In this article, we will discuss the 10 best penny stocks to buy and hold according to Reddit. If you want to skip our discussion on the earnings potential of penny stocks, go directly to 5 Best Penny Stocks to Buy and Hold According to Reddit.
Penny stocks are subject to fewer regulations for the publication of financial results since they are traded on the loosely regulated over-the-counter markets. However, the lack of regulation has not deterred investors from exploring these stocks. According to figures from the Financial Industry Regulatory Authority, OTC transactions grew more than 2000% from 2020 to 1.9 trillion in April 2021.
To control manipulation in the OTC markets, the SEC introduced several regulations last year. The regulations were intended to ensure that investors find it challenging to trade stock of OTC enterprises that have discontinued disclosing their financial information or have “gone dark.” Thus, it would be more difficult for con artists to exploit these stocks in scams that target new investors.
Some of the most famous companies today started off as penny stocks. At one point in the 2000s, Apple Inc. (NASDAQ:AAPL) also traded in the penny stock range. As of July 29, Apple Inc. (NASDAQ:AAPL) trades at $156 and has returned thousands of percentage points to investors since its initial public offering. Similarly, Advanced Micro Devices (NASDAQ:AMD) has also risen from $2 per share in 2015 to $90 per share. Furthermore, from trading at around $0.60 in 2001, Medifast Inc. (NYSE:MED) touched an all-time high of $332 in May 2021. The return of over 10,000% is reflective of the potential earning capacity of penny stocks. Such gains entice many individual investors to turn to them.
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Our Methodology
We sifted through notable subreddits like r/pennystocks and r/wallstreetbets to find the best investment ideas, according to Redditors in the penny stock universe. Users on Reddit are bullish on these stocks due to their long-term growth prospects. The stocks included in this list have a stock price of under $5 as of July 29.
Best Penny Stocks to Buy and Hold According to Reddit
10. United Maritime Corporation (NASDAQ:USEA)
Stock Price as of July 29: $1.980
United Maritime Corporation (NASDAQ:USEA) is a Greece-based international shipping corporation that went public in early July. The entity specializes in seaborne transportation services, and its fleet consists of four tanker vessels and one dry bulk vessel. The dry bulk is already contracted and is generating a contract fee of $11,000 to $35,000 per day.
Since the start of the COVID-19 pandemic, shipping companies have been under pressure due to supply chain bottlenecks and increased freight costs. With the world regaining a sense of normalcy, Redditors expect United Maritime Corporation (NASDAQ:USEA) to have a strong run. The users believe the stock will bottom near $1.72 and $1.85, after which it will rise owing to positive catalysts lined up in the future. OPEC+ is said to be working on increasing oil output to counter the rising crude oil prices, which would benefit a company like United Maritime Corporation (NASDAQ:USEA).
Following the secondary offering of eight million shares on July 18, the total outstanding shares of United Maritime Corporation (NASDAQ:USEA) have increased to 9.5 million shares. The stock reflects a strong daily average trading volume of 15.1 million shares.
CVI Investments, Inc. and Intracoastal Capital LLC are two notable institutional investors in United Maritime Corporation (NASDAQ:USEA), with a combined holding of nearly one million shares.
9. Verb Technology Company, Inc. (NASDAQ:VERB)
Number of Hedge Fund Holders: 1
Stock Price as of July 29: $0.630
Verb Technology Company, Inc. (NASDAQ:VERB) is a Lehi, Utah-based provider of software as a service (SaaS) interactive video-based sales applications as a call-to-action CRM solution to corporations. The software aids in transforming the relationship of a business with its customers. Verb Technology Company, Inc.’s (NASDAQ:VERB) offerings are available in five dozen countries and more than 48 languages.
Verb Technology Company, Inc. (NASDAQ:VERB) recently launched its 24/7 social shopping and live streaming platform known as MARKET through a three-day live streaming shopping event. Famous rapper and entrepreneur Nelly, Mark Cuban’s 3Commas, and the America Ninja Warrior were some of the participants during the launch event. The company had lined up more than 40 vendors and 300 brands for this event and targeted sales of more than $1 billion. Verb Technology Company, Inc. (NASDAQ:VERB) intends to keep 30% of the revenue as commission for the sales made through MARKET. The platform can be accessed through notable social media platforms like Instagram, Facebook, and TikTok.
Users on Reddit have expressed their confidence in Verb Technology Company, Inc.’s (NASDAQ:VERB) growth prospects, keeping in view the company’s historical performance. Verb Technology Company, Inc. (NASDAQ:VERB) saw its SaaS subscriptions rise by 33.6% from 2020 to 2021. Furthermore, the revenue rose by 5.6% during the last year.
Verb Technology Company, Inc. (NASDAQ:VERB) was held by one hedge fund at the end of Q1 2022.
8. Immix Biopharma, Inc. (NASDAQ:IMMX)
Number of Hedge Fund Holders: 2
Stock Price as of July 29: $2.38
Immix Biopharma, Inc. (NASDAQ:IMMX) is a Los Angeles, California-based biotech company that has developed a patented tissue-specific therapeutics (TSTx) targeting oncology and immune-dysregulated ailments. Immix Biopharma, Inc. (NASDAQ:IMMX) went public in January 2022.
