3 Penny Stocks To Buy Under $2 & Analysts Have Targets Up To 367% - Cellectar Biosciences (NASDAQ:CLRB)

Analysts Say These Are Penny Stocks To Buy; Do You Agree?

We talk a lot about penny stocks for obvious reasons. But do you know how to find the right stocks to buy? I’m sure that if you’re like most in the stock market today, you’re searching for volatility. We saw this become a strategy of many day traders in light of recent events with certain stocks like Express, GameStop, and even Bed, Bath, & Beyond. Needless to say, the name of the game is to find momentum.

But there’s an entirely different side of the coin for other traders. They aren’t looking to catch lightning in a bottle but rather find fundamental catalysts that could spark longer-term momentum. While the goals are the same, the research is different. These traders aren’t finding breakout and jumping right in. They’re finding momentum and figuring out what the root cause was and if it could be a sustainable catalyst. I know we’re talking about penny stocks, and many don’t go on to rally for days. But this is why these more fundamental traders take time to research.

One part of that research is seeing what Wall Street analysts have to say. While they aren’t the end-all, be-all, they do focus on fundamentals more than momentum. In this case, you’ve got your fundamental traders looking for insight. Are they always right? Absolutely not, but this is why analyst ratings are just one piece of the due diligence process. Keeping this in mind, here are 3 penny stocks that can be bought for under $2 with bullish ratings. Are analysts right about these, or should you avoid them entirely?

Penny Stocks To Buy Under $2 [According To Analysts]

Cellectar Biosciences Inc. CLRB
Ocugen, Inc. OCGN
9 Meters Biopharma Inc. NMTR

Cellectar Biosciences Inc.

Shares of Cellectar Biosciences has been in consolidation mode since the start of the year. This came shortly after CLRB stock made a monster run back in December. The initial selling pressure came after the company announced an upsized capital raise toward the end of 2020. Something to get familiar with, especially when it comes to biotech companies, is that they need money. Clinical trials and drug development doesn’t come cheap. But when the companies raise money at a discount to the market, traders usually don’t react favorably. In this case, that’s exactly what happened. Regardless of that, however, CLRB stock has shown some glimmers of hope this week.

Cellectar initiated a pivotal trial for its CLR 131 in Waldenstrom's macroglobulinemia this year. The pivotal trial is designed as a global, non-comparator, single-arm, expansion cohort of the currently ongoing Phase 2 CLOVER-1 study of CLR 131. It aligns with the feedback received from the FDA during a guidance meeting back in September 2020. The trial has been initiated at several US cancer centers and will roll out to more US and international sites early this year.

In addition to this, CLR 131 also received an orphan designation from the European Medicines Agency. That announcement came on Wednesday. James Caruso, president, and CEO of Cellectar, commented, "Receipt of European orphan drug designation provides Cellectar with significant regulatory benefits and further validates the clinical potential of CLR 131 in WM. In addition, the European orphan designation complements our U.S. orphan drug and U.S. fast track designations previously granted by the FDA."

Right now, Oppenheimer has a Buy on the stock. It also has a price target of $5.50, 208% higher than Thursday’s closing price.

Ocugen, Inc.

Ocugen is currently working on a COVID vaccine. Its partner, Bharat Biotech, generated plenty of attention. It received emergency use authorization for the COVID-19 drug, Covaxin, in India. Bharat will have 10 million doses of the vaccine available in February. Furthermore, the company said that around 200 million to 500 million doses of the vaccine would be the annual capacity to come online this year.

This is where we saw shares of OCGN stock jump big last year. Following up on this, Bharat said that it has safety data from 25,000 people for the vaccine and will have 10 million doses available by February. Furthermore, A Bharat executive said it would have 200-500 million doses at annual capacity.

Despite the last few weeks of consolidation, it didn’t come with high volume. This may suggest that the consolidation resulted from profit-taking in the market back to levels OCGN stock traded at just before the new year. Something else to note on a fundamental side is that the company has recently regained compliance with NASDAQ. Before this, it didn’t meet the minimum bid price requirement. There haven’t been any new headlines this week. However, momentum seems to have built up during Thursday’s aftermarket session. This may be something to keep in mind heading into the weekend.

Where do analysts stand on Ocugen? If you look at Roth Capital’s latest rating, the firm has a Buy on the stock.

9 Meters Biopharma Inc.

One of the companies we’ve discussed numerous times in the past is 9 Meters Biopharma. The company also recently regained compliance with Nasdaq. The company has been on our watch list since mid-August. At that time, NMTR stock was trading around $0.60, it ended up quickly breaking out to over $1, and after settling back around its 50 Day Moving average, it has been on the rise since. The penny stock spiked after 9 Meters released its Q2 results. Furthermore, insiders began buying shares of the company too.

The most recent focus of the company is on a potential COVID treatment, larazotide. Late last year, 9 Meters announced a collaboration with the European Biomedical Research Institute of Salerno (EBRIS). The goal is to advance onto a study in evaluating the safety and tolerability of larazotide when delivered to lung tissue in healthy volunteers. The two entered into a material transfer agreement for drug supply sufficient to initiate and complete a Phase 1 study in Australia this year.

“Given the accumulating body of evidence regarding larazotide and its effects on both epithelial and endothelial tight junctions, coupled with our knowledge on the effect of the drug in multiple lung models, we are pleased to help EBRIS pursue a pathway that could provide the foundation for potentially ameliorating acute respiratory complications in virally infected patients.”
Patrick H. Griffin, M.D., chief medical officer of 9 Meters Biopharma, Inc.

Given the fact that the virus continues to increase and mutate, related stocks have gained attention. Aftermarket on Thursday, NMTR shares also saw some increased activity, which could be in line with analysts’ outlook on the stock. For instance, Brookline Capital’s rating hasn’t changed since it issued it last year. The firm has a Buy on the stock and a $5 price target, 367% higher than the recent closing levels.

Biotech Penny Stocks

The thing to remember about biotech penny stocks is that speculation can become a driving force. Not only are these companies working on novel treatments, but the shifting tides of the industry itself have their own implications. Taking this into account, it’s important to have a good understanding of what’s being said by companies. Furthermore, it’s also worth monitoring any upcoming conferences or data read-outs as well. These can become catalysts of their own.

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