In the song “The Gambler” by Kenny Rogers, he sings about how every hand in gambling can be a winner or a loser. This concept applies to investing in the stock market as well. Finding success in the stock market requires finding the right balance between risk and reward.
One area of the stock market that offers high potential returns for the risk involved is penny stocks, which are stocks priced at $5 or less. These stocks have a low cost of entry, making them appealing to investors looking for high returns. However, with the potential for substantial gains also comes increased risk.
Before investing in penny stocks, it is important to do your due diligence as not all penny stocks are destined for success. Analysts recommend researching and understanding the potential risks and rewards of these investments.
Two penny stocks that have received positive feedback from Baird analysts are Leap Therapeutics and another unnamed company. Both stocks have a “Strong Buy” analyst consensus and offer over 500% upside potential.
Leap Therapeutics is a clinical-stage biopharmaceutical company focused on developing new treatments for various cancers. Their leading candidate, DKN-01, is a monoclonal antibody designed to target specific proteins in certain types of cancers. The company has shown promising results in clinical trials, with potential applications in a range of cancer types.
Baird analyst Joel Beatty believes that Leap Therapeutics has significant potential for growth, with a Buy rating and a price target of $20. This represents a potential upside of 1,438%. The stock has also received positive feedback from other analysts, with a Strong Buy consensus rating and an average price target of $15.67, offering a potential upside of 1,143%.
In conclusion, investing in penny stocks can be a high-risk, high-reward strategy. It is important to conduct thorough research and consider the potential risks before making any investment decisions. Remember that every investment carries both the potential for success and the risk of failure.