When it comes to finding penny stocks to buy, there are plenty of things you’ll need to make note of. Sure, broader stock market news trends don’t directly influence cheap stocks. Even if the stock market is down like it is today, there are sure to be at least a few cheap stocks to watch.
But that doesn’t mean you should ignore the big headlines altogether. Believe it or not, there could be a few diamonds in the rough to identify by sifting through major headlines. So, what’s going on in the stock market today?
Global Stock Markets Exhibit Mixed Responses Amid Economic Shifts
The global stock markets have shown varied trends this week. The Dow Jones ended a four-day winning streak. This change reflects cautious investor sentiment. Asia-Pacific markets also echoed this mood, notably influenced by Alibaba’s Hong Kong shares.
These shares dropped 10% after Alibaba delayed its cloud division listing. On another note, US-based eComm company, Amazon is entering the automotive sector in a significant move. It plans to allow car sales on its platform starting next year. The partnership begins with Hyundai.
In the investment sector, Morgan Stanley is approaching Alphabet with caution. They have slightly reduced their target price for Google’s parent company. This reflects a broader trend of cautious optimism in the tech sector. Economic indicators point to a decrease in inflationary pressures. However, this hasn’t led to significant movements in the stock market. Federal Reserve officials suggest a continued restrictive monetary policy. Cleveland Fed President Loretta Mester calls for more evidence of inflation control.
The market is navigating these developments with uncertainty. The possibility of a soft landing remains unclear. Federal Reserve officials and investors are weighing various economic scenarios. And it is events like these that are bringing back a lot more volatility to the stock market heading into the Thanksgiving holiday week.
Penny Stocks To Buy?
So what does this mean for penny stocks to buy? Should you or is it time to take a pause and step back from the market? The short answer is that it’s up to you. But what we can say is that no matter what broader trends are swaying major indexes, there are plenty of hot penny stocks to watch. In this article, we’ll take a look at a handful of names gaining momentum in the stock market today.
- LumiraDx (NASDAQ: LMDX)
- Heron Therapeutics (NASDAQ: HRTX)
- Ardelyx Inc. (NASDAQ: ARDX)
- Altamira Therapeutics (NASDAQ: CYTO)
Penny Stocks To Watch #1: LumiraDx (LMDX)
LumiraDx Limited is a next-generation point-of-care diagnostics company. It focuses on developing advanced diagnostic solutions for healthcare. Late last month, LumiraDx announced a strategic collaboration with AstraZeneca (NASDAQ: AZN) and Everton in the Community to establish England’s first community-based heart and lung screening hub. Set to launch in this month at the People’s Place, this hub will serve the Merseyside community, providing access to the latest diagnostic technologies and specialist care.
It aims to facilitate early diagnosis and treatment for conditions causing chronic breathlessness. The hub will use innovative diagnostics like LumiraDx’s NT-proBNP test, which requires only a simple fingerstick sample, and artificial intelligence to enhance the detection and prevention of heart failure, COPD, asthma, and other chronic conditions.
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This initiative is supported by AstraZeneca’s grant funding and will work alongside Liverpool University Hospitals NHS Foundation Trust and medical technology providers like Lenus Health, Us2.ai, and ArtiQ. LumiraDx’s continued involvement in similar initiatives, including the “Your Heart Matters” Bus with Medtronic, underscores its commitment to improving patient outcomes through accessible diagnostics.
Overall the long-term impact on the market will depend on the success and public reception of the screening hub. If the hub effectively improves health outcomes and demonstrates the efficacy of LumiraDx’s technologies, it could further bolster the company’s reputation.
2. Heron Therapeutics (HRTX)
Heron Therapeutics, Inc. is a commercial-stage biotechnology company developing and commercializing therapeutics for acute care and oncology patients. The company recently updated its financial guidance for 2023 and 2024. It now expects full-year 2023 net product sales to be between $123 million and $125 million, with an increase in oncology care franchise sales guidance from $99 million-$103 million to $104 million-$106 million.
For 2024, net product sales are projected to be between $138 million and $158 million, with the oncology care franchise anticipated to grow 3%-5%. Its acute care franchise is also showing signs of growth expected to be over 48% year-over-year. Full-year 2024 EBITDA (excluding stock compensation) is anticipated to be between ($22 million) and $3 million, showing a potential move towards profitability.
The company has implemented a cost reduction plan, decreasing operating expenses by 26% in 2023 compared to 2022. Operating expenses for 2024 are expected to be between $108 million and $116 million. The company also expects its gross margin to improve from 41% in 2023 to over 75% in 2025 and beyond.
A positive outlook for the company’s oncology and acute care franchises, along with the progress in product development, further supports a potentially optimistic perspective on the company. However, the actual impact on the stock price will depend on the company’s ability to meet these projections and maintain its growth trajectory.
Penny Stocks To Watch #3: Ardelyx Inc. (ARDX)
Ardelyx, Inc. is specializing in developing innovative medicines for significant unmet medical needs. It recently announced that the U.S. FDA granted Orphan Drug Designation to its XPHOZAH® (tenapanor) for treating pediatric hyperphosphatemia.
XPHOZAH is a first-in-class medication that blocks phosphate absorption. It’s primarily used to reduce serum phosphorus in adults with chronic kidney disease on dialysis. Hyperphosphatemia, characterized by elevated phosphate levels in the blood, commonly affects patients with chronic kidney disease, especially those on maintenance dialysis. The Designation supports the development of drugs for rare diseases or conditions and includes benefits like market exclusivity and exemptions from certain fees.
What does this mean for Ardelyx? The FDA’s designation for XPHOZAH acknowledges its potential in treating pediatric hyperphosphatemia. It could lead to potential growth, therefore positively affecting its prospects. But it’s important to note that if XPHOZAH encounters challenges in clinical development or market penetration, or if competitive treatments emerge, it could negatively impact the company.
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Altamira Therapeutics (CYTO)
Altamira Therapeutics specializes in RNA-based therapeutics. They focus on developing treatments for extrahepatic targets and other medical needs. One of the things turning heads this week is a key update from the company.
Altamira announced the partial spin-off of its Bentrio business by selling a 51% stake in its subsidiary Altamira Medica AGd. This strategic move is part of the company’s repositioning around its core RNA delivery technology. Altamira retains a 49% share in Altamira Medica AG and will receive 25% of Medica’s future licensing income.
Bentrio, a key asset of Medica, is a drug-free OTC nasal spray for allergic rhinitis treatment. It is being commercialized in various countries. The transaction, valued at about $2.3 million, includes the sale of Auris Medical Pty Ltd and a cash contribution to Medica’s capital. The spin-off aligns with Altamira’s strategy to focus on RNA-based therapeutics, including siRNA programs for KRAS-driven cancer and rheumatoid arthritis.
The financial gain from the transaction and retained stake in Medica provides a balanced approach to asset management. However, the actual impact on stock price will depend on how effectively Altamira leverages this strategic repositioning to advance its RNA-based therapeutics and the subsequent market response.
