2 Penny Stocks That Are Expected to Grow

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With all that’s been going on since the beginning of the pandemic, the state of the stock market is very unstable. This lack of stability has led to panic among some investors, while others perceive market volatility as a great buying opportunity.

In such conditions, people often buy penny stocks (stocks that are trading for less than $5), because if there’s even a small share price appreciation, the investors will get hefty profits.

So, how can we choose good penny stocks? Read on to find out about two promising stocks.

1. Xeris Pharmaceuticals (XERS)

Xeris Pharmaceuticals is based on an innovative technology platform that offers solutions for injectable and infusible therapies that simplify the process. Despite a serious sell-off at the end of June (at one point there was a loss coming in at 49%), its new $2.59 share price allows investors to go ahead and purchase these promising shares.

Analyst David Amsellem believes that XERS is underestimated as their innovative technologies are going to help adult patients with type 1 diabetes. Their cross-over study with 18 adult participants has proven that there was a 62% decrease in hyperglycemia in subcutaneous injections (SC) of XP-3924 (XERS innovation) comparing to injections of insulin alone. This gives the analytics and investors hope that the company’s future is going to be marked by rapid growth.

In the future Amsellem expects the company to look for a development partner in order to enhance the production capabilities of XERS and overall business growth. Amsellem thinks it’ll bring the shares to $11 price target (it’s 326% growth!), and other experts (from TipRanks, for example) agree.

2. Avinger (AVGR)

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Avinger is a company that designs medical devices for diagnosis and treatment of patients with Peripheral Artery Disease (PAD). The current price is only $0.29 apiece, which makes it a very promising investment.

Nathan Weinstein from Aegis Capital thinks that the company’s recent capital raise due to equity financing combined with their efforts to cut operating costs has significantly strengthened its position despite the challenges AVGR had to face due to coronavirus. The analyst believes that eventually there will be a return to normalcy in both patient volumes and ordering activity.

Weinstein’s optimistic outlook implies a $1.40 price target, which is essentially a twelve-month gain of 368% compared to the current levels. It’s important to note that his opinion is shared by others, judging by the information from TipRanks.

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