In this article, we discuss the 10 best penny stocks to buy in July. If you want to see only the absolute top penny stocks to buy this month, check out 5 Best Penny Stocks to Buy in July.
Penny stocks are priced under $5 and often represent high-risk public companies that do offer exponential growth potential. Penny stocks attract retail investors to the stock market, as they get to dabble in cheap securities that can rally with time and sometimes go viral due to positive catalysts. These catalysts can include, but are not limited to, mergers with larger players in the industry, government contracts and subsidies, lucrative initial public offerings, regulatory approvals for products or patents, and more.
While novice investors sometimes prefer penny stocks due to their lack of extensive funds, others find these stocks to be attractive buying opportunities in their own right, as they know that some of the major market players like Amazon.com, Inc. (NASDAQ:AMZN), Advanced Micro Devices, Inc. (NASDAQ:AMD), and Ford Motor Company (NYSE:F) began trading as penny stocks, only to reach legacy status.
Amazon.com, Inc. (NASDAQ:AMZN) was listed on the NASDAQ in May 1997, priced at $1.50. Fast forward 25 years and the company has a market cap of more than $1 trillion and is one of the most influential market names worldwide. Similarly, in 2014, Advanced Micro Devices, Inc. (NASDAQ:AMD) traded at $3 per share and today is one of the most prominent semiconductor players. Advanced Micro Devices, Inc. (NASDAQ:AMD) stock is priced at $75.60 as of July 12, with the company’s market capitalization standing at over $122 billion. Additionally, Ford Motor Company (NYSE:F), one of the most notable American automakers, traded under $2 per unit as recently as 2009. Today, the stock has rebounded above $10 per share, pushing the company’s market value to more than $45 billion.
Our Methodology
To compile a list of the 10 best penny stocks to buy in July, we assessed companies with upcoming growth catalysts, optimistic analyst ratings, and positive hedge fund sentiment. These stocks could potentially explode on the back of their growth catalysts or rising market demand.
Insider Monkey tracks the holdings of over 900 elite hedge funds as of Q1 2022. At Insider Monkey, we believe that imitating the stock picking strategies of prominent hedge funds is a wise move, since they conduct extensive due diligence and hire brilliant teams to form and manage their portfolios.
Best Penny Stocks to Buy in July
10. Agile Therapeutics, Inc. (NASDAQ:AGRX)
Number of Hedge Fund Holders: 6
Share Price as of July 11: $0.6921
Agile Therapeutics, Inc. (NASDAQ:AGRX) was incorporated in 1997 and is headquartered in Princeton, New Jersey. It operates as a women’s healthcare company, selling prescription contraceptive products in the United States. Its most well known product is Twirla, also known as AG200-15. Priced at $0.6921, Agile Therapeutics, Inc. (NASDAQ:AGRX) is one of the best penny stocks to consider.
On July 11, H.C. Wainwright analyst Oren Livnat doubled the price target on Agile Therapeutics, Inc. (NASDAQ:AGRX) to $5 from $2.50 and reaffirmed a ‘Buy’ rating on the shares. According to the analyst, Agile Therapeutics, Inc. (NASDAQ:AGRX)’s Twirla, a one of its kind low-dose transdermal hormonal contraceptive, should result in “tailwinds galvanized by the overturning of ROE”. The analyst forecasts “significant growth” in new non-retail channels given Agile Therapeutics, Inc. (NASDAQ:AGRX)’s partnership with Afaxys, its diversified specialty pharmacy network, and the Biden administration ensuring compliance with the Affordable Care Act, which allows women no-cost access to contraceptives of their choice.
According to Insider Monkey’s data, 6 hedge funds were bullish on Agile Therapeutics, Inc. (NASDAQ:AGRX) at the end of the first quarter of 2022, with collective stakes exceeding $6 million, compared to 5 funds in the prior quarter, holding stakes in the company valued at $12 million. D E Shaw is a prominent shareholder of the company, with 2.19 million shares worth $430,000.
Like Amazon.com, Inc. (NASDAQ:AMZN), Advanced Micro Devices, Inc. (NASDAQ:AMD), and Ford Motor Company (NYSE:F), Agile Therapeutics, Inc. (NASDAQ:AGRX) is one of the stocks on the radar of smart investors.
9. Lineage Cell Therapeutics, Inc. (NYSE:LCTX)
Number of Hedge Fund Holders: 6
Share Price as of July 11: $1.5700
Lineage Cell Therapeutics, Inc. (NYSE:LCTX) is a California-based clinical stage biotechnology company that uses novel cell therapies for degenerative diseases. The company is running clinical trials for age-related macular degeneration, acute spinal cord injuries, and non-small cell lung cancer. The company is also involved in the research and development of medical products for retinal diseases, neurological disorders, and oncology.
Riley analyst Mayank Mamtani initiated coverage of Lineage Cell Therapeutics, Inc. (NYSE:LCTX) on June 14 with a ‘Buy’ rating and a $4 price target. The analyst sees Lineage Cell Therapeutics, Inc. (NYSE:LCTX) as a “deep value play” in the cell therapy space and thinks the market undervalues its platform and product pipeline due to earlier programs that were mainly focused on therapeutic areas other than oncology. The analyst believes investors will perceive the stock more positively as the company achieves visibility into the later-stage development path for OpRegen, with its “compelling” Phase I/II geographic atrophy results that led to a “transformative” deal with Roche in December 2021.
