions of dollars, which, if materialized, will help expedite and increase cash generation.”
What To Watch With RDHL Stock
There aren’t any significant headlines from the company in the stock market today. However, upbeat sentiment for biotech M&A could contribute to the latest bout of action.
Trading Penny Stocks Today
If you’re trading penny stocks today, make sure you have your trading plan. More times than not, daily trends are precisely that, daily, and happen within the opening and closing bells. This isn’t to say that momentum can’t continue, and there are plenty of examples of penny stocks that have blown up.
Given the latest news from some of these biotech penny stocks, will any be on your watch list heading into July? Leave us a comment below. Today’s article continues the list from our update: Hot Penny Stocks To Buy? 3 Under $1 To Watch Now, where we discussed the first 3 penny stocks on this list of 7. You can see those right now & read the article by clicking here.