Finding returns is the point of investing, it’s the path to profits and prosperity. But how to get there – that’s the question investors need to answer. One common strategy – and one that offers plenty of promise for investors who don’t mind shouldering the extra risk – is to go after penny stocks.
Traditionally seen as stocks priced for just pennies per share, these equities are now defined as those with a share price of $5 or less. For the tough-minded investors, these low-cost stocks present a combination of risk/reward that few other investment instruments can match.
The risk here stems from the same factor that fuels the potential gains. At the low share price of the ‘pennies,’ even an increase of a few cents can quickly turn into large-scale returns, sometimes on the order of a triple-digit gain. At the same time, should the stock fall, the low price will magnify the losses.
So, how are investors supposed to determine which penny stocks are poised to make it big? By taking a cue from the analyst community. These experts bring in-depth knowledge of the industries they cover and substantial experience to the table.
With this in mind, we used TipRanks’ database to zero in on only the penny stocks that have received bullish support from the analyst community. We found two that are backed by enough analysts to earn a “Strong Buy” consensus rating. Not to mention each offers investors an upside potential of over 300% in the coming months. Let’s take a closer look.
Medicenna Therapeutics (MDNA)
We’ll start with Medicenna Therapeutics, a clinical-stage biopharma company using directed evolution/genetic engineering techniques to develop a new class of interleukins, Superkines, to ‘modulate, fine-tune, or amplify the immune system’ in order to make it more effective against challenging diseases with unmet medical needs.
The company’s research platform, as noted, is based on interleukins, a class of cytokines, cellular messenger molecules that help to regulate the immune system. These messengers are specific to various functions, and are…