Are These 3 Reddit Penny Stocks Ripe for Growth?
Over the past year or so, Reddit penny stocks have grown massively in popularity. For those unfamiliar, this is a term that applies to penny stocks frequently discussed on the social media site, Reddit. Reddit allows for communities or ‘subreddits’ as they are colloquially known, to get together and chat about basically anything. However, there are plenty of subreddits dedicated to discussing all about various penny stocks.
While this never really had an effect on certain penny stocks to watch, after the Gamestop Corp. (NYSE: GME) fiasco a few months ago, it quickly became a trend that could impact stock prices. Many investors saw that event as a fundamental paradigm shift in the way trading could occur. And because penny stocks under $5 tend to sway easily from speculation, they often are the most affected by this.
So, there are plenty of penny stocks that exist on various forums on Reddit. But, just because it is on a list of penny stocks, doesn’t mean that it is worth buying. Rather, investors can use this as inspiration to begin researching different companies of interest. With all of this in mind, let’s take a look at three Reddit penny stocks that you may have missed last week.
3 Reddit Penny Stocks to Watch
- Precipio Inc. (NASDAQ: PRPO)
- Vertex Energy Inc. (NASDAQ: VTNR)
- Iterum Therapeutics plc. (NASDAQ: ITRM)
Precipio Inc. (NASDAQ: PRPO)
The biotech penny stock, Precipio Inc., is focused on cancer diagnostics and reagent technology. Its products are offered in the oncology market. These products include clinical diagnostic services, cytogenetics media IV-CCell, HemeScreen panels, and much more. What has brought in a lot of attention to Precipio recently is its offering of COVID-19 antibody tests.
These COVID-19 antibody tests have taken this company to a new level. In a single year, shares of PRPO stock have nearly gone up 700% which is quite a staggering gain. Its revenue has grown by 94% in the same time period. The company is not currently profitable but when you look at numbers like these, anything is possible.
May 4th is when the latest big update came from Precipio. The company announced that its rapid COVID test is now available on Amazon.com’s business platform. This 20 minute test has been approved for emergency use by the U.S. Food and Drug Administration, and can be purchased by medical point-of-care providers.
The company stated, “Antibodies are the body’s natural biological response to an infection or vaccination, and their development begins the body’s process of building immunity to protect against future infections.”
These tests can now be ordered and received within 2 business days. This is huge for Precipio as Amazon is the largest online retail platform in the entire world. It will be interesting to see what the sales figures look like for these tests in its next operational results release.
The company also launched its new HemeScreen Panel for Acute Myeloid Leukemia (AML) to determine the genetics and whether a patient is susceptible to it. It provides a 4 hour turnaround-time for the test. With all of this in the pipeline, do you think that PRPO stock could make your penny stock watchlist?
Vertex Energy Inc. (NASDAQ: VTNR)
Vertex Energy Inc. is an energy penny stock that focuses on environmental services. Its services include the aggregation, processing, and recycling of commercial waste systems in the United States.
One of its segments is Black Oil in which the company collects and purchases used motor oil for sale and use as feedstock or replacement fuel. It has a refining and marketing segment that focuses on taking hydrocarbon streams to sell products like gasoline blendstock, pygas, and fuel oil cutter stock to oil companies. Its recovery segment sells ferrous and non-ferrous recyclable metals.
On May 13th, Vertex released the latest update that may be affecting its stock price. The company reported its first quarter 2021 results. These results included an adjusted EBITDA of $6.5 million which was a $4.9 million increase year over year. Its total collections rose 17% year over year to 10.4 million gallons. The company expects its adjusted EBITDA to be between $2.5 million to $3 million by the second quarter of 2021.Although these results were good, its net income was $1 million vs. $2.7 million one year ago.
“Our strong first quarter results, which include significant year-over-year growth in gross profit, operating income and adjusted EBITDA, were driven by a combination of increased product demand, improved margin realization, disciplined expense management and full optimization of our Marrero and Heartland refineries.”
The President and CEO of Vertex, Benjamin P. Cowart
These results clearly were met with a positive outlook. On May 14th, VTNR stock went up by more than 5.5% in the market. The company expects to generate positive net income, adjusted EBITDA, and free cash flow for the rest of the year. It will be interesting to see what VTNR stock has in store for the future. For now, will this company make your list of penny stocks to watch?
Iterum Therapeutics plc (NASDAQ: ITRM)
Biotech penny stocks like Iterum Therapeutics plc have been performing very well in the market. But what does Iterum do? Well, this is a clinical-stage biotech company that develops anti-infectives for multi-drug resistant pathogens. For example, one of its products named sulopenem is a novel anti-infective compound that is in Phase III trials to treat uncomplicated urinary tract infections and more.
On May 14th, Iterum released its first quarter financial results for 2021. The company recently had the FDA accept its NDA for its uUti product in patients with a quinolone non-susceptible organism. The FDA placed the application under priority review.
The CEO of the company, Corey Fishman said, “We continue to prepare for a U.S. Food and Drug Administration (FDA) advisory committee meeting and look forward to clarity from the FDA on timing.
In the meantime, the FDA continues its review of our new drug application (NDA) for oral sulopenem for the treatment of uncomplicated urinary tract infections (uUTI) in patients with a quinolone non-susceptible organism and has not advised us of any change to the current PDUFA goal date of July 25, 2021.”
If the FDA approves this product, it could mean great things for Iterum. Often when biotech companies receive FDA approval their stock price will go up. It will be interesting to see what progression looks like between ITRM and the FDA in the next few months.
The company will be participating in a fireside chat at the RBC Capital Markets Global Healthcare Virtual Conference on May 19th. It will also be presenting at the Jefferies Virtual Healthcare Conference and JMP Securities Life Sciences Conference in June. This could provide us more information of what the company is up to and how close it is to commercializing its products.
Are Reddit Penny Stocks Worth Buying?
This is something that remains up to you and your penny stocks watchlist. However, because the amount of penny stocks to watch on Reddit changes constantly, there is always inspiration for investors to use.
Now, whether or not they will make your watchlist depends on your unique investing style. But, using Reddit to find trending penny stocks can be a beneficial strategy to both new and experienced traders. With this in mind, what do you think? Are Reddit penny stocks worth buying?