I know it’s the weekend of the Big Game, and you may be preparing for the pregame right now. But Monday will bring a whole new day for trading penny stocks. Will you be ready? Many traders wait until premarket, the day of, to put together their list of penny stocks to watch, but it doesn’t hurt to use some weekend downtime to do the same. The main difference is you’ve got fewer “moving parts” to include.
February has also become another milestone month for the stock market. Both the S&P and Nasdaq reached new all-time highs. We also see that the Russell 2000 Small-Cap ETF (NYSE: IWM) set its own records, and both tech & biotech helped lead the charge. Take a look at benchmark ETFs like the Nasdaq Biotech ETF (NASDAQ: IBB) and the Technology Select Sector SPDR Fund (NYSE: XLK). Both of these funds reached fresh highs during Friday’s session. The big question right now is will the trend continue, or is a pull-back coming?
In January, the market saw one of its largest dips in months. Using the SPY as an example, after hitting highs of $385.85 in January, the ETF dropped 4.5% during the days that followed. The SPY ended up finding support around its 50-Day moving average, and since then, it has continued trending higher—something to also factor in the new retail portion of the stock market. GameStop set the tone for this group of traders. Essentially it has shown them that there is a potential influence that retail can have on the market, not just large funds. Last week showed no signs of that trend slowing either, so keep an eye on that as it likely develops in 2021.What Are The Best Penny Stocks To Buy This Week?
There’s no right or wrong answer here as long as you find the penny stocks that make you money; those are the best. But it doesn’t hurt to have a list put together for reference ahead of time. While analysts aren’t the final say in any strategy, they focus on many different metrics in formulating a buy, sell, or hold thesis on a company. Most traders will use these as 1 small portion of their broader research strategy. Here is what 4 of these firms think about 5 biotech penny stocks:
- Protalix BioTherapeutics Inc. (NYSE: PLX)
- Infinity Pharmaceuticals Inc. (NASDAQ: INFI)
- Abeona Therapeutics Inc. (NASDAQ: ABEO)
- Biolase Inc. (NASDAQ: BIOL)
- Synthetic Biologics Inc. (NYSE: SYN)
Shares of PLX have been on tare over the last few months. In fact, since mid-December, the penny stock has risen more than 40% to highs of $4.98 during Friday’s after-market session. The company has been working on commercializing recombinant therapeutic proteins produced by its proprietary ProCellEx® plant cell-based protein expression system.
This week is an important one for Protalix and potentially a high-risk one for traders with PLX on their list. The company presents one year of treatment data from a phase 3 open-label study, BRIDGE, of pegunigalsidase alfa, PRX-102, to treat Fabry disease patients. The presentation is scheduled for Wednesday afternoon, and, therefore, speculation could play a role early on this week. Since this is a 1-year Phase 3 study, stakes could be high.
As far as analysts are concerned, the most recent rating comes from H.C. Wainwright. The firm gave PLX a Buy along with an $11 price target last year.Infinity Pharmaceuticals Inc.
Similar to Protalix, Infinity also has an important week ahead. The company reports data from MARIO-275 on the first day of the American Society of Clinical Oncology 2021 Genitourinary Cancers Symposium. This is a randomized, placebo-controlled Phase 2 study evaluating the benefit of adding eganelisib (IPI-549) to Bristol-Myers Squibb Co’s (NYSE: BMY) nivolumab (Opdivo®) in patients with advanced urothelial carcinoma.
Since the presentation isn’t until Thursday, traders will have to speculate until then. Considering the progress made already, this could be an important milestone for the company to reach if results are favorable. In a previous PR, Adelene Perkins, CEO of Infinity, explained that “the Mario-275 study provided Infinity with important insights to shape the future of eganelisib in urothelial cancer. The data from the 49 patients enrolled in the study are very encouraging.”
While we wait and see what the results bring, analysts have already weighed in. Late last year, B. Riley boosted its price target for INFI to $4.50 from $3 and maintained its Buy rating.Abeona Therapeutics Inc.
Shares of Abeona’s stock have also been in rally mode since last quarter. Since reaching 52-week lows of $0.99 in November, ABEO stock has climbed as much as 164%. Similar to the other companies mentioned above, this is also a big week for Abeona.
In December, the company announced that abstracts detailing new interim results from its ABO-102 Phase 1/2 Transpher A study for mucopolysaccharidosis (MPS) IIIA and ABO-101 Phase 1/2 Transpher B study for MPS IIIB were accepted for platform oral presentations this month. Specifically, these will be during the late-breaking abstract session at the 17th Annual WORLDSymposium™ on Friday. The company will also host a clinical data review on ABO-102 and ABO-101 in a live webinar for the investment community on Tuesday, February 16.
As of right now, analysts appear bullish on the company. H.C. Wainwright recently maintained its Buy rating but shifted its price target from $11 to $8. Among 4 other analysts, H.C. has the highest price target. However, all firms carry a Buy rating or equivalent right now.Biolase Inc.
Biolase doesn’t have any pre-announced data read-outs this week, but it could be another one of the biotech penny stocks to watch. Unlike other names on this list, the company focuses more on medical devices for the dental industry. This year, Biolase closed a deal with one of the largest dental support organizations (DSO) in the US. The DSO has more than 330 affiliated practices in 20 states. The deal’s goal is to expand laser adoption and hands-on training programs in targeted geographies, which Biolase expects to lead to a rollout across all DCA offices in 2021.
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The company has been embroiled in the fight for shareholders to approve a reverse stock split in BIOL stock. A special meeting of stockholders is set to reconvene next week, where Biolase hopes to gain final approvals. However, because the penny stock has recently regained compliance with Nasdaq’s minimum bid requirement, will a reverse actually be necessary? If approved, the company would conduct a 1-for-25 split in its common stock.
Late last month, Maxim Group analysts weighed in on the company. The firm carries a Buy on the stock and boosted its target price from $1 to $2.Synthetic Biologics Inc.
Synthetic Biologics has also been on our list of penny stocks to watch during the last few months. The clinical-stage biotech focuses on treating gastrointestinal diseases. There haven’t been many updates from the company this year other than in its filings. However, the center of interest remains on its SYN-004 (ribaxamase).
Synthetic received approval from the Institutional Review Board at Washington University School of Medicine in St. Louis late last year to commence a Phase 1b/2a clinical trial of SYN-004 in allogeneic hematopoietic cell transplant recipients. That’s relevant right now because the company expects to begin enrollment for the trial in the first quarter of this year.
While the market awaits an update on this trial, shares continue surging. Since the beginning of November, SYN has climbed as much as 457%. This includes the huge jump SYN stock made on January 5th, when it hit $1.70. A 13D filing came out one day later, showing Custodian ventures LLC took up a 9.9% stake in the company.
Do analysts like SYN? If you look at Alliance Global Partners’ rating from last year (its most recent), it has a Buy on the stock. Alliance also has a target of $1.25.Biotech Penny Stocks To Watch This Week
Whether or not you have biotech penny stocks on your list is up to you. However, since the biotech and the small-cap ETFs have shown such strength, it could be something to consider. One thing’s for sure, no matter what industry you look at, there will usually be some top penny stocks to watch daily. Will any of these, be on your list this week?