Cheap Penny Stocks To Buy
Penny stocks generally trade for $5 per share, which makes them some of the most appealing for new or novice traders. The ability to purchase hundreds, thousands, or even millions of shares for a couple of hundred dollars gives way to scoring big when stocks explode. Not all penny stocks are tradeable on all platforms, however.
Therefore, knowing which companies your broker allows you access to is important. For example, if you’re talking about “Robinhood penny stocks,” you’re likely referring to stocks under $5 that you can buy using the Robinhood mobile app. In this case, you’ll only have access to stocks trading on the NASDAQ and NYSE and few, if any, OTC penny stocks. Similarly, platforms like Webull might offer limited access to OTC stocks but, for the most part, are helpful for trading penny stocks listed on major exchanges.
Today we look at some of the cheapest penny stocks to buy. This article includes a handful of companies trading for less than $5 a share; some even below $1 per share. Does it matter if you’re trading lower-priced penny stocks? The short answer is yes; a quick example would be the difference in trading a $5 vs a $0.50 stock. For the $5 company, a move of 50 cents is a nice 10% move.
However, for the $0.50 company, that’s a double-up. Risk and reward play their parts, obviously, because the moves can go in the opposite direction too. But assuming all cylinders are firing correctly, cheaper stocks require much less in terms of dollars compared to higher-priced penny stocks.
Penny Stocks To Buy [or avoid]
Now that we’ve cleared up some basics let’s dive into this list of penny stocks. Once you see what’s gone on, what’s going on, and what could be coming up, it will better serve as information to weigh your overall due diligence process when deciding to add certain companies to your watch list.
- Abeona Therapeutics Inc. (NASDAQ: ABEO)
- Plus Therapeutics Inc. (NASDAQ: PSTV)
- Wave Life Sciences Ltd. (NASDAQ: WVE)
Abeona Therapeutics Inc. (NASDAQ: ABEO)
Biotechnology company Abeona Therapeutics remains one of the hot penny stocks to watch this month. We discussed it early on in October as shares began pushing higher. Last week the company announced the completion of a follow-up in its Phase 3 VITAL study of EB-101 for recessive dystrophic epidermolysis bullosa.
CEO Vish Seshadri explained that the completion marked “a key milestone that enables us to report key findings from our Phase 3 VIITAL™ study of EB-101 in RDEB” and that the plan is to report topline results from the study within the next month. If the data is positive, Abeona will seek approval from the FDA, so as the clock begins ticking, speculation has already started 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.
Plus Therapeutics Inc. (NASDAQ: PSTV)
Another one of the biotech penny stocks to watch this month is Plus Therapeutics. It’s one of the lowest-priced companies on this list and has seen a recent uptick in trading action over the last week. Plus specializes in targeted radiotherapies and conducted a live presentation over the weekend. The presentation was titled “A Promising New Targeted Radiation Therapy for Leptomeningeal Metastases in Breast Cancer, Lung Cancer, and Other Malignancies: An Introduction.”
Those details may have sparked some optimism in the stock market today, even on a day when broader markets have pulled back. Looking ahead, Plus has several potential catalysts in October that are worth noting. If PSTV stock is on your watch list, it will present data from two clinical trials evaluating its lead radiotherapeutic Thenium-186 NanoLiposome in patients with recurrent glioblastoma and leptomeningeal metastases. Plus presents on October 18th at the Congress of the European Association of Nuclear Medicine. In addition, third-quarter earnings are coming up on October 20th after the closing bell.
With all this as the backdrop, analysts seem to have grown bullish on the penny stock. Most recently, Jones Trading initiated coverage with a Buy rating and a $5 price target.
Wave Life Sciences Ltd. (NASDAQ: WVE)
Shares of Wave Life Sciences have been in rally mode for the better part of the last six months. The company is advancing its PRISM drug development platform to allow for precision optimization and design of stereopure oligonucleotides.
Last week’s headlines have resonated with the market as WVE stock continues higher this week. The company announced that it would highlight advancements from the Prism platform at multiple scientific congresses. One of them was last week at the Meeting of the Oligonucleotide Therapeutics Society. The next comes this week at the European Society of Gene & Cell Therapy.
Chief Technology Officer and head of Platform Discovery Sciences for the company, Chandra Vargeese, Ph.D., mentioned, “Our data at OTS and ESGCT are illustrative of both the evolution and the potential of Wave’s science…We are excited to share the preclinical data for WVE-006 – the most advanced program to harness an endogenous enzyme for editing – as well as how we are applying AIMers to upregulate gene expression. We also are highlighting our preclinical siRNA designed with PRISM chemistry, which demonstrates remarkably robust and durable RNA silencing in vivo.”
As the next congress approaches, trading has picked up in the penny stock, and WVE shares tested levels nearing the year’s highs on Monday.