Are These Penny Stocks on Your Watchlist Right Now?
Finding penny stocks that gained during premarket is a great way to get ahead before the trading day. And while some penny stocks that explode during premarket trading will continue these runs throughout the day, others may see a market-open correction. To understand which is more likely to occur, we can take a look at the broader market and what it is doing.
Right now, U.S. stock futures are pushing up ahead of the open with the S&P 500 and Dow both nearing all-time highs. Additionally, the most recent jobless claims report came out, with 198,000 reported. This represents the lowest level since 1969, which is no small feat. Notwithstanding all of this positivity, we do still have to consider the effects of the pandemic and the Omicron variant. While this variant is more understood now than it was a month ago, the skyrocketing case numbers are still cause for concern.
Despite this, the variant has shown itself to be less severe than previous variants, which is undoubtedly good news. So, while we don’t know what will happen with either penny stocks or blue chips in the coming months, we do know that investors are hopeful for gains. Considering this, let’s take a look at three penny stocks that pushed up during premarket trading today.
3 Penny Stocks to Watch With Big Premarket Gains
Reliance Global Group Inc. (NASDAQ: RELI)
At $7.48 per share during premarket following a 19% gain, RELI stock is no longer a penny stock. However, just a few days ago, shares were trading at under $5. For that reason, it’s worth looking into to see just why RELI stock is climbing so heavily right now. In the past month period, shares of RELI stock have shot up by a staggering 196%.
While it’s difficult to say just why Reliance Global is moving, we can look at some recent announcements and the insurance industry as a whole. Only a few weeks ago, the company announced the launch of its 5MinuteInsure.com product in 8 additional states, bringing the total to 20-states in the U.S.
“We have added another 8 states to the 5MinuteInsure.com platform, and are now commercially available a total of 20-states across the U.S., with a combined population of over 100 million people. We are extremely pleased with the pace of the nationwide rollout of 5MinuteInsure.com and I’d like to personally thank our team and advisors, who have helped us achieve these major milestones.”
The CEO of Reliance Group, Ezra Beyma
This is big news for the company and could help to explain why it is growing right now. To take advantage of these major gains, RELI also recently priced a $20 million private placement with institutional investors. Considering all of this, is RELI stock worth adding to your list of penny stocks to watch?
Kiora Pharmaceuticals Inc. (NASDAQ: KPRX)
Another sizable premarket gainer today is Kiora Pharmaceuticals, pushing up by over 15% during early morning trading. Despite a 75% drop in the last six months, it looks like we are witnessing a small bullish turnaround for the biotech penny stock. Similar to RELI, there is no announcement today that is driving this big gain.
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For that reason, we can assert that it is mostly speculative and that KPRX stock could be trending online. However, it did make an announcement around two weeks ago that is worth looking into. On December 14th, the company announced that its KIO-101 compound showed high safety and tolerability in a Phase 2 study for those with dry eye disease.
“These early signs of a drug-related effect on clinical outcomes are encouraging and support KIO-101’s continued development for patients with ocular surface inflammation associated with dry eye disease.”
The Chief Development Officer of Kiora, Eric J. Daniels
In addition to this, Kiora has several compounds in its clinical pipeline right now including KIO-201, which is used in wound healing and KIO-301 for those with inherited or age-related retinal degeneration. So, although KPRX stock’s recent performance is nothing to write home about, do you think that shares are taking a bullish turn? Whether or not this is the case, it looks like KPRX stock could be an interesting addition to your penny stocks watchlist.
Aridis Pharmaceuticals Inc. (NASDAQ: ARDS)
Up by around 7% in premarket trading are shares of ARDS stock. Unlike the others on this list, there are a few clear reasons why shares of ARDS stock are pushing up right now. Last week, the company announced that its AR-701 drug is highly reactive against Covid-19 and its variants.
This includes the Omicron variant, which many believed could need new drugs due to its variety of mutations. AR-701 is an antibody cocktail of sorts that has brought a sizable amount of attention to the company in the past few weeks. And in line with this, H.C. Wainwright put a bullish price target of $19 on ARDS shares. Additionally, analyst group Cantor Fitzgerald, recently stated that Aridis’ pipeline is “underappreciated.”
While analyst comments are nothing to live or die by, they are worth considering for investors. And, these comments seem to be less speculative and more about the potential that Aridis has moving forward. With Covid cases continuing to increase right now, there is a major focus on any company relating to the pandemic. Considering that, is ARDS stock worth buying or not?
Are Penny Stocks Worth Buying Right Now?
If you’re looking for the best penny stocks to buy in 2022, there are plenty of options to choose from. With the new year only a few days away, investors are hopeful that 2022 could present more opportunities for gains than 2021.
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But, there are still quite a lot of unknowns including the pandemic, inflation, and other economic mishaps. This means that the high volatility we’re seeing right now, is likely to continue into the future. Considering all of this, do you think that penny stocks are worth buying right now or not?
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