Penny stocks are some of the most volatile investments in the stock market today. Traditionally defined as stocks under $5, there’s no shortage of excitement with big wins and crushing losses. If you’re an avid user of message board sites like Reddit, big losses are sometimes celebrated as much as significant gains. Nevertheless, the ultimate goal is always to make money with penny stocks, and this year we’ve seen some of the most profound breakouts, even during a stock market crash.
PGY Stock Explodes 790% In A Week
The latest is Pagaya Technologies (NASDAQ: PGY). It might not be evident by looking at today’s price, but roughly one week ago, shares were trading well below $5. PGY stock was a relatively thinly traded name with fewer than 200,000 shares traded daily since going public via the SPAC merger with EJF Acquisition Corp.
Since anything can happen with penny stocks, PGY became the latest lightning in a bottle trade. Shares have surged from $2.42 on July 19th to highs this week of $21.56, worth 790% in less than ten days. Are these gains normal? No, but are they possible? Yes, and PGY stock is one of many that have exploded in the stock market recently.
Everything from short squeeze stocks to insider activity and unusual options action are hot topics in the stock market today. Even monkeypox stocks have been a popular niche that has seen shares of small companies rally hundreds of percentage points within a short period.
Penny Stocks To Buy
So what are the best penny stocks to buy right now? The ones that make you money, of course. This article focuses on a handful of penny stocks to watch based on recent bullish activity. As July creeps closer to the finish line, there are plenty of new trends in the market to reference.
- Helix Energy Solutions Group Inc. (NYSE: HLX)
- Imperial Petroleum Inc. (NASDAQ: IMPP)
- Comera Life Sciences Holdings (NASDAQ: CMRA)
- Dave Inc. (NASDAQ: DAVE)
Helix Energy Solutions Group Inc. (NYSE:HLX)
Energy stocks have remained a core focus of most investors this year. Thanks to record oil and gas prices, companies ranging from producers to service providers are gaining momentum. Helix Energy (HLX Stock Report) is a company we discussed this week as it reported Q2 earnings. What management discussed in the PR might have shed a bit more speculative light on it today.
In Monday’s PR, Owen Kratz, President and Chief Executive Officer of Helix, said, ” All markets we serve are showing signs of recovery, which should result in improved results and outlook, aligning with our efforts to position Helix as a preeminent offshore Energy Transition company.”
Helix not only services oil and gas companies but has also recently gotten into offshore renewable energy. Not only could there be momentum in play from Helix’s earnings but also strong earnings from renewable energy companies this week. Penny stocks are well-known for gaining from sympathy sentiment. Companies like Enphase Energy (NASDAQ: ENPH) came out with blockbuster results for Q2, which could also bring back some optimism to the renewables arena.
Imperial Petroleum Inc. (NASDAQ:IMPP)
Sticking with the energy stocks trend, Imperial Petroleum (IMPP Stock Report) is no stranger to rampant breakouts in the stock market. Earlier this year, shares of IMPP stock exploded from under $1 to highs of $9.70 within a matter of weeks. One of the major catalysts was the energy industry overall and rising commodities prices.
Imperial owns ships that provide petroleum products and crude oil transport services. A total of 8 tanker vessels are under its flag, equating to a total capacity of roughly 673,000 deadweight tons. For the most part, IMPP stock’s moves originate from retail trading sentiment. But this week may be a bit different. That’s because Imperial is set to report second-quarter results on Wednesday before the market opens. There will also be a conference call after the bell, which is likely where traders will place their focus.
This latest earnings season has the market focusing on guidance more than actual results. Case in point: Microsoft (NASDAQ: MSFT) and Alphabet (NASDAQ: GOOGL) technically missed estimates; however, forecasts on the future outlook were more robust than downbeat. With IMPP stock earnings coming tomorrow, it will be interesting to see how the market reacts to both the results and the company outlook.
Comera Life Sciences Holdings (NASDAQ:CMRA)
Biotech and healthcare stocks have begun steadying recently. Comera Life Sciences (CMRA Stock Report) appears to have followed suit with the broader industry trend in the stock market today. The newly public company joined the SPAC trend this year and merged with OTR Acquisition. Like most SPACs, it had difficulty maintaining any price action above its original debut price.
Is that about to change? This week, CMRA stock popped to highs of $3.43 without any apparent headline catalyst. The company specializes in transitioning IV medicines to subcutaneous forms and provides patients with self-injectable care.
Something that might’ve come flown under the radar this month was news of preclinical topline safety results of its SQore excipient platform. According to the company, “The results of this preclinical study provide supportive evidence of safety of Comera’s lead caffeine-based SQore™ excipient when administered as a subcutaneous (SQ) biologic drug product formulation with a monoclonal antibody (mAb).”
Robert Mahoney, Ph.D., Chief Scientific Officer of Camera, also expanded on this and said, “The positive topline results from this SEQURUS-1 study validate the safety in animal models of our lead SQore excipient, caffeine. The product demonstrated caffeine’s rapid clearance and no impact on the absorption of ipilimumab.”
The news came out on the 13th with little fanfare. But now, the clock is ticking regarding the company’s next planned event. A more extensive study, SEQURUS-2, has begun to provide a “statistically robust evaluation” of caffeine on the PK of SQ-administered ipilimumab. Comera will present topline study results from SEQURUS-2 at the 14th Annual Bioprocessing Summit in mid-August.
Dave Inc. (NASDAQ:DAVE)
Fintech stocks have cooled off since the start of the year. But that doesn’t seem to matter as traders search for opportunities with cheap stocks. Dave Inc. (DAVE Stock Report) is one of the more beaten down penny stocks making failed attempts at bouncing back this year. The last few weeks have seen heightened daily volumes, with prices slowly ticking higher.
Dave offers a banking app targeting consumers looking for easy access to cash. With more than 6 million customers, it has amassed a robust following and gained attention from more prominent named backers. These include Tiger Global, JP Morgan, Capital One, and Mark Cuban, to name a few.
No significant headlines have been released this week. However, late-afternoon action could place DAVE stock on the watch list. On top of that, they’ve got Q2 results coming next month, which could be a chance to regain some confidence from their investors. Dave reported record Q1 results in the first quarter with 24% year-over-year revenue growth.
Margins, however, were tighter at 41% compared to 64% profit margin in the first quarter of 2021, along with a net loss of over $34 million compared to a gain in the prior year’s quarter. If DAVE stock is on your watch list, the company reports earnings on August 11th.