Best Penny Stocks to Buy? 3 With Big News Today

Top Penny Stocks to Watch With Important Announcements

With May well underway, penny stocks are very much still in focus. But, several industries are seeing more attention than others. Right now, this includes biotech stocks, blockchain stocks, and others. While penny stocks do trade off of fundamentals, usually speculative factors can have a greater impact. This is something that simply comes with the territory. 

Now, the large effect of speculation on certain penny stocks to buy, means that investors need to watch the market intently and regularly. While not all traders use a swing trading method, most tend to use short-term methods when trading penny stocks. This is due to their high volatility and large intraday price swings.

So, as May continues, there are a few trends to keep in mind. Right now, as mentioned above, many investors are focused on blockchain penny stocks. These are companies that could have exposure to the blockchain market in one way or another. While some mine cryptocurrency, others focus more on technology related to blockchain, or other aspects of the crypto world.

Additionally, we have to consider that the pandemic is ongoing. This means that there are a lot of unknowns about the present and the future. Considering all of this, let's take a look at three penny stocks to watch right now. 

3 Penny Stocks to Watch in May 2021

1. ConforMIS Inc. CFMS 
2. PolarityTE Inc. PTE
3. Harvest Health & Recreation Inc. HRVSF 

ConforMIS Inc. CFMS 

ConforMIS Inc. is a biotech company working in the field of medical technology. It sells its proprietary iFit Image-to-Implant technology platform. This allows for the development and manufacturing of joint replacement products.

These replacements can be highly personalized, resulting in vastly better outcomes for patients. Additionally, ConforMIS offers its iTotal CR knee replacement system. This system has shown high clinical efficacy and faster recovery times as opposed to traditional, off-the-shelf implants. 

On Monday, May 10th, big news struck when ConforMIS announced a 510(k) clearance for its Identify Imprint knee replacement system. This clearance from the FDA will allow the technology to be expanded to a wide range of orthopedic needs, allowing surgeons to offer it to their patients.

“Our Identity imprint knee system is a tremendous new addition to our product portfolio that leverages our technical innovations and date from tens of thousands of personalized implant designs. It is a terrific option for those surgeons who want more traditional intraoperative flexibility and faster product availability. We will be able to provide a patient-matched Identify Imprint system in 3 weeks versus the six weeks lead time for the iTotal Identify fully personalized system." 

Mark Augusti, CEO, and President of ConforMIS Inc.

Considering this exciting news, it looks like CFMS is one step closer to commercializing this product. Whether this makes it a penny stock to watch is up to you. 

PolarityTE Inc. PTE 

PolarityTE Inc. is a company that we've covered multiple times in the past few months. Up in the double-digit percentage points in pre-market on Monday, PTE made a big announcement early in the day. Before we get into it, let's go over what PolarityTE does.

While PTE is a biotech company, it works in the biomaterials sector. It utilizes the tissue of patients to produce small, healthy, autologous tissue. This can then be deployed into the body, where it grows as needed. The company states that it is used in the process of regenerative healing. 

It's always exciting when a biotech company announced progress. This could be on a trial or results of an FDA approval as seen with CFMS. On Monday, May 10th, PolarityTE announced that its diabetic foot ulcer trial met both primary and secondary endpoint goals. The trial, conducted with its SkinTE product, showed that 70% of patients had wound closure at 12 weeks. 

“We are incredibly pleased to report these topline data, which are consistent with the data we observed from the protocol-specified interim analysis that was recently published in the International Wound Journal. We want to thank the patients who participated in the trial….

Most of all, we are excited about the clinical outcomes and believe that these results speak to the immense clinical promise that SkinTE holds for patients suffering from the significant unmet needs associated with chronic wounds." 

Nikolai Sopko MD, Ph.D., The Chief Medical Officer at PolarityTE

While this is only an early trial, it is without a doubt exciting news for the company and investors alike. There is still a long way to go before this product can be commercialized. However, the studies continue to show high positivity. With this in mind, will PTE be on your penny stock watchlist?

Harvest Health & Recreation Inc. HRVSF

One of the largest announcements of the day comes from the marijuana penny stock and multi-state operator (MSO), Harvest Health. Harvest is a vertically integrated MSO, based in Arizona, and with operations spanning the country. The company produces, manufactures, and sells its marijuana products throughout its stores as well as other retailers. 

On Monday, big news came when Trulieve Cannabis Corp. TCNNF announced it would be acquiring Harvest Health for $2.1 billion. This is effectively the largest U.S. cannabis transaction in the history of the industry.

And if that's not enough, this deal will create the most profitable multi-state operator in the U.S. Yes, this is a lot of firsts for investors to consider. However, given the massive growth rate of the cannabis industry, it makes sense that this acquisition would happen. 

Between the two, the consensus for 2021 revenue comes in at around $1.2 billion. And, the pair will hosted a conference call at 8:30 AM EST to discuss the transaction. This deal will allow Trulieve to move into key states including Florida, Pennsylvania, and Maryland.

However, it will also have a greater reach in the southwest in states such as Arizona and others. With a total market size projection of $19.3 billion by 2025, there are a lot of opportunities for this new entity to capitalize upon. 

Kim Rivers, CEO of Trulieve stated that "Today's announcement is the largest and most exciting acquisition so far in our industry, creating the most profitable public multi-state operator." This is one of the most exciting announcements from the cannabis industry in months and could remain at top of mind for some time. Considering this, HRVSF stock could be worth watching. 

Will You Add These Penny Stocks to Your Watchlist?

With so many penny stocks to choose from, finding the best ones to watch can be difficult. However, using the most recent news to identify trends, can make your list of penny stocks competitive with even the best traders out there.

It’s not enough however to simply find penny stocks based on news. Rather, utilizing research and trends will always be the best way to ensure a higher chance of profitability. With this in mind, will you add these penny stocks to your watchlist?