Hot Penny Stocks To Watch Before Next Week
Penny stocks are red hot right now, so why wouldn’t you be looking for the top ones to buy right now? You could search for them by looking at trending sectors and industries. Different economic data could also direct you to some of the top penny stocks today. But I’ll cut right to the chase. Most of the time, even if the S&P or Dow are getting taken down by the bears, you’re likely to find at least a handful of cheap stocks experiencing triple-digit gains.
Why is this? The fact of the matter is that we’re talking about an entirely different ecosystem in this world of penny stocks. Also, instead of being long-winded, there are limitations in picking up stocks under $5. Many of the major Wall Street firms can’t direct as much (or any) capital to lower-priced stocks. They have sets of rules that require them to manage their clients’ money ethically. One of the codes of ethics involves limiting risk. Since price alone poses a significant risk, stocks under $5 get pushed aside by these larger organizations.
Does that mean all penny stocks are ignored by Wall Street firms and investing heavyweights? Absolutely not, and, in fact, many of these firms & investors implicitly focus on them. If you recall, “The Big Short” investor Michael Burry was one of the first to identify the opportunities that GameStop “could pose” in the right light. That was in 2019, and we reported on this event as the Big Short investor bought shares of the penny stock (at the time).
So what’s going to be the “next GME”? I’m sure plenty of newbie traders are wondering about this. While they read the tea leaves of the market gurus, the rest of the traders are going to look for more opportunities in the meantime.
Hot Penny Stocks To Watch
Zosano Pharma Corp.
Biotech penny stocks have been some of the hottest in the stock market today. Known for cutting edge advancements in life sciences, these companies can be the epitome of risk/reward. One of the main reasons is that during the trial stages, companies either make big leaps forward or fall flat. This can make for a volatile series of headline-fueled catalysts.
Zosano has shown both sides of this coin. Since the beginning of the year, ZSAN stock is up more than 100%. But, since reaching 52-week highs earlier this week, ZSAN is actually down over 40%. So let’s look at the catalyst behind both moves, up & down. At a higher-level overview of the company, ZSAN shares rallied as the company continued reaching new milestones in its Qtrypta™ microneedle system development.
Zosano requested a Type A meeting with the FDA relating to its resubmission of a New Drug Application. About a month after the news, the company learned the requirements for resubmission and set forth an action plan. Ultimately, an additional pharmacokinetic study will be necessary for resubmission.
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As far as the pull-back from earlier in the week, this may have been due to just profit-taking. In general, a pullback like that tends to have some kind of news or filing associated. However, neither has come up (so far). Needless to say, it looks like ZSAN has started turning heads on Friday, once again.
Hotel-booking site Trivago has been in and out of the spotlight as virus case numbers have increased and decreased. However, with stimulus on the horizon and vaccines in circulation the travel industry has gotten a booster shot of its own. TRVG stock has climbed for the last few months as speculative momentum built in travel and reopening stocks.
This week, analysts from Morgan Stanely weighed in on the company. Is it a signal to the broader hospitality industry? That is something we’ll have to watch closely. However, Morgan Stanley kept its Equal-Weight rating on TRVG but increased its price target on the stock to $2.40. This came just one day after Susquehanna analysts raised their target from $1.25 to $3 on the penny stock.
In Trivago’s recently filed earnings report, the company posted lower year-over-year sales and posted a loss for the quarter. However, Trivago CFO Matthias Tillmann said in an interview with Barron’s said that the second half of the year could see a major return of activity.
“We have seen it last year in Europe when the weather gets better, numbers tend to be lower. In Germany, the government…