2023-05-25 18:21:14 ET
If you’re like many retail traders in the stock market today, penny stocks are a popular prospect. This article looks at some of the most active penny stocks today with late-breaking momentum. They could also be on the radar of traders before next week. But before we look at the specifics, let’s cover some of the basics of trading cheap stocks.
What Are Penny Stocks?
Penny stocks are priced below $5 per share and can offer investors the potential for significant gains with smaller investments. These stocks typically belong to smaller companies, though some have significantly larger market capitalizations in the billions of dollars. Their lower share price may grab the attention of traders. However, it’s important to understand that low-priced stocks come with added risks compared to shares of established companies.
Turning our focus to the list of penny stocks today, each has shown growing interest from retail traders. While they may be worth watching more closely, remember that investing in penny stocks requires careful planning. It’s also never a bad idea to request advice from a licensed financial professional while researching.
The goal is to offer insights into the penny stocks to watch and discuss recent catalysts and performance. We also look closely at any near-term events that could be worth keeping track of. Whether you’re a seasoned professional or are new to trading, there’s no substitute for due diligence and understanding how to trade in the stock market today.
How To Find Penny Stocks To Buy
There are varying ways to find penny stocks to buy . While it ultimately depends on your trading style, there are a few go-to ways traders identify names to add to their watch list. One powerful indicator to initially consider is unusual trading volume.
Pay attention to stocks experiencing a significant surge in trading activity. It could signal growing interest and potential market momentum. By closely analyzing stock charts and monitoring volume spikes, you can pinpoint stocks that may be on the verge of a breakout.
Social sentiment is another valuable tool in your arsenal. Watch discussions about penny stocks on platforms like Twitter, Reddit, and specialized stock market forums. The positive sentiment and buzz surrounding particular companies can provide insights into emerging opportunities. However, exercise caution and conduct thorough research before making investment decisions based solely on online opinions.
Insider trading activity is a significant factor to consider when evaluating penny stocks. Monitoring SEC filings and reports that disclose insider buying or selling can shed light on a company’s prospects. While not all insider trading activities may indicate positive developments, they are worth considering as part of your analysis.
Unusual options activity can offer valuable clues about market expectations and sentiment towards specific penny stocks. Watch out for significant changes in options volume or open interest, as they may signal upcoming price movements. Analyzing options chains and identifying abnormal trading patterns can uncover potential opportunities.
In addition to monitoring social media platforms, specialized tools for sentiment analysis can provide deeper insights into market perceptions. These tools analyze large amounts of data to gauge public sentiment toward specific stocks. By assessing overall sentiment (positive, negative, or neutral) associated with penny stocks, you can gain valuable insights into market perceptions and identify potential investment opportunities.
Penny Stocks To Watch
View Inc. (VIEW)
Smart-building technology company View Inc. has managed to bounce back from Thursday’s fresh 52-week lows. It recently beat earnings per share estimates but missed sales expectations. Meanwhile, the company has a bright outlook for the year. View announced full-year 2023 revenue guidance from $125 million to $150 million. This represents a 36% year-over-year growth at the midpoint of the range from 2022 revenues of $101 million.
– Penny Stocks: Ultimate Guide to Comprehensive Answers & FAQs
While no updates have been reported on the development yet, VIEW stock is in focus after its latest milestone came to light. The European Patent Office published patent #3422095 this week. It was for “Multi-Sensor Devices (Fore Use In Smartwindows & Smarthomes),” according to the filing on the EPO site.
BioLine Rx Ltd. (BLRX)
Unlike some of the names on this list of penny stocks to watch . BioLine Rx has been on fire for the last few months. The company is focused on oncology, particularly a program for supporting therapeutic approaches to oncology and other diseases, motixafortide.
Last month the company announced a publication in Nature Medicine of its GENESIS Phase 3 trial. It evaluated motixafortide and G-CSF in stem cell mobilization for multiple myeloma. A New Drug Application (NDA) for motixafortide is currently under review with the FDA, with an assigned PDUFA date of September 9, 2023. While the market awaits more details later this year, BLRX stock has captured attention recently.
