4 Penny Stocks With Huge Potential According To Analyst Forecasts
4 Hot Penny Stocks To Buy According To Analysts.
Everyone wants to get rich quickly, and penny stocks have frequently become the place where traders focus on quick gains. Aside from the underlying risks of trading penny stocks, the potential rewards can be incredible. Few places offer a wide range of ways to make big money with a low outlay of capital than stocks under $5. Just look at some of the more recent examples as energy stocks have surged.
For example, Indonesia Energy (NYSE: INDO) woke up small-cap stocks for over a week as shares surged from under $5 to over $86. What's more, the potential of penny stocks isn't just in the ones that explode beyond the $5 threshold either. Thursday saw agriculture and farming stocks surge, with companies like Agriforce Growing Systems (NASDAQ: AGRI) jumping more than 100% while still trading below the $5 threshold.
Penny Stocks To Buy For Under $5
- Exela Technolgies Inc. (NASDAQ: XELA)
- Kala Pharmaceuticals (NASDAQ: KALA)
- Arcadia Biosciences Inc. (NASDAQ: RKDA)
- AquaBounty Technologies Inc. (NASDAQ: AQB)
Penny Stocks With Huge Potential
The thing about penny stocks is that their potential is subjective to different periods. For example, shares of AGRI stock are exploding today. Will that be the case tomorrow, or will selling erase the 100%+ gains from today? Furthermore, what about some of the penny stocks only climbing 1-2% today. What if they end up falling 300% higher a month from now. The time frame is much different, but the goal is the same: to make money with penny stocks. Today, we look at a few companies that analysts have grown bullish on. Based on the most recent price targets, it's also worth noting that these firms think some of these are penny stocks with huge potential.
Exela Technolgies Inc. (NASDAQ: XELA)
Shares of Exela Technologies have been red hot in the stock market this year. Even with a pullback in mid-January, XELA stock has steadily made its way back up to the $1 mark. Believe it or not, even though it's still trading for pennies, it's up more than 100% in the last few months.
The company focuses on business automation technology as well as digital transformation solutions. Furthermore, with 4,000+ customers, including Fortune 100 companies, Exela has established itself on the operations side of the business. On the market side, a large float has remained a hurdle, although a recent 100 million share buyback update has aimed at curbing the size.
Regardless, traders have remained focused on XELA stock for a few reasons. One of the main points of interest is Exela's upcoming earnings this week. Friday, it reveals performance results from the fourth quarter and full year of 2021. Indeed, some of the Q4 deals signed last year may be something the market looks at. Exela renewed a $72 million agreement with a Global Human Capital Management Services organization. It also signed a contract to become the UK post office's check processor.
Analysts at Cantor Fitzgerald see XELA as one of the penny stocks with huge potential. The firm currently has a Buy rating. It's paired with a price target nearly 350% higher than current trading levels sitting at $4.
Kala Pharmaceuticals (NASDAQ: KALA)
This week was a big one for Kala in terms of market momentum. The penny stock surged from lows of $0.59 to highs of more than $1.50 on the back of big news. Kala announced that its EYSUVIS platform was added to the coverage of UnitedHealthcare. This covers roughly 13 million lives, according to the company's March 8th press release. EYSUVIS is a commercially available and FDA-approved medicine for treating symptoms of dry eye disease.
In addition to UnitedHealthcare, Cigna Medicare added the treatment as a preferred brand starting last month. According to Kala, this added another 1.9 million Medicare lives. The platform now becomes available with plans from Express Scripts, Prime Therapeutics, and, of course, Cigna. But what do analysts think?
Right now, according to HC Wainwright, KALA could be one of the penny stocks with huge potential. The firm currently has a Buy rating on the penny stock. Its $9 target is nearly 600% higher than current levels as of this article.
Arcadia Biosciences Inc. (NASDAQ: RKDA)
In one of the biggest days of the year, Arcadia Biosciences has demonstrated its potential. Since the beginning of 2022, shares are now up more than 50%, thanks to several key developments during the year's first quarter. Initially, the company was granted a Notice of Allowance for a US Patent titled "Wheat Having Resistance to Glyphosate Due to Alterations in 5-Enol-Pyruvylshikimate-3 Phosphate Synthase."
Given the current trend for things like agriculture and wheat stocks thanks to the Russia-Ukraine conflict, related stocks are trendy right now. This was amplified this week after a PatentScope document was published for the company's "Methods of Increasing Fiber In A Wheat Grain." It may seem unusual without a corresponding press release. But traders have begun circulating the raw data during a time when sanctions on grain are pushing prices sky-high.
Analysts also seem bullish on the company. At the beginning of the year, HC Wainwright updated its price target on RKDA stock to $6 (down from $7) and kept a Buy rating. When looking for penny stocks with huge potential, based on this price target, HC analysts seem to expect upward of 220% even from current prices on Thursday.
AquaBounty Technologies Inc. (NASDAQ: AQB)
While "farming stocks" are in focus, AquaBounty – one of the former Cathie Wood penny stocks – has come back into focus. The company specializes in aquaculture and sustainable seafood farming. Its genetically engineered salmon program focuses on antibiotic-free and contaminant-free fish production to offer a lower carbon impact on the environment.
AquaBounty has already begun preparation for constructing a 10,000 metric ton salmon farm in Ohio. What's more, the company's latest round of earnings has also shed some light on the company's potential. In particular, AquaBounty's 2021 revenue of $1.17 million came in significantly higher than its previous year's revenue of $128,000. "Looking ahead, we are focused on continuing our momentum in increasing our harvest output, onboarding more new customers, and growing our revenue. We are excited about commencing construction on our Ohio farm, which is planned to generate roughly eight times the output capacity of our Indiana farm," explained Sylvia Wulf, Chief Executive Officer of AquaBounty.
HC Wainwright analysts appear to have high hopes for the company as well. In their most recent outlook, the firm upped its Neutral rating to a Buy. Analysts also placed a price target of $4.50 on AQB stock. As far as penny stocks with huge potential, the rating sits over 160% higher than current trading levels.
Penny Stocks to Buy or Avoid
Ultimately, whether penny stocks with huge potential are your focus or not, research is critical. Analysts, for example, may have given specific ratings at certain points in a company's history. But things can change rapidly, as we've seen with the stock market as a whole, recently. With that, keep in mind that just because analysts think these are penny stocks with huge potential, it doesn't mean there aren't plenty of risks involved.
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