We recently put together a list of the top 10 penny stocks to buy for under $1. In this article, we will focus on Forte Biosciences, Inc. (NASDAQ:FBRX) and how it compares to other penny stocks in the same price range.
Penny stocks are stocks that trade for less than $5 per share, according to the Securities and Exchange Commission (SEC). They are known for their high price volatility due to their low pricing, which means even a small change in the stock price can result in a significant percentage gain. However, it’s important to note that penny stocks come with risks. A study by the SEC found that most penny stocks are speculative and have low liquidity, making them challenging to trade. Only a small percentage of penny stocks go on to become profitable mid-cap or large-cap businesses. Therefore, investing in penny stocks requires a careful evaluation of the risks and potential rewards.
Certain industries, such as renewable energy and biotech, are expected to experience growth in 2024 due to technological advancements, regulatory changes, and shifting consumer preferences. The renewable energy sector, for example, has seen significant growth in recent years, with the global industry estimated to be worth $1.21 trillion in 2023. The biotechnology industry is also expected to grow, with a predicted market value of around $4.25 trillion by 2033.
Forte Biosciences, Inc. (NASDAQ:FBRX) is a clinical-stage biopharmaceutical company focused on autoimmune and related diseases. The company is developing the FB-102 program to treat conditions like vitiligo and alopecia areata. Despite its promising focus, Forte Biosciences has faced challenges, including a significant drop in its stock price and market capitalization following the failure of its key product, FB-401, in clinical trials. The company’s financial situation is also a concern, with a negative net income and a need for substantial funding to develop its early-stage product, FB-102.
Despite these challenges, Forte Biosciences has shown some positive signs, including successful completion of the SAD component of the FB102 phase 1 study. Analysts have given FBRX a “strong buy” rating, with an average price target of $3.38, representing a significant upside potential from its current price of $0.53. Hedge funds have also shown interest in the company, with 8 hedge funds making investments in FBRX in Q1 2024.
Overall, Forte Biosciences ranks 9th on our list of the best penny stocks to buy under $1. While FBRX shows promise as an investment, we believe that certain AI stocks may offer greater potential for higher returns in a shorter time frame. If you’re interested in exploring other penny stocks on hedge funds’ radar, you can check out our list of the top 10 penny stocks to buy under $1.