Are These Penny Stocks On Your Buy List?
If you’re looking for penny stocks to buy right now, where do you search first? Especially on a weekend when the market isn’t open, company info can play a bigger role. Without active trading, intra-day technical analysis can be difficult. However, when it comes to the latter, you can always look at the prior trend and speculate on what could happen at the start of the week.
Something to keep in mind right now is that there are a few tailwinds that could play a role in the stock market this week. One of which is that the Pfizer (PFE Stock Report) is set for its US debut. That’s right, the first doses of the emergency use authorized drug are set for delivery across 50 states this week.
There are also several key economic events set to go down this week as well. First, the Fed is set to hold its final meeting on monetary policy for the year. The November jobs report suggested that economic growth stutter-stepped a bit.
Penny Stocks & The Week Ahead
The labor market contracted again in November with jobless claims hitting the highest levels since September. The concerns over stimulus persist as well. The recent surge in cases paired with jobless claims has stressed the importance of another package ASAP.
Following months of a stalemate between both sides of the aisle, we’re still no closer to a real deal. More than 13 million people are set to lose their unemployment benefits a day after Christmas if no action is taken. Internationally, we’ve still got Brexit going on. Talks continued this weekend with a current no-deal Brexit from the EU.
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British PM Boris Johnson has even stated that there’s a “strong possibility” that Britain and the EU wouldn’t secure an agreement on trade. Heading into the new week, it’s important to at least keep in mind as it could have a potential impact on certain sectors. In the meantime, let’s take a look at some of the penny stocks to buy according to 4 different analysts.
Penny Stocks To Buy [H.C. Wainwright]: Lineage Cell Therapeutics, Inc.
Lineage Cell Therapeutics, Inc. (LCTX Stock Report) hit fresh, 52-week highs last week. Shares further extended a 9-month uptrend that began shortly after the March sell-off. The company has focused on its pipeline of cell therapies. In an update last week, Lineage discussed its OPC1 allogeneic transplant for treating acute spinal cord injuries. Specifically, there’s a new, ready-to-inject formulation accelerating enrollment for a larger clinical trial.
Brian M. Culley, Lineage CEO said, “Our objective is to be the premier allogeneic cell therapy company and our dedication to manufacturing excellence allows us not only to reduce or eliminate certain regulatory and commercial hurdles, but also establish strong competitive barriers in our field. Looking ahead, we are reviewing our options to return OPC1 to clinical testing in a late-stage, comparative clinical trial and evaluating bespoke delivery solutions for our OPC1 cells.”
According to analysts at H.C. Wainwright, the firm has a “Buy” rating on the stock. While there’s no official price target, we can see that the overall trend for LCTX stock has been incredibly bullish for quite some time now. In light of last week’s developments, do you agree with analysts on this penny stock? Click here to see more analyst information on the LCTX stock forecast.
Penny Stocks To Buy [Stephens]: Allied Esports Entertainment
Analysts at Stephens currently have an “Overweight” rating on Allied Esports Entertainment (AESE Stock Report). Furthermore, the firm issued a $4 price target, which is roughly 177% higher than last Friday’s closing price. While AESE stock hasn’t performed the same as Lineage for the last 9 months, December has been a strong month for the stock. In fact, since the 1st, AESE has climbed as much as 43%. Just before the close on Friday, shares hit a high of $1.49 and saw their highest volume day of the fourth quarter.
There hasn’t been any news from the company this month. However, a mix of online gaming growth and insider trading has helped boost AESE in December. In reference to the latter, a FORM 4 was filed last week showing big buying from Knighted Pastures LLC, an already large shareholder of the company. Knighted’s form showed stock purchases made on the 8th, 9th, and 10th totaling more than 552,000 shares. Average prices ranged from $1.07 to $1.19 & brought the firm’s holdings to more than 3.59 million shares.
Considering the boom that online gaming has seen, will Allied Esports continue experiencing this turnaround in the price? One thing we can see from the company’s last earnings update, due to COVID, in-person revenue took a hit. However, interactive services and multi-platform content helped drive sales last quarter and picked up the slack. So it will be interesting to see if Allied not only maintains growth in those two pillars but also turns things around in light of vaccines being delivered. Click here to see more analyst information on the AESE stock forecast.
Penny Stocks To Buy [Piper Sandler]: Progenity Inc.
Progenity Inc. (PROG Stock Report) is also highly rated by analysts. In this case, Piper Sandler has PROG at “Overweight”. The firm also put a $15 price target on the penny stock; 217% higher than Friday’s closing price. In general, the penny stock hasn’t had the greatest year so far. In fact, the stock made new 52-week lows earlier this month. Needless to say, that trend seems to have reversed its course for now. Shares of Progenity have bounced back by as much as 58% from those lows.
Much of the recent excitement came after the company officially closed a convertible senior note offering of over $85 million. The company also closed a $25 million share offering. Progenity plans on using funds for supporting its operations including investing in its molecular testing research and development program. The company also aims on investing in research and development with respect to its precision medicine platform.
“We continue to make progress in establishing a strong foundation with our core molecular testing business and anticipate these efforts to translate into stronger and consistent operating performance near term. We are particularly excited with the progress and transformational potential of our R&D pipeline.”
Harry Stylli, Ph.D., CEO, chairman of the board, and co-founder of Progenity – Q3 Business Update
Penny Stocks To Buy [Oppenheimer]: Recro Pharma Inc.
Finally, Recro Pharma Inc. (REPH Stock Report) has hit the radar after a strong showing on Friday afternoon. The pharmaceutical manufacturer began seeing a surge starting around 2:15 PM EST. This was also during its highest volume day since May. More than 6.6 million shares traded by the closing bell. This came only second to the 7.7 million share day on May 11th. Unlike the previous “big volume” day, the latest momentum comes in the forward of bullish trading. If you’ve looked into the company earlier this year, you’ll likely remember Recro missing earnings estimates by a wide margin during Q1. The results show an EPS loss of 33 cents compares to estimates of a loss per share of 3 cents.
However, since reporting 3rd quarter results, Recro had begun gaining some steam. In fact, the company ended up beating EPS as well as sales estimates for the quarter. The company saw an EPS loss per share of 9 cents compared to the 22 cent loss per share estimated. Furthermore, sales of $19.29 million beat analyst’s estimates of $16.33 million.
Gerri Henwood, President and Chief Executive Officer explained, “In November, we signed a three-year extension to our Licensing and Supply Agreement with Lannett, a generic pharmaceutical company, for manufacturing of Verelan PM, Verelan SR and Verapamil PM. The signing of this agreement included a $1.9 million up front cash payment, and a $0.5 million per year licensing fee for each of the three extension years, ending on December 31, 2024.”
Right now analysts at Oppenheimer have an “Outperform” rating on the stock. Additionally, the current price target of $12 puts Oppenheimer’s REPH stock forecast 305% higher than Friday’s closing price. Click here to see more analyst information on the REPH stock forecast.