With the extreme volatility in today’s stock market, gaining an edge requires more than just a list of penny stocks to watch. Investors need to leverage the right tools and resources. This is to capitalize on new trends, whether it’s emerging AI stocks or short squeezes in recent IPOs.
By understanding how to utilize screening tools, SEC filings, online communities, and analyst perspectives, you can make informed decisions. These decisions are about which penny stocks deserve a spot on your watchlist.
Creating customized screeners is essential for finding promising penny stocks. Screeners should be based on volume, price action, valuations, or other metrics. This is to identify opportunities as they emerge. Check screeners frequently to stay on top of the latest movements. Digging into Form 4 and Schedule 13 filings can also provide valuable clues. This is because insider activity may suggest confidence in a penny stock’s upside.
Finding Penny Stocks to Buy
While speculative perspectives on online forums like Reddit and Twitter shouldn’t be your only data source, monitoring these communities can reveal rising sentiment. It can also reveal hype around certain names. Blend this qualitative insight with the quantitative data from screeners and filings.
Finally, factor in analyst views published in reputable reports. Quality analysts derive reasonable price targets through proven valuation methods and industry comparisons. While optimistic targets alone don’t guarantee upside, they give another data point when evaluating penny stocks.
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With penny stocks, information is power. The more resources investors have at their disposal, the better equipped they are. This is to spot potential winners early while avoiding pitfalls. Blend quantitative screening tools with a qualitative pulse on speculative forums, insider activity, and analyst perspectives. This multifaceted diligence process will help build conviction in your penny stock picks.
Penny Stocks To Buy According To Analysts
- Farfetch Ltd. (NYSE: FTCH)
- Iris Energy Ltd (NASDAQ: IREN)
- Gritstone Bio Inc. (NASDAQ: GRTS)
- SoundHound AI Inc. (NASDAQ: SOUN)
- Infinera Corp. (NASDAQ: INFN)
Farfetch Ltd. (FTCH)
The Luxury fashion company’s shares have been in bounce mode over the last few sessions. This has come as a warm welcome after the penny stock imploded after earnings. Despite the reaction in the market, management seems optimistic on Farfetch’s prospects.
In the earnings update last month José Neves, Farfetch Founder, Chairman and CEO, said: “Our Q2 results show Farfetch is growing, becoming more efficient, and executing on our key strategic priorities. We have also taken decisive action to adapt to the macro environment of the last 18 months. 2023 is set up to be a great year for Farfetch, toward strong GMV growth, Adjusted EBITDA profitability and positive free cash flow. All the while we remain steadfast on delivering our strategic vision of becoming the global platform for luxury.”
Recent analyst ratings place high hopes on the stock. Wells Fargo analysts have an Overweight rating on the company. They also have a $13 target, which sits 560% higher than where FTCH stock closed on Thursday.
Iris Energy Ltd (IREN)
Crypto stocks have been hit or miss depending on which one’s you’re looking at. Iris Energy has recently turned around after months of selling pressure that took IREN stock back to its 200-day moving average.
Iris operates and owns efficient Bitcoin mining data centers powered by renewable energy. Earlier this month, it reported its full year fiscal 2023 earnings results as well. “FY23 was a transformational year for Iris Energy”, stated Daniel Roberts, Co-Founder and Co-Chief Executive Officer of Iris Energy. “We increased our operating hashrate to 5.6 EH/s but importantly also expanded our power capacity to an industry-leading 760MW, thereby activating an expansion pathway to 30 EH/s. We also remain excited by our next-gen compute and generative AI strategy, providing an additional potential growth area for the Company.”
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What do analysts think about IREN stock? Despite the pullback during the quarter, some are optimistic. Cantor Fitzgerald has an Overweight rating and a $10 target. This IREN stock forecast price is 165% higher than where the penny stock closed on Thursday.
Gritstone Bio Inc. (GRTS)
Shares of Gritstone Bio have been red hot over the last few days. They reached fresh 52-week lows of $1.14 during the first half of the week. Since then, it has been all uphill with shares testing highs of $1.80 on Friday.
News that the biotech company was awarded a BARDA contract for a Phase 2b study prompted more interest at the end of the month. The study will compare and evaluate its Covid vaccine candidate. CEO Andrew Allen , M.D., Ph.D., also explained in an update, “With CORAL moving into a randomized Phase 2 study alongside our personalized cancer vaccine program (GRANITE), Gritstone now sits at the precipice of unlocking the full potential of our novel vaccine platforms in both oncology and infectious diseases.”
In light of this, some analysts have grown bullish on the penny stock. Piper Sandler recently boosted its price target to $7 and maintains an Overweight rating. Based on its closing price on September 28, the GRTS stock forecast sits 349% higher.
SoundHound AI Inc. (SOUN)
AI stocks have been a huge focus this year. Some have said they are one of the most notable reasons the stock market is still green this year. With that has come a wave of attention on some of the cheapest AI penny stocks to watch, including SoundHound.
SoundHound, in particular, offers conversational intelligence with voice AI options for businesses to give “conversational experiences” to customers. Earlier this week the company announced its latest progress in a partnership update with Olo. The two will offer voice AI ordering to restaurants.
“It’s becoming clear that soon every business will have a customer service voice assistant, and we’re delighted to join Olo Connect to provide its entire restaurant network with access to SoundHound’s powerful voice AI,” said James Hom, Co-Founder and Chief Product Officer at SoundHound.
Meanwhile, analysts have zeroed in on SOUN stock. DA Davidson has a $5 target alongside its Buy rating. That SOUN stock forecast price is 165% higher than where shares closed on September 28th.
Infinera Corp. (INFN)
Infinera continues to push into its 50-day moving average resistance this week. It has remained a considerably strong level most of this year, with INFN stock failing to break and hold above this level for months.
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The optimal networking solutions company is developing optical semiconductors specialized for automation. This week the company gave an update on its ICE-X intelligent coherent pluggable and XTM Series being used by Allo Technology. It will boost Allo’s optical network and improve its service reach across Malaysia.
“Infinera’s ICE-X suite of coherent pluggables is redefining network scalability, flexibility, and economics for bandwidth applications for single- and dual-fiber networks. For network operators like Allo, Infinera’s latest solutions are game-changing, enabling them to leverage existing network assets to extend bandwidth services seamlessly and efficiently,” said Ryan Perera, Senior Vice President, APAC Sales at Infinera.
Stifel analysts are the most recent to weigh in on INFN stock. It has a Buy rating and a $7 target, which is roughly 75% higher than where the penny stock finished the Thursday session.
