Hot Penny Stocks To Buy For Under $5, Worth It?
Are penny stocks worth it? That answer is something only you can come up with. But for the masses, whether you’re trading or investing in penny stocks, thousands of people hunt for the next ample opportunity to capitalize on. One thing that is different about 2022 than other years is the stock market sell-off.
It has opened the floodgates on previously higher-priced stocks now trading at extreme lows. Many companies we discuss as penny stocks today were trading much higher not that long ago. Today we look at a few of these popular companies, see what’s moving them in the market and what might be on the horizon that could be worth watching.
Whether it’s insider trading, analyst ratings, unusual options activity, or something else, we aim to uncover the data you can use to your advantage. Our goal is to deliver timely information so that you can be the best-informed, not fall victim to social sentiment hype, and potentially gain an early edge before the masses “figure it out” down the road.
The one thing I will make sure you know is that it’s up to you to decide if these stocks deserve a place on your watch list. The first place to begin is by getting a quick briefing, and below is a breakdown of a few hot penny stocks to watch before next week.
5 Penny Stocks To Watch
- iQIYI Inc. (NASDAQ: IQ)
- Homology Medicines (NASDAQ: FIXX)
- electroCore (NASDAQ: ECOR)
- Grab Holdings (NASDAQ: GRAB)
- Porch Group Inc. (NASDAQ: PRCH)
iQIYI Inc. (NASDAQ: IQ)
Thanks to optimism coming back to the People’s Republic, China stocks have taken off this week. COVID restrictions have been loosened, which has prompted the bullish tone related to these issuers. iQIYI has enjoyed a healthy move over the last week, thanks to these tailwinds. The Chinese online entertainment service provider offered a platform for techies to use expertise from numerous technical fields and propose “practical implementation” of new ideas at its Hack Day event. This seemed to help boost investors’ outlook ahead of even more company-specific news.
Last week iQIYI announced several industry awards for its original productions. In last week’s update, the company said, “Since the start of this year, a number of works from iQIYI have also been recognized on the global stage. In September, the iQIYI-presented film What Remains was selected for the International Competition at the 38th Warsaw International Film Festival. Three iQIYI original productions were nominated for a total of seven awards at the 4th Asia Contents Awards of the 2022 Busan International Film Festival. Five titles were shortlisted for the 13th Macau International TV Festival in November.”
Where do analysts stand with IQ stock? The latest from JP Morgan has sights set relatively high for the company. JP Morgan analysts have an Overweight rating paired with a $7 price target. Based on current trading levels of around $2.90, that’s 141% higher.
Homology Medicines (NASDAQ: FIXX)
Like IQ, FIXX stock has also climbed over the last week. Homology Medicines recently published its Q3 financial results showing mixed performance from the company. EPS was lower compared to last year, and so were sales. But the genetic medicines company made sure to highlight its plan to execute its timeline for its pheEDIT and juMPStart programs.
Albert Seymour, Ph.D., President and Chief Executive Officer of Homology Medicines, explained, “We continue to progress HMI-104, our lead GTx-mAb development candidate, through IND-enabling studies and believe that our optimized in vivo gene therapy development candidate for MLD, which has demonstrated the ability to cross the blood-brain-barrier following a single I.V. administration in preclinical studies, is differentiated from other approaches and makes it an attractive program for us to partner.”
Despite analysts lowering their price targets, many have still set their sites higher regarding FIXX stock. This week, Chardan Capital lowered its $10 target to $8 but maintained a Buy rating. Even with this dip in forecast, the price target remains 264% higher than recent trading prices of $2.20
electroCore (NASDAQ: ECOR)
While it isn’t the highest-volume penny stock on this list, it is raising attention in the stock market this week. electroCore specializes in bioelectronic medicine. What does that mean? elecroCore provides non-invasive vagus nerve stimulation therapy for treating conditions in neurology. Things like headaches, migraines, and related conditions can be treated with its platform.
Since last week, ECOR stock has been on the move. One of the latest catalysts helping give it a boost was news that it would be participating in upcoming industry conferences. In particular, this week, management hosts one-on-one meetings at the Canaccord Genuity MedTech and Diagnostics and Digital Health & Services forum.
It appears that the market shrugged off the less-than-favorable earnings reported this month. Now the focus is on future performance. Does that support analysts taking a bullish stance on ECOR stock? Let’s look at the most recent activity from Barenberg Bank. While it has a Buy rating, it lowered its price target to GBX330, roughly $3.91USD. Considering the ECOR stock price is around $0.34, that target is 1,050% higher as of this article.
Grab Holdings (NASDAQ: GRAB)
Another China-based name to watch is Grab Holdings. Billed as a “Super App” company, it offers users everything from ride-sharing to shopping. This week it posted its latest quarterly results. Grab beat EPS and sales estimates while recording 143% revenue growth year-over-year for the quarter. Its Q3 loss also improved by 65% as the company guided higher for its 2022 revenue outlook.
Despite foreign currency translation headwinds and normalizing food delivery demand, our revenue increased 143% year-over-year (“YoY”), with incentive spend as a percentage of GMV reduced substantively to 9.4%, down from 11.4% for the same period last year. In the quarters ahead, we will continue to focus on cash preservation and cost optimization as we execute on our plans to grow sustainably and drive towards our expectations of 45% – 55% YoY revenue growth in 2023 on a constant currency basis,” said Peter Oey, Chief Financial Officer of Grab.
This type of performance might have been why analysts at Citigroup have a Buy rating on the penny stock. Though it lowered its price target, it wasn’t by an extreme figure. Citigroup analysts dropped their $5.40 target to $5 earlier this month. Even with that as the case, the Citigroup GRAB stock forecast is still over 50% higher than current trading levels.
Porch Group Inc. (NASDAQ: PRCH)
We discussed Porch Group earlier this week in the article “Penny Stocks To Buy: 3 Insider Picks For November 2022.” COO Matthew Neagle and Director Rachel Lam snatched up shares of PRCH stock this month. The largest purchase came from Neagle, who picked up 315,000 shares at an average price of $1.05. It also brought his position over the 1 million share mark.
The home services and insurance industry software company has experienced a jump in November thanks to several milestones, including naming a new CFO and authorizing a share buyback program for up to $15 million.
While PRCH stock has slipped this year, analysts at firms like Barenberg Bank haven’t made any new adjustments to their outlook. Earlier this year, the firm lowered its target to $13 and maintained a Buy rating on the penny stock. That target is over 600% higher than the latest trading levels. Other analysts like Oppenheimer has a bit more modest outlook on the company. This month, the firm adjusted its $9 target to $3 and maintained an Outperform on PRCH stock.