Hot Penny Stocks To Watch
Penny stocks are well-known for their higher risk and reward. But a keen understanding of how to trade and invest is key to profiting. Due to their volatility, penny stocks are usually best-known for making big moves quickly. However, at the end of the day, research and education are key. Knowing how to find new trends, identify potential catalysts, and gauge market sentiment is obviously something that will help you in the long run.
This brings me to the next topic of this article: trending sectors and industries. Most would agree that it’s easier to benefit quicker from penny stocks with momentum than ones that are in an industry getting sold into. For instance, right now, marijuana stocks are facing a lot more pressure in 2021.
That’s not anyone’s company’s issue but an industry-wide trend. Therefore, it is harder to find overly bullish trends right now when it comes to pot stocks. Does this mean that all penny stocks in this industry aren’t worth it? No, but in the meantime, certain parts of the market are experiencing much stronger bullish activity right now.
Biotech Penny Stocks To Watch In April
As the saying goes, “A rising tide lifts all ships.” In this case, investors will seek out which broad sector or industry trends positively impact related stocks. This month, Healthcare and health-related names have benefited greatly. Take a look at the Select SPDR Trust Healthcare ETF (NYSE: XLV). April 20th was the 8th day in a row that the ETF posted a green close. Since the start of the month, the XLV jumped over 5% so far.
A mix of pandemic headlines and speculative trading trends have helped give stocks related to healthcare a boost. Furthermore, certain biotech ETF’s like the NASDAQ IBB have also begun climbing. With this in mind, it may not be bad to put together a list of penny stocks to watch with exposure to these bullish trends.
GT Biopharma Inc. (NASDAQ: GTBP)
While GT Biopharma is a former penny stock at this point, it has been one of the top biotech stocks to watch for the last several months. The company uplisted to the NASDAQ exchange earlier this year, which brought much more attention to the company than previously. To put it into perspective, at the beginning of December 2020, GTBP stock was trading below $3.
This month it reached highs of $10.87. It’s also worth mentioning that not one but two Wall Street firms have just begun coverage on the biotech company. Roth Capital currently has a Buy rating and a $25 price target. Last week, analysts at B. Riley started GT Biopharma with a Buy and a $21 price target. B. Riley, in particular, said that solid tumor indications represent a source of “potential upside” with the company.
The main point of focus for the market regarding GTBP is the company’s immunotherapy treatment pipeline. Its lead treatment, GTB-3550 TriKE, has been initially studied for its potential to treat high-risk myelodysplastic syndromes (MDS) and refractory/relapsed acute myeloid leukemia (AML).
There’ve been a lot of key updates from the company over the last few months. Much of this was summed up in a press release earlier this week. Some of the biggest highlights included strong interim data on GTB-3550 from 9 patients in the Phase I/II Expansion clinical trial. Results demonstrated up to 63.7% reduction in bone marrow blast levels. All patients treated to the date displayed no signs of any grade of cytokine release syndrome across all dose cohorts. The company also announced new positive preclinical data from a ROR1 TriKE in prostate cells.
Senseonics Holdings Inc. (NYSE: SENS)
Senseonics is another one of the penny stocks that’ve been on our list for months at this point. It’s up big since last year and in 2021 has managed to turn heads during an epic rise in January and February. SENS stock reached a high of $5.56 thanks to momentum building from a positive response to its Eversense continuous glucose monitoring system. In particular, the company’s device was added to the coverage options from insurance provider EmblemHealth. This is one of the largest not-for-profit health insurers in the United States.
The device also received an intention to grant a European patent for its EP application titled “Digital ASIC Sensor Platform.” One of the things that have held SENS stock back is its financing activities. Obviously, to push the ball down the field, companies need to raise money for advancing their pipelines. In Senseonics’ case, we’re talking well over $100 million.
Ascensia Diabetes Care is the exclusive worldwide distributor of Senseonics’ Eversense® CGM systems through the company’s partnership. I mention this because in its most recent quarterly report, CEO Tim Goodnow, Ph.D., highlighted the potential of this partnership in 2021.
“We believe Ascensia’s commercial experience and global footprint will help grow the market for Eversense in 2021 and beyond. We are working with Ascensia to further expand commercial activity in the coming months. These collaborative efforts include developing plans for new programs designed to raise patient and provider awareness, reduce patient cost, and continually expand global access for Eversense.”
Given the momentum in the biotech industry and medical devices, specifically, SENS could be one of the penny stocks to watch right now.
Avinger, Inc (NASDAQ: AVGR)
Finally, Avinger is a blast from the past in many ways. We have been discussing the company for nearly a year at this point. If you look back at the chart from November, AVGR stock was trading as low as $0.21. But, in late December, things had begun picking up, and a breakout ensued. I won’t get into the history of the stock. But it’s worth mentioning what the initial catalyst was to see what may be triggering market momentum now.
The company had received FDA clearance of its catheter-based system, Ocelaris. It’s now marketed under TIGEREYE. Fast-forward a few months, and Avinger shares managed to scramble to highs of over $2.60 after being granted a European Patent titles “Oct imaging catheter with lag correction,” in addition to initiating the full commercial launch of Tigereye. When it began announcing financing activities, AVGR stock began pulling back.
However, this week, things are back in motion, and the former penny stock under $1 has managed to bounce to highs of over $1.20. Much of the recent excitement has stemmed from news that more than 100 accounts have purchased Pantheris SV OCT-guided atherectomy catheters to treat Peripheral Artery Disease (PAD) since the product launch in the third quarter of 2019. A new publication has also highlighted the benefits of Avinger PAD therapies when utilized in complex and challenging cases. This has sparked some nice responses from the stock market this week.