CEO Philip Serlin discussed several milestones in BioLine’s late-May business update. Serlin said, “Last month’s publication in Nature Medicine of our GENESIS Phase 3 clinical trial data suggest motixafortide’s potential to address critical challenges and evolving needs in the autologous stem cell transplant setting in appropriate multiple myeloma patients, and in preparation for an aggressive launch, our U.S. operation continues its commercialization-readiness activities. Additionally, the Company, along with our collaboration partners, continues to make clinical development progress evaluating motixafortide in pancreatic cancer (PDAC) and in SCM for gene therapies. We anticipate PDAC clinical data later this year, as well as the initiation of new clinical trials for both PDAC and SCM in gene therapy. We believe eac of these areas can support long-term growth.”
This week analysts at Oppenheimer helped prompt momentum in the penny stock. The firm reiterated its Outperform rating and maintained its $4 target.
Vroom Inc. (VRM)
Buy the rumor, sell the news was the trend for Vroom leading up to its latest round of quarterly financial results. Vroom missed sales expectations but managed to narrowly beat Q1 EPS. Bob Krakowiak, Vroom’s Chief Financial Officer, explained, “We succeeded in reducing per-unit costs across 1) logistics, 2) sales, 3) titling, registration and support, and 4) fixed costs. We completed reductions in force in January and April 2023 which we expect to generate annualized cost savings of approximately $42 million. We further strengthened our balance sheet by repurchasing $15 million of our convertible notes and enhanced our liquidity by executing the 2023-1 securitization at UACC. During 2023, we will continue to pursue opportunities to reduce costs, strengthen our balance sheet and enhance our liquidity.”
This week, VRM stock is being seen bullishly after insider trading activity was reported. Director Robert Mylod purchased half a million shares of VRM stock at average prices between $0.7420 and $0.7749. His direct holdings sit at roughly 970,000, while the indirect holdings through Annox Capital are more than 1.26 million shares.
Elevation Oncology Inc. (ELEV)
The oncology company’s shares have been in a freefall over the last few weeks. The drop followed a significant earnings miss after ELEV stock exploded more than 600% since January. Elevation missed earnings per share estimates by a wide margin, prompting the selling in the penny stock.
Heading into the end of the week, however, ELEV stock is back in rally mode. Shares bounced from lows of $2.40 to highs above $4 during Thursday’s afternoon session. Now speculation may be triggering stock market momentum. In particular, upcoming data is at the center of attention.
– Best Penny Stocks To Buy Now? 5 to Watch Under $5 This Week
Interim CEO Joseph Ferra said in a recent business update, “This is an exciting time for us as we and our partner, CSPC Pharmaceutical Group Limited, embark on sharing initial clinical data from the ongoing Phase 1 study of EO-3021 at ASCO 2023. In addition, we remain on track to initiate our Phase 1 trial evaluating EO-3021 in the US in the second half of 2023.”
Adding to the excitement was a 13G filing showing a significant stake by Point72 Asset Management. The firm reported owning 8.7% of Elevation, which equated to over 2.1 million shares.
LL Flooring Holdings Inc. (LL)
Popular home improvement and flooring retailer LL Flooring has faced a similar trend as Elevation. Missed earnings and a general lack of consumer spending led to slower sales growth for the company. The result was a considerable slide in LL stock this year. The company formerly known as Lumber Liquidators is back in focus.
Despite the earnings miss, LL is in the sites of institutions right now. In this case, F9 Investments just reported a 13D filing. The firm acquired a 9.4% stake in the company. Thomas D. Sullivan is the managing member of the firm. He’s also the owner and chairman of Cabinets to Go. Speculation has begun building on a potential combination between the two companies. However, no official details have been reported as of this update.
List Of Penny Stocks
- View Inc. ( NASDAQ: VIEW )
- BioLine Rx Ltd. ( NASDAQ: BLRX )
- Vroom Inc. ( NASDAQ: VRM )
- Elevation Oncology Inc. ( NASDAQ: ELEV )
- LL Flooring Holdings Inc. ( NYSE: LL )