Penny stocks, often priced under $1, have long been the allure for many investors seeking high-risk, high-reward opportunities. These stocks, typically from smaller companies, offer the tantalizing possibility of significant returns. However, with great potential comes inherent volatility.
In this article, we’ll delve into the 7 penny stocks heading into September 2023, shedding light on these hidden gems and helping you navigate the tumultuous waters of penny stock investing. This will continue our list of penny stocks from the article Best Penny Stocks To Buy Under $1.25? 3 To Watch Now, focusing on cheap stocks under $1.
1. Athersys Inc. (NASDAQ: ATHX)
ATHX Stock Background
Athersys focuses on discovering and developing therapeutics for off-the-shelf options in various indications. Its MultiStem platform is a cell therapy product for neurological, inflammatory, and immune indications with two ongoing clinical trials. These trials are evaluating its potential as a regenerative medicine product.
Recent ATHX Stock Performance
Shares of ATHX stock hit 52-week lows earlier this month after announcing the pricing of a multi-million dollar financing round. Since that event, however, shares of Athersys have managed to steadily rebound back above the $0.50 level.
In its most recent quarterly update, company CEO Daniel Camardo, stated, “The second quarter of 2023 was marked by improved execution on all fronts, from continuing to maintain low operating expenses to improved enrollment in our ongoing clinical trials, including the start of cohort 3 enrollment in our MATRICS-1 trauma trial following a positive DSMB review. We also implemented the MASTERS-2 protocol changes agreed upon with the U.S. FDA in more than 60% of our trial sites with the remainder expected to be completed by the end of August…In addition, the FDA approved our request to conduct an unblinded interim analysis to evaluate whether the study size is sufficiently powered to achieve statistical significance. We look forward to sharing these results in early October.
ATHX Stock Forecast
The most recent analyst coverage comes from Alliance Global Partners. The firm initiated coverage with a Buy rating and $5.50 price target for its ATHX stock forecast.
2. Cano Health Inc. (NYSE: CANO)
CANO Stock Background
Cano Health is a primary care provider and population health company. It leverages a technology platform to deliver personalized services to its members. The latest news hasn’t helped performance in the market as we’ll discuss in the next section. Much of this has directly resulted from worse-than-expected earnings results. It missed EPS expectations by a significant margin reporting a loss of $0.51 per share compared to the $0.12 loss anticipated. It also announced slashing its workforce by roughly 700 employees. Cano also stated that liquidity was not sufficient to cover its operations for the next 23 months in addition to withdrawing its earnings guidance for the year.
Recent CANO Stock Performance
Shares of CANO stock hit 52-week lows earlier this week after announcing its latest quarterly performance. The big question now is can it recover? Shares briefly rebounded on Friday morning with stronger-than-normal volume.
“Cano Health is evaluating strategic interest in the Company to ensure we continue caring for our patients while maximizing value for our stakeholders,” said Mark Kent, Cano Health’s Interim Chief Executive Officer. “Our mission and vision remain the same, however, the strategy and tactics needed to realize the profitability inherent therein requires a refreshed approach with a solid operating foundation. Cano Health took critical strategic steps during the second quarter of 2023 that are intended to accelerate our strategy to enhance operational efficiency and execute on the plan to improve the management of our medical costs.”
CANO Stock Forecast
As you might imagine, the CANO stock forecast is mixed. The latest rating from Credit Suisse saw the firm keep its Neutral rating but lowered its target to $0.50 from $2.50. Meanwhile, Citigroup paired its Neutral rating with a $0.80 target. While these price cuts are notable, the targets remain significantly higher than recent trading levels for CANO stock.
3. Canoo Inc. (NASDAQ: GOEV)
GOEV Stock Background
Canoo, not to be confused with CANO stock, is another one of the popular penny stocks under $1 gaining momentum in the stock market today. The company is developing mobility technology solutions specific to the EV arena. Its platform includes purpose-built vehicles and accessories, including things like advanced battery packs.
