Many investors struggle with investing in penny stocks because they are unsure of what to look for. Penny stocks are often companies in the early stages of development, with financials that are still improving. Some penny stocks may remain at low prices until there is a significant breakthrough, especially in industries like biotech.
Despite the risks, investing in penny stocks can offer the potential for high returns due to their low share prices. However, these stocks are also prone to market manipulation, making them volatile investments. To find good penny stock opportunities, investors can look for improving financials or analyze public sentiment around a company’s developments.
Some past penny stock success stories include Amazon, AMD, and Tesla. Here are three penny stocks worth considering:
1. Nerdy (NRDY): Nerdy is a company that specializes in developing and commercializing cancer therapies. Financial analysts predict a price range for Nerdy between $4.50 and $10, with a mean of $6.07. While Nerdy’s financials have improved, the company is not yet profitable. However, the recent FDA approval for their treatment RYTELO has generated hype around the stock.
2. Geron (GERN): Geron has shown substantial improvement in its financials, with revenue up 1,347% year-over-year. The company recently gained FDA approval for RYTELO, a treatment for myelodysplastic syndrome. With multiple cutting-edge developments in the pipeline, Geron is a highly recommended penny stock.
Investing in penny stocks can be risky, especially with low-volume stocks. It’s important to do thorough research and understand the potential risks before investing in these types of stocks.