If you’re looking for penny stocks to buy this week, there’s a lot of economic data to digest. The turbulence we’re seeing right now mostly concerns Wednesday’s FOMC meeting and the latest rate hike decision. Some expect this to be a pivotal decision in the fight against runaway inflation. After the latest round of February CPI data and the recent PPI report from last month, the market is weighing the potential for less aggressive hikes in 2023.
But there’s something that retail traders are focusing on that long-term investors may not necessarily be looking at daily trends in small and nano-cap stocks. These penny stocks tend to move independently of broader market trends. Even if the stock market is down, there are at least a handful of companies with share prices on the rise.
Why do penny stocks climb when the stock market is down? The short answer is speculation is a core driver of momentum. In most cases, the underlying companies are smaller start-ups or early-stage companies. They can also be companies that have fallen on hard times, which traders look to for potential signs of a turnaround.
Whatever the source of speculation, it tends to be a reason for day traders and even swing traders to take notice. In this article, we look at a handful of stocks turning heads in the stock market today. Once you see why they are moving and understand the latest potential catalyst, you can determine if they deserve a place on your list of penny stocks to watch this week.
Penny Stocks To Watch
T2 Biosystems Inc. (TTOO)
The last few months have been shaky ground for many companies. Penny stocks, of course, are no strangers to bearish sentiment, and T2 Biosystems has followed that trend since the start of 2023. In fact, about a week ago, TTOO stock hit fresh 52-week lows of $0.46. Since then, however, it has managed to make a noticeable rebound. In addition, the daily trading volumes over the last two sessions are much higher than those of the last 40 days.
So what’s happening with TTOO stock, and should it be on your watch list? The most recent headlines focused on the company’s Q4 and full-year 2022 performance. Despite beating sales and EPS estimates, the news didn’t wow the market. But what may have come back into focus is what was said by management in the business update portion of the results.
– The Anatomy of Penny Stocks: Understanding What Drives Value
“Throughout 2022, the T2 Biosystems team generated record sepsis and related product revenue and expanded the installed base of T2Dx Instruments through record sepsis-driven instrument contracts. We also advanced our product pipeline, positioning T2 Biosystems to expand our test menu in 2023,” stated John Sperzel, Chairman and CEO of T2 Biosystems. “We look forward to continuing this momentum to advance our three corporate priorities – accelerating our sales, enhancing our operations, and advancing our pipeline to support long-term growth.”
This year the company expects total sepsis and related product revenue to hit $11.0 million to $13.0 million. That would represent 31% to 55% growth, compared to $8.4 million in 2022.
CleanSpark Inc. (CLSK)
Whether you are looking for broader “technology penny stocks” or something as specific as “ai penny stocks,” the industry as a whole has gotten a bit of a boost recently amid the banking crisis. That’s due, in part, to growing interest in what some are calling a safe haven in Bitcoin and other cryptocurrencies. You can also couple that with excitement surrounding things like ChatGPT and other artificial intelligence platforms blazing a new trail in the market.
CleanSpark has benefited from one of these recent trends: crypto. The company is a Bitcoin mining business, and it just stocked up on new mining machines this quarter. It purchased 20,000 new Antminer units for roughly $32.3 million. With delivery expected by May, CleanSpark expects to deploy the new fleet across its facilities. At the end of February, the company reported that it mined 576 BTC, and with the price per Bitcoin rising, it could be a welcome sign for CleanSpark.
The critical thing to understand about CLSK stock and others with ties to crypto is that the price of these assets can significantly impact sentiment. We saw it a few months ago with Bitcoin, Ethereum, and others collapsed in price. For now, the trend is bullish; regardless, it is something to keep in mind.
Proterra Inc. (PTRA)
We said above that penny stocks can be start-ups or companies that have fallen on hard times. In this case, Proterra falls into the latter of the two categories. The company saw its share price implode a few days ago thanks to negative news headlines.
Proterra, a company that designs zero-emission electric transit vehicles and EV tech solutions, reported a wider-than-expected loss. The company also warned of a liquidity issue and reported revenue guidance below analyst estimates.
Fast-forward a few weeks, and Proterra is back in a brighter light. That’s thanks, in part, to news that it reached a letter of intent with certain convertible noteholders. Since the earnings update, PTRA stock has bounced back nearly 70%. While it’s still a far cry from where it started the year, the last few sessions have been some of the most active for the penny stock in 2023.
List Of Penny Stocks Under $5
- T2 Biosystems Inc. (NASDAQ: TTOO)
- CleanSpark Inc. (NASDAQ: CLSK)
- Proterra Inc. (NASDAQ: PTRA)