Hot Penny Stocks To Watch For CPI Week
This could be one of the most volatile weeks for the stock market in 2022, and penny stocks could be at the top of mind for traders. Why focus on cheap stocks? Assuming you know how to manage risk, volatility is where money is made. When times are most choppy for the broader markets, that can get amplified for some of the lower-priced names.
CPI Data, Fed Speakers, & More
The next round of Consumer Price Index and Core CPI data will be the centerpiece of this week. The market needs some clarity after mixed messaging from the Federal Reserve last week. The FOMC statement read dovish, while Fed Chair Jerome Powell’s commentary was much more hawkish during his press conference.
Several top takeaways from the November Fed meeting included data-dependent expectations for curbing inflation. The FOMC raised rates 75 more basis points as expected, but jobs data seems to have become a significant sticking point for policymakers, including Powell. In addition to this week’s CPI data, there will be plenty of speaking engagements hosted by Fed members and global central bankers. For a full schedule and an excellent infographic download, check out “Penny Stocks & What To Watch In The Stock Market This Week Nov 7-Nov 11.”
5 Penny Stocks To Watch This Week
- Faraday Future Intelligent Electric Inc. (NASDAQ: FFIE)
- Tupperware Brands (NYSE: TUP)
- Affimed NV (NASDAQ: AFMD)
- Sonnet Biotherapeutics Holdings (NASDAQ: SONN)
- Tellurian Inc. (NYSEAMERICAN: TELL)
Faraday Future Intelligent Electric Inc. (NASDAQ: FFIE)
This list of penny stocks is a mixed bag of companies and no sector-specific theme. Chances are, this is likely the case for the week ahead and why cheap stocks are more of a focus for traders. Most lower-priced stocks move untethered to whatever the S&P 500 or Nasdaq are doing. This is the case with Faraday Future, which has been on our list of penny stocks to watch for a few weeks now.
Unlike Tesla (NASDAQ: TSLA), this pre-launch EV company’s stock has been climbing while markets have been falling. In fact, penny stocks under $1, in general, have been gaining attention in the stock market this month. The latest steps taken by Faraday are in hopes of getting its flagship FF 91 Futurist product launched. The company reached a deal with one of its significant shareholders, FF Top, which appeared to have been one of the hurdles to moving things forward.
Meanwhile, some sympathy sentiment could be in play as several smaller EV companies are set to deliver earnings this week. Nio, Rivian, Lucid Motors, and others will report their latest results in the coming days.
Tupperware Brands (NYSE: TUP)
A while ago, we discussed Tupperware as one of the penny stock graduates. The company firmed a move above the $5 threshold in 2020 to ultimately reach highs of nearly $40 in early 2021. Given some time, former penny stocks tend to return “home,” and that’s what TUP stock has done following the latest round of earnings.[Read More] Buying Cheap Penny Stocks in November? 3 Tips to Use
Last week the consumer brand company known for its air-tight storage products missed analyst expectations. Tupperware reported an EPS of $0.14 compared to estimates of $0.46. Sales were expected to come in north of $330 million, but the actual figure was closer to $300 million.
“While we continue to make investments that are essential for our turnaround, we remain disciplined to ensure we are focused on meeting our debt covenants, while making decisions that we believe will improve long term profitability,” said Mariela Matute, Chief Financial Officer of Tupperware Brands. “Given the revenue trends year to date, we expect to take additional restructuring actions in the fourth quarter, as well as implementing stringent inventory reduction programs.”
With the issues identified and put out in the open, traders appear to have regained some confidence in the beaten-down stock. TUP shares have rebounded over 15% since hitting 52-week lows of $3.87 last week.
Affimed NV (NASDAQ: AFMD)
Biotech penny stocks have been a surprising pocket of bullishness recently. Affimed is one of the names on the radar and has been in rally mode since mid-October.
The company develops immuno-oncology treatments and has developed a proprietary ROCK platform. It allows tumor-targeting in identifying and eradicating a range of hematologic and solid tumors. Its pipeline has been a point of interest over the last few weeks and will likely stay that way through mid-November. This week the company provided an update from two Phase 1/2a trials with AFM13 in lymphoma and AFM28 in leukemic cells. The candidates will have data presented at the American Society of Hematology meeting in December.
There is a more near-term event taking place that could have AFMD stock on the radar. Next week the company presents at the Jefferies London Healthcare Conference. Traders could look for further details on recent events, including Affimed’s partnership with Artiva Biotherapeutics to advance combination therapies. The companies plan on combining their clinical programs (AFM13, AB-101) to tackle the high unmet need of CD30-positive lymphoma patients. You also can’t forget about Affimed’s upcoming earnings results on November 15th, which come a day before the Jefferies presentation.
Sonnet Biotherapeutics Holdings (NASDAQ: SONN)
Sonnet Biotherapeutics hasn’t been a stranger to recent market volatility. Shares exploded earlier this month after the company announced a collaboration agreement with Johnson & Johnson’s (NYSE: JNJ) Janssen Biotech. The two will evaluate SON-1010, SON-1210, and SON-1410 in combination with certain Jansssen cell therapy assets.
“This is Sonnet’s first head-to-head evaluation of three FHAB-based drug candidates, the results of which will be instructive for expanded oncology indications. A successful evaluation could lead to a potential license agreement”, said Pankaj Mohan, Ph.D., Sonnet’s Founder and Chief Executive Officer.[Read More] Can I Buy Penny Stocks With My 401(k)?
Last week, Sonnet’s interim data report on two Phase 1 trials in SON-1010 reignited skepticism in its portfolio. In particular, the safety profile came into question. That isn’t the case at the start of the new week, with SONN stock climbing back above the $2 mark and testing its 50-day moving average.
“We are highly encouraged by these data, some of which shows early signs of SON-1010 activity in the tumors at these initial dose levels that are accompanied by a tolerable safety profile,” said Pankaj Mohan, Ph.D., Sonnet Founder and Chief Executive Officer. “These studies are expected to form the basis for combinations with other immunotherapies that could have synergistic effects on cancer and that we expect will support potential licensing activities.”
Tellurian Inc. (NYSEAMERICAN: TELL)
Energy penny stocks continue to be a focus for traders. Tellurian Inc. has become one of the go-to names of traders looking to play the LNG or “liquified-natural-gas” trend in the market. Shares of the company have been climbing since late September after it canceled some LNG sales deals.
But last week, attention on the stock picked back up. Tellurian announced a 25% increase in natural gas production for the third quarter. The company also announced its Q3 earnings results. Despite missing EPS estimates and sales expectations, TELL stock has continued moving higher.
President and CEO Octávio Simões said, “Tellurian continues to increase our domestic natural gas production by adding to our footprint, having now a total of 22,420 net acres, interests in 131 producing wells located in the Haynesville Shale, and more than 300 drillable locations*. In addition, Bechtel is continuing construction on the Driftwood terminal, and Tellurian is fully engaged in our efforts to secure strategic equity partners. The underlying market fundamentals strongly support our strategy of seeking the differential value between domestic and international natural gas prices for our shareholders.”
TELL stock could be on watch this week on the back of energy industry strength.
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