If you’re looking for the best penny stocks to buy, you likely understand the disconnect between broader trends and cheap stocks. Since penny stocks move independently, most of the time, you’re sure to find at least a few companies to follow.
Today this became more evident as the stock market crash continued as broader indexes sold off throughout the session. Why is the stock market down today? Today’s drop is due to the latest rounds of U.S. employment data. The unemployment rate for September came in at 3.5% compared to the 3.7% expected. Meanwhile, nonfarm payroll hit 263,000 compared to estimates of 250,000. This led to investors seeing that the labor market was still tight.
Why do today’s payroll and employment data matter? We live in a world where good data is bad and bad data is good to some extent. The Federal Reserve is paying close attention to the jobs market as it weighs its monetary policy decisions. The Fed just issued its third-consecutive 0.75% rate hike last month, attempting to cool inflation and bringing its target Fed funds rate to a range of 3% to 3.25%.
Earlier this week, markets were upbeat as job openings fell by 1.1 million in August. The 10% monthly decline gave traders hope that the employment outlook was bleaker than expected and, in turn, could mean a more dovish tone from the Fed. Today’s data has erased that speculative hope as stocks drop lower.
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This doesn’t mean that all stocks are imploding, however. Today’s article looks at a few biotech penny stocks to watch as the stock market crashes.
- Abeona Therapeutics (NASDAQ: ABEO)
- Poseida Therapeutics Inc. (NASDAQ: PSTX)
- Nektar Therapeutics (NASDAQ: NKTR)
- Wave Life Sciences Ltd. (NASDAQ: WVE)
Abeona Therapeutics (NASDAQ: ABEO)
Abeona Therapeutics is reaching new October highs as the stock market hits lows. The biotech company focuses on cell and gene therapies with a lead program, EB-101, for recessive dystrophic epidermolysis bullosa.
What to Watch With ABEO Stock
This week the company announced that it completed a follow-up in its Phase 3 VITAL study of EB-101. Vish Seshadri, Chief Executive Officer of Abeona, explained, “Completion of the last patient’s 6-month follow-up visit marks a key milestone that enables us to report key findings from our Phase 3 VIITAL™ study of EB-101 in RDEB…We thank the patients, their families, and the clinical investigators, and plan to report topline results from this pivotal study within the next month.”
If the data is positive, Abeona will seek approval from the FDA. As the clock keeps ticking, speculation has begun driving market momentum. Analysts following the penny stocks, including Alliance Global and Cantor Fitzgerald, have bullish outlooks on the company. Price targets range from $20 to $22 with a Buy rating or the equivalent.
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Poseida Therapeutics Inc. (NASDAQ: PSTX)
Another cell therapy company, Poseida Therapeutics, has continued trading higher in the stock market today. The company’s platforms include candidates like its piggyBac DNA Delivery and Cas-CLOVER Gene Editing Systems. A collaboration with Roche earned it a $110 million upfront payment to focus on the R&D of allogeneic CAR-T cell therapies in hematologic malignancies. The relationship could also see Poseida earn up to $110 million in near-term milestones and other payments.
What To Watch With PSTX Stock
Next month the company will present a Trial in Progress poster at the Society for Immunotherapy of Cancer Annual Meeting. This will highlight the company’s ongoing Phase 1 trial of P-MUC1C-ALLO1in patients with metastatic epithelial-derived solid tumors. Initial clinical data is anticipated by the end of this year or early next year, so this presentation could shed some light on progress. If PSTX stock is on your list of penny stocks right now, Poseida’s presentation is on November 11th.
Nektar Therapeutics (NASDAQ: NKTR)
Shares of Nektar Therapeutics stock hit new 52-week lows at the end of September. Since then, the biotech stock has been in rebound mode. Nektar focuses on R&D in oncology, immunology, and inflammatory disease treatment candidates.
Last month the company announced data presentations with two Phase 1b studies of its rezpegaldesleukin (also known as LY3471851 or NKTR-358). The treatment targets patients with atopic dermatitis (AD) and plaque psoriasis at the 2022 European Academy of Dermatology and Venereology Congress.
Brian L. Kotzin, M.D., Chief Medical Officer of Nektar, commented, “In atopic dermatitis, dose-dependent improvements in key efficacy measures were observed for an additional 36 weeks following the 12-week treatment period. These proof-of-concept data show rezpegaldesleukin’s ability to stimulate Tregs to target an immune system imbalance resulting in an improvement of disease activity in patients.”
What To Watch With NKTR Stock
This week, news broke that PureTech Health (NASDAQ: PRTC) confirmed that it exchanged indicative, non-binding proposals with Nektar regarding a potential tie-up. The two companies are in discussions, but no final decision has been made. While this is the case right now, speculative momentum has built up in the penny stock and could be something to note if it’s on your watch list.
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Wave Life Sciences Ltd. (NASDAQ: WVE)
As biotech penny stocks have gained attention, companies like Wave Life Sciences demonstrate why. Over the last few months, WVE stock has steadily climbed from $1.16 to highs this week of $4.25. One of the more bullish catalysts came after Wave reported its Q2 earnings results.
In it, Paul Bolno, MD, MBA, President and Chief Executive Officer of Wave Life Sciences, explained, “Our recent financing ensures we are well-capitalized to execute on several key milestones, including data announcements from three ongoing clinical trials and the advancement of WVE-006 into clinical development.”
One of its other pipeline candidates, WVE-003, in a Phase 1b/2a trial, helped boost the stock in recent weeks. This is Wave’s candidate for Huntington’s disease. In a trial update, the company reported positive data and a reason to expand its trial.
What To Watch With WVE Stock
Wave is presenting at several life sciences conferences this month, showing its wares through October. The next event will be on October 13th at the European Society of Gene & Cell Therapy.
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