Are you looking for penny stocks to buy right now? You’re not alone, and, in fact, some of the hottest names in the stock market today are these cheap stocks under $5. With the Biden Administration’s stance on small-business, the thought track among analysts is that smaller companies could flourish. Whether or not this comes to fruition by the end of Biden’s term is to be seen. However, what we do notice is that small-cap ETFs are red hot right now.
Just look at the broader market ETFs like the SPY and QQQ and compared them to something like the Russell 2000 Small-Cap ETF (NYSE: IWM). While all have reached new all-time highs this week, one stands out for its overall performance for the year so far. The SPY is up around 4.5%, with the QQQ up slightly higher at 6.4% for the year. If you look at the IWM, though, you’ll see something a bit more exciting.
From the opening bell on January 4th to its all-time high on February 10th, the IWM ETF has climbed 16.3% this year. That’s more than the QQQ and SPY combined. What’s more, is that momentum hasn’t wavered either. We’ve seen this type of action relatively consistent over the last few months, even before the new year.
So it stands to reason that analysts are growing more bullish on small-cap stocks right now. Not all of these are considered penny stocks, though. But for this article, we’re going to only focus on a few hot stocks under $5. Will they be the best ones to buy in February? According to 4 analysts, they seem very bullish as of their latest ratings. Do you agree?Hot Penny Stocks To Buy [According To Analysts]
- Drive Shack Inc. (NYSE: DS)
- Allied Esports (NASDAQ: AESE)
- Cinedigm Corp. (NASDAQ: CIDM)
- Corbus Pharmaceuticals Holdings (NASDAQ: CRBP)
- AzurRX BioPharma (NASDAQ: AZRX)
Drive Shack has long been on our list of penny stocks to watch. Whether it was in conversations about entertainment stocks or others about epicenter penny stocks, DS has continued gaining interest from investors. What’s more, analysts have also grown bullish on the stock. B. Riley’s last rating was a Buy, and it put a $5.50 price target on Drive Shack. Considering that shares are still trading below $2.80, that puts the DS stock forecast price nearly 100% higher as of this week.
If you’re unfamiliar with the company, Drive Shack operates a portfolio of golf-centric entertainment businesses. This includes the original Drive Shack (similar to a Top Golf for those familiar). It also has plans to roll out its new Puttery venues this year. Drive Shack partnered with famed golfer Rory McIlroy to market the new brand and plans on breaking ground in Dallas this summer for its first location.
Late last month, the company announced a $50 million offering. While shares dropped in the short term, things have quickly rebounded recently. The funds have been earmarked for corporate purposes, including the planned development of five of seven Puttery venues in 2021.Allied Esports
One of the hot tickets of 2020 and 2021 have been virtual gaming. With the entire world seeming shut down last year, one of the leading sports to weather that storm was Esports. As far as Allied is concerned, the company just sold off its World Poker Tour asset to Element Partners for just over $78 million. That deal is expected to be closed up in the very near-term. Allied is also looking at strategic options for the Esports business. This includes a possible sale.
While this may be the case right now, it doesn’t seem like Allied is shying away from the “main stage,” so to speak. The company just renewed its exclusive naming rights agreement for Allied Esports’ global flagship property, HyperX Esports Arena Las Vegas. Located at Luxor Hotel and Casino on the Las Vegas Strip, it’s been designed as a global destination for esports fans. Whatever the outcome of this “strategic” approach to its current business model is to be seen.
But what we can say is that right now, analysts appear bullish on the stock. As of its last rating, Stephens has Allied at “Overweight,” and the firm set a $4 target on the penny stock.Cinedigm Corp.
Cinedigm Corp. is another one of the tech/entertainment stocks to watch this year. Actually, since early November, CIDM stock has been in an upward trend. Thanks to digital entertainment taking a front seat during the pandemic, companies like Cinedigm have outperformed. In fact, during the period from November 2nd right through this week, CIDM stock has climbed as much as 375%.
The key point of focus for the company has been expanding its streaming services offerings. This includes the launch of Whistle TV streaming on Roku and MyTime Movie Network, in addition to acquiring over 1,000 hours of film and TV programming. The company also managed to significantly reduce its debt burden while even prepaying certain outstanding obligations related to specific principle, interest, fees, and expenses under its second lien loan deal this week. Furthermore, the company announced that its content distribution partnership with Rockbot allows it to distribute Cinedigm’s channels to 20 million monthly viewers.
Benchmark analysts are currently bullish on the stock as well. The firm’s last updated rating was a Buy. It also set a price target of $3.50.Corbus Pharmaceuticals Holdings
There are two penny stocks with bullish ratings from H.C. Wainwright. The first on this list is Corbus Pharmaceuticals Holdings. It was one of the marijuana penny stocks we discussed earlier this week. Similar to CIDM, CRBP stock has been in a strong uptrend since early November. This period has seen the stock rally from around 90 cents to highs of $3.60 this week. Volume has also played a noticeable role in that time as well. The stock saw its highest, second-highest, and third-highest trading volume days in over a year within the last week.
With the Jazz Pharmaceuticals buyout of GW Pharma, biotech marijuana stocks are in the spotlight. Corbus Pharmaceuticals develops treatments targeting the endocannabinoid system. Corbus is looking to shorten its fully-enrolled Phase 3 dermatomyositis trial to 28 weeks from 52 weeks. Data is now expected as early as the second quarter of this year. So this could be something to look at in the shorter term. Other than that, the company hasn’t reported many new developments.
H.C. Wainwright currently has a Buy on the stock with a $3 price target. Thanks to the momentum in pot stocks this week, CRBP shares have surpassed that level already.AzurRX BioPharma
Shares of AzurRX have maintained the higher levels that the stock had reached this week. Tuesday, the penny stock gapped up big on news that AzurRX engaged PPD, Inc. (NASDAQ: PPD) for its planned Phase 2 clinical trial evaluating a proprietary formulation of micronized niclosamide as a treatment for COVID-19-associated gastrointestinal infections. PPD is a global contract research organization.
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Daniel Burch, M.D., Senior Vice President and Global Head of PPD® Biotech, stated, “PPD is pleased to support AzurRx’s efforts to bring relief to patients suffering from COVID-19-related GI infections. We recognize the breakthrough nature of AzurRx’s work with FW-1022 and look forward to applying our capabilities and expertise to the development of FW-1022, beginning with the planned Phase 2 clinical trial.”
H.C. Wainwright lifted its price target on AZRX stock this week from $2 to $3.50. It also reiterated its Buy rating on the stock.