Are These The Best Penny Stocks To Trade On Tuesday?
Most penny stocks today don’t usually carry analyst ratings, in general. Or at least that’s what popular opinion might assume. Regardless of what’s popular, the fact remains that there are hundreds of penny stocks that analysts are actually following. It might be for potential penny stocks to buy or there could be “hold” and “sell” ratings. Whatever the case might be, it’s important to use these ratings as part of the overall strategy.
Don’t just see a “buy” rating and immediately decide it’s time to buy penny stocks. On the flip side, don’t just assume that you should sell if an analyst places a “sell” rating on a company. You need to see why they’ve decided to lean one way or another. Why didn’t they upgrade or downgrade? Is there a price target and has that changed at all? Plenty of factors go into dissecting these ratings in order to put the puzzle pieces together properly.
Penny Stocks To Buy According To Analysts
Then again, we’re talking about penny stocks here. Things can change at the drop of a hat. Even if you see penny stocks with buy ratings, they could be prone to sell-offs. Similarly, the opposite is true for penny stocks with sell ratings.
Since there’s so much volatility, market trends usually determine the outcome more-so than what any analyst says. A perfect example is a company we discussed earlier today, Greenland Technologies (GTEC Stock Report). The stock doesn’t even have a rating yet it was one of the top penny stocks to buy at the opening bell.
Making a long story, short, if analyst ratings are something you use, make them part of your bigger picture and not the only thing you follow. With this in mind, analysts are calling these penny stocks to buy or hold. Do you agree?
Penny Stocks To Buy [according to analysts]: Summit Wireless Technologies Inc.
Summit Wireless Technologies Inc. (WISA Stock Report) is another one of the low float penny stocks catching stronger momentum on Tuesday. The early move came after the company announced its third-quarter results prior to the market open. Many times we see penny stocks gapping up on an earnings beat. But then when the market opens, things fall apart. In this case, WISA stock maintained its gap up levels during the first few hours of trading. Furthermore, volume remained a key factor to consider.
The company itself provides wireless sound technology for smart devices and home entertainment systems. In a time where millions have had to stay at home, Summit Wireless might’ve become a company to follow. This was further backed up by the performance results from its 3rd quarter. Summit experienced 45% revenue growth over last year’s Q3. Furthermore, the company sees more than 100% revenue growth coming for this quarter on a year-over-year basis.
“All of WiSA’s performance metrics – membership, shipments, and website visitors – are gaining momentum. As leading indicators of Summit Wireless revenue, they give us confidence in our continued revenue growth in Q4 2020 especially as we enter the promising holiday season. Looking forward into 2021, we believe these trends will accelerate,” said Brett Moyer, CEO of Summit Wireless .
As far as analysts are concerned, WISA stock is rated a Buy. Whether you agree with them or not, Maxim Group and Ascendiant Capital Markets both have Buy ratings on the penny stock. Furthermore, they carry a $5 and $3 price target respectively.
Penny Stocks To Buy [according to analysts]: Party City Holdco
Anyone who’s traded penny stocks this year has likely come across Party City (PRTY Stock Report) one time or another. The company famous for making Halloween a large-scale event took a hit as most retailers did this year. Fast-forward to recently and PRTY stock has made several attempts to reverse this course. On Tuesday, shares were trading higher after Monday’s big gap up. One thing we can say is that when stocks or markets gap up it’s important to see if they can sustain those higher levels. For the broader markets, that wasn’t the case. However, for PRTY stock, it has been the case so far.
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What had also helped was stronger than expected earnings. How strong? Analysts expected an earnings per share loss of 32 cents. Party City, however, reported earnings per share of 10 cents altogether. Furthermore, sales estimates pegged the company at doing less than $490 million in the quarter. But Party City managed to post sales of more than $530 million in Q3. This all boiled down to the outlook for the rest of 2020.
“In the fourth quarter, we will add an additional nine next-gen stores through remodels, two new stores and one relocated store, bringing us to a total of 22 next-gen stores in 2020. We’re addressing the fact that our stores can be overwhelming and time-consuming to navigate,” said CEO Brad Weston.
While analysts are mixed on PRTY stock, the most recent rating appears bullish. This comes from analysts at Credit Suisse which have an Outperform rating on the company and a $4 price target.
Penny Stocks To Buy [according to analysts]: Affimed N.V.
Affimed N.V. (AFMD Stock Report) is another one of the penny stocks with bullish analyst ratings right now. Among those listed, the average is a Buy with the most recent coming from Laidlaw. The firm reiterated its rating in August also giving a $10 price target on the penny stock. Another rating from SVB Leerink in June saw a similar rating at Outperform with an $8 target. This week AFMD stock has experienced a surge after reporting earnings.
“We have made significant progress with regards to executing our strategy by advancing the development of our innate cell engagers as monotherapy and in combinations. The partnership with Roivant Sciences broadens our pipeline and advances AFM32 towards clinical development; proceeds from the deal extend our cash runway into 2023. In addition, we have secured important new NK cell collaborations that broaden the development of our lead therapeutic candidates. As we move ahead, we look forward to reporting on progress of the different programs and generating additional data.”
Dr. Adi Hoess, CEO of Affimed.
Cancer stocks are gaining attention during the second half of the year. Affimed has upcoming data readouts from one preclinical and two clinical studies being presented at the SITC (Nov. 11) and ASH (Dec. 5-8) conferences. So if AFMD is on your list, keep these future dates in mind.
Penny Stocks To Hold [according to analysts]: Teligent, Inc.
Teligent, Inc. (TLGT Stock Report) had some great trading earlier this year. But since May, it’s been sliding. Last week, the penny stock reached a fresh, 52-week low of $0.455. However, TLGT stock has mounted a bit of a comeback since then. This week began with a whisper of stronger buying momentum, which carried over into Tuesday’s session. In fact, November 10th saw some of the highest trading volume since October. Needless to say, there weren’t any major news headlines or filings suggestive of a fundamental catalyst.
So why did TLGT stock move on Tuesday? It could have something to do with its special meeting of shareholders. The company reported late last week that the meeting adjourns on November 11th. At the time the meeting was convened, approximately 93.8% of the shares that had been voted in favor of the proposals. The purpose of the Special Meeting was to ask stockholders to approve removing a restriction on the number of shares a holder or group of holders of the company’s 9.5% Series C Senior Secured Convertible Notes due 2023 may own at any one time. We’ll have to see how things react once the meeting is officially adjourned.
Right now, however, analysts remain cautious on TLGT stock despite the recent drop. The most recent rating from Craig Hallum analysts show the firm downgraded TLGT from Buy to Hold while maintaining a $2 price target. Will this next move help sway their outlook?