Penny Stocks To Buy According To Analysts
Whether you love penny stocks or hate them, you can’t argue with the fact that big money can be made. By definition, the term itself references stocks to buy for less than $5. So even the slightest 50 cent move from the highest-priced penny stock is a near-market-beating gain.
For the most part, newer retail traders actively learn how to day trade and start by focusing on cheap stocks to watch. Since it doesn’t take a whole lot of capital to buy penny stocks, they’ve become somewhat of a “go-to” for mom-and-pop investors. This year, in fact, has shed a lot of light on the power that these “dumb money” traders can have on the stock market.
The massive squeeze the ensued after thousands of traders using social media rallied behind GameStop (NYSE: GME) opened everyone’s eyes this year. This isn’t “dumb money,” and, in fact, retail traders have been able to outsmart Wall Street funds in a big way.
Look at Melvin Capital, which got caught up in the GME move but on the wrong end. According to reports from “people familiar with the situation” last week, the firm lost 49% on its investments during the first three months of 2021. Now retail traders are getting take more serious this year, and it has become a strong trend to follow. We’re not just seeing people scan for trending stocks on major finance outlets. We’ve started seeing pointed searches for penny stocks on Reddit, specifically.
What Do Analysts Think About Penny Stocks?
Besides the average retail trader looking for penny stocks to buy, what do analysts think? Believe it or not, several top firms are firmly behind penny stocks. Many actually have given price targets and ratings. For this article, we’ll take a look at 4 companies that 3 analysts have weighed in on. Once you see what’s been happening with these companies, you can decide if your outlook lines up with analysts or not.
- cbdMD Inc. (NYSE: YCBD)
- Pieris Pharmaceuticals Inc. (NASDAQ: PIRS)
- Purple Biotech Ltd. (NASDAQ: PPBT)
- aTyr Pharma Inc. (NASDAQ: LIFE)
Cantor Fitzgerald Gives Neutral Rating On cbdMD Inc. (NYSE: YCBD)
With the “green rush” on hold, for now, marijuana penny stocks have been stagnant. Even with the upbeat sentiment stemming from New York’s legalization, cannabis remains federally illegal. The last few months have seen some volatility in pot stocks. But, for the most part, the overall trend is relatively bullish on the year.
If you look at some of the benchmark marijuana stock ETFs like the Alternative Harvest ETF (NYSE: MJ) or the AdvisorShares Pure Cannabis ETF (NYSE: YOLO), you’ll see what I mean. While both have been flat for the last several weeks, since the beginning of 2021, these ETFs focused on marijuana stocks are green.
cbdMD has mirrored this trend. Though it’s down from its 52-week high, YCBD…