Best Penny Stocks To Buy Now? Analysts See 85%-288% Upside In 3

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With earnings season in full swing, there’s plenty to watch in the stock market today. For us, it’s all about penny stocks, and you should be watching these cheap stocks too. Why? Let me paint the picture. You find one of “these” stocks under $5. Let’s say it’s trading around $3.20. The next day it skyrockets to $14.12 & you more than tripled your money. Sound farfetched?

It’s not, and that’s exactly what happened with Neurometrix Inc. (NASDAQ:NURO) this week. The company regularly traded less than 100,000 shares per day, but on July 21st, NURO stock saw more than 282 million shares trade hands. What was the catalyst? The company won FDA Breakthrough Device Designation for its wearable fibromyalgia treatment device.

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The crazy part is that this isn’t an uncommon event. Earlier this month, SGOCO Group (NASDAQ:SGOC) saw a similar move. It had less to do with the company’s fundamentals and more to do with its share structure. Retail traders were searching for lower float penny stocks to buy. In this case, SGOC stock became the target.

On July 8th, the penny stock was trading around $2.60, and by the 12th, it had reached highs of $29. Now, do all penny stocks experience 100’s or 1,000’s in percentage gains every day? No, but the point is that there is big potential with these cheap stocks. The important thing to remember is just as quickly as they rise, they can fall.

Best Penny Stocks To Buy [Or Avoid]

Retail traders have found a “home” for gauging sentiment in places like Reddit and other social media outlets. This is where we saw the rise of “the ape movement” and a rally behind stocks like AMC Entertainment (NYSE:AMC) and other so-called meme stocks. Reddit isn’t the only thing that retail traders are looking at right now, either.

Analysts have also gained interest this year. These Wall Street observers focus on the fundamental potential of companies, their pipelines, products, and other aspects to determine a proper valuation. They give Buy, Sell, and Hold ratings based on industry competition, past performance, and key industry data to make up their minds. In this article, we’ll take a closer look at 3 that analysts are bullish on and have weighed in with targets of up to 288%:

  1. Energy Fuels Inc. (NYSE:UUUU)

  2. Hut 8 Mining Corp. (NASDAQ:HUT)

  3. Chembio Diagnostics Inc. (NASDAQ:CEMI)

Penny Stocks To buy [According To Noble Financial]: Energy Fuels Inc. (NYSE:UUUU)

If there’s one clear trend that is frequently discussed, it’s reopening. Despite the recent stock market sell-off, economies remain on track to reopen at some level. With that has come a rise in things like energy stocks. The “green energy” future that the U.S. president wants to create has all forms of power generation in focus. One of them, in particular, is nuclear energy.

Energy Fuels is a uranium mining company. This month it has been putting together deals with several companies to expand and streamline operations. Its deal with Neo Performance Materials launched commercial shipments of rare earth products to Europe. Energy Fuels also inked a deal with International Consolidated Uranium (OTC:CURUF) to sell a portfolio of uranium projects in Utah and Colorado to International Consolidated Uranium. This deal is expected to help bring CURUF into the fold as a new uranium mining “player” in the US.

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In light of these latest deals, it’s also important to note what Wall Street thinks about Energy Fuels. Analysts at Noble Financial, for instance, have given an Outperform rating as well as a $9 price target. Based on the recent closing prices for UUUU stock, that is a target 85% higher as of July 20th.

best penny stocks to buy Energy Fuels UUUU stock chart

Penny Stocks To Buy [According To HC Wainwright]: Hut 8 Mining Corp. (NASDAQ:HUT)

Another one of the penny stocks analysts say to buy is Hut 8 Mining. As a crypto-centric company, you’ll often see cryptocurrency mining companies ebb and flow with the broader pricing of things like Bitcoin and Ethereum. Initially listed on the Toronto exchange, Hut 8 received Nasdaq listing approval this past June. In line with the crypto market, HUT stock has seen its share of volatility. This week, however, saw its first green day in 5 trading sessions. Thanks to a bit of a rebound in Bitcoin, several crypto names have seen a turnaround.

Hut 8 has focused on building out its mining footprint. The recent deal with SuperAcme Technology, a Hong Kong company, adds another 12,000 mining rigs to its arsenal. What’s more, is that delivery of these machines is expected by the end of this month. According to Hut 8, it expects its average production to jump from 6.5-7 Bitcoin per day to 14-16 per day.

Right now, analysts at H.C. Wainwright have high hopes for the cryptocurrency mining company. The firm issued a $14CAD target, around $11 US, and currently has a Buy on the penny stock. Based on its latest closing price, H.C.’s target is 184% higher right now.

best penny stocks to buy Hut 8 Mining HUT stock chart

Penny Stocks To Buy [According To Colliers Securities]: Chembio Diagnostics Inc. (NASDAQ:CEMI)

Last year several stand-out biotechnology penny stocks soared hundreds of percentage points. This was mainly due to speculation on things like coronavirus treatment and testing. I mention this because CEMI stock was one of these and saw its shares rally from around $2.25 to highs of nearly $16. Obviously, it has come back down since then. But the latest round of headlines has sparked some reinterest in the company.

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This week Chembio announced receipt of a $28.3 million order for its COVID-19 antigen test kits from Brazil’s Bio-Manguinhos. The tests deliver results in 20 minutes after using a nasal swab to collect samples. With this, CEMI stock surged during premarket trading on July 21st. What’s more, is that analysts at Colliers Securities also have high hopes for Chembio. The firm has previously issued an $8 price target on the penny stock along with its Buy rating. Considering CEMI closed the July 20th session at $2.06, that target is 288% high than current levels right now.

But…and there’s a but here…keep the company’s filings in mind. Big moves are great, but when companies raise capital, it can put a damper on things depending on the price that the money is raised at. A few days ago, the company filed for an at-the-market offering for up to $60 million. No pricing was disclosed in that 8-K filing. So no matter what analysts are saying, keep this in mind if CEMI is on your list of penny stocks to watch right now.

best penny stocks to buy Chembio Diagnostics CEMI stock chart

Are Penny Stocks Worth it?

While analysts may be bullish on certain penny stocks, the final decision is up to you. Whether you agree and end up buying or disagree and avoid the trade entirely, it’s your money. Knowing the potential reward as well as the risks presented is obviously important. Given the latest, are these on your list of penny stocks to buy right now or avoid entirely?

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