Numerous factors in the current stock market must be considered as you search for penny stocks to invest in. Emotions are running high between the broad economic concerns of recession and inflation or the potential for a stock market crash in 2023. This heightened sentiment has led to increased volatility, crafting a unique environment for retail traders and investors.
One of the most dynamic segments in the market, attracting considerable interest, is low-priced stocks. Their popularity stems from the distinctive way these stocks typically move. Even when the stock market is in decline, many penny stocks experience gains.
Furthermore, the fluctuations in some of these stocks can occur rapidly. For example, Centogene (NASDAQ: CNTG) witnessed a sudden surge in momentum during Tuesday’s morning session, with shares of CNTG stock jumping over 200% within the first hour.
It is crucial to determine the driving forces, if any, behind the movement of these inexpensive stocks. In some instances, it could be a speculative activity for various reasons. Specific news releases prompt the change in other cases, such as with CNTG stock.
Earlier this month, Centogene announced that it would participate in the American Academy of Neurology (AAN) Annual Meeting. In this case, the dates of the presentation were this week. No further news has come out related to other updates. However, the correlation seems relevant in light of this triple-digit move.
Penny Stocks & Analyst Ratings: What To Know
In this article, we focus on another essential piece of information worth considering: analyst opinions.
It’s vital to remember that analysts shouldn’t be the sole source of your research process. If anything, their views should be taken with a grain of salt and be just one component of your overall due diligence. Nonetheless, they can provide added insight into what Wall Street is observing compared to the focus of retail traders. We will explore several penny stocks to buy, according to analysts, with some of their ratings reflecting triple and quadruple digits based on current prices.
Penny Stocks To Buy [According To Analysts]
Applied Therapeutics Inc. (APLT)
Applied Therapeutics stock has been in rally mode for the last two weeks. The most recent move to the upside has come with the news that the company’s govorestat (AT-007) demonstrated a clinical benefit in its ACTION-galactosemia kids trial. According to management, it will now “plan to request a pre-NDA meeting with the FDA, and we have already received feedback from the EMA supportive of a submission in Europe.”
“Govorestat has demonstrated consistent results on improvement in galactitol biomarker levels in both adults and children and on long-term clinical and functional outcomes in children with Galactosemia,” said Riccardo Perfetti, MD, Ph.D., Chief Medical Officer of Applied Therapeutics.
Applied also launched a $30 million offering without the market taking as massive a hit as other biotech stocks have in recent weeks after announcing financing. That round is expected to close tomorrow, and proceeds were earmarked to fund R&D and registration of its pipeline candidates, among other things.
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What do analysts think about APLT stock now? Baird recently adjusted its target to $14 and maintained an Outperform rating. Based on the recent trading levels around $1.24, that target is roughly 1,029% higher.
Cipher Mining Inc. (CIFR)
Shares of Cipher Mining have pulled back for the last week and comes after the penny stock tapped new 2023 highs on April 14th. CIFR stock has maintained a consistent uptrend in the market since the start of the year, with its 50-day moving average acting as a relatively static level of support. Each time shares tested this technical level, CIFR stock bounced back. As of this week, the mining stock is retesting its 50 DMA once again.
When it comes to this company, in particular, the underlying sentiment tends to hinge on what the price of Bitcoin is doing. Cipher is a US-based BTC mining company. It’s been relatively quiet on the newswires this month. But one thing that has come to light and could be a source of speculation is news of its upcoming earnings. Cipher plans to release its first quarter 2023 results on May 9th.
These earnings will give a glimpse into what the company has managed to do after reporting a stronger 2022. In its Q4 and full-year 2022 results, the company reported updates on its ramp-up at its Odessa facility. “As we complete our initial build-out at Odessa, we will increase our focus on the tremendous organic growth opportunities we have across our sites, as well as continue to refine our pipeline of potential new projects and new opportunities to drive shareholder value,” explained CEO Tyler Page.
Ahead of these next earnings results, Canaccord Genuity analysts initiated coverage on CIFR stock. The firm has a Buy rating with a price target set at $4. Based on current trading levels of roughly $2.09, that target sits about 91% higher.
Onconova Therapeutics (ONTX)
Shares of Onconova have been on our list of penny stocks to watch for the last week. Onconova is developing products for patients with cancer. Specifically, its pipeline is designed around anti-cancer agents for disrupting cellular pathways vital to cancer cell proliferation.
Its proprietary narazaciclib is under evaluation in two separate trials. Its other candidate is rigosertib, which is being studied in combination with nivolumab in non-small cell lung cancer and as a monotherapy in squamous cell carcinoma.
As we discussed last week when ONTX stock exploded higher, news could play a significant role in sentiment. Onconova announced plans to present preclinical data on its narazaciclib at this month’s American Association for Cancer Research meeting. Analysts have also begun weighing in on ONTX stock.
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Last week, HC Wainwright upgraded Onconova to Buy and announced an $11 price target. That is significantly higher than current levels and represents a premium of more than 770% to current price levels at around $1.26.
List Of Penny Stocks
- Applied Therapeutics Inc. (NASDAQ: APLT)
- Cipher Mining Inc. (NASDAQ: CIFR)
- Onconova Therapeutics (NASDAQ: ONTX)
