Penny stocks are some of the highest-risk stocks in the market. Thanks to a long history of volatility, manipulation, hype, and speculation, traders seek the ultimate alpha in these cheap shares. But it isn’t just for “wild west” gun-slinging traders. Analysts have also grown bullish on many stocks under $5.
Small-cap stocks are synonymous with “penny stocks.” Usually, a benchmark for sentiment, the Russell 2000 Small-Cap Index ETF (NYSE: IWM), has been followed closely to gauge momentum in smaller companies. Though not all penny stocks are “small-cap stocks,” it’s a term that’s loosely thrown around in the world of stocks under $5.
Jared Woodard’s BofA analyst team is paying close attention to U.S. economic growth. The team expects a surge over the next two years, forecasting 7% GDP growth in 2021. This could benefit small-cap profits and performance more than larger companies thanks to greater exposure to “pent-up services spending demand.”
Obviously, time will tell if analysts are right about this trend. In the meantime, there are other firms getting behind penny stocks right now. Some of these firms have high hopes for some of the companies on this list.Penny Stocks To Buy [According To Analysts]
- GeoVax Labs Inc. (NASDAQ: GOVX)
- Zovio Inc. (NASDAQ: ZVO)
- Sesen Bio Inc. (NASDAQ: SESN)
- Tenax Therapeutics Inc. (NASDAQ: TENX)
Price Target: $8
GeoVax Labs is developing vaccines and immunotherapies to guard against infectious diseases and cancers. This month has been a big one for the company following news from the U.S. Patent & Trademark Office. The USPTO issued a Notice of Allowance for Patent Application No. 16/305,305 entitled “Composition and Methods of Generating an Immune Response to Hepatitis B Virus.”
David Dodd, GeoVax’s Chairman & CEO, commented, “There is a clear, critical unmet medical need to treat chronic HBV infections, which affects over 250 million people worldwide. For many infected people, Hepatitis B has become a long-term, chronic infection that can lead to serious or even life-threatening health issues like cirrhosis or liver cancer. Multiple vaccines exist to protect against HBV infection, but they cannot help patients already diagnosed with the disease.”
One of the strongest supporting factors of GeoVax’s IP is its growing patent portfolio. Whether wholly-owned, co-owned, and in-licensed intellectual property, this figure now stands at over 70 granted or pending patent applications spread over 20 patent families. Aside from Hepatitis, the company also has vaccine candidates against COVID-19, HIV, Zika Virus, and even things like Ebola and Malaria.
Maxim Group Has emphasized its bullish stance on the company. The firm has a Buy rating on the penny stock right now, along with a price target of $8. Based on the closing price on April 8th, that’s an 80% forecast on GOVX stock.Penny Stocks To Buy [According To Northland Securities]: Zovio Inc. (NASDAQ: ZVO)
Price Target: $7.50
Zovio is another one of the penny stocks to buy, according to analysts right now. Specifically, Northland Securities has an Outperform rating on the company along with a price target of $7.50. Based on Thursday’s close of $3.61, that would equate to a forecast of over 100% right now.
The company specializes in education technology, partnering with higher education institutions. It also has an employer education service, which recently increased its partnership agreement managing ChildCare Education Institute and University of Arizona Global Campus.
This built upon ChildCare Education’s agreement with the University of Arizona, where students can transfer course credits to the University. This deal also adds to the company’s TutorMe tutoring platform integrating with Clever, a single sign-on portal for K-12 schools.
“As schools have begun transitioning students back to classrooms, they are continuing to integrate services like TutorMe into their ongoing student support services,” said TutorMe Co-founder and CEO Myles Hunter.
With the focus on digital learning right now and a bullish stance from analysts, ZVO could be one of the penny stocks to watch this month.Penny Stocks To Buy [According To Canaccord Genuity]: Sesen Bio Inc. (NASDAQ: SESN)
Price Target: $7
Sesen’s $7 price target from Canaccord Genuity brings some high expectations with it. Since SESN stock closed at $2.60 on April 8th, this would put a price forecast of nearly 170% on the small-cap.
We’ve discussed this company many times in the past. Sesen focuses on targeted fusion protein therapeutics for treating cancer patients. The company’s partner, Qilu Pharmaceutical, recently submitted and gained approval for an Investigational New Drug Application for the lead treatment, Vicineum.
The Center for Drug Evaluation of the China National Medical Products Administration approved this IND ahead of the original timeline. Now the company can move forward conducting clinical trials to assess Vicineum’s efficacy and safety in patients with BCG-unresponsive non-muscle invasive bladder cancer.
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According to Sesen, China represents a large potential market for Vicineum. Peak year sales estimates are upwards of $418M. The company anticipates Qilu Pharmaceutical will become a key strategic partner for the global supply of Vicineum. Qilu is said to be on track to complete the manufacturing technology transfer of Viceneum in mid-2021. The completion will trigger an additional $2M milestone payment.Penny Stocks To Buy [According To H.C. Wainwright]: Tenax Therapeutics Inc. (NASDAQ: TENX)
Price Target: $5
This week Tenax announced the publication of positive data from its Phase 2 HELP study. The study evaluated the company’s levosimendan in patients with pulmonary hypertension and heart failure. Results of the placebo-controlled HELP trial were published in the American College of Cardiology Heart Failure.
“The fact that 84% of the patients enrolled in the initial lead-in phase had a significant hemodynamic response at rest and with exercise during cardiac catheterization provides confidence that levosimendan may be an important treatment for these patients who have a large unmet need.”Dr. Stuart Rich, Chief Medical Officer at Tenax Therapeutics
With progress like this, Tenax has attracted several analysts. H.C. Wainwright issued a Buy rating on TENX along with a $5 price target. Based on Thursday’s closing price, H.C.’s TENX stock forecast sits roughly 180% higher than those levels.