Are There Any Good Penny Stocks To Buy After The Powell Speech Today?
Today was the long-awaited Jackson Hole meeting where Jerome Powell’s speech was followed word-for-word. The stock market was looking for signs and indications of what the future of inflation and rate hikes might look like for the rest of the year. Some suspected the last CPI data read signaled peak inflation. But that speculation was subdued with comments from the Federal Reserve Chairman today.
Commentary From Powell’s Speech At Jackson Hole
The main focus seemed to be on employment figures not matching with a typical recession. The current unemployment rate is still historically low at 3.5% in July. Since there’s such a strong labor market, Powell suggested that the Federal Reserve’s push for more rate hikes could tighten economic activity and result in a “softer” workforce.
“While the lower inflation readings for July are welcome, a single month’s improvement falls far short of what the Committee will need to see before we are confident that inflation is moving down…In current circumstances, with inflation running far above 2 percent and the labor market extremely tight, estimates of longer-run neutral are not a place to stop or pause…Our aim is to avoid that outcome by acting with resolve now,” Powell said Friday.
Powell’s speech at Jackson Hole could now set the tone for the next policy meeting for the Fed next month. As the market digests this news, traders are looking for opportunities to make money. Penny stocks are a clear stand-out as they tend to react differently than broader trends. What are the best to buy now? Today’s article looks at a handful of popular penny stocks to watch. They are also seeing some relative strength compared to broader markets before the end of August.
Penny Stocks To Watch
- Biofrontera Inc. (NASDAQ: BFRI)
- Alunos Therapeutics Inc. (NASDAQ: TCRT)
- Yatsen Holding Limited (NYSE: YSG)
Biofrontera Inc. (NASDAQ: BFRI)
With the stock market down today, Biofrontera shares have gone against the grain, trading up roughly 10% following a 13D filing from Wilhelm Konrad Thomas Zours. In particular, Zours showed a 37.52% stake in the company, with 8,835,734 shares.
Biofrontera specializes in dermatological products, including photodynamic therapy and topical antibiotics. The company recently reported a 5-cent loss per share for the second quarter. This was up significantly from last year’s 46-cent loss per share. Even though revenue missed, slightly, Biofrontera recorded higher first-half revenues compared to H1 2021.
“As expected, second quarter product revenues reflect the April 1, 2022 price increase that resulted in some Ameluz purchase pull-through into the first quarter. We continue to execute toward upcoming clinical milestones and remain on track for 2022 total revenues to increase by at least 30% compared with 2021, including typical seasonal strength in the fourth quarter,” explained CEO Erica Monaco in an August update.
This latest vote of confidence from investors like Zours appears to have breathed some new life into BFRI stock.
Alunos Therapeutics Inc. (NASDAQ: TCRT)
Another biotechnology penny stock moving against the overall trend in the stock market today is Alunos Therapeutics. TCRT stock jumped in response to a filing showing acceptance of a presentation titled ‘Objective clinical response by KRAS mutation-specific TCR-T cell therapy in previously treated advanced non-small cell lung cancer’ next month.
The penny stock has been rising since late April thanks to bullishness surrounding the company’s TCR-T cell library of targeted candidates. In its latest quarterly update, Kevin S. Boyle, Sr., Chief Executive Officer of Alaunos, expanded on the company’s plans and outlook for the year. Boyle stated, “In addition to our internal efforts, we were privileged to extend our collaboration with Dr. Rosenberg and the National Cancer Institute to develop personalized cancer therapies using our novel TCR-T cell platform. We believe that Alaunos is poised for long-term success.
With the third quarter knocking on the market’s door, TCRT stock has come back into focus. Meanwhile, shares are testing fresh 52-week highs. Thanks to the recent update on the pending September presentation, this may be on the list of penny stocks to watch heading into Q3.
Yatsen Holding Limited (NYSE: YSG)
In June, we first picked up on the discussion surrounding Yatsen Holding. Like now, traders continue weighing the potential of China-based company stocks against the broader market headwinds. While not much has come from the company before this week, Yatsen has focused on a long-term, sustainable, and environmentally friendly operational strategy. It has gone as far as releasing an inaugural ESG (environmental, social, governance) report emphasizing this focus.
Meanwhile, this week, YSG stock regained momentum thanks to the latest round of earnings. Yatsen beat on sales estimates with year-over-year EPS coming in at the same level (loss of 5 cents) as it did in 2021.
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“We accelerated the improvement of our revenue mix and cost-cutting in the second quarter, which resulted in a higher revenue contribution from our Skincare Brands and a reduction of our offline retail footprint. Our GAAP and non-GAAP net loss margin of 27.8% and 21.8%, respectively, were impacted by elevated levels of promotions during the June 18th shopping festival and higher operating cost ratios of our offline stores, as well as loss and provisions related to inventory and store-closures,” stated Yatsen CEO Jinfeng Huang.
The U.S. audit regulator made an agreement with Chinese regulators to inspect and investigate registered accounting firms in China and Hong Kong on Friday. This has prompted renewed bullishness in Chinese stocks.