Do you have $1,500 you’d like to use to try investing in penny stocks? Some investments in the category can yield outsized gains. But you need to be aware of the risks too.
The truth is that penny stocks typically represent small, new, or underdeveloped companies that have a relatively high failure rate. Over 90% of these companies will fail to reach mid- or large-cap status. On the other hand, when you invest early in one that does grow to become a high-value stock, you could earn quite a bit of money.
So, what penny stocks could be worth the risk right now? Find a few that I’m watching below:
Key Points:
- Penny stocks are risky. However, if you make the right penny stock investments early on, you have the potential to produce significant returns.
- PMV Pharma is a penny stock that’s working to improve outcome for patients with dibilitating cancers.
- Boundless Bio is working on highly targeted cancer therapeutics that could address some of the world’s most aggressive forms of cancer.
- Spero Therapeutics is developing treatments for bacterial diseases that leave patients with few options and are known for poor medical outcomes.
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PMV Pharma Hopes to Bring Cancer Therapeutics to Market
PMV Pharma (Nasdaq: PMVP) is a clinical-stage biotechnology company that’s focused on the development of oncology products. That means the company is developing therapeutics for patients with cancer. In particular, the company is developing small molecule treatments designed for precision. So the company’s candidates are designed to specifically target genetic mutations associated with cancer.
The company’s science has come a long way too. In fact, PMV Pharma has two ongoing clinical trials centered around its flagship candidate, rezatapopt. The first is a Phase 1 trial in which the company is assessing the impact of rezatapopt in combination with pembrolizumab. The second is a Phase 2 clinical trial focused on the clinical efficacy of rezatapopt alone.
Any positive data from either of these trials could prove to be a positive catalyst for the stock. Moreover, the company has an ongoing preclinical program focused on an undisclosed therapeutic.
So, what do analysts think? The stock has four Buy ratings, one Outperform rating, and one Hold rating. Additionally, the median price target of $5.50 suggests the stock could climb by more than 3X over the next year or so.
Boundless Bio Is Taking a Novel Approach to Cancer Therapeutics
Boundless Bio (Nasdaq: BOLD) is another clinical-stage biotechnology company focused on the development of cancer therapeutics. However, the company is taking a unique approach to these therapeutics.
Boundless Bio found that more than 25% of cancers have what’s known as oncogene amplifications. That means that a specific type of gene mutation amplifies the impact of cancer on the patient, leading to poor medical outcomes. Boundless Bio aims to change that.
The company has two ongoing Phase 1/2 clinical trials. One is specifically focused on oncogene-amplified cancers; the other is centered around MAPK pathway activated cancers. The company also has a program in the discovery phase with an undisclosed target indication.
Analysts have a positive opinion of the stock, too. Of the three who have weighed in, two rate the stock a Buy and one rates it an Outperform. However, the most impressive part of analyst opinions is the median price target, which currently stands at $20 per share. Not bad for a stock that currently trades under $5 per share.
Spero Therapeutics Aims to Address Drug Resistant Infections
Spero Therapeutics (Nasdaq: SPRO) is a clinical-stage biotechnology company. However, unlike those above, this company is focused on the development of treatments of mutli-drug resistant bacterial infections. In particular, the company is focused on indications in which there are few approved therapeutic options, like Nontuberculous Mycobacterial pulmonary disease.
The company currently has three ongoing clinical trials. One of those trials is in Phase 3, which means it could be moving into commercialization if the trial goes well. Nonetheless, any positive data out of any of these trials can send the stock up.
Analysts have a positive opinion of the stock too. It currently has three Buy ratings and one Outperform rating. There are no Hold or lower ratings on the stock. Moreover, the median price target of $7.50 leaves plenty of room for price growth.
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