Finding The Best Penny Stocks To Buy
Thanks to a rebound in the stock market today, the hunt for the next round of multi-bagger penny stocks to buy is heating up. In this article, we look at a few stocks under $5 that have experienced higher levels of trading activity. Members of Reddit and Fintwit communities agree that cheap stocks are presenting opportunities right now.
The beaten-down nature of most stocks has given way to investors and traders being more used to low-priced stocks. Even some of the most recognized brands have seen their share prices implode this year.
What Are Penny Stocks?
First, if you’re stumbling upon cheap stocks, you might be wondering what penny stocks are, in general. The standard definition of penny stocks involves stocks under $5. Most of the time, people associate these with companies trading Over-the-Counter or OTC penny stocks.
But plenty of companies are listed on the NASDAQ and NYSE trading below $5, especially this year. So when we talk about the topic of “penny stocks,” it’s simply stocks under $5.
Hot Penny Stocks To Buy For Under $5
- Senseonics Holdings Inc. (NYSEAMERICAN: SENS)
- Microvision Inc. (NASDAQ: MVIS)
- SelectQuote (NYSE: SLQT)
- PaxMedica Inc. (NASDAQ: PXMD)
Senseonics Holdings Inc. (NYSEAMERICAN: SENS)
Shares of Senseonics stock woke up on September 27th, which continued a 3-day uptrend following a recent dip from Q3 highs. The penny stock surged in July and August on the back of a favorable coverage decision for its Eversense E3 continuous glucose monitoring platform. The decision came from Anthem (Elevance Health), the second largest health insurance company in the U.S.
Strong Q2 earnings results also helped give things a boost. Senseonics beat earnings per share estimates but missed sales expectations. Regardless, management explained how the first part of 2022 was focused on building the foundation for its roll-out and was hopeful of early progress from the E3 platform.[Read More] Top Penny Stocks to Buy Now? 3 to Watch as September Ends
Tim Goodnow, Ph.D., President and Chief Executive Officer of Senseonics, stated, “As we execute this plan, we realized several second quarter accomplishments- – inserting the first U.S. E3 patients, building brand awareness, increasing patient access through payor coverage policy transitions, scaling up manufacturing and advancing 365-day system program feasibility studies. We are encouraged by the early progress of the E3 launch and look forward to continued collaboration with Ascensia to deliver the benefits of Eversense to more patients and providers.”
This week, SENS stock is on the list of short-squeeze stocks to watch. TDAmeritrade and Fintel.IO data show the short float percentage on Senseonics sits between 15.33% and 16.33%.
Microvision Inc. (NASDAQ: MVIS)
Another one of the penny stocks making a bit of a comeback on Tuesday is Microvision Inc. Shares bounced into the green for the first time in several sessions. The stock and overall market have been pulling back for the last few weeks, but recent attention on EV and autonomous tech has shown a brighter spotlight on related names.
Microvision develops lidar solutions and driver-assistance systems. Its MAVIN DR dynamic view lidar came into focus this month. News that it is now supported by the NVIDIA DRIVE AGX platform helped spark attention. The lidar platform is Microvision’s product that is capable of delivering high-rez images in a dynamic field of view. Companies, including Nio and Polestar, have included NVIDIA’s autonomous platforms in their vehicles.
Commenting on the tie-up, Glenn Schuster, senior director of sensor ecosystems at NVIDIA, explained in a September update, “With MicroVision as part of our world-class NVIDIA DRIVE ecosystem partner network, OEM customers can feel confident knowing they have access to qualified leading-edge sensors that meet the exacting requirements they expect for their safe ADAS and autonomous systems.”
With MVIS stock, it looks like it’s another “member” of the short squeeze list of penny stocks. Fintel.IO and TD have this figure between 25.03% and 25.18%.
SelectQuote (NYSE: SLQT)
Like many of the companies we’ve discussed recently, SelectQuote hit fresh 52-week lows in the last few sessions. The insurance company comparison provider saw its shares rebound for the first time in weeks. SLQT stock jumped from $0.869 to highs of more than $1 without any apparent news catalyst to pair with it.[Read More] Hot Penny Stocks to Buy This Week? 3 to Watch Now
The company announced a new partnership with Rocket Lawyer to offer access to legal services through its insurance buying process. According to the company, the deal will give SelectQuote’s customers to claim RocketLawyer membership during the insurance selection process. “Partnering with Rocket Lawyer allows us to support consumers at a national level while staying true to our mission of helping people protect their most valuable assets and overall financial well-being at the best price — in a matter of minutes,” said Phil Williamson, Vice President of Business Development at SelectQuote in a September Update.
While there isn’t much attention from the “short squeeze” community, there are other things that have gone on this month attracting more attention. In particular, insider trading has helped give a boost to sentiment. Matthew Gunter picked up 24,300 shares at an average price of $1.036 earlier this month.
PaxMedica Inc. (NASDAQ: PXMD)
Recent IPO company PaxMedica caught a much-needed bullish boost on Tuesday. The move came after it released a corporate update before the opening bell. The company’s focus has been on treating disorders with intractable neurologic symptoms. In the new update, PaxMedica highlighted a new CFO appointment and expanded on using proceeds from its August IPO.
Howard Weisman, Chief Executive Officer of PaxMedica, explained, “We expect the funds from the capital raise will allow us to advance our studies on several fronts as we work to find treatments for disorders with intractable neurologic symptoms, such as autism spectrum disorder, and seek U.S. Food and Drug Administration approval for PAX-101 in African Sleeping Sickness.”
In addition to the news, PXMD stock has gained some speculatively bullish attention thanks to short data from Fintel. IO. It shows the short float percentage on PaxMedica, sitting north of 35%.