If you’re putting together a list of penny stocks right now, how are you building that list? Are you focusing on momentum or looking for fundamental catalysts? Will global events play a role or are you just focusing on company-specific updates? Whatever your strategy is, a plan is never a bad idea to have. This week we’ve got more economic data that’s come out, both in the U.S. and around the world. On Thursday, the latest round of jobless claims and PMI data.
Initial weekly jobless claims total 884,000, versus 850,000 expected. Meanwhile, companies are still announcing layoffs. This figure was dropped from 1.01 million the week before. That drop was partly attributed to a change in the methodology used to tabulate the seasonally adjusted weekly figures.
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“Bottom line, economic growth will rebound sharply in Q3 and again in Q4 but these labor market stats still point to a long way to go in terms of hiring,” Peter Boockvar, chief investment officer at Bleakley Advisory Group, wrote in a note. “These numbers also reflect more than a month without expanded benefits of $600 per week.”
Then again, if the broader markets pull higher, this isn’t a lock that all penny stocks follow suit. More times than not, these cheap stocks will break out and break down regardless of the markets, in general. However, that doesn’t mean sector strength doesn’t factor in. We saw how big of a role that can play when coronavirus and biotech penny stocks took off this year. Keeping this in mind, some sectors are in the driver’s seat today including transportation, tech, and biotech among others. Are any of these on your list of penny stocks right now?Penny Stocks To Buy [or sell]: Commercial Vehicle Group Inc.
Commercial Vehicle Group Inc. (CVGI Stock Report) has been one of the top penny stocks to watch for a few months. In fact, since the beginning of the second quarter, CVGI stock has steadily crept up from around $1.25 to $5 so far this week. The biggest surge in the market came in August after Commercial Vehicle reported its second-quarter earnings.
Revenues totaled $126.9 million, adjusted EBITDA totaled $1.2 million, and the company enacted a rapid cost reduction strategy. This all boiled down to a solid earnings beat. EPS came in at a loss per share of $0.24. This was considerably less than the Street’s estimate of an EPS loss of $0.41. Furthermore, that $126.9 million sales figure also beat estimates of $124.73 million. The company also posted an outlook for Q3 sales in a range of $158.62 million to $171.31 million. Analysts expected this to be closer to $154.12 million. All things considered, the upbeat guidance and strong earnings beat triggered a big move for CVGI stock.
Since then, the trend has been strongly in favor of the bulls. Though this is on the higher side of the penny stock range, analysts are started to take notice. Colliers Securities, for instance, upgraded the company to a Buy with a $6.50 price target. Barrington Research lifted its price target to $5 from $3 and kept its Outperform rating. This week, Commercial Vehicle Group will attend the Colliers Institutional Investor Conference to meet with buy-side investors. Considering these latest developments, will this vehicle products company be on your list of penny stocks in September?Penny Stocks To Buy[or sell]: Trevena Inc.
Trevena Inc. (TRVN Stock Report) has been another one of the penny stocks to watch this year. We first picked up on Trevena in June after it began collaborating with Imperial College London to evaluate the potential of TRV027. This is the company’s potential treatment for acute lung injury contributing to acute respiratory distress syndrome (ARDS) in COVID-19 patients.
During the last few weeks of August, Trevena caught a bit more attention after some coronavirus news. the company announced that Imperial College London began a proof-of-concept study for TRV027. The Company expects to report topline data in Q1 2021. Imperial College is sponsoring and funding this study with support through the British Heart Foundation Centre for Research Excellence Award.
Obviously, you’ll see that TRVN stock dropped hard during mid-August. It wasn’t related to a bad readout or trial result. The company announced a $50 million funding that equated to offering discounted shares to the tune of $2.30 per share. Considering the price was trading over $3 just days prior, you could see why the market reacted the way it did.
Like Commercial Vehicle Group, Trevena will also present at a few conferences this month. Over the next few weeks, the company is set to present at H.C. Wainwright’s 22nd Annual Global Investment Conference, Cantor Fitzgerald’s Virtual Global Healthcare Conference, and Oppenheimer’s Fall Healthcare Life Sciences & MedTech Summit. Heading into mid-month, TRVN stock has experienced a few consecutive days of upward momentum. Will this be on your list of penny stocks this month?Penny Stocks To Buy [or sell]: Agenus Inc.
Agenus Inc. (AGEN Stock Report) is one of the companies we’ve followed for a while; since March in fact. During the past 6 months, we’ve seen, first-hand, the bullish move that AGEN stock made. While March was admirable for the penny stock, things became more active in the middle of the second quarter. This came as the company presented at the American Society of Clinical Oncology Virtual Scientific Program. Specifically, Dr. Steven J. O’Day, the Executive Director of the John Wayne Cancer Institute and Cancer Clinic and Director of Providence Los Angeles Regional Research presented data on AGEN1181. This is the company’s oncology drug candidate.
The obvious response to the data presented was favorable as AGEN stock legged up in May. Since then, the market has been relatively range-bound between $3.50 and $4.30, with a brief pullback to Q3 lows of $2.89. This week, however, AGEN stock is back in motion ahead of upcoming presentations. Next week, Agenus presents data from 2 Phase 2 trials of its balstilimab at the European Society of Medical Oncology. The focus of the trials was in patients with refractory cervical cancer.
Considering the reaction to the last major presentation in May, are investors speculating on what’s to come? Since the presentation is next Friday, there are still quite a few days in between. But also keep in mind that there’s always risk involved. If the presentation reveals something different from expectations, things might also get volatile. In any case, Thursday’s session has already seen AGEN stock jump and make fresh 52-week highs.