6 Penny Stocks To Buy According To Analysts, Targets Up To 322%
Analysts are bullish on these penny stocks, are you?
Looking For Penny Stocks To Buy Today?
There are plenty of different ways to find penny stocks to buy today. You could pile on the social sentiment trend to identify the next round of Reddit stocks to watch. You could also look into other catalysts like low float stocks to buy. Some traders, however, like to do more than follow the crowd.
There’s something to be said about researching stocks beyond just surface sentiment. Once you find interesting companies to add to your list, that’s when the real fun starts. That’s because if you aren’t a high-frequency day trader, you want to know A. Why a stock’s moving and B. If that move can sustain for longer than 60 seconds.
Thanks to the pandemic, plenty of new traders came into the stock market. Without work and constant stay-at-home orders, we’ve got an entirely new retail trading army that has materialized. But now that we’ve got an FDA-approved vaccine, things are starting to go back to “normal” in some senses. That also means people are going back to work and can’t sit in front of their trading accounts all day. So the latest short-squeeze stock could pose more of a risk since you can’t monitor the volatility minute-by-minute.
This is where we’ve seen an uptick in attention on analyst sentiment, believe it or not. While these stock market watchers aren’t always right, their views are generally on time frames beyond a day or a week. In this instance, I feel that traders are folding analyst insight into their overall diligence process. In today’s article, we’ll take a look at some hot penny stocks analysts are bullish on right now.
Penny Stocks To Buy [According To Analysts]
- Elys Game Technology (NADAQ:ELYS)
- Veon Ltd. (NASDAQ:VEON)
- MedAvail Holdings (NASDAQ:MDVL)
- Southwestern Energy (NYSE:SWN)
- Exela Technologies (NASDAQ:XELA)
- Lexicon Pharmaceuticals (NASDAQ:LXRX)
1. Penny Stocks To Buy [According To Maxim]: Elys Game Technology (NADAQ:ELYS)
Esports and online betting are red hot this year. While I feel the industry is just getting warmed up, there are plenty of fresh faces and excitement to keep tabs on even during these emerging stages. Elys Game Technology is one of the penny stocks we’ve followed for months watching it climb from under $2 to over $8 at one point in 2021. This week’s trading action has picked up again, with August 31st becoming a big catalyst day.
Elys announced that it received its Washington DC sports betting license. This news sent shares surging. If you’ve followed the broad strokes of this company’s story, you’ll remember what was said in its latest quarterly update. Executive Chairman Michele Ciavarella said, “Considering the significant tailwinds boosting the entire sports betting and i-gaming sector in new markets both in Canada and the U.S., and a number of strategic growth opportunities on the radar in Europe, we remain confident in the sustainability of our long-term vision and growth strategy.”
The company’s prior acquisition of USBookmaking opens things up for Elys to sportsbook opportunities in the U.S. in 4 states to start. With this latest win and continued revenue growth quarter over quarter for Elys, this could be one of the penny stocks to watch. What’s more, analysts at Maxim are also behind the company right now. With a Buy rating and price target of $10, that suggests levels of 86% higher than current retail prices.
2. Penny Stocks To Buy [According To Bank Of America]: Veon Ltd. (NASDAQ:VEON)
Veon Ltd is another one of the penny stocks that analysts are bullish on right now. Bank of America analysts have a Buy on the stock along with a $2.70 price target. Though it isn’t to the magnitude upside of Elys, it still represents a price 25% higher than where VEON stock is trading today.
Communications stocks have taken a nice spotlight as reopening efforts continue expanding globally. In Veon’s case, the company specializes in 4G connectivity services. It’s building a global infrastructure that includes services in Russia, Pakistan, and other countries. In fact, during the second quarter, the Group’s 4G user base increased by 26 million year over year and 6 million quarter over quarter, resulting in total 4G users of 93 million.
Kaan Terzioğlu, Veon CEO, expressed his upbeat outlook on the future for Veon this year. “Our ongoing focus on growing our 4G customers remains a key driver of this performance. They now account for 43% of our total base, an 11 percentage-point growth over the past year. This translates into better services and overall performance and will continue to provide traction to our business for the rest of this year and beyond as we build out our Digital Operator model across our markets.”
With this, VEON stock has continued climbing. As of this week, it tested levels not seen since before the world shut down last March.
