What Are Penny Stocks?
Penny stocks are shares of companies trading for less than $5 per share. Some traders will have definitions of penny stocks, including stocks trading for $0.99 or less. No matter how they’re defined, it comes secondary to the reason for wondering what they are. That reason is to find cheap stocks to buy and leverage smaller capital in exchange for significant potential gains.
Finding Penny Stocks To Buy
First thing’s first: how do you find penny stocks to buy? The first step is identifying your strategy. Are you hunting for high-volume penny stocks? Should you plan on finding penny stocks with news or SEC filings? Are things like Reddit penny stocks of interest to you, or are you simply looking for a momentum day trade? I can go on about the different types of penny stocks to buy, but the point is step one involves figuring out your individual game plan.
This article explores a few penny stocks to buy according to the latest round of analyst ratings. While these market observers aren’t the ultimate determining factor, they take time to dive into specific companies. Today we’ll discuss some of the latest developments of a handful of penny stocks, what analysts think, then you can decide if they deserve a place on your watch list or not.
Penny Stocks To Watch
- Nu Holdings (NYSE:NU)
- Cyclacel Pharmaceuticals (NASDAQ:CYCC)
- Bionano Genomics (NASDAQ:BNGO)
Nu Holdings (NYSE: NU)
Thanks to solid earnings and management commentary, bank stocks have been on fire recently. Last week, JPMorgan (NYSE: JPM) kicked things off and prompted a strong bull trend in sector names. That has continued in the stock market today, and even smaller bank stocks benefit.
Nu Holdings, most notable for its investment by Berkshire Hathaway’s (NYSE: BRK.A) Warren Buffett, has joined this list of bank stocks to watch. In a play against the Oracle’s stance on Bitcoin, Nu is known for its approach to digital banking, and yes, that includes the ability to buy cryptocurrencies. Nevertheless, NU stock has remained a more substantial focus this month ahead of earnings.
In its May Q1 report, Nu recorded strong customer growth of 61% over the same period last year. The average revenue per customer also jumped significantly to $6.70. What’s more impressive is Nu’s gross profit rose triple digits (131%) to $294.1 million while revenue for the quarter climbed 226%, year-over-year.
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NU Stock Forecast
What do analysts think about the company? According to the latest NU stock forecast from New Street Research, the firm has the penny stock at Buy with a $7 price target.
Cyclacel Pharmaceuticals (NASDAQ: CYCC)
Biotech stocks are also in the spotlight this week as some leading industry names have helped lift the sector. Cyclacel Pharmaceuticals is among the leaders on Monday. Over the last few weeks, the company has worked on bouncing back from a less-than-favorable response to a June business update.
Despite the reaction, it’s important to note what’s going on with the company and its potential catalysts ahead. Cyclacel reported adding two dose levels in a protocol amendment to test higher doses of oral its fadraciclib. This is the company’s treatment candidate for a range of solid tumors and lymphomas. The amendment is in place for determining the recommended Phase 2 dose and is anticipated in the second half of this year.
CYCC Stock Forecast
This week analysts at Oppenheimer gave their CYCC stock forecast, starting it at Outperform. Analyst Jeff Jones also set a price target of $17. Based on the current trading level of CYCC stock, that target is over 1,100% higher.
Bionano Genomics (NASDAQ: BNGO)
Sticking with the biotech trend, Bionano Genomics has bounced back from its Friday lows. The genome analysis company has traded in a sideways direction for the better part of the last few months. If you’re looking at technicals, a simple glance shows the 50-day moving average remains a sticking point on the chart. BNGO stock hasn’t managed to break and hold above this level for any meaningful length of time since last year.
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At the end of June, Bionano announced a patent issuance for the patent titled “CHARACTERIZATION OF MOLECULES IN NANOFLUIDICS” which claims methods for the analysis of small nucleic acid fragments in nanochannel arrays. Bionano traditionally uses this to analyze ultra-high molecular weight (UHMW) DNA to identify structural variants (SVs). This is part of its Saphyr® system.
BNGO Stock Forecast
Though the company’s shares have been less active during 2022, analysts seem optimistic. Oppenheimer recently assumed coverage of the company. Its BNGO stock forecast includes an Outperform rating and a $12 price target. The target is more than 600% higher than current trading levels.
Finding The Best Penny Stocks To Buy Now
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