Recent GOEV Stock Performance
The company recently announced earnings and its finalized incentive package with the Oklahoma Cherokee Nation. The combined value of this incentive plan is up to $113 million over 10 years. Since the news broke, shares of GOEV stock have steadily climbed back from their recent August lows. This week the penny stock sits right around $0.50.
In its most recent quarterly update, company CEO Tony Aquila said, “We are pleased to close the chapter involving the legacy SEC matter. Today we introduced the LDV 190, which has been in development for some time, including in customer trials. Our facilities are nearing substantial completion as we’ve achieved a 20,000 unit run rate for our battery module line in Pryor and robotics and assembly line in Oklahoma City for our MPP1 platform. And we closed another Fortune 100 customer agreement to purchase vehicles for its national fleet. We entered the revenue and income generation phase with the advancement of our contract with the Department of Defense, and we delivered vehicles to NASA.”
Based upon our current projections, Canoo expects Adjusted EBITDA: $(120) million to $(140) million and Capital Expenditures of $70 million to $100 million for the second half of 2023.
GOEV Stock Forecast
The most recent analyst coverage comes from Alliance Global Partners. The firm initiated coverage with a Buy rating and a $1.55 price target for its GOEV stock forecast. Other firms have also weighed in recently. This includes HC Wainwright, which reiterated its Buy on Canoo following earnings and maintains a $10 price target.
4. T2 Biosystems (NASDAQ: TTOO)
TTOO Stock Background
The company has gained attention thanks to its portfolio of detection platforms for pathogens and specific genes. Its products include the T2Dx® Instrument, the T2Bacteria® Panel, the T2Candida® Panel, the T2Resistance® Panel, and the T2SARS-CoV-2™ Panel and are powered by the proprietary T2 Magnetic Resonance (T2MR®) technology.
Earlier this quarter, T2 received FDA breakthrough device designation for its candida auris diagnostic test. It’s the third T2 product to receive the title. The device is a direct-from-blood molecular diagnostic test to detect C. auris in 3-5 hours.
Recent TTOO Stock Performance
This month, not only did T2’s latest Q2 earnings per share results beat estimates, the company also announced that it is back in compliance with NASDAQ listing standards regarding its market value. The news helped spark interest in the company and even generated some meme-stock-like buzz on platforms like Twitter and Reddit. Penny stocks can build momentum thanks to speculation and hype, which coincide with social sentiment. TTOO stock is up more than 100% since the start of August.
T2 reported second-quarter earnings this month. It beat EPS estimates by a significant margin but missed sales forecasts slightly.
“Our second quarter results were highlighted by record quarterly sepsis test panel orders and the second largest sepsis-driven instrument order in company history, demonstrating increasing demand for our life-saving direct-from-whole blood sepsis pathogen detection products,” stated John Sperzel, Chairman and CEO of T2 Biosystems. “Progressing each of our corporate priorities, the implementation of our strategic restructuring program, which has led to a reduction in operating costs and the strengthening of the balance sheet, positions T2 Biosystems to continue the exploration of strategic alternatives and execute on our product development and growth initiatives.”
TTOO Stock Forecast
There haven’t been many new analyst forecasts initiated by firms regarding TTOO stock this year. But the most recent comes from Alliance Global Partners, which maintains a Neutral rating and has a $0.07 TTOO stock forecast price. Obviously, this is much lower than where shares have risen to since reporting earnings. Alliance posted this forecast in July.
Benefits of Diversifying in Penny Stocks:
Diversification is a cornerstone principle in investment. By spreading your investments across a variety of penny stocks, you can:
- Reduce Volatility: While one stock might be experiencing a downturn, another might be on an upswing. This balance can help stabilize your portfolio’s overall performance.
- Uncover Multiple Opportunities: Different penny stocks operate in various sectors. By diversifying, you expose yourself to multiple industries, increasing the chances of striking gold in one of them.
- Protect Against Total Loss: If one penny stock underperforms or the company goes under, a diversified portfolio ensures that your entire investment isn’t wiped out.
Trading Penny Stocks: Next Steps To Take
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Remember, the world of penny stocks is filled with both opportunities and challenges. With the right knowledge and strategy, you can navigate this landscape successfully. Happy investing!