Redditors believe that Immix Biopharma, Inc. (NASDAQ:IMMX) stock offers a significant upside if its proprietary drug IMX-110 receives approval from the Food and Drug Administration (FDA). According to industry experts, the drug is performing strongly in the trials of Johnson & Johnson’s chemotherapy medication for the treatment of soft-cell carcinoma and ovarian cancer Yondelis. One cycle of IMX-110 resulted in a survival rate of 75% as compared to no survival when Yondelis was used in the treatment of soft tissue sarcoma mice study. It must be noted that IMX-110 has already received a rare pediatric disease designation (RPDD). This means that after approval for marketing, Immix Biopharma, Inc. (NASDAQ:IMMX) will be eligible to receive a prior review voucher (PRV) for the expedition of FDA review. The value of the voucher can be between $67 million to $350 million.
Of the 912 hedge funds in Insider Monkey’s database, two funds held a stake in Immix Biopharma, Inc. (NASDAQ:IMMX) as of Q1 2022.
7. Evofem Biosciences, Inc. (NASDAQ:EVFM)
Number of Hedge Fund Holders: 4
Stock Price as of July 29: $0.740
Evofem Biosciences, Inc. (NASDAQ:EVFM) is a San Diego, California-based biotech company focusing on women’s sexual health.
Evofem Biosciences, Inc. (NASDAQ:EVFM) has chlamydia and gonorrhea prevention treatment in the Phase 3 trial and is expected to file for regulatory approval in Q1 2023. The Phase 3 trial is likely to be conducted at the end of July; the outcome will be released two to three months after analysis. If approved, the drug will be the first prescribed product for the treatment of chlamydia and gonorrhea.
Evofem Biosciences, Inc. (NASDAQ:EVFM) is also testing a product from Orion biotech along with Phexxi, a non-hormone contraceptive, for the prevention of HIV. The study is currently in Phase 1 human trial after showing positive results in the form of a complete block of transmission in the nonhuman primate model. If the combination works, it will be the first prescribed birth control treatment that would block sexually transmitted infections (STIs) and put the women in control of achieving it. Yale Jen at Laidlaw also appeared bullish on Phexxi’s future as he gave Evofem Biosciences, Inc. (NASDAQ:EVFM) stock a Buy rating with a price target of $3.50 in February. The analyst expects Evofem Biosciences, Inc. (NASDAQ:EVFM) to see a significant rise in revenue in 2022.
Redditors expect Evofem Biosciences, Inc. (NASDAQ:EVFM) to post strong Q2 results on June 30, continuing the positive trend from the year’s first quarter. In Q1 2022, Evofem Biosciences, Inc. (NASDAQ:EVFM) posted net sales of $4.3 million, reflecting an increase of 300% from Q1 2021. Furthermore, Evofem Biosciences, Inc. (NASDAQ:EVFM) recorded a 19% decline in its operating expenses.
Citadel Investment Group increased its stake in Evofem Biosciences, Inc. (NASDAQ:EVFM) by 1005% during Q1 2022.
6. electroCore, Inc. (NASDAQ:ECOR)
Number of Hedge Fund Holders: 4
Stock Price as of July 29: $0.579
electroCore, Inc. (NASDAQ:ECOR) is a Rockaway, New Jersey-based medical technology corporation founded in 2005. The company has developed an FDA-approved non-invasive vagus nerve stimulation (nVNS) therapy for the treatment of multiple neurology and metabolic conditions.
electroCore, Inc. (NASDAQ:ECOR) is set to announce its Q2 2022 results on August 4. The company is expected to report revenue of $2.1 million as opposed to the consensus estimate of $2 million. The revenue estimate reflects the growth of over 65% from $1.269 million during the same quarter last year. Furthermore, electroCore, Inc. (NASDAQ:ECOR) anticipates recognizing revenue of nearly $1.2 million from the Department of Defence (DoD) and Department of Veteran Affairs (VA) against the sale of the company’s gammaCore products. The company reported that 106 DoD and VA facilities bought gammaCore products during the second quarter of the year.
electroCore, Inc. (NASDAQ:ECOR) has also announced that the renowned Rochester, Minnesota-based Mayo Clinic is starting a study with 20 subjects to study the effectiveness of gammaCore Sapphire for patients suffering from long COVID. Keeping in view the products and trials the company has in the pipeline, Redditors are looking at electroCore, Inc. (NASDAQ:ECOR) as a solid stock to buy and hold. Investors expect to generate decent gains from the stock in the foreseeable future.
Penny stocks are attracting a lot of attention in the current economic scenario as investors look for ways to earn solid returns. Stocks such as Apple Inc. (NASDAQ:AAPL), Advanced Micro Devices (NASDAQ:AMD), and Medifast Inc. (NYSE:MED) have also risen from the penny stock range in the past to generate robust earnings for investors.
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Disclose. None. 10 Best Penny Stocks to Buy and Hold According to Reddit is originally published on Insider Monkey.
