Looking for penny stocks to buy can be a task. That’s especially true considering that there are so many choices when it comes to stocks under $5. That and the idea that investors are even starting to look for top stocks under 10 cents.
Volatility plays a huge role. Even today we’re seeing penny stocks racing higher one minute, the next they’re completely falling apart. This can make the process of finding penny stocks to buy, very difficult if you don’t have the right strategy.
Here’s what I mean by that. Yes, you can make money with highly volatile stocks. But you shouldn’t go into a high volatility trade with an investment mindset. When it comes to big swings in price, a trader’s mentality is far-better suited for such a situation. Similarly, taking a trading approach when approaching penny stocks to invest in is just as troublesome.Trading High Volume Penny Stocks
As a trader, the goal is to get in and out of a stock quickly and make profits doing so. When it comes to investing in penny stocks, the profitability tends to come over the course of weeks; even months. Now, if you know a good strategy for both trading and investing, you’re now armed with a way to assess a number of different scenarios.
- Abeona Therapeutics Inc. (ABEO Stock Report)
- Abraxas Petroleum (AXAS Stock Report)
- Acorda Therapeutics Inc. (ACOR Stock Report)
- Iterum Therapeutics Plc (ITRM Stock Report)
- Endo International (ENDP Stock Report)
It all begins with your list of penny stocks. With a basic idea of what you’re looking for, you’ll be able to design your list to meet that idea and create the proper strategy. When it comes to high volume penny stocks, it’s important to keep all of these topics in mind. You also can’t rule out what the analyst community thinks. While they aren’t the holy grail of trading, they can give some insight into longer-term trends for certain companies.High Volume Penny Stocks To Buy [according to analysts]: Abeona Therapeutics Inc.
Abeona Therapeutics Inc. (ABEO) has enjoyed a 6-day winning streak in the stock market. Today ABEO stock extended gains after reaching an early high of $1.51. The penny stocks took an aggressive downturn in price at the end of September. The company’s CEO Joao Siffert resigned as well as 5 board members.
This triggered the slide in ABEO stock from over $2 down to $1 throughout the course of the days to follow. One of the main reasons for the decline was a result of the company not having an immediate replacement. The company is reviewing and exploring “all strategic options and alternatives,” including the sale of some or all of its assets or sale of the company.
As we know, the market doesn’t like uncertainty. Aside from this event, ABEO stock has managed to mount quite a recovery in October so far. Month-to-date, the penny stock has bounced about 50%. This week the company formed a Special Committee to oversee operations and develop a strategic plan of direction. The company also appointed a new Charman of its Board. Furthermore, B. Riley came out with a $2 price target on the stock and reiterated its Buy rating.
Something to note about Abeona is that before all of this drama, it was inking licensing deals for its pipeline treatments. In August, for instance, the company signed a deal with Taysha Gene Therapies. The two entered into a license and purchase agreements for Abeona’s ABO-202, a gene therapy for infantile Batten disease. We’ll have to see how things unfold. For now, however, ABEO stock continues heading higher this week.High Volume Penny Stocks To Hold [according to analysts]: Abraxas Petroleum
One of the hot sectors in the stock market today is energy. Countless energy penny stocks have aggressively climbed higher on Friday morning. The anticipation of some sort of stimulus deal has sparked bullish interest in the stock market today. Abraxas Petroleum (AXAS) has followed suit. Most of these energy names won’t have news as many have rallied on sector sympathy.
In fact, the last major update from the company in August suggested that the company was looking for strategic alternatives. “Our strong, concentrated asset bases in the Delaware and Williston Basins, as well as our excellent hedge book, position Abraxas for success on a standalone basis and also make us an attractive transaction partner,” said Bob Watson, Abraxas CEO.
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Where do analysts stand on Abraxas? There haven’t been any new ratings since March. However, at that time, Canaccord Genuity reiterated a Hold rating on the stock. Stifel Nicolaus also carries a Hold rating on AXAS stock.High Volume Penny Stocks To Buy [according to analysts]: Acorda Therapeutics Inc.
Acorda Therapeutics Inc. (ACOR) has mimicked a similar move as ABEO recently. During the last 7 sessions, ACOR stock has consistently climbed with Friday extending these gains, reaching highs of over $0.70 during the morning session. As we discussed earlier this week, Acorda has gained attention at the end of September and into October with was revealed via a government website.
Specifically, it was a Government Contract with the Department of Veterans Affairs* for “pharmaceutical preparation manufacturing”. The company hasn’t made reference to this, nor has it made any announcements on any other topic. Acorda develops therapies for neurological disorders. Its INBRIJA® (levodopa inhalation powder) is approved for intermittent treatment of OFF episodes in adults with Parkinson’s disease.
The treatment utilizes Acorda’s ARCUS® pulmonary delivery system, a technology platform designed to deliver medication through inhalation. In its last quarterly update, Acorda beat EPS estimates with the help of a 13% increase in INBRIJA dispensed cartridges compared to its previous year’s Q1. It also saw net revenues of $4.7 million. Another $26.1 million in revenue came from its AMPYRA treatment for multiple sclerosis.
Jefferies analysts were the most recent to weigh in on ACOR. The firm reiterated its Hold rating in August and gave Acorda a $1 target.High Volume Penny Stocks To Buy [according to analysts]: Iterum Therapeutics Plc
Iterum Therapeutics Plc (ITRM) broke back above $1 on Friday since pulling back from highs of over $2.40 just a few weeks ago. At the end of September, we discussed ITRM stock as one to watch under $2. The move came after Iterum announced plans to moved ahead with an NDA submission for its sulopenem etzadroxil/probenecid. This is Iterum’s treatment for uncomplicated urinary tract infections in certain patients. The motion was initiated based on discussions at a pre-NDA meeting with the FDA.
“We have confidence in our decision to move forward with our NDA package for sulopenem etzadroxil/probenecid for the treatment of uUTI due to quinolone-resistant pathogens,” said Corey Fishman, Chief Executive Officer, in the late-September PR.
Something else we noted was a technical analysis on the stock. It was a simple review of support and resistance areas on the chart based on ITRM stock’s history. The 50 day moving average was a previous level of resistance for months, which now appears to have acted as support (so far). ITRM stock bounced off of this level a few days ago.
This month, SVB Leerink bumped its price target to $1.50 from $1. It also maintained its Market Perform rating.High Volume Penny Stocks To Buy [according to analysts]: Endo International
Endo International (ENDP) is continuing its monster move after a positive analysts rating came out on Friday. Piper Sandler adjusted its price target on ENDP stock to $6 from $5. It also reiterated its Overweight rating on the company. It’s been a mixed year for Endo and for the most part, shares were in a slump through the second half of the third quarter. However, since around mid-September, ENDP stock has been in a massive bull trend.
If you read our article yesterday on Small Cap Stocks To Watch, we talked about Endo’s recent initiatives. It has fallen into the ESG stock to watch grouping of names in the stock market. This is a niche wherein ESG stocks is an acronym for companies focused on Environmental, Social and Governance.
Endo is focusing on “life-enhancing” therapies including branded pharmaceuticals. This week the company said it will release its 3rd quarter results on November 5th after the close. Further to this, today Endo announced that data relevant to the use of Endo Aesthetics’ Qwo™ will be featured during the American Society for Dermatologic Surgery’s Annual Meeting. Qwo™ is for the treatment of moderate to severe cellulite in the buttocks of adult women. These data will be highlighted in three posters and two oral presentations during the virtual meeting taking place October 9 – 11, 2020.