Finding cheap stocks to buy doesn’t have to be complicated. Discovering new trends and opportunities early. Just look at the surging stocks this week like Virpax Pharma (NASDAQ: VRPX) and SGOCO Group, Ltd. (NASDAQ: SGOC). Both took off flying with little to no warning as day traders scrambled to grab onto early momentum. While this may have benefited high-frequency traders, others retail investors have taken a different approach to the stock market. Instead of looking for quick momentum, they’ll focus more on fundamentals to base their trading decisions on.Penny Stocks To Buy According To Analysts
In many cases, analysts can be an excellent resource for gaining insight into certain companies and adding that information into your own D.D. (due diligence) process. Assuming that you already know how to trade penny stocks, we’ll jump right into the fine details of certain stocks to watch. This article takes a deeper look at 5 cheap stocks with buy ratings from analysts. These penny stocks also have bullish price targets, with some targets more than 300% higher than current prices right now. After reading through, you can decide if they’re worth adding to your watch list or not.1. Tellurian Inc. (NASDAQ: TELL)
This is a unique company that’s part of the mix of energy penny stocks. Tellurian (NASDAQ: TELL) provides liquified natural gas (LNG) to a global client base. One of the important things to note right now is how LNG can play a role in the bigger picture of transitioning to the “green energy future” that some countries have planned. This type of fuel source is seen as a “bridge fuel” of sorts. Many expect it to reduce short-term greenhouse gas by replacing other energy sources like coal or traditional crude as green energy infrastructure is being built.Recent TELL Stock News
Earlier this month, the company closed a $100.7 million offering that will be used for corporate purposes, including possible acquisitions of upstream assets. In addition, Tellurian has secured key LNG sales & purchase contracts with Shell NA LNG LLC, Gunvor Singapore Pte Ltd, and Vitol Inc. With an optimistic outlook on this part of the energy industry, new deals in place & fresh capital in hand, TELL stock could be one to watch heading into the rest of the year.Analyst Outlook
There are many Wall Street analysts covering TELL stock right now. However, the most recent to weigh in with a Buy rating was B. Riley. The firm initiated coverage on the LNG company setting an initial price target of $8. Based on current trading levels below $3, that target suggests analysts expect an upside of 175% or more. Do you agree with that TELL stock forecast?2. AcelRx Pharmaceuticals (NASDAQ: ACRX)
Just because stocks are cheap, that doesn’t mean analysts ignore them. AcelRx Pharmaceuticals (NASDAQ: ACRX), for instance, is trading barely above $1, but some analysts expect much more from the biotech stock. The company is developing pain management treatments for patients in supervised healthcare settings. Its lead candidate, DSUVIA, also known as DZUVEO in Europe, is indicated for patients suffering from acute pain that’s severe enough to require an opioid analgesic.Recent ACRX Stock News
Like other companies this time of year, AcelRx has just reported its second-quarter earnings results. Though sales missed estimates, earnings per share came in line with expectations at a loss per share of 8 cents. The more significant focus based on management commentary is recent milestones and the outlook of DSUVIA/DZUVEO. Part of the interest stemmed from a 117% increase in DSUVIA Q2 sales compared to the previous quarter’s figures.
Vince Angotti, CEO of AcelRx, explained, “Our continued commitment to supporting investigator-initiated trials to generate additional DSUVIA real-world data should further add to healthcare provider awareness of the advantages of DSUVIA. Finally, business development remains a key priority, and completing the DZUVEO® agreement with an exceptional partner in Europe and expanding our portfolio in the U.S. with two complementary innovative product candidates should drive incremental value to AcelRx.”
What’s more, AcelRx’s agreements with Laboratoire Aguettant give a licensing pathway for DZUVEO commercialization opportunities in Europe. According to the company, AcelRx could receive upwards of $55 million in up-front and sales-based milestone payments.Analyst Outlook
The most recent analyst to weigh in with a Buy rating on ACRX stock is HC Wainwright. The firm’s Ed Arce currently carries a $5 target. Compared to the current trading price, it is more than 330% higher right now.3. Jaguar Health Inc. (NASDAQ: JAGX)
Another one of the cheap stocks on this list is Jaguar Health Inc. (NASDAQ: JAGX). The company is developing a suite of plant-based, non-opioid medicines for G.I. distress. In particular, its Mytesi (crofelemer) product is approved by the FDA for symptomatic relief of noninfectious diarrhea in those with HIV/AIDS on antiretroviral therapy.Recent JAGX Stock News
This week the company announced the completion of a new preclinical toxicology study designed to support more development of its NP-300 (lechlemer) platform. This is actually derived from Mytesi and is being studied for symptomatic relief of diarrhea from cholera and other diseases. So far, the company says that finding support its Investigational New Drug application that its wholly-owned sub, Napo Pharmaceuticals, plans to file in the first half of next year.
