The Best Penny Stocks To Buy
Are you like most traders right now, looking for the best penny stocks to buy? You’re not alone, but the task isn’t as easy as finding a cheap stock, buying it, and getting rich with penny stocks. There’s a plan to follow in order to identify the right stocks that fit your strategy. Are you day trading, swing trading, or looking for new investments for your long-term portfolio? How you answer that question gives you an excellent first step in designing your watch list.
In the stock market today, retail participants are choosing to trade penny stocks as opposed to finding ones to invest in. One of the main reasons is the volatility in the overall markets is exceptionally high, leading to a shorter-term mindset. Certain stocks “today” may not even be in the conversation “tomorrow.”
This article looks at a handful of penny stocks to buy for under $3. These are some of the most volatile and high-risk. But this stock category can be one of the most rewarding when the trade works out. A slight move of a few pennies can equate to a significant percentage change. Look at Spero Therapeutics Inc. (NASDAQ: SPRO) in the stock market today. It was one of the low-priced names we discussed earlier this month, and as of Wednesday’s close, it was trading at 82 cents.
Penny Stocks To Watch Under $3
1. HeartBeam Inc. (NASDAQ: BEAT)
HeartBeam has had a strong week over the last five sessions. Shares of BEAT stock exploded on September 15th to highs of $2.45 after big news from the company. HeartBeam announced that its patent for a 12-lead electrocardiogram patch monitor for detecting acute coronary syndrome and arrhythmia was issued by the US patent office. This built upon HeartBeam’s IP portfolio allowing for a 12-lead EVG diagnostic outside of a formal medical setting.
Since then, shares have pulled back thanks to profit taking. But at the end of the last full week of September, BEAT stock is back in rally mode. Why is HeartBeam trading higher today? The company recently launched a video showcasing its HeartBeam AIMI and AIMIGo Technologies. Branislav Vajdic, Ph.D., HeartBeam CEO, explained, “This new video provides a compelling overview and explanation of our technologies and highlights our continued progress toward making the AIMIGo device available for remote heart attack detection.”
Thanks to this patent news and the latest excitement stemming from HeartBeam’s roadshow video, it seems like the market is taking a liking to the penny stock after months of trading lower. HeartBeam IPOd late last year, and performance has been lackluster to say the least. Since it reached highs of $5.47 in its debut session, BEAT stock has experienced a difficult time reclaiming those levels. Thursday, the stock jumped over 30%.
2. PowerBridge Technologies (NASDAQ: PBTS)
Another one of the technologies stocks to watch under $3 is Powerbridge. The company has gotten folded into the cryptocurrency arena. Thanks to the price of Bitcoin, Ethereum, and others, PBTS stock has gone through its bout of volatility to the downside. Powerbridge’s operations include cryptocurrency mining and software-as-a-service technology.
While there have been no formal updates coinciding with this recent uptick, it looks like PowerBridge is moving forward with raising cash. In a filing earlier this month, the company said it entered into a standby equity purchase agreement with YA II PN ltd. to sell up to $30 million in stock over 3 years. The issuance will be done at 96% of the market price based on the lowest daily volume weighted average price in a trailing 3-day period.
The critical thing to note is what’s happening in the crypto market. Following the Ethereum merge, trading has been much more volatile than usual. PBTS stock, however, has managed to maintain a consistent uptrend since early June. Though there isn’t much news overall, it’s worth noting that Powerbridge has taken steps into the metaverse to create a company. Initially, the focus will be on travel and leisure virtual worlds. It also signed contracts with clients in various industries (rail, courier services, smartphones) for providing “digital transformation solutions.”
3. Precigen Inc. (NASDAQ: PGEN)
Gene therapy company Precigen caught early momentum on Thursday, just a day after appointing a new Chief Operating Officer. But the bigger story today might be the short interest in the penny stock. A recent trend in traders hunting for short-squeeze penny stocks has grown in popularity. While PGEN shows a 12.82% short and isn’t the highest, it has become a point of focus for some of the FinTwit community today. Obviously, with the stock market down, finding beaten-down names isn’t difficult to do.
Several things in the pipeline could also have placed PGEN stock on the radar for some traders right now. Earlier this year, it completed enrollment in a Phase 1 study of its acute myeloid leukemia drug candidate, PRGN-3006 UltraCAR-T. It also completed Phase 1 studies of its PRGN-3005 UltraCAR-T in advanced ovarian cancer and PRGN-2012 AdenoVerse immunotherapy in respiratory papillomatosis.
Next quarter, Precigen plans to present Phase 1 data for PRGN-2012 and additional company milestones in Q4 and 2023. One of the most significant events in recent months was the sale of Precigen’s Trans Ova Genetics, which is expected to close this quarter, for $170 million in cash with $10 million in potential earn-outs in the next two years.
From a basic technical perspective, it may also be worth noting a potential golden cross forming on the PGEN stock chart. This is typically a bullish instance where the 50-day moving average crosses up and over the 200-day moving average with strong volume. Whether or not that triggers is to be seen but for now, it could be worth paying attention to if it’s on your list of penny stocks to watch.