Jerome Powell takes center stage today and tomorrow with his semiannual testimony. While it has brought plenty of volatility to the stock market, some asset classes are generally experiencing a bit more as a result. I’m talking about penny stocks and there are plenty to choose from.
Regarding small moves and significant percentage changes, stocks under $5 are where to look. At any given time, you’ll find some of these cheap stocks surging at incredible percentages but on relatively smaller moves in overall stock price.
One of the more recent examples was with a popular penny stock among retail traders this week, Troika Media (TRKA). Despite the penny stock pulling back aggressively on Friday, shares have moved as much as 900% since the end of December. The “crazy” part is that move came from a price change of less than $1.
The high-risk, high-reward nature of cheap stocks isn’t for everyone and, like all investments, should be researched thoroughly. However, stocks like TRKA and even the “OGs” like AMC Entertainment, GameStop stock, and Bed Bath & Beyond have given traders hope (and plenty of FOMO) that penny stocks can be well worth the risk if you know how to trade them.
In this article, we look at a handful of names that analysts have grown bullish on. These firms have looked into what’s going on with the companies and issued price targets with ratings to show the market what they think about them. It’s important to remember that analysts aren’t always right and, in many cases, can be completely wrong about their prospects. However, you can use ratings and their research as a part of your much more detailed due diligence process.
Penny Stocks To Buy [According To Analysts]
TCR2 Therapeutics (TCRR)
Shares of TCR2 Therapeutics have gained plenty of ground in the stock market this year. Since hitting 52-week lows at the end of December, TCRR stock has bounced back by more than 100%. If analysts are current, hopes are high that trend will continue. In this case, Piper Sandler has put an Overweight rating on the penny stock and paired it with a $10 target. Based on current levels, that target is 484% higher.
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This week, the company and Adaptimmune announced a strategic combination to create a preeminent cell therapy company for solid tumors. Commenting on the deal, CEO Garry Menzel, Ph.D. explained, “The combination of our two companies not only sets the stage for near-term execution but also positions the new company for the longer-term. We jointly have an array of next-generation innovations that we will integrate to address the tumor micro-environment using both autologous and allogeneic approaches.”
It’s also worth noting that after the deal closes, the combined company is expected to continue to trade on the Nasdaq Stock Market under the symbol “ADAP.”
Jasper Therapeutics (JSPR)
Another one of the biotechnology penny stocks to watch this year is Jasper Therapeutics. The company’s shares soared at the start of 2023 thanks to news that it saw positive clinical data from a Phase 1/2 trial of its briquilimab in sickle cell disease and beta-thalassemia. Following the release of that data, Jasper also announced that it would present data supporting its ongoing briquilimab development.
CEO Ronald Martell explained, “As we focus the development of briquilimab on treating chronic mast cell diseases and as a conditioning agent for stem cell transplants addressing rare diseases, we believe that the data presented at the Transplantation & Cellular Therapy Meetings of ASTCT and CIBMTR provides the additional mechanistic and clinical proof-of-concept rationale for its mechanism of targeting c-Kit.”
Shortly after the news, analysts began weighing in on the company. In particular, EF Hutton reiterated its Buy rating. It also maintained a $6.85 target, which is still 226% higher than current trading levels.
ThredUp Inc. (TDUP)
One of the household stocks to watch since early November is ThredUp. It gained notoriety when it first went public. But like many smaller IPOs over the last few years, TDUP stock failed to maintain its trading levels around the IPO price. That’s in the past, and now, the market is looking at what’s next for the online resale platform company. ThredUp specializes in online resale platforms for women’s and kids’ apparel, shoes, and accessories.
Much of the attention has been on the latest financial results from the company. ThredUp beat EPS and sales estimates for the fourth quarter. The company brought in more than $71 million and guides in a range of $71-$73 million for Q1 of this year. The consensus was $69 million. As far as full-year guidance for 2023 goes, ThredUp expects to do anywhere from $310 to $320 million, which was also higher than the street’s $300 million expectation.
But what about analysts? If you look at the latest expectations from Needham, you’ll see the firm has high hopes for the reselling company. Analysts have a Buy on the stock and a $5, roughly 125% higher than current trading levels.
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Quotient Technology Inc. (QUOT)
Digital promotions and media tech company Quotient has been on a quiet climb to start the year. Shares have jumped from around $3.14 in January to $4.25 this quarter. The latest round of earnings results brought a bit of a mixed bag as far as the market is concerned. The company recorded Q4 revenue of $70.7 million and an Adjusted EBITDA of $13.2 million.
“2022 was a transformational year for Quotient. Shifting our focus towards being a technology provider has enabled us to materially lower our cost structure, improve margins and invest in growth initiatives,” said Matt Krepsik, Quotient CEO. “We are proud that despite a challenging fourth quarter across the digital marketing sector, we delivered $13 million of adjusted EBITDA and positive GAAP net income for the first time since 2017. We have built a new leadership team that will look to build on the stronger foundation and capture the power of our network.”
Fast-forward to this week, and the rumor mill is buzzing. This stems from a Reuters exclusive that “Quotient Technology Inc., the parent of Coupons.com, is exploring options that include a sale of the company as it grapples with a collapse in advertising revenue, according to people familiar with the matter.”
Analysts at Rosenblatt recently weighed in on the QUOT stock forecast. The firm has a Buy rating and $5, roughly 34% higher than current levels.
Precigen Inc. (PGEN)
The beaten-down biotech stock, Precigen has come back into focus recently. Shares tapped new 52-week lows last week as the price continued bleeding out just before it released its latest round of earnings.
Helen Sabzevari, Ph.D., President and CEO of Precigen, explained, “2022 was a successful year with respect to clinical advancements for Precigen’s UltraCAR-T and AdenoVerse programs. We showcased highly encouraging safety and efficacy results from Phase 1 dose escalation of PRGN-3006 UltraCAR-T in AML at ASH and Phase 1 dose escalation and expansion cohort data of our PRGN-2012 AdenoVerse immunotherapy in RRP at our Company’s R&D Day…These data set us up for a strong 2023 as we continue our focus on rapidly advancing clinical programs and pursuing the most promising regulatory paths to licensure.”
Analysts at JMP Securities and HC Wainwright adjusted their outlook this week. JMP, in particular, had the most bullish PGEN stock forecast. It reiterated its Outperform rating and maintained a $14 price target. Based on current levels, that target sits 952% higher.
List Of Penny Stocks to Buy [according to analysts]
- TCR2 Therapeutics (NASDAQ: TCRR)
- Jasper Therapeutics (NASDAQ: JSPR)
- ThredUp Inc. (NASDAQ: TDUP)
- Quotient Technology Inc. (NYSE: QUOT)
- Precigen Inc. (NASDAQ: PGEN)