Are penny stocks on your radar right now? If not you may want to reconsider. For the better part of the last 2 months, small cap stocks, in general, have been on fire. Let me put this into perspective using a few popular ETFs. Let’s first take the S&P 500 (SPY ETF) and look from 9/25 to 11/25. That period of time saw the SPY ETF climb from $322.58 to highs of $364.38 earlier this month; up about 13% at the high. Period-to-date, the SPY ETF is hovering around $362.50 marking a move of about 12%.
Now, let’s take a look at the Russell 2000 (IWM ETF) which is a general gauge of small cap stocks. Taking the same period from 9/25 to 11/25 into account, the IWM ETF moved from $143.44 to highs this week of $185.44; a move of 29%. Period-to-date, the IWM ETF is hovering around $183.50 marking a move of roughly 28%. By far, we can see that even with the market reaching an all-time high, small cap stocks are far outpacing the broader market by more than 2x over the last 2 months.Are You Looking For Penny Stocks To Buy Right Now?
So, if you’re not looking for penny stocks to watch, at the very least, consider the current trends in the stock market today. Had you simply bought the broader small cap ETF, you’re looking at a 30% move over a solid 2-month timeframe. While the S&P’s 12-13% isn’t bad by any means, I’m sure you can understand why small cap stocks would be a bigger appeal.
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The bottom line here is to follow the market and find opportunities. It would seem that penny stocks and small caps are where the momentum has been. Whether or not that remains the case until the end of the year will be revealed in time. Needless to say, some analysts have become increasingly bullish on certain stocks under $5. Are any of these on your list of penny stocks right now?Penny Stocks To Buy [according to MKM Partners]: SM Energy Company
SM Energy Company (SM Stock Report) was given a Buy rating by MKM Partners in November. The firm also boosted its $5 price target to $7. With SM stock trading around $4.71 right now, that’s roughly 48% higher than the current trading levels. What’s more, is that sector strength has played a role in this penny stock recently. Over the last month, shares have climbed nearly 200% with volume also coming in well-above-average.
When we talk about things like epicenter stocks, energy stocks are part of this mix. These were hit hard with the onset of COVID-19 and the restrictions that came after. Now, with vaccines potentially in sight, the “reopening trade” is becoming a bigger focus right now. Hopes are high that things get back to some sort of normalcy and commerce begins picking up. Obviously, today’s jobless claims and new coronavirus case figures aren’t necessarily supportive of things reopening, the theory is still something traders are considering.
SM Energy is a crude oil and natural gas company. Based out of Texas, the company held as much as 462 million barrels of oil at the end of last year. With reopening hopes still alive, will MKM Partners be right?Penny Stocks To Buy [according to Bank Of America]: Athersys Inc.
Athersys Inc. (ATHX Stock Report) is another one of the penny stocks analysts are bullish on right now. According to Bank of America based on a June rating, the firm has a Buy rating on the stock. As far as the ATHX stock forecast is concerned, Bank of America has a $5 price target on it right now. Furthermore, Needham & Company recently reiterated its Buy rating on the stock this month. It also has a $5 target. Something that could be questionable is what ATHS stock looks like right now.
Over the last few months, shares have fallen. In fact, since mid-July, ATHX has dropped as much as 46% with this week’s $1.53 lows. Even with this as the case, Wednesday marked one of the biggest turnaround days for the stock. ATHX shares bounce back more than 12% during the session. There weren’t any headlines to accompany this move, however, recent attention has focused on the company’s latest initiatives. Earlier this month Athersys appointed 3 new members to its Board of Directors.
The company has been laser focused on advancing its MultiStem ® cell therapy. It was granted Regenerative Medicine Advanced Therapy designation from the FDA for the acute respiratory distress syndrome program. Thanks to progress, ATHX has attracted some recent institutional investment from the likes of Healios K.K. with an 8.3% stake reported this month.Penny Stocks To Buy [according to Roth Capital]: Tellurian Inc.
Shares of Tellurian Inc. (TELL Stock Report) has been on the move since the end of October. That period has seen TELL stock jump 88% since October 22nd. This is another oil and gas producer in the US. The company focuses on its natural gas business to secure low-cost supply. Similar to SM Energy, Tellurian has benefited greatly from the surge in the energy sector itself.
Earlier this month Tellurian released a business update and earnings report. President and CEO Meg Gentle said, “Natural gas markets and prices have recovered worldwide. Investment in new drilling and infrastructure is acutely needed to balance the market in 2021 and beyond. Building liquefaction terminals as fully integrated partnerships is the only way partners will secure the lowest cost of gas and be protected from the market’s inherent volatility.”
Right now, Roth Capital has a Buy rating on the penny stock. It also gave it a target price of $5.25. Considering the the price is sitting around $1.55, that target is 238% higher than the current price.Penny Stocks To Buy [according to HC Wainwright]: Abeona Therapeutics, Inc.
Abeona Therapeutics, Inc. (ABEO Stock Report) is one of the lower priced penny stocks on this list. However, it was given one of the most bullish targets of all penny stocks on this list. Right now, HC Wainwright has a Buy rating on the penny stock. As far as the ABEO stock forecast, the firm gave a target of $8. With a current trading price around $1.42, that target is 463% higher than prices are at today.
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Right now Abeona is working on several drugs using its AAV-based gene therapies. These are used for treating rare diseases like Sanfilippo Syndrome and others. The company announced its third-quarter financial results for the third quarter recently. These included year-over-year EPS growth from a 35 cent loss per share to a Q3 2020 loss per share of just 8 cents.
Right now the company is enrolling patients in trials for its ABO-101 and ABO-102 treatments. These are for Sanfilippo syndrome type A and type B. Anticipated completion of enrollment in these current studies is through the first quarter of next year.