Penny Stocks To Buy Or Avoid Completely?
Trading penny stocks can be a very lucrative game if you know how to play it. But for most, excitement and emotion can take precedence over the right plan or strategy. That’s why, if you’re looking for top penny stocks to buy today, you’ve got to understand volatility well. In addition, the overall markets are also offering up some wild moves.
The Stock Market is Down Today, But Penny Stocks Are Up
The stock market is down today because of new comments from the Fed’s Kashkari, who said there’s more work to do on inflation. Kashkari also explained that there’s no expectation of pausing rate hikes until there’s evidence that inflation is cooling. The Minneapolis Fed President said, “I expect we’ll see cracks in U.S. financial markets, but the bar to change in Fed policy in response is very high.”
Thanks to these comments, the stock market crash reignited despite favorable jobless claims data. Initial claims came in at 219,000 against expectations of 203,000, while Continuing Jobless claims reached 1.361 million compared to the 1.345 million expected.
Even though these are bad figures for the employment market, they were taken as a positive in the Fed’s fight against inflation as jobs data remained a sticking point of calling for a formal recession. Most major market-leading companies, including Apple, Amazon, Tesla, and countless others, are down in the dumps on Thursday.
That isn’t the same for a handful of cheap penny stocks that can be bought for under $5. With this list, we look at a few that have traded higher in the stock market today against the bearish backdrop of the overall market. Are they worth the risk? I’ll leave that up to you to decide.
Penny Stocks To Buy for Uner $5
ToughBuilt Industries (TBLT)
A flood of new updates from ToughBuilt Industries has helped bring more significant interest to the penny stock. Last month, the company launched new product lines and expanded distribution in new markets, including the UK. This week, that trend continued with ToughBuilt releasing a new line of striking tools and securing distribution agreements with four major retailers in Germany.
Michael Panosian, ToughBuilt CEO, explained, “These new partnerships in Germany offer the Company opportunities to capture further market share in a key EU Member state for ToughBuilt’s global growth strategy and European expansion. Our distribution alliance with Witte, Bernd Ulbricht Nachf, and Delker will help to increase awareness of the ToughBuilt brand, cementing our reputation for quality and innovation worldwide.”
On the back of this newsflow, TBLT stock has continued rebounding in the stock market today.
Agenus Inc. (AGEN)
Immuno-oncology company Agenus remains a spotlight stock this week as shares continue higher in the stock market today. Earlier this week, it announced plans to present at November’s Society for Immunotherapy of Cancers Meeting. Agenus plans to introduce new data from its Phase 1 study of the company’s botensilimab platform in cold tumors. It also reported that it would provide an overview of a Phase 2 trial of AGEN1423 combined with balstilimab in pancreatic cancer.
Agenus has multiple phase trials in process. Last month it announced the start of a Phase 2 ACTIVE trial in colorectal cancer and advanced melanoma. The trial evaluates botensilimab’s impact on the diseases.
“The Phase 1 botensilimab program demonstrated remarkable activity in poorly immunogenic and difficult-to-treat tumor types…In light of our compelling clinical data, we have received clearance from the FDA to initiate our Phase 2 development program in two indications and intend to expand to multiple additional indications as rapidly as possible with the aim of delivering a transformative new treatment option to patients in need.”Steven O’Day, MD, Chief Medical Officer
With the upcoming presentations, AGEN stock is back in focus for traders looking for penny stocks to add to their October watch list. It’s also worth noting that insiders continue accumulating shares. This week Director Susan Hirsch snagged another 7,216 shares of AGEN stock at an average price of $2.598 as part of the Board Compensation Election Policy. This allows directors to receive director fees in shares of AGEN stock instead of cash.
Motus GI Holdings Inc. (MOTS)
TBLT stock is moving after news headlines prompted buying action, and so is MOTS stock. Shares of the medical tech company jumped in early trading on October 6th, thanks to patent news. Motus was granted a U.S. patent for prepless colonoscopy methods for its Pure-Vu system.
Titled “Cleaning Method for Prepless Colonoscopy,” management explained that it covers methods of clearing the colon in patients that haven’t prepped for the procedure. CEO Tim Moran said that he believes these new methods “along with the already published clinical data around limited prep colonoscopy utilizing the Pure-Vu System, sets the stage to address the current burden of completing the prep process, which is the number one issue that prevents people from getting a colonoscopy which may aid in preventing colorectal cancer.”
The news follows a September update that the Veterans Health Administration recognized Morus as a sole source provider.
Addentax Group Corp. (ATXG)
Thanks to an epic IPO in August, you might be familiar with Addentax Group stock. Shares of the penny stock surged from an opening price of $27 to highs of $656.54 (in a single day). The massive move prompted traders to take on enormous risk and pile into the company’s stock, speculating on the bullish trend in IPO stocks at the time.
That move didn’t hold water, and shares imploded the next day. Fast-forward to this month, and Addentax Group is back in focus, but for other reasons. The former OTC-listed manufacturing company has turned heads thanks to a broader move in China-based small-cap stocks. Companies like AMTD Digital (HKD) and AMTD Idea Group (AMTD) jumped during the first hour of trading on Thursday, prompting some sympathy in stocks with exposure to China.
Addentax specializes in manufacturing, logistics, and even epidemic prevention supplies. In many cases, some of these companies’ ambiguity comes secondary to the stock market’s momentum for a 4-letter combination. That may be the case today and could be something to note when weighing risk/reward for placing it on a list of penny stocks to watch.
Grab Holdings Ltd. (GRAB)
Another China-based name to watch in the stock market today is Grab Holdings. Shares of the “Super App” company jumped back above the $3 mark in early trading. The penny stock continued bouncing back after Grab released second-half expectations for 2022 and noted several goals through 2026.
Grab explained in a September update, “For the second half of 2022, Group Adjusted EBITDA is expected to be $(380) million, a 27% improvement compared to the first half of 2022. With a focus on sustainable growth, Grab also announced that it expects Group revenues to grow strongly between 45% to 55% year-on-year in 2023 on a constant currency basis. Grab also expects to reach breakeven for its Digibank operations by 2026.”
CEO Anthony Tan has worked diligently to improve the profitability of the company. This outlook seems to have sat well with the market, as GRAB stock has traded higher since the update.