3 Penny Stocks To Watch This Week; 2 With 100%+ Price Targets

Penny Stocks To Watch Right Now

Those who’ve traded penny stocks for years understand that not every trade will be a home-run. But that’s ok because when it comes to these cheap stocks, a base hit tends to be a 20% move or more. Considering the recent market trends, volatility is definitely a big point of contention right now. You either know how to trade with it or you try to avoid it. I think it’s safe to say if you’re looking for penny stocks to buy, you have some idea of how to navigate some explosive moves.

This week, those skills should come in handy. With record coronavirus cases triggering a broad market sell-off, there’ve been penny stocks that produced big gains early in Monday’s session. However, many of them have come back down, trading lower during the second half of the day.

Tight stops and a trading strategy to help you stay in winning trades longer while cutting losers quickly are key right now. We’ve talked about the tier trading method to accomplish something like this (click here for more on tier trading). I won’t get into the history of tier trading. But the idea is to build upon a winner and only take a loss on a small portion of capital.

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Something else driving markets lower are continuing concerns over the pending stimulus to pass. Lawmakers remain at odds as to the scope of the proposed stimulus. Meanwhile, we’re about a week away from the U.S. voting on who they want to hold the Presidency for the next 4 years. All of this is contributing to the uptick in market volatility and with that, there are opportunities to capitalize. Are these on your list of penny stocks right now?

Penny Stocks To Watch: Opko Health Inc. (NASDAQ:OPK)

Opko Health Inc. (OPK Stock Report) is among the few penny stocks actually holding its gains into the afternoon session on Monday. This week the company is set to report earnings on the 29th. While the move wasn’t a huge jump, OPK stock has extended a now 3-day uptrend.

Last week, OPKO’s BioReference Laboratories launched a new multiplex COVID-19 and influenza test. With the rise in coronavirus cases and the proposal of more testing in the latest blueprint of a stimulus bill, companies that have some exposure to testing could be in focus. As such, BioReference has been offering these tests to healthcare providers and clinicians.

Keep in mind that BioReference previously began testing New York City schools with an initiative in September. All of this is great for Opko but what will it mean for this next round of earnings? In its Q2 results, OPKO beat sales estimates. Furthermore, EPS came in at $0.05 compared to a loss of 10 cents last year. All of this helped boost confidence in analysts as well. Right now Piper Sandler has a price target of $10; more than 100% higher than the current market price of OPK shares

penny stocks to watch OPKO Health Inc. (OPK stock chart)Penny Stocks To Watch: 9F Inc. (NASDAQ:JFU)

We saw a surge in Chinese penny stocks last week, many of which were in the energy sector. However, this week, there’s been a bit more of a focus on certain financial names in the market. I’m not talking about your traditional bank or credit card company. The focus has shifted to cryptocurrency. Last week bitcoin got another boost thanks to news that PayPal was granted a conditional Bitlicense by the New York State Department of Financial Services allowing the company to launch a new crypto service.

In light of this, and other headlines, of course, crypto stocks have gotten a bit more play this week. 9F Inc. (JFU Stock Report) is among this list of penny stocks to watch. The company offers a digital financial account platform. Late last year, the company launched 9F Superbrain. It integrates artificial intelligence, cloud, and blockchain technologies. The platform provides its financial institution partners and merchant partners with a customized modularized service package.

It’s important to keep in mind that the crypto boom isn’t all about Bitcoin prices or new alt coins. Blockchain technology is the backbone of digital currencies. Companies deploying this technology are using it in a number of ways. In 9F’s case, it has deployed this on a commercial scale to help clients track and account for transactional information.

There’ve also been discussions among top banks on the impact of blockchain on traditional financial institutions. Former hedge fund manager and CoinShares executive chairman, Daniel Masters recently weighed in on this in an interview with Forbes. He said that central bank digital currencies could effectively end the need for commercial banks, in general. Whether that will impact fintech companies like 9F or not is to be seen. But it is something to note if you’re looking for crypto and blockchain stocks.

penny stocks to watch 9F Inc. (JFU stock chart)Penny Stocks To Watch: IT Tech Packaging Inc. (NYSE: ITP)

IT Tech Packaging Inc. (ITP Stock Chart) is another one of the penny stocks on the rise on Monday. There weren’t any new headlines from the company but as was discussed, China-based companies and their shares have gained much more attention recently. IT Tech manufactures and distributes paper products in North China.

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A lot of the recent focus has centered on the company’s last update in September. IT Tech announced advancing negotiation with one of its top 5 customers for orders of paper products. The customer is currently ranked among the top 5 customers of the Company during the past couple of years. IT Tech said that definitive new contracts are expected to be signed by the end of the year.

“Based on its increasing clients’ demand, the customer will continue to increase its purchase orders from the Company.”

Analysts have remained bullish on ITP. Right now, BMO Capital Markets has a price target 1,900% higher than the current retail price. The firm has a Outperform rating on the stock with a $15 price target.

penny stocks to watch IT Tech Packaging Inc. (ITP stock chart)
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