3. Penny Stocks To Buy [According To Cowen]: MedAvail Holdings (NASDAQ:MDVL)
While it’s great to see penny stocks continue climbing higher, some traders look for ones falling to their historic lows. In the case of MedAvail, the penny stock is trying to battle back from a big drop earlier this month. An earnings miss prompted a sell-off in MDVL stock that took it from over $7 to under $3. But since hitting those lows, the penny stock has slowly attempted to recover. The biggest impact on price stemmed from the company cutting its full-year guidance. But management remains upbeat on its ability to execute on new business this year.
Ed Kilroy, Chief Executive Officer of the tech-backed pharmacy organization, said, “We are looking forward to bringing our Retail Pharmacy Services to the Florida region in the second half of 2021, and we remain excited about the opportunity to continue adding value to our current partners, as evidenced by our recent expansions in several key accounts…we expect to deliver revenue growth in excess of 100% in 2021 and to maintain this topline growth rate in 2022, assuming the world returns to its pre-Covid levels in due course.”
While analysts have readjusted their ratings based on these results, the outlook has remained generally bullish. Analysts at Cowen, for instance, have an Outperform on the stock right now. They’ve also got a $9.50 price target, which is currently 182% higher than where MDVL stock trades today.
4. Penny Stocks To Buy [According To Raymond James]: Southwestern Energy (NYSE:SWN)
Energy stocks are getting recharged this quarter (no pun intended). Southwestern Energy has been a popular penny stock in this arena. Year-to-date, SWN stock is up 50% so far. As a producer of natural gas and natural gas liquids, Southwestern has been directly tied to the underlying energy prices. The recent surge in natural gas prices to 2021 highs hasn’t hurt either.
With this as a backdrop, analysts have also become increasingly bullish on SWN stock. This week, Raymon James became the latest to do so. The firm maintains an Outperform rating on the company and lifted its $6 target to $6.50. Based on the current price of SWN stock, that’s over 40% higher right now.
5. Penny Stocks To Buy [Accoridng To B.Riley]: Exela Technologies
Exela Technologies has been a popular penny stock to watch this quarter. A nice pop to start things off at the end of June put XELA stock on the radar of retail traders. You’ve also got the crowd looking for penny stocks with high short interest following the progress of XELA as well. In looking at a few outlets, the short float percentage is sitting around 20%. While it isn’t the highest on the list, it is a relatively higher level of short. Needless to say, the last few sessions have been bullish in the market. Furthermore, while daily volatility is apparent, the overall trend since the end of the second quarter has pushed higher.
With a push toward a more digital ecosystem, technologies like Exela offer have come into focus. In particular, the company reported strong Q2 growth thanks to the expansion of its digital solutions for small business clients. Exela has also begun launching products globally. This includes the e-sign platform DrySign, in India as well as its Digital Mail Room, which was launched in the United Kingdom, France, & Germany over the last few months.
This week analysts at B. Riley placed their bets on XELA stock. The firm started the stock at Buy and gave a $4 price target. Based on current levels, that’s over 50% higher right now.
6. Penny Stocks To Buy [According To Citigroup]: Lexicon Pharmaceuticals (NASDAQ:LXRX)
Lexicon Pharmaceuticals currently holds the level of bullish sentiment based on analysts at Citigroup and their current price target. The firm set a Buy on LXRX stock along with a $20 price target. If you look at the most recent trading levels, this target is 322% higher right now.
What has analysts bullish right now? Analyst Yigal Nochomovitz recently said that a “critical development highly favorable” to the company, he understood from the ESC Congress that Eli Lilly’s (NYSE:LLY) EMPEROR-Preserved empagliflozin had achieved a “relative risk reduction of 21% on the composite endpoint of cardiovascular mortality and heart failure.”
What does this mean for Lexicon? Nochomovitz expressed that this could set Lexicon’s sotagliflozin platform apart in the heart failure treatment arena. It “drives home the message that Lexicon has pitched for years that sotagliflozin isn’t just another SGLT2 aiming to piggyback on pharma’s success with the class, but has novel clinical value given the added SGLT1 inhibition,” Nochomovitz said in a research note. With Lexion working toward its New Drug Application submission to the FDA later this year, some attention has begun to focus on the company’s next steps. Thanks to this latest analyst note, more dots are being connected.
Final Thoughts On Penny Stocks
Are analysts always right? No, and many companies ultimately fall short of Wall Street expectations. However, their insight can help beef up your own thesis based on their more focused approach to individual companies.