Lisa Conte, Jaguar’s president, and CEO stated, “We believe lechlemer, which has a similar mechanism of action to crofelemer and is significantly less costly to produce, may prove beneficial initially for treating neglected diseases and conditions such as diarrhea from acute enteric infections – and may eventually prove beneficial for patients with other types of gastrointestinal disorders.”Analyst Outlook
New analyst coverage can indicate pent-up interest in companies. In this case, Cantor Fitzgerald started coverage on Jaguar earlier this quarter with an Overweight rating. The firm’s Louise Chen also gave a $5 price target. Chen explained that Mytesi represents a “pipeline in a product” having possible benefits in multipole G.I. disorders. Based on current market pricing, that target is over 320% higher right now.4. ReShape Lifesciences (NASDAQ: RSLS)
Sticking with this trend in biotech penny stocks, ReShape Lifesciences (NASDAQ: RSLS) has recently attracted attention from the analyst community. The company’s medical device platform is designed to treat patients with obesity and metabolic diseases. Its FDA-approved Lap-Band® Program is minimally invasive and made as a long-term treatment of obesity. It’s also an alternative to other procedures such as gastric bypass or sleeve gastrectomy. The ReShape Vest™ System is currently being studied outside the U.S. as a minimally invasive laparoscopically implanted device that wraps around the stomach. It’s supposed to mimic the gastric volume reduction effect of more invasive weight-loss surgeries.Recent RSLS Stock News
This week ReShape reported its latest round of earnings results. Among its achievements was the successful combination with Obalon Therapeutics and transitioning its Lap-Band manufacturing to a US-based manufacturing facility. Revenue came in at $3.5 million for the quarter, which was more than double that of the same period in the previous year. Gross profit also came in 162% higher year-over-year.
In response to the strong results, CEO Bart Bandy said, “During this period, we completed our highly anticipated merger with Obalon Therapeutics, increased visibility in the financial markets by listing on the Nasdaq, and bolstered our diverse product portfolio with the launch of our online wellness hub, ReShape MarketPlace. In addition, we restructured our balance sheet, closing a $46 million funding round which has now enabled our team to focus on further growth initiatives within the weight loss industry.”Analyst Outlook
Of course, with such strong growth, investors may look to analysts for a reaction. The most recent Buy rating comes from Alliance Global Partners and is paired with a price target of $13.75. While this target was dropped from its previous $18.50 target, it’s still over 270% higher than the current retail levels in the stock market today.22nd Century Group, Inc. (NASDAQ: XXII)
Shares of 22nd Century Group, Inc. (NASDAQ: XXII) have been steadily climbing over the last eight months. The company focuses entirely on developing two distinct product sets. First, its low-nicotine tobacco plants have become the center of attention any time new legislation comes up about smoking cessation. Second, its work in manipulating the level of cannabinoids in hemp and cannabis plants through gene editing has given it exposure to budding discussions about marijuana stocks. Since the beginning of the year, XXII is up more than 50%, and the latest uptick in excitement has the market focused on an upcoming presentation this week.Recent XXII Stock News
This week could be an interesting one for 22nd Century. The company is set to present at the SNN Network Investor Conference on August 19th (Thursday). CEO James Mish is expected to discuss the company and its platforms during the afternoon session of the conference. One of the core initiatives that management has focused on recently is gaining FDA authorization for its VLN (Very Low Nicotine) modified risk tobacco products. In a recent press release, Mish explained that “we believe that our application has completed the scientific review process and is in the documentation process.”
The company also expressed its excitement in potentially launching and monetizing its hemp/cannabis lines, with initial revenue expected to begin during the second half of this year.Analyst Outlook
As far as analysts are concerned, ratings are in agreement with Buy or equivalents. The most recent to weigh in is Cowen. The firm initiated coverage earlier this quarter with an Outperform rating as well as a $5 target.Can You Make Money With Penny Stocks?
Regardless of what the masses may presume, you can make money with penny stocks. Though analysts may be bullish or bearish, it’s ultimately up to you to decide if something shows potential. Looking at things like financials, recent news, and, yes, analyst commentary can help you put together an initial thesis to build from.