If you’re looking for penny stocks to buy now, there’s a lot to account for in the stock market today. Whether it’s the overarching recession and inflation story or the underpinnings of a potential stock market crash in 2023, emotions are riding high right now. With this has come plenty of volatility, creating a unique landscape for retail traders and investors alike.
One of the most active niches and a somewhat sought-after area of the market has been cheap stocks. The reason has much to do with how most low-priced stocks move. On any given day, even when the stock market is down, plenty of penny stocks are climbing higher. In addition, the moves in some of these stocks can happen quickly. Look at Ensysce Biosciences (NASDAQ: ENSC) during Wednesday’s morning session. While it didn’t explode hundreds of percentage points, shares of ENSC stock caught a quick surge in momentum and jumped by roughly 20% within minutes.
It’s important to understand what, if anything, is driving the action for some of these cheap stocks. In some cases, it might be speculation based on myriad reasons. Other cases, like the one with ENSC stock, result from headlines being released. Ensysce announced that its CEO would present a featured case study of one of its platform candidates at the Strategies for Achieving Regulatory Milestones Faster | Global Webinar.
Today, we’re looking at a different set of data that could be worth noting, analyst opinions.
Penny Stocks, Analysts, & What To Look For
It’s important to remember that analysts aren’t the end-all of your research process. If anything, their opinions could be a grain of salt and a small piece of your overall due diligence. However, they can offer some added insight when observing what Wall Street is looking at compared to what retail traders may be focused on. In this article, we look at a handful of penny stocks to buy, according to analysts, and some of their ratings are in the triple and quadruple digits based on current prices.
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Penny Stocks To Buy [According To Analysts]
Playstudios Inc. (MYPS)
Playstudios offers a free-to-play mobile and social game portfolio and a loyalty platform. Since reporting stronger earnings and a beat on both EPS and sales, MYPS stock has been on the watch list for some traders.
The company reached $79.4 million in revenue for the fourth quarter and over $290 million for the year. CEO Andrew Pascal explained in an earnings business update, “We have exciting plans for 2023. We remain committed to diversifying our collection of games, expanding our player network, and demonstrating the power of playAWARDS…we are introducing 2023 guidance that represents revenue and AEBITDA growth from 2022 levels and a marked increase in our overall profitability.”
Playstudios expects full-year 2023 revenue to be in the range of $300.0 million to $320.0 million. It’s also anticipating full-year AEBITDA to be $47.5 million to $52.5 million. But what do analysts think?
This week, Stifel joined the list of firms covering the company. It initiated MYPS stock with a Buy rating and a $6 price target, roughly 46% higher than where share prices sit as of this article.
One of the more significant movers during the Covid crisis a few years back, OCGN stock has slipped back below the $1 mark as of late. In an update last week, Ocugen announced positive preliminary safety and efficacy results from a Phase 1/2 trial of its OCU400. This is the company’s gene therapy for treating retinitis pigmentosa and Leber congenital amaurosis.
CEO Dr. Shankar Musunuri explained, “This is the first clinical validation of the platform where patient responses across various genetic mutations support that OCU400 has the potential to transform the lives of many patients who are struggling with debilitating blindness diseases.”
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Even with the depressed price levels, some analysts have been bullish on the stock. HC Wainwright, for instance, reiterated its Buy rating on the penny stock this week. The firm also has a $5 target, which is roughly 488% higher than trading levels as of this update.
Finch Therapeutics Group Inc. (FNCH)
Another one of the biotech penny stocks to watch this month could be Finch Therapeutics. The company has an IP portfolio built around microbiome technology and related assets. Finch announced a clinical collaboration with Brigham and Women’s Hospital this week to evaluate its CP101 in ulcerative colitis. Finch also discussed more updates on its license deal with the University of Minnesota.
CEO Mark Smith, Ph.D., shed more light on the specifics of these milestones, saying, “The clinical trial agreement to evaluate CP101 in ulcerative colitis builds on many years of work at Finch to develop product candidates to serve this important unmet medical need…I am also pleased to extend our long-standing relationship with the University of Minnesota, which we believe positions us to continue to advance our microbiome technology through collaborations and partnerships.”
HC Wainwright weighed in on the company earlier this month, just a few weeks after it reported earnings. The firm has a buy rating and a $7 price target. While that may not seem like a high target overall, compared to the current price levels of FNCH, it sits roughly 1,560% higher as of this article.
Vyne Therapeutics (VYNE)
Shares of immune-inflammatory treatment development company Vyne Therapeutics shot higher on Wednesday. The company’s shares have traded relatively sideways for most of the last few months. VYNE stock initially dropped in February after announcing plans for a reverse stock split. Fast-forward to this week, and the sentiment is more bullish.
Vyne announced positive preclinical data for the inhaled formulation of its VYN201. The company’s treatment candidate addresses lung fibrosis and improves functional lung volume. Based on the positive data, Vyne explained that it further supports the broad utility of the treatment candidate as an anti-inflammatory and anti-fibrotic molecule.
David Domzalski, President and Chief Executive Officer of VYNE, also said, “These data in IPF support our thesis that VYN201 has potential utility as a locally-administered therapy across a variety of immuno-inflammatory indications and further underscores the potential value of our InhiBETTM BET inhibitor platform.”
Right before the second quarter began, Vyne attracted the attention of HC Wainwright. The firm adjusted its target to account for the reverse split and maintained its Buy rating. Based on the current trading levels of VYNE stock, HC Wainwright’s $28 target sits about 559% higher.
List Of Penny Stocks To Buy [according to analysts]
- Playstudios Inc. (NASDAQ: MYPS)
- Ocugen (NASDAQ: OCGN)
- Finch Therapeutics Group Inc. (NASDAQ: FNCH)
- Vyne Therapeutics (NASDAQ: VYNE)