4 Penny Stocks to Buy As the Market Corrects
With penny stocks, thinking about how the stock market will move can help to make a profitable strategy. And given that we are seeing a correction right now, there are plenty of penny stocks that could benefit. As Warren Buffett once said, “Be fearful when others are greedy, and be greedy when others are fearful.”
This quote applies to a large range of investment opportunities, especially when the market is correcting like it is right now. In May 2021, inflation rates remain at some of the highest levels since 2008. And, this has led to an overall lack of confidence in certain areas of the stock market.
However, penny stocks don’t like to play by the rules. And for this reason, no matter what the economic conditions are, there are always penny stocks to buy that could have potential. Right now, this includes tech penny stocks, reopening penny stocks, biotech penny stocks, and more. These are just a few examples of industries that have remained on the uptrend this year.
Additionally, investors need to consider that there will always be a natural ebb and flow in the market. What goes up must come down and vise versa. So, while markets may be down today, they may be up the next.
And because of this, locating valuable penny stocks to watch, can be beneficial in the present and for the future. With this in mind, are these the best penny stocks to buy during a market correction?
4 Penny Stocks to Watch as the Market Corrects
- Cyren Ltd. (NASDAQ: CYRN)
- Minerva Neurosciences Inc. (NASDAQ: NERV)
- Opko Health Inc. (NASDAQ: OPK)
- Waitr Holdings Inc. (NASDAQ: WTRH)
1. Cyren Ltd. (NASDAQ: CYRN)
Cyren is a cloud security solutions company working to offer a large range of products to the digital protection market. With the recent hacking of the Colonial Pipeline, there is a strong emphasis on cybersecurity right now. This could be one of the main reasons that shares of CYRN are showing strong performance right now.
The company offers global security solutions for cloud-related needs. Cyren states that more than 1.3 billion users touch its platform daily, and because of its major market reach, many investors are paying attention to it. Ahead of its upcoming first-quarter earnings release this coming Monday, May 17th, let’s take a closer look at CYRN stock.
A few months ago, the company announced that it had joined the Palo Alto Networks Cortex XSOAR Marketplace. This is considered to be one of the most comprehensive security marketplaces to date. Cyren will offer its threat intelligence product known as Threat InDepth, which provides early indicators of email threats including phishing and other scamming tactics.
“Our global partners and customers rely on Cyren Threat InDepth to provide early visibility into new and emerging email-based threats, helping them to stay ahead of the attacker.
We are excited to join the Palo Alto Networks ecosystem to enable our shared customers to simplify and automate their security processes and help them stay ahead of the threats they are facing every day.”
Dr. Richard Ford, CTO of Cyren
With cybersecurity heavily in focus right now, will CYRN be on your penny stock watchlist?
2. Minerva Neurosciences Inc. (NASDAQ: NERV)
Yesterday, shares of NERV soared on a few pieces of interesting news. After covering it on May 12th, once again Minerva Neurosciences is a top penny stock to watch. For some context, Minerva offers a portfolio of compounds that help to make it a leading biotech penny stock. This includes roluperidone (MIN-101) for schizophrenia, MIN-301 for Parkinson’s disease, and others.
Yesterday, the company announced its first-quarter financial results as well as some exciting business updates. One of those updates includes highly positive top-line results from the open-label extension of its Phase 3 monotherapy trial of roluperidone for the treatment of Schizophrenia. The drug showed large continuous improvement in negative symptoms as well as a limited number of relapses over a one-year period.
Dr. Remy Luthringer, CEO of Minerva, stated that “the results of the open-label extension of the Phase 3 trial with roluperidone provide additional support for the continued development of this agent, particularly in an environment with a continuing significant unmet medical need for schizophrenia treatments with novel mechanisms of action.”
While NERV did bring in an $8.8 million net loss, it ended the quarter with more than $80 million in cash and cash equivalents. Because of this, we see that Minerva is in an advantageous cash position. Considering these exciting announcements, NERV stock could be worth watching.
3. Opko Health Inc. (NASDAQ: OPK)
Opko Health is another biotech stock working globally to provide both biopharmaceuticals and diagnostic products. It is situated across the biotech industry where it discovers, develops, and commercializes both novel and proprietary technologies.
Last week, the company announced that it had entered into an exchange agreement with several 4.5% convertible senior noteholders. This agreement has led to the exchange of around $55.4 million worth of outstanding 2025 notes of common stock.
In its latest earnings report announced at the end of April, the company managed to post a quarterly off of $0.05 per share. This is much better than the $0.09 loss it took in during the same period last year. Additionally, the company surpassed estimates from Zacks, posting revenue of $542 million.
This beat the estimate by almost 8.4%. One of Opko’s subsidiaries, BioReference Laboratories Inc., provides Covid-19 testing for a wide range of consumers. This includes testing for the Major League Soccer organization, which began last month. While this in itself is not a major deal for the company, it is symbolic of just how great this technology is.
“MLS was the first major sports league to utilize Covid-19 testing from BioReference in 2020 during its MLS is Back Tournament in Orlando. We continue to be impressed by the diligent work done by MLS’ leadership to refine Covid-19 mitigation strategies and prioritize testing.”
Jon Cohen, M.D., Executive Chairman of BioReference Laboratories
Although the pandemic in the U.S. is lessening in severity, the need for testing is still very palpable. Because of its role in this industry and the announcements mentioned above, OPK may be worth adding to your penny stock watchlist.
4. Waitr Holdings Inc. (NASDAQ: WTRH)
Waitr Holdings is a penny stock that we’ve covered numerous times throughout the pandemic. For those unfamiliar, Waitr is a food-delivery platform that competes with some of the biggest names in the industry.
This service has seen extreme demand during the pandemic as more and more people order food from home. And, the company offers everything from delivery to carryout and dine-in services all from its built-in platform.
What differentiates Waitr Holdings from competitors like Ubereats and DoorDash is that it works to provide underserved communities with its services. Through its subsidiaries, it serves both small and medium-sized markets throughout the U.S. in more than 800 cities. Additionally, it is working to expand its reach every day.
Last week, the company reported its first-quarter results for 2021. In the announcement, it posted revenue of $50.9 million, which is a 15% increase over the same period last year. That is no small number considering the size of the revenue in question. At the end of the quarter, the company reported having more than $67.9 million in cash on hand.
“We are pleased with our financial results for the first quarter of 2021, as we continued to grow our revenue and generate positive operating cash flow.
[We] completed the acquisition of Delivery Dudes, an established provider in the South Florida market, in March, and are excited to have them on our team. We added a multitude of national brands and delivery only “virtual restaurant” concepts to our platforms during the first quarter of 2021.” Carl Grimstad, CEO of Waitr Holdings
So with its large moves and palpable value, WTRH could be an interesting addition to your list of penny stocks.
Finding Penny Stocks to Buy During a Correction Can Be a Valuable Strategy
Whenever there is a market correction, finding potentially long-term value in penny stocks can be a profitable strategy. But as with any investment, traders need to be both particular and decisive on which companies to pull the trigger on.
In May 2021, there are plenty of penny stocks to buy. However, investors need to make sure to do the proper research before pressing send on an order. Considering all of this, are these penny stocks worth adding to your watchlist?