Should You Buy Penny Stocks This Week?
If you’re looking for penny stocks to buy before April, you’ve got 3 days left. This week marks the end of Q1 2021 and the start of a brand new month and quarter heading into April. With the way the market has been lately, it’s might be tough to pinpoint the best penny stocks to buy.
Do you look for the hot stocks on Reddit? Maybe you put together a list of top penny stocks on Robinhood. On the other hand, that all could be thrown out the window if there’s a brand new market trend to follow.
If you track back to the last few weeks, it’s almost been a “stock picker’s” market. Micro-niches like NFT stocks, fintech, and even some biotech penny stocks have been in the spotlight. But that’s not saying much, considering the overall sentiment in the broader markets has been mixed.
Friday’s late-afternoon breakout signaled positive momentum for some stocks. But, overall, I think traders have remained skeptical. Though the S&P and Dow jumped, the Nasdaq and small-cap Russell 2000 didn’t make much headway. Has this muted gains for emerging or speculative stocks?
Best Penny Stocks To Buy [or avoid]
We’ll have to see what this week brings. However, considering the trend on Friday, it might not be a bad idea to start putting your watch list together. Here are a few names that turned head late last week. Will they be the best penny stocks to buy on Monday morning? I’ll leave that up to you to decide.
- NextDecade Corporation (NASDAQ: NEXT)
- Drive Shack Inc. (NYSE: DS)
- Kadmon Holdings Inc. (NASDAQ: KDMN)
NextDecade Corporation (NASDAQ: NEXT)
Analyst Firm: Morgan Stanley
Rating: Underweight -> Equal Weight
Price Target: $2
You might not expect analysts to cover penny stocks. But, believe it or not, there are thousands of stocks under $5 garnering interest from firms right now. NexDecade is one of the companies gaining ground among the community this month. Over the weekend, the company was upgraded to Equal Weight from Underweight by Morgan Stanley. The firm also has a $2 price target on the penny stock right now.
Something you might immediately notice is that NEXT stock is trading above $2. Regardless of this, the company has made headway in the market recently. In fact, over the last 3 days, NEXT stock had made a significant move from around $1.80 to highs of $2.79 on Friday. What’s more, trading volume on the final Friday of the month was the highest single-day share volume the stock had seen in more than a year.
What To Watch With NEXT Stock
One of the main drivers of momentum in NEXT stock has been the push behind clean & green energy penny stocks this year. The company specializes in liquid natural gas, which has been seen as a “bridge energy” during this time of transition between traditional sources of “fuel” and renewable energy resources in the future. The Biden administration’s push to build a zero-carbon footprint has given rise to these “bridge fuels.”
The company recently signed a deal with Oxy Low Carbon Ventures, a subsidiary of Occidental Petroleum Corp. (NYSE: OXY), to offtake and permanently store carbon dioxide captured from NextDecade’s planned Rio Grande LNG project in the Port of Brownsville, Texas. Richard Jackson, Occidental’s President, Operations, U.S. Onshore Resources, and Carbon Management, commented, “The CO2 sequestration facility proposed for South Texas is a great example of the many sequestration hubs that OLCV plans to develop across the United States, and eventually around the globe.”
Drive Shack Inc. (NYSE: DS)
Analyst: Craig Hallum
Rating: Initiated – Buy
Price Target: $5
Drive Shack has been one of the reopening penny stocks to watch over the last few months. The company operates as an entertainment venue centered around golfing experiences. The company has worked toward expanding its offering to appeal to the masses, from driving ranges to mini-golf.
Its most recent initiative has focused on mini-golf through a deal with golf star Rory McIlroy through his fund, Symphony Ventures. In particular, the company is rolling out the launch of its Puttery locations this year.
What To Watch With DS Stock
Coming off of a strong Q4 and 2020 earnings beat, CEO Hana Khouri said in the company’s latest update, “As we look ahead into 2021, our focus remains on strategic priorities to drive growth and profitability, including the launch and expansion of Puttery, capturing market share using data and analytics, growing brand awareness and advancing technology and innovation to remain at the forefront in our space…We believe 2021 will be a momentous year for us that is carried by a team that sets us apart and will drive us forward.”
Considering the focus on the “reopening trade” and the thought that golf (even mini-golf) is socially distanced enough, Drive Shack could be one of the penny stocks to watch this year.
Kadmon Holdings Inc. (NASDAQ: KDMN)
Analyst: H.C Wainwright
Price Target: $20
Finally, Kadmon Holdings was recently reiterated by H.C. Wainwright with its Buy rating and a price target of $20. The company focuses on discovering and developing treatments for fibrotic and inflammatory diseases. This includes a large pipeline of compounds such as KD045, KD033, Clovique, and others.
Last week the company announced that it plans on presenting a trial-in-progress poster on KD033-101, its ongoing dose-escalation, dose-expansion trial of KD033 in patients with metastatic and locally advanced solid tumors. The presentation will be at the 2021 American Association for Cancer Research Annual Meeting, taking place April 10th through the 15th. What’s more, initial safety data from the trial is anticipated in Q2 2021. Furthermore, clinical data from the trial are expected in Q4 2021.
What To Watch With KDMN Stock
H.C. Wainwright, recently reiterated its stance on Kadmon. The firm has a Buy rating on the penny stock. It has also placed a $20 price target on KDMN. Analysts at Mizuho also have a Buy on Kadmon along with a $13 price target. Based on these two targets, it looks like analysts are forecasting anywhere from237% to 419% based on Friday’s closing price. Will that actually be in the cards for KDMN stock?