Among the hedge funds tracked by Insider Monkey, 6 funds reported owning stakes in Lineage Cell Therapeutics, Inc. (NYSE:LCTX) as of the conclusion of the first quarter of 2022, collectively valued at $55.4 million. John Overdeck and David Siegel’s Two Sigma Advisors is a significant stakeholder of the company, with 615,766 shares valued at $948,000.
8. Celularity Inc. (NASDAQ:CELU)
Number of Hedge Fund Holders: 7
Share Price as of July 11: $4.0500
Celularity Inc. (NASDAQ:CELU) was established in 2016 and is headquartered in Florham Park, New Jersey. It is a clinical stage biotechnology company that operates through three segments – Cell Therapy, Degenerative Disease, and BioBanking. The company specializes in cell therapies for cancer, autoimmune, and infectious diseases. On June 27, Celularity Inc. (NASDAQ:CELU) was added to the Russell 3000 and the Russell 2000 Indexes.
H.C. Wainwright analyst Swayampakula Ramakanth initiated coverage of Celularity Inc. (NASDAQ:CELU) on June 22 with a ‘Buy’ rating and a $15 price target. The company has built Impact, a platform to develop multiple types of cell therapies, the analyst told investors in a bullish thesis. The analyst predicts Celularity Inc. (NASDAQ:CELU)’s cell therapy products will become commercialized in 2025 and reach approximately $1.4 billion in sales on a risk-adjusted basis by 2030.
According to the first quarter database of Insider Monkey, Celularity Inc. (NASDAQ:CELU) was part of 7 hedge funds’ portfolios, up from 5 funds in the earlier quarter. The collective hedge fund stakes owned in Q1 2022 increased to roughly $8 million from $2.26 million in the fourth quarter of 2021.
7. Elevation Oncology, Inc. (NASDAQ:ELEV)
Number of Hedge Fund Holders: 8
Share Price as of July 11: $1.4400
Elevation Oncology, Inc. (NASDAQ:ELEV) is a New York-based clinical stage biopharmaceutical company that focuses on therapies for cancer treatment in genomically defined patients in the United States. The company’s primary program is in the Phase II trial for managing and treating advanced solid tumors. On May 25, The U.S. Food and Drug Administration allowed fast track designation to Elevation Oncology, Inc. (NASDAQ:ELEV)’s seribantumab for advanced solid tumors that contain NRG1 gene fusions.
On May 6, Wedbush analyst Robert Driscoll reiterated an ‘Outperform’ rating on Elevation Oncology, Inc. (NASDAQ:ELEV) but lowered the price target on the stock to $15 from $21. The analyst observed that Elevation Oncology, Inc. (NASDAQ:ELEV) will present data at ASCO 2022 from about 10 patients from the Phase 2 registration-directed CRESTONE study that measures anti-HER3 antibody seribantumab in patients with NRG1-fusion tumors, which he thinks could lead to ongoing momentum for the study. He predicts a “high” success rate for CRESTONE, as he noted robust activity for seribantumab in preclinical NRG1-fusion models and sees clinical validation for the treatment.
Among the hedge funds tracked by Insider Monkey, Elevation Oncology, Inc. (NASDAQ:ELEV) was found in 8 public stock portfolios, with combined stakes worth $19.4 million. Mark Lampert’s Biotechnology Value Fund/BVF Inc featured as the leading shareholder in the company, with 2.3 million shares valued at $5.8 million.
6. OptiNose, Inc. (NASDAQ:OPTN)
Number of Hedge Fund Holders: 10
Share Price as of July 11: $3.8000
OptiNose, Inc. (NASDAQ:OPTN) is a Pennsylvania-based company engaged in the development and commercialization of products for patients diagnosed with ear, nose, and throat problems, as well as allergies. On July 8, OptiNose, Inc. (NASDAQ:OPTN) reported that a pooled analysis of two Phase 3 trials displayed that its nasal spray, Xhance, was better than Exhalation Delivery System placebo in chronic sinusitis patients.
On June 13, after OptiNose, Inc. (NASDAQ:OPTN) announced results from the second of two Phase 3 studies of Xhance in patients with chronic sinusitis, Piper Sandler analyst David Amsellem observed that due to the “positive” data, he thinks there is a “clear path” to label expansion. He maintained an ‘Overweight’ rating and a $4 price target on OptiNose, Inc. (NASDAQ:OPTN) shares.
According to Insider Monkey’s data, 10 hedge funds were bullish on OptiNose, Inc. (NASDAQ:OPTN) at the end of Q1 2022, with combined stakes worth $23.4 million, up from 8 funds in the preceding quarter, with stakes in the company valued at $10 million. Timothy P. Lynch’s Stonepine Capital is the largest shareholder of OptiNose, Inc. (NASDAQ:OPTN), with roughly 3 million shares worth $7.2 million.
In addition to Amazon.com, Inc. (NASDAQ:AMZN), Advanced Micro Devices, Inc. (NASDAQ:AMD), and Ford Motor Company (NYSE:F), elite hedge funds are piling into OptiNose, Inc. (NASDAQ:OPTN).
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Disclosure: None. 10 Best Penny Stocks to Buy in July is originally published on Insider Monkey.
