Will Analysts Be Right About These 3 Penny Stocks?
Finding top penny stocks to buy right now might sound easy. But depending on your strategy, volatility can quickly determine how “easy” that will actually be. If you’re day trading stocks, then you’re likely searching for high volatility, fast moves, and intra-day chart trends. On the other hand, if you’re a swing trader or looking to invest in penny stocks, high-volatility might not be a good fit for you. Looking at the stock market today, there’ve been plenty of stocks under $5 that have gone onto climb for weeks at times. But that move has also come with big, daily spikes over the course of time. Then again, we’re talking about penny stocks so this is to be expected.
What should traders be looking at right now? With new record coronavirus cases as well as a potential vaccine, the outlook is mixed. On one hand you’ve got a market in fear of more lockdowns with places like New York and California enacting new restrictions. On the other hand, you’ve come Pfizer (PFE Stock Report) pushing for an Emergency Use Authorization to begin sending out its vaccine.
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In light of this, broad markets haven’t necessarily offered the big, daily swings that day traders are searching for. Take a look at small cap stocks however, and you’ll see a completely different scenario. In light of this, it’s important to do your research. Check out what’s behind certain moves. In the case of myriad electric vehicle stocks, sector sentiment alone has become a major driver for these cheap stocks. That also goes for many of the energy stocks taking off this week.
Are Penny Stocks Worth The Risk?
It also doesn’t hurt to tap the analyst community to see what they think. While they aren’t the final say in all of this, they may offer a bit more insight into some of these companies’ fundamentals. If anything you can use it as part of your arsenal for putting together a larger thesis on whichever penny stocks to buy or potentially avoid. At the end of the day, not all penny stocks with buy ratings are going to go up and not all penny stocks with sell ratings will shoot to new lows. It’s up to you as an investor to pinpoint the opportunity and capitalize.
But determining your risk threshold is key. This also should take into consideration your overall trading strategy. Are you basing your trade idea on a long or short time frame based on what you see in a given stock or company? Basically, taking an investment approach on a stock that is highly volatile might not suit that strategy well. On the flip side, trying to day trade a stock that barely moves also isn’t very useful. With all of this in mind, do you think these are the best penny stocks to buy right now based on what these analysts have to say?
Penny Stocks To Buy [according to Maxim Group]: SINTX Technologies
SINTX Technologies (SINT Stock Report) has been one of the penny stocks to watch here and there. In the grand scheme of things SINT has been more of a day trader’s favorite than for those looking at it long-term. Also if you were to look at the stock from where it began 2020 and where it is right now, you might expect this year to have been a relatively good one. SINT stock was trading around $1.50 on January 2nd and reached a high of $1.91 this week. However, you would ignored the big drop to lows of $0.28 in March and the big jump to highs of $3.30 in August.
Needless to say, this week has been a strong one for the company. SINTX focuses on deploying its silicon nitride ceramic in medical settings. This year it was followed by traders after news surfaced which showed SINTX’s product was effective against COVID-19. The company just signed a joint development agreement with Iwatani Corporation of America. The two will incorporate SINTX AP2 silicon nitride powder into polymer materials. Specifically, these products will be for things like cellphone cases, tablet cases, and other device cases that are frequently touched.
Where do analysts stand on SINT stock? The most recent rating comes from Maxim Group. The firm gave SINTX a Buy rating. Maxim also has a $4.50 price target on SINT, 146% higher than the current trading level on Friday.
Penny Stocks To Buy [according to BTIG Research]: Zosano Pharma Corp.
Zosano Pharma Corp. (ZSAN Stock Report) has been one of the top performing penny stocks in November. Since the beginning of the month, ZSAN stock has climbed from around $0.38 to highs this week of $0.578. This month, one of the bigger drivers appears to have been the company’s 3rd quarter earnings. Zosano so EPS growth compared to last year’s third quarter. However, it did realize a wider than expected loss for the quarter.
“Our priority focus is obtaining resolution regarding the NDA for Qtrypta™. We plan on having a Type A meeting with the FDA as soon as possible and look forward to clarification on next steps and the possibility of resubmitting our NDA. We continue to believe in the promise that Qtrypta holds as an attractive alternative for patients suffering from migraine.”
Steven Lo, President and CEO of Zosano
Keep in mind that earlier this year, the company highlighted Qtrypta as a potential use in COVID-19. These developments likely contributed to the stance that analysts have taken. BTIG Research currently has a Buy rating on the company with a $2 price target; 257% higher than the current trading levels.
Penny Stocks To Buy [according to Aegis & Chardan]: Foresight Autonomous Holdings
Foresight Autonomous Holdings (FRSX Stock Report) was one of the companies we began following the progress of starting in June. One of the things that the company handles is designing, developing, and commercializing sensors systems. Back in June, the company announced that it has started developing a mass screening solution for the detection of COVID-19 symptoms.
Fast-forward to this quarter and things have remained relatively sideways and channel-bound. FRSX stock has traded between $0.80 and $1.20 for the most part. There’ve been a few days where it has broken above and below, however. Needless to say, the focus for traders on FRSX stock right now is what happens once lockdowns and curfews are over. COVID-19 is in a direct spotlight and many companies with exposure to it, in some way, have gained attention.
Something else to consider is the company’s autonomous vehicle technology. Considering that EV stocks are the hot niche in the stock market today, self-driving tech has been discussed. This patented technology refers to Foresight’s subsidiary, Eye-Net Mobile’s accident prevention system. It can predict collisions between vehicles and pedestrians through a dedicated software application on the mobile devices of pedestrians and vehicle users.
Where do analysts stand with the company? The most recent rating comes from Aegis which gave a Buy but no price target. Chardan was the last to give a target along with a Buy rating but it was at a point when FRSX was trading above $1.80. Needless to say, the target set was $7, 579% higher than the current trading level.