Finding the best penny stocks to buy right now can be a tall order. Not only are you dealing with noise in the market, but you’re also dealing with noise online. Set up any penny stock screener, and you’ll know what I’m talking about. These will spit out any and every company meeting a certain set of criteria. The downside is that there are such things as false positives.
Let’s say you’re looking for penny stocks to buy that have traded a certain amount of volume in a certain timeframe. You’re sure to get a laundry list of names that come back for you to analyze. Considering there are likely hundreds of stocks to choose from, how do you decide which are the best? I’d first start with your strategy. What are your goals with this trade? Are you looking for a quick flip or a long-term swing trade? Timing is everything when it comes to capitalizing on short-term spikes for scalping or day trading. But the longer out you look, fundamentals may begin to play a larger role.
This is where some traders and investors will look to see what analysts have to say. Are they bullish, and do they have optimistic price forecasts? If so, understand some of the reasons why. On the flip side, are analysts more bearish in their approach to a given company and, if so, why? Now, analyst ratings and forecasts aren’t the only things you should take into consideration. And, if you’re a short-term trader, they may not matter at all. But for those who either take up a longer-term swing trade approach or invest in penny stocks, the more information, the better when it comes to putting your thesis together.Penny Stocks To Buy [According To 4 Analysts]
With this in mind, here are a few penny stocks with bullish ratings, and some have very lofty forecasts. At the end of the day, you decide whether these analysts are right or if you should move onto something else.
- Catalyst Pharmaceuticals Inc. (NASDAQ: CPRX)
- Outlook Therapeutics Inc. (NASDAQ: OTLK)
- Sesen Bio Inc. (NASDAQ: SESN)
- Fortress Biotech Inc. (NASDAQ: FBIO)
Catalyst has been flirting with the higher end of the penny stock range for a few weeks now. The company focuses on treating neuromuscular and neurological diseases. Its Firdapse treatment is its lead product and is currently a prescription medicine for treating Lambert-Eaton myasthenic syndrome in adults. It is being evaluated in clinical trials for treating MuSK-MG and SMA Type 3. It has also received Orphan Drug Designation from the FDA for myasthenia gravis.
The company kicked things off this year with an update and plans for expanding its portfolio. This is exciting for Catalyst and will leverage its cash position to acquire or in-license other therapeutics outside of neuromuscular diseases. Catalyst said it’s prepared to invest more heavily in research and development, “including acquiring earlier stage opportunities and validated innovative technology.”
As part of this expansion, the company is going to add new executives to its team. With Firdapse annual net revenues for 2020 estimated at approximately $118 million already, this could be a big next step for Catalysts as a company. Aside from this expansionary effort, the company still has plans to further develop Firdapse in other indications, including treatment for Hereditary Neuropathy with Liability to Pressure Palsies and a longer-acting formulation treatment for LEMS patients.Outlook Therapeutics Inc.
Analyst: Ladenburg Thalmann
Outlook Therapeutics is no stranger to big moves either. Within the last 3 weeks, OTLK stock has soared from lows of $0.93 to highs of $4.26. This all had to do with securing funding for the development of ONS-5010 / LYTENAVA to treat wet AMD and other retinal diseases.
Ocular health stocks have been prominent in the market recently, so, of course, sympathy sentiment has also played its part. However, looking ahead will likely be in the spotlight as it has just seen the last patient for their final visit in the ongoing safety study evaluating the treatment. The data from this study is expected to be reported in the second quarter of this year.
Unfortunately, a recent Q1 earnings disappointment saw a bearish reaction in the market that took shares back down to levels around $2.50. Needless to say, it would appear that sentiment has become more upbeat heading into the end of the week. Outlook is set to present at the Canto Fitzgerald “Eyeing Key Events and Programs in the Ophthalmology Space in 2021” virtual event this Friday.
Based on Ladenburg’s analyst ratings, the OTLK stock forecast over 130% higher than its current trading levels.Sesen Bio Inc.
Analyst: HC Wainwright
Sesen Bio has been a force to reckon with since early last year. In fact, after hitting 52-week lows of $0.37 in March, SESN stock hasn’t looked back. This week, shares reached a new 52-week high of $3.54 and a level not traded at since 2016. The market’s big focus has been on the company’s cancer treatments, including Vicineum for BCG-unresponsive on-muscle invasive bladder cancer.
Sesen has been intently focused on bringing this treatment to market as quickly as possible. It submitted a Biologic License Application last year, and this past week, the FDA weighed in. Sesen happily announced that the FDA accepted filing the BLA for Vicineum. The Administration also granted the application Priority Review. This is usually only granted for medicines used to treat serious conditions. If approved, it would be a significant improvement in the safety or effectiveness of the treatment.
Now the clock starts ticking again. If SESN stock is on your list, keep this next sentence in mind. With Priority Review, the anticipated target Prescription Drug User Fee Act (PDUFA) date for a BLA decision is August 18th of this year. Sesen also said this week that in the next one to two months, it expects to submit its Marketing Authorization Application (MAA) to the European Medicines Agency.
Right now, H.C. Wainwright’s recent SESN stock forecast price sits over 150% higher than current levels.Fortress Biotech Inc.
Analyst: Dawson James
Yes, you read that correctly. Dawson James Securities came out on Wednesday and boosted its price target from $16 to $21 for FBIO. That bumped its FBIO stock price forecast from 311% up to 439% compared to current levels. The move comes as Fortress and many of its other companies, including Mustang Bio (NASDAQ: MBIO), and Avenue Therapeutics (NASDAQ: ATXI), and Checkpoint Therapeutics (NASDAQ: CKPT), have all gained some attention.
This month Avenue could be one of the names to keep track of. Back in December, the company announced that it met with the FDA relating to a path forward for its IV tramadol. In that update, Avenue said it intends on submitting another New Drug Application for the treatment this month.
Aside from that, Fortress itself has a rolling submission of its New Drug Application for CUTX-101. It expects to begin this quarter and be completed by the end of the second quarter of 2021. CUTX-101 is currently in development at our partner company, Cyprium Therapeutics, Inc., maintaining copper levels in patients with Menkes disease.
Fortress’s Cosibelimab treatment may also be a point of focus this quarter. The company’s cancer drug is in the process of a registration-enabling study in metastatic cutaneous squamous cell carcinoma. Full enrollment of the study is expected this quarter, with top-line results in the second half of this year. With so many moving parts, there will be a lot to keep track of if FBIO is on your list of penny stocks right now.