3 Penny Stocks To Buy Or Hold According To Analysts
Penny stocks are volatile on their own. But when you mix them with certain sectors, that can become a bit more explosive. Specifically, biotechnology penny stocks are some of the most active among stocks under $5. The reason why has everything to do with the industry itself.
In the world of health care, pharmaceuticals, and biotechnology, it’s all about creating something out of nothing. We’re talking about potential cures and treatments for things that may have never had one in history. With that comes trials, research, and a bit of luck when it comes to life-saving or life-changing therapies.
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Do all of these companies make it out unscathed? Of course not and that’s why this sector is so volatile. When was the last time you heard about a company hitting it big in biotech? If you answered “this week” then I applaud your attentiveness. We discussed one of the top penny stocks to watch this year which now trades above $90, Novavax. At the start of the year NVAX stock was a mere penny stock.
Biotech Penny Stocks To Watch
Shares were trading below $5 and the company was working on a clinical-stage influenza treatment. With the advent of coronavirus, Novavax shifted focus. Jump ahead about 6 months and one of the stocks under $5 we looked at in January traded as high as $111.77 this week. It was also awarded $1.6 billion by the government to pursue its potential coronavirus vaccine candidate.
This is obviously an extreme example. But the facts remain that it could have gone much differently if the company hadn’t have executed on its trials. If it missed endpoints, came up short on industry expectations, whatever the case, NVAX stock might not even be in the conversation right now. Herein lies a clear example of how biotech penny stocks can be so exciting.
Are all penny stocks like this? Simply put, no, not all penny stocks involved in the biotech space trade like that. Needless to say, intermediate catalysts like trials have offered investors opportunities to make money off of corporate progress. Will these make the list of penny stocks to buy right now? Here’s what analysts think.
Biotech Penny Stocks To Watch: Tonix Pharmaceuticals Holdings Corp.
If this seems familiar, that’s because it is. Tonix Pharmaceuticals Holdings Corp. ( TNXP Stock Report) has been on the list for a few months now. The interesting thing about TNXP stock is that it hasn’t really established a clear up or downtrend. But it has attracted day traders each week.
For the better part of the last 2 months, the biotech penny stock’s traded in a range from around $0.60 to $0.80. Any technical traders out there will also notice that its 50-day moving average has continued acting as a clear resistance point on the stock chart. In any case, at the end of last month, TNXP stock was on the list to watch in July.
Recently the company has been working toward a few specific treatments. First, the company is collaborating with the likes of Southern Research for a COVID-19 vaccine. The company is also working on advancing its TNX-1700. This is a treatment for treating tumors in patients with colorectal cancer. Thanks to more attention on coronavirus penny stocks lately, companies like Tonix have regained some attention. What’s more, is that earlier this week, the company announced its intent to purchase an approximately 40,000 square foot facility in Massachusetts to use as laboratories.
It aims to take up more R&D functions associated with its expanding portfolio of immunology candidates, including vaccines for COVID-19. However, with so much volume and clear interest in the market this week, can TNXP stock actually manage to break above resistance? If it did, it would be the first time trading above its 50DMA since February. The next step will be to see if it can sustain itself above those levels. While analysts are overly bullish, they don’t appear to be bearish on TNXP as it currently carries a “Hold” rating.
Penny Stocks To Watch: Kitov Pharmaceuticals
Earlier today there was an article that discussed certain penny stocks on Robinhood. In it, the writer commented that some had “love/hate relationships” among traders. Kitov Pharmaceuticals ( KTOV Stock Report) has been one of these, too. Earlier in May, we talked about Kitov as it had just announced the closing of a $10 million offering. At the time KTOV stock was trading around $0.40.
Obviously compared to that price, KTOV stock hasn’t been a bad company to watch. But it’s what has happened between then and now that has some traders a bit upset. You see KTOV stock rallied as high as $1.44 and for a few days, traders piled into the stock. Apparently, hopes were high that a penny stock already up over 200% would keep going higher without pulling back at all. Say what you will about hype but it can clearly impact a trader’s psychology. In any case, Kitov stock pulled back as low as $0.77.
Over the last 24 hours, KTOV stock bounced back to nearly $1. That was during premarket trading on July 8. Kitov reported another key update. On Wednesday Kitov announced receipt of a notification from the European Patent Office to grant a patent for application. Titled “Humanized antibodies against CEACAM1,” the patent covers protein and DNA sequences pertaining to humanized antibodies capable of specific binding to human CEACAM1 molecules.
It covers their use in treating and diagnosing cancer and other conditions. Kitov is currently advancing preparations to initiate a Phase 1/2 clinical trial of CM24 in combination with nivolumab (Opdivo®). That’s in patients with non-small cell lung cancer, and in combination with nivolumab in addition to standard of care chemotherapy in patients with pancreatic cancer. Right now analysts hold an average rating of “Strong Buy” on KTOV stock.
Penny Stocks To Watch: Pulmatrix Inc.
Pulmatrix Inc. ( PULM Stock Report) appears to be another one of the penny stocks analysts like. The current rating on PULM stock is “Strong Buy”. The company has a focus on certain pulmonary diseases. At the end of January, Pulmatrix announced receipt of FDA Fast Track Designation for its Pulmazole. Its purpose is for the treatment of Asthma-ABPA. Furthermore, Pulmatrix joined forces with Johnson & Johnson for their Lung Cancer Initiative at the beginning of the year.
Obviously you might be thinking, “where’s coronavirus going to come into play?” Well, in April, it entered into a Collaboration and License Agreement with Sensory Cloud, Inc. Under the terms of the Agreement, the company granted Sensory Cloud an exclusive, worldwide, royalty-bearing license to PUR 003 and PUR 006 (NasoCalm).
That’s Pulmatrix’s proprietary salt formulations for aerosol nasal administration. The licensed products included OTC nasal delivery to potentially reduce the pathogenic risk and transmissibility of contagions, including with respect to COVID-19.
This week, Pulmatrix announced that Sensory Cloud plans to begin commercial sales of FEND in September 2020. FEND is the Sensory Cloud brand name for NasoCalm. Pulmatrix’s development data demonstrated that FEND provides a potential hygienic benefit that may augment current social distancing and hygiene measures for addressing COVID-19.
Originally published at https://pennystocks.com on July 